AVERY DENNISON CORP (AVY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AVY - US0536111091 - Common Stock
181.22 USD
+0.19 (+0.1%)
181.22 USD
0 (0%)
Overall AVY gets a fundamental rating of 6 out of 10. We evaluated AVY against 22 industry peers in the Containers & Packaging industry. While AVY belongs to the best of the industry regarding profitability, 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
In the past year AVY was profitable.
AVY had a positive operating cash flow in the past year.
Each year in the past 5 years AVY has been profitable.
AVY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.84%, AVY belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
AVY has a better Return On Equity (31.46%) than 95.45% of its industry peers.
AVY has a Return On Invested Capital of 13.51%. This is amongst the best in the industry. AVY outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
AVY's Profit Margin of 7.93% is amongst the best of the industry. AVY outperforms 81.82% of its industry peers.
AVY's Profit Margin has improved in the last couple of years.
AVY has a better Operating Margin (12.80%) than 81.82% of its industry peers.
In the last couple of years the Operating Margin of AVY has grown nicely.
AVY has a better Gross Margin (28.56%) than 72.73% of its industry peers.
AVY's Gross Margin has been stable in the last couple of years.
| 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
AVY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, AVY has less shares outstanding
AVY has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AVY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.64 indicates that AVY is not in any danger for bankruptcy at the moment.
AVY has a Altman-Z score of 3.64. This is amongst the best in the industry. AVY outperforms 86.36% of its industry peers.
AVY has a debt to FCF ratio of 5.79. This is a neutral value as AVY would need 5.79 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 5.79, AVY belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
A Debt/Equity ratio of 1.45 is on the high side and indicates that AVY has dependencies on debt financing.
AVY's Debt to Equity ratio of 1.45 is on the low side compared to the rest of the industry. AVY is outperformed by 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 3.64 |
ROIC/WACC1.64
WACC8.21%
2.3 Liquidity
A Current Ratio of 1.26 indicates that AVY should not have too much problems paying 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.
The Quick ratio of AVY (0.89) is comparable to the rest of the 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%.
The Earnings Per Share has been growing slightly by 7.41% on average over the past years.
The Revenue has been growing slightly by 1.03% in the past year.
AVY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.37% yearly.
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
Based on estimates for the next years, AVY will show a small growth in Earnings Per Share. The EPS will grow by 7.39% on average per year.
Based on estimates for the next years, AVY will show a small growth in Revenue. The Revenue will grow by 3.99% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.14, which indicates a rather expensive current valuation of AVY.
AVY's Price/Earnings ratio is in line with the industry average.
AVY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.50.
Based on the Price/Forward Earnings ratio of 17.13, the valuation of AVY can be described as rather expensive.
AVY's Price/Forward Earnings ratio is in line with the industry average.
AVY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.93.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.14 | ||
| Fwd PE | 17.13 |
4.2 Price Multiples
63.64% of the companies in the same industry are cheaper than AVY, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AVY indicates a somewhat cheap valuation: AVY is cheaper than 68.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.47 | ||
| EV/EBITDA | 11.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AVY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)10.51
PEG (5Y)2.58
EPS Next 2Y5.97%
EPS Next 3Y7.48%
5. Dividend
5.1 Amount
AVY has a Yearly Dividend Yield of 2.05%.
Compared to an average industry Dividend Yield of 2.49, AVY has a dividend in line with its industry peers.
AVY's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
5.2 History
On average, the dividend of AVY grows each year by 14.44%, which is quite nice.
AVY has paid a dividend for at least 10 years, which is a reliable track record.
AVY has not decreased their dividend for at least 10 years, which is a reliable track record.
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%
181.22
+0.19 (+0.1%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners96.54%
Inst Owner Change-0.85%
Ins Owners0.64%
Ins Owner Change0%
Market Cap14.01B
Revenue(TTM)8.77B
Net Income(TTM)695.60M
Analysts77.78
Price TargetN/A
Short Float %2.11%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
Yearly Dividend3.46
Dividend Growth(5Y)14.44%
DP41.17%
Div Incr Years14
Div Non Decr Years14
Ex-Date
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)0.65%
PT rev (3m)1.65%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-2.2%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.56%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)1.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.14 | ||
| Fwd PE | 17.13 | ||
| P/S | 1.6 | ||
| P/FCF | 21.47 | ||
| P/OCF | 16.37 | ||
| P/B | 6.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.89 |
EPS(TTM)9.47
EY5.23%
EPS(NY)10.58
Fwd EY5.84%
FCF(TTM)8.44
FCFY4.66%
OCF(TTM)11.07
OCFY6.11%
SpS113.45
BVpS28.6
TBVpS-6.64
PEG (NY)10.51
PEG (5Y)2.58
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 | 3.64 |
F-Score5
WACC8.21%
ROIC/WACC1.64
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.
What is the valuation status for AVY stock?
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.
Can you provide the PE and PB ratios for AVY stock?
The Price/Earnings (PE) ratio for AVERY DENNISON CORP (AVY) is 19.14 and the Price/Book (PB) ratio is 6.34.
Can you provide the financial health for AVY stock?
The financial health rating of AVERY DENNISON CORP (AVY) is 5 / 10.