AptarGroup, Inc. (ATR), Ball Corporation (BLL), Bemis Company, Inc. (BMS): Packaging Industry Investment Options

Bemis’ focus on emerging markets

Bemis Company, Inc. (NYSE:BMS) manufactures and sells pressure-sensitive materials and flexible packaging products in the Americas, Europe and Asia Pacific. This vertically integrated company has been a packaging leader since 1858. The company’s U.S. packaging and pressure-sensitive materials sales have increased in the last year, whereas its global packaging sales have decreased. The company’s revenue has also been declining. The decreasing revenue figures have also been reflected in the decreasing EBITDA and EPS figures of the company.

The company sees growth potential in the emerging markets. There has been an increase in the regulations regarding food safety and convenience in these countries. The retail growth in these countries has made shelf-stable packaging crucial to businesses. This is the reason why Bemis Company, Inc. (NYSE:BMS) has recently acquired a Chinese manufacturer of specialty plastic films, Foshan New Changsheng Plastics Films.

The company also sees an increase in demand from the  the modern bio-technology companies that require complex packaging solutions, giving birth to the smart packaging opportunities. With its new focus, the company’s net margins have improved considerably in the trailing-12 month period and with a P/E of 24.0.

The takeaway

The packaging industry has become a very dynamic industry with companies targeting specific packaging solutions. From the three companies analyzed, I believe AptarGroup, Inc. (NYSE:ATR) has the best profit potential, given low P/E and the savings arising from its cost-cutting measures.

The article Packaging Industry Investment Options originally appeared on Fool.com.

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