Ardagh Metal Packaging S.A. (NYSE:AMBP) Plans Quarterly Dividend of $0.10

Key Points

• Ardagh Metal Packaging declared a quarterly dividend of $0.10 (annualized $0.40), implying a 10.1% yield and payable June 25 to shareholders of record on June 11.
• The dividend appears unsustainable from current earnings: the company reports a dividend payout ratio of 166.7% and analysts' forecasts imply a roughly 133% payout next year, indicating reliance on the balance sheet to fund distributions.
• Operationally, AMBP beat quarterly EPS estimates ($0.05 vs. $0.03) and revenue rose 18.6%, but profitability is weak (net margin 0.2%, ROE -37.4%); the stock trades near $3.95 with a consensus "Hold" rating and a $4.51 average price target.

Ardagh Metal Packaging S.A. (NYSE:AMBP - Get Free Report) declared a quarterly dividend on Thursday, April 23rd. Stockholders of record on Thursday, June 11th will be paid a dividend of 0.10 per share on Thursday, June 25th. This represents a c) dividend on an annualized basis and a dividend yield of 10.1%. The ex-dividend date is Thursday, June 11th.

Ardagh Metal Packaging has a dividend payout ratio of 166.7% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect Ardagh Metal Packaging to earn $0.30 per share next year, which means the company may not be able to cover its $0.40 annual dividend with an expected future payout ratio of 133.3%.

Ardagh Metal Packaging Price Performance

Shares of NYSE:AMBP traded up $0.10 during trading on Thursday, reaching $3.95. 1,723,777 shares of the company were exchanged, compared to its average volume of 1,428,840. The firm has a market capitalization of $2.36 billion, a PE ratio of -394.70, a P/E/G ratio of 1.08 and a beta of 0.62. The business's fifty day simple moving average is $4.32 and its 200-day simple moving average is $4.11. Ardagh Metal Packaging has a 12-month low of $2.93 and a 12-month high of $5.03.

Ardagh Metal Packaging (NYSE:AMBP - Get Free Report) last issued its earnings results on Thursday, April 23rd. The company reported $0.05 EPS for the quarter, topping analysts' consensus estimates of $0.03 by $0.02. Ardagh Metal Packaging had a net margin of 0.20% and a negative return on equity of 37.42%. The company's quarterly revenue was up 18.6% on a year-over-year basis. During the same quarter last year, the firm earned $0.02 EPS. On average, sell-side analysts anticipate that Ardagh Metal Packaging will post 0.24 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on AMBP. Morgan Stanley set a $4.30 price objective on shares of Ardagh Metal Packaging in a report on Thursday, January 8th. Truist Financial lifted their price objective on shares of Ardagh Metal Packaging from $4.00 to $5.00 and gave the company a "hold" rating in a report on Tuesday, January 6th. Wells Fargo & Company cut their price objective on shares of Ardagh Metal Packaging from $5.00 to $4.00 and set an "equal weight" rating on the stock in a report on Friday, March 20th. Weiss Ratings reissued a "hold (c)" rating on shares of Ardagh Metal Packaging in a report on Wednesday, January 21st. Finally, UBS Group cut their price objective on shares of Ardagh Metal Packaging from $4.75 to $4.25 and set a "neutral" rating on the stock in a report on Friday, April 10th. One equities research analyst has rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $4.51.

Ardagh Metal Packaging Company Profile

Ardagh Metal Packaging NYSE: AMBP is a global supplier of metal packaging solutions, specializing in the production of steel and aluminum beverage cans, food cans and ends. As a segment of the Ardagh Group, the company supports a broad range of food and beverage customers, including soft drink and craft beer producers, as well as food manufacturers requiring durable, recyclable packaging. Its product portfolio encompasses two‐piece and three‐piece cans, a variety of can ends and closures, and value‐added services such as custom lithography and decorating.

The company operates a network of manufacturing plants across North America and Europe, serving both regional and multinational clients.

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