AVERY DENNISON CORP (AVY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AVY - US0536111091 - Common Stock
188.38 USD
+0.65 (+0.35%)
188.38 USD
0 (0%)
Taking everything into account, AVY scores 6 out of 10 in our fundamental rating. AVY was compared to 22 industry peers in the Containers & Packaging industry. While AVY has a great profitability rating, there are some minor concerns on its financial health. AVY has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- AVY had positive earnings in the past year.
- AVY had a positive operating cash flow in the past year.
- Each year in the past 5 years AVY has been profitable.
- Each year in the past 5 years AVY had a positive operating cash flow.
1.2 Ratios
- AVY's Return On Assets of 7.84% is amongst the best of the industry. AVY outperforms 90.91% of its industry peers.
- With an excellent Return On Equity value of 31.46%, AVY belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
- AVY has a better Return On Invested Capital (13.51%) than 100.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AVY is significantly above the industry average of 7.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.84% | ||
| ROE | 31.46% | ||
| ROIC | 13.51% |
ROA(3y)8.01%
ROA(5y)8.49%
ROE(3y)30.46%
ROE(5y)33.45%
ROIC(3y)14.25%
ROIC(5y)14.29%
1.3 Margins
- The Profit Margin of AVY (7.93%) is better than 81.82% of its industry peers.
- AVY's Profit Margin has improved in the last couple of years.
- The Operating Margin of AVY (12.80%) is better than 81.82% of its industry peers.
- In the last couple of years the Operating Margin of AVY has grown nicely.
- The Gross Margin of AVY (28.56%) is better than 72.73% of its industry peers.
- In the last couple of years the Gross Margin of AVY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.8% | ||
| PM (TTM) | 7.93% | ||
| GM | 28.56% |
OM growth 3Y0.21%
OM growth 5Y1.72%
PM growth 3Y-2.93%
PM growth 5Y13.39%
GM growth 3Y1.67%
GM growth 5Y1.42%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AVY is still creating some value.
- AVY has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, AVY has less shares outstanding
- AVY has a better debt/assets ratio than last year.
2.2 Solvency
- AVY has an Altman-Z score of 3.69. This indicates that AVY is financially healthy and has little risk of bankruptcy at the moment.
- AVY has a better Altman-Z score (3.69) than 86.36% of its industry peers.
- The Debt to FCF ratio of AVY is 5.79, which is a neutral value as it means it would take AVY, 5.79 years of fcf income to pay off all of its debts.
- AVY has a better Debt to FCF ratio (5.79) than 86.36% of its industry peers.
- A Debt/Equity ratio of 1.45 is on the high side and indicates that AVY has dependencies on debt financing.
- AVY has a Debt to Equity ratio of 1.45. This is in the lower half of the industry: AVY underperforms 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 3.69 |
ROIC/WACC1.63
WACC8.27%
2.3 Liquidity
- AVY has a Current Ratio of 1.26. This is a normal value and indicates that AVY is financially healthy and should not expect problems in meeting its short term obligations.
- AVY's Current ratio of 1.26 is on the low side compared to the rest of the industry. AVY is outperformed by 68.18% of its industry peers.
- A Quick Ratio of 0.89 indicates that AVY may have some problems paying its short term obligations.
- With a Quick ratio value of 0.89, AVY perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
- AVY shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.87%.
- AVY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.41% yearly.
- Looking at the last year, AVY shows a small growth in Revenue. The Revenue has grown by 1.03% in the last year.
- The Revenue has been growing slightly by 4.37% on average over the past years.
EPS 1Y (TTM)-1.87%
EPS 3Y1.83%
EPS 5Y7.41%
EPS Q2Q%1.72%
Revenue 1Y (TTM)1.03%
Revenue growth 3Y1.36%
Revenue growth 5Y4.37%
Sales Q2Q%1.47%
3.2 Future
- AVY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.39% yearly.
- AVY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.99% yearly.
EPS Next Y1.82%
EPS Next 2Y5.97%
EPS Next 3Y7.48%
EPS Next 5Y7.39%
Revenue Next Year1.37%
Revenue Next 2Y2.81%
Revenue Next 3Y3.11%
Revenue Next 5Y3.99%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- AVY is valuated rather expensively with a Price/Earnings ratio of 19.89.
- The rest of the industry has a similar Price/Earnings ratio as AVY.
- When comparing the Price/Earnings ratio of AVY to the average of the S&P500 Index (27.33), we can say AVY is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 17.81, AVY is valued on the expensive side.
- AVY's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.12, AVY is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.89 | ||
| Fwd PE | 17.81 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as AVY.
- Based on the Price/Free Cash Flow ratio, AVY is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.31 | ||
| EV/EBITDA | 12.27 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of AVY may justify a higher PE ratio.
PEG (NY)10.93
PEG (5Y)2.69
EPS Next 2Y5.97%
EPS Next 3Y7.48%
5. Dividend
5.1 Amount
- AVY has a Yearly Dividend Yield of 2.02%.
- AVY's Dividend Yield is comparable with the industry average which is at 2.39.
- AVY's Dividend Yield is comparable with the S&P500 average which is at 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
5.2 History
- The dividend of AVY is nicely growing with an annual growth rate of 14.44%!
- AVY has been paying a dividend for at least 10 years, so it has a reliable track record.
- AVY has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.44%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
- 41.17% of the earnings are spent on dividend by AVY. This is a bit on the high side, but may be sustainable.
- The dividend of AVY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.17%
EPS Next 2Y5.97%
EPS Next 3Y7.48%
188.38
+0.65 (+0.35%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)10-22 2025-10-22/bmo
Earnings (Next)02-04 2026-02-04/amc
Inst Owners96.71%
Inst Owner Change0.11%
Ins Owners0.64%
Ins Owner Change0%
Market Cap14.56B
Revenue(TTM)8.77B
Net Income(TTM)695.60M
Analysts77.78
Price Target203.81 (8.19%)
Short Float %2.83%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
Yearly Dividend3.46
Dividend Growth(5Y)14.44%
DP41.17%
Div Incr Years14
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.48%
Min EPS beat(2)0.07%
Max EPS beat(2)0.9%
EPS beat(4)2
Avg EPS beat(4)-0.42%
Min EPS beat(4)-1.77%
Max EPS beat(4)0.9%
EPS beat(8)5
Avg EPS beat(8)3.53%
EPS beat(12)6
Avg EPS beat(12)0.42%
EPS beat(16)8
Avg EPS beat(16)1.45%
Revenue beat(2)0
Avg Revenue beat(2)-1.6%
Min Revenue beat(2)-1.96%
Max Revenue beat(2)-1.23%
Revenue beat(4)0
Avg Revenue beat(4)-1.33%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)-0.95%
Revenue beat(8)1
Avg Revenue beat(8)-0.86%
Revenue beat(12)1
Avg Revenue beat(12)-2.39%
Revenue beat(16)3
Avg Revenue beat(16)-1.61%
PT rev (1m)0%
PT rev (3m)1.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.89 | ||
| Fwd PE | 17.81 | ||
| P/S | 1.66 | ||
| P/FCF | 22.31 | ||
| P/OCF | 17.02 | ||
| P/B | 6.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.27 |
EPS(TTM)9.47
EY5.03%
EPS(NY)10.58
Fwd EY5.62%
FCF(TTM)8.44
FCFY4.48%
OCF(TTM)11.07
OCFY5.88%
SpS113.45
BVpS28.6
TBVpS-6.64
PEG (NY)10.93
PEG (5Y)2.69
Graham Number78.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.84% | ||
| ROE | 31.46% | ||
| ROCE | 18.46% | ||
| ROIC | 13.51% | ||
| ROICexc | 14.94% | ||
| ROICexgc | 29.62% | ||
| OM | 12.8% | ||
| PM (TTM) | 7.93% | ||
| GM | 28.56% | ||
| FCFM | 7.44% |
ROA(3y)8.01%
ROA(5y)8.49%
ROE(3y)30.46%
ROE(5y)33.45%
ROIC(3y)14.25%
ROIC(5y)14.29%
ROICexc(3y)14.91%
ROICexc(5y)14.95%
ROICexgc(3y)33.61%
ROICexgc(5y)31.22%
ROCE(3y)19.49%
ROCE(5y)19.77%
ROICexgc growth 3Y5.53%
ROICexgc growth 5Y1.48%
ROICexc growth 3Y3.87%
ROICexc growth 5Y-4.31%
OM growth 3Y0.21%
OM growth 5Y1.72%
PM growth 3Y-2.93%
PM growth 5Y13.39%
GM growth 3Y1.67%
GM growth 5Y1.42%
F-Score5
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 5.79 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 63.32% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.3% | ||
| Profit Quality | 93.82% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 3.69 |
F-Score5
WACC8.27%
ROIC/WACC1.63
Cap/Depr(3y)91.68%
Cap/Depr(5y)98.6%
Cap/Sales(3y)3.15%
Cap/Sales(5y)3.16%
Profit Quality(3y)98.07%
Profit Quality(5y)98.94%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.87%
EPS 3Y1.83%
EPS 5Y7.41%
EPS Q2Q%1.72%
EPS Next Y1.82%
EPS Next 2Y5.97%
EPS Next 3Y7.48%
EPS Next 5Y7.39%
Revenue 1Y (TTM)1.03%
Revenue growth 3Y1.36%
Revenue growth 5Y4.37%
Sales Q2Q%1.47%
Revenue Next Year1.37%
Revenue Next 2Y2.81%
Revenue Next 3Y3.11%
Revenue Next 5Y3.99%
EBIT growth 1Y1.61%
EBIT growth 3Y1.58%
EBIT growth 5Y6.16%
EBIT Next Year28.58%
EBIT Next 3Y13.08%
EBIT Next 5Y9.43%
FCF growth 1Y14.45%
FCF growth 3Y-3.37%
FCF growth 5Y7.39%
OCF growth 1Y-0.48%
OCF growth 3Y-3.56%
OCF growth 5Y4.69%
AVERY DENNISON CORP / AVY FAQ
What is the fundamental rating for AVY stock?
ChartMill assigns a fundamental rating of 6 / 10 to AVY.
Can you provide the valuation status for AVERY DENNISON CORP?
ChartMill assigns a valuation rating of 4 / 10 to AVERY DENNISON CORP (AVY). This can be considered as Fairly Valued.
Can you provide the profitability details for AVERY DENNISON CORP?
AVERY DENNISON CORP (AVY) has a profitability rating of 9 / 10.
What are the PE and PB ratios of AVERY DENNISON CORP (AVY) stock?
The Price/Earnings (PE) ratio for AVERY DENNISON CORP (AVY) is 19.89 and the Price/Book (PB) ratio is 6.59.
What is the expected EPS growth for AVERY DENNISON CORP (AVY) stock?
The Earnings per Share (EPS) of AVERY DENNISON CORP (AVY) is expected to grow by 1.82% in the next year.