Morningstar Rating

Stock Research and Analysis

by Todd Wenning, CFA

Bulls Say

Bemis has the pricing power to pass increasing input costs on to the majority of its customers, thereby allowing it to maintain its flexible packaging margins.
Bemis' economies of scale and scope, paired with its high-valued packaging and materials expertise, create barriers to entry for competitors.
The sale of the noncore label business allows management to better focus on its moatworthy flexible packaging operations. Read more 

Bears Say

Bemis has significant exposure to Brazil, where economic growth has been slower than expected. Regional food inflation has hurt consumer demand for higher-margin packaged goods, where Bemis has the widest advantage over competitors.
Rising food prices that aren't fully offset by consumer wage growth will lead to lower volumes and negatively affect Bemis' margins.
The new CEO will be under pressure to make aggressive moves following years of slow growth and restructuring. This could lead to empire building. Read more 

Management

We award Bemis a Standard stewardship rating. In August, William F. Austen assumed the CEO role, with former CEO Henry Theisen shifting to an executive chairman role until the next annual meeting, when he'll retire. Austen has been with Bemis for 14   Read more 

Profile

Bemis manufactures flexible packaging primarily for the food and beverage industry, but also for the medical and consumer product industries. In the coming years, we expect   Read more 

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