AVERY DENNISON CORP (AVY) Stock Fundamental Analysis
USA - NYSE:AVY - US0536111091 - Common Stock
158.67 USD
-2.14 (-1.33%)
158.67 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. AVY scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AVY has a correct valuation and a medium growth rate.
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.
AVY had positive earnings in each of the past 5 years.
In the past 5 years AVY always reported a positive cash flow from operatings.
1.2 Ratios
AVY has a better Return On Assets (8.30%) than 95.45% of its industry peers.
AVY has a Return On Equity of 32.29%. This is amongst the best in the industry. AVY outperforms 100.00% of its industry peers.
AVY has a Return On Invested Capital of 14.89%. This is amongst the best in the industry. AVY outperforms 100.00% of its industry peers.
AVY had an Average Return On Invested Capital over the past 3 years of 14.25%. This is significantly above the industry average of 7.27%.
The 3 year average ROIC (14.25%) for AVY is below the current ROIC(14.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.3% | ||
| ROE | 32.29% | ||
| ROIC | 14.89% |
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 has a better Profit Margin (8.14%) than 86.36% of its industry peers.
In the last couple of years the Profit Margin of AVY has grown nicely.
With an excellent Operating Margin value of 12.83%, AVY belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
AVY's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 28.57%, AVY belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
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 | 12.83% | ||
| PM (TTM) | 8.14% | ||
| GM | 28.57% |
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 well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, AVY has less shares outstanding
The number of shares outstanding for AVY has been reduced compared to 5 years ago.
AVY has a better debt/assets ratio than last year.
2.2 Solvency
AVY has an Altman-Z score of 3.52. This indicates that AVY is financially healthy and has little risk of bankruptcy at the moment.
AVY has a better Altman-Z score (3.52) than 86.36% of its industry peers.
The Debt to FCF ratio of AVY is 5.90, which is a neutral value as it means it would take AVY, 5.90 years of fcf income to pay off all of its debts.
AVY's Debt to FCF ratio of 5.90 is amongst the best of the industry. AVY outperforms 90.91% of its industry peers.
A Debt/Equity ratio of 1.19 is on the high side and indicates that AVY has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.19, AVY is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 5.9 | ||
| Altman-Z | 3.52 |
ROIC/WACC1.83
WACC8.14%
2.3 Liquidity
A Current Ratio of 1.04 indicates that AVY should not have too much problems paying its short term obligations.
AVY has a worse Current ratio (1.04) than 77.27% of its industry peers.
A Quick Ratio of 0.70 indicates that AVY may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.70, AVY is doing worse than 68.18% of the companies in the same industry.
AVY does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
AVY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.11%.
The Earnings Per Share has been growing slightly by 7.41% on average over the past years.
Looking at the last year, AVY shows a small growth in Revenue. The Revenue has grown by 1.66% in the last year.
Measured over the past years, AVY shows a small growth in Revenue. The Revenue has been growing by 4.37% on average per year.
EPS 1Y (TTM)0.11%
EPS 3Y1.83%
EPS 5Y7.41%
EPS Q2Q%0%
Revenue 1Y (TTM)1.66%
Revenue growth 3Y1.36%
Revenue growth 5Y4.37%
Sales Q2Q%-0.66%
3.2 Future
The Earnings Per Share is expected to grow by 7.40% on average over the next years.
AVY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.91% yearly.
EPS Next Y2.4%
EPS Next 2Y6.57%
EPS Next 3Y8.16%
EPS Next 5Y7.4%
Revenue Next Year1.08%
Revenue Next 2Y2.5%
Revenue Next 3Y3.22%
Revenue Next 5Y3.91%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
AVY is valuated correctly with a Price/Earnings ratio of 16.83.
Compared to the rest of the industry, the Price/Earnings ratio of AVY is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.02, AVY is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.83, the valuation of AVY can be described as correct.
Based on the Price/Forward Earnings ratio, AVY is valued a bit more expensive than 63.64% of the companies in the same industry.
AVY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.83 | ||
| Fwd PE | 14.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVY is on the same level as its industry peers.
AVY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AVY is cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.55 | ||
| EV/EBITDA | 10.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AVY does not grow enough to justify the current Price/Earnings ratio.
AVY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.02
PEG (5Y)2.27
EPS Next 2Y6.57%
EPS Next 3Y8.16%
5. Dividend
5.1 Amount
AVY has a Yearly Dividend Yield of 2.34%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.38, AVY has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, AVY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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 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
39.97% of the earnings are spent on dividend by AVY. This is a low number and sustainable payout ratio.
AVY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.97%
EPS Next 2Y6.57%
EPS Next 3Y8.16%
158.67
-2.14 (-1.33%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners96.88%
Inst Owner Change0%
Ins Owners0.63%
Ins Owner Change0.65%
Market Cap12.37B
Analysts73.33
Price Target200.5 (26.36%)
Short Float %2.36%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Yearly Dividend3.46
Dividend Growth(5Y)14.44%
DP39.97%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.85%
Min EPS beat(2)-1.77%
Max EPS beat(2)0.07%
EPS beat(4)1
Avg EPS beat(4)-0.83%
Min EPS beat(4)-1.77%
Max EPS beat(4)0.07%
EPS beat(8)4
Avg EPS beat(8)3.3%
EPS beat(12)5
Avg EPS beat(12)0.25%
EPS beat(16)8
Avg EPS beat(16)1.63%
Revenue beat(2)0
Avg Revenue beat(2)-1.46%
Min Revenue beat(2)-1.96%
Max Revenue beat(2)-0.95%
Revenue beat(4)0
Avg Revenue beat(4)-1.46%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)-0.95%
Revenue beat(8)1
Avg Revenue beat(8)-1.24%
Revenue beat(12)1
Avg Revenue beat(12)-2.35%
Revenue beat(16)4
Avg Revenue beat(16)-1.3%
PT rev (1m)0%
PT rev (3m)1.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.4%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.83 | ||
| Fwd PE | 14.83 | ||
| P/S | 1.42 | ||
| P/FCF | 20.55 | ||
| P/OCF | 15.2 | ||
| P/B | 5.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.88 |
EPS(TTM)9.43
EY5.94%
EPS(NY)10.7
Fwd EY6.74%
FCF(TTM)7.72
FCFY4.87%
OCF(TTM)10.44
OCFY6.58%
SpS112.05
BVpS28.23
TBVpS-6.96
PEG (NY)7.02
PEG (5Y)2.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.3% | ||
| ROE | 32.29% | ||
| ROCE | 20.36% | ||
| ROIC | 14.89% | ||
| ROICexc | 15.64% | ||
| ROICexgc | 32.81% | ||
| OM | 12.83% | ||
| PM (TTM) | 8.14% | ||
| GM | 28.57% | ||
| FCFM | 6.89% |
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%
ROICexcg growth 3Y5.53%
ROICexcg 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-Score6
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 5.9 | ||
| Debt/EBITDA | 1.83 | ||
| Cap/Depr | 67.24% | ||
| Cap/Sales | 2.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.68% | ||
| Profit Quality | 84.67% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 3.52 |
F-Score6
WACC8.14%
ROIC/WACC1.83
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)0.11%
EPS 3Y1.83%
EPS 5Y7.41%
EPS Q2Q%0%
EPS Next Y2.4%
EPS Next 2Y6.57%
EPS Next 3Y8.16%
EPS Next 5Y7.4%
Revenue 1Y (TTM)1.66%
Revenue growth 3Y1.36%
Revenue growth 5Y4.37%
Sales Q2Q%-0.66%
Revenue Next Year1.08%
Revenue Next 2Y2.5%
Revenue Next 3Y3.22%
Revenue Next 5Y3.91%
EBIT growth 1Y3.98%
EBIT growth 3Y1.58%
EBIT growth 5Y6.16%
EBIT Next Year27.36%
EBIT Next 3Y12.89%
EBIT Next 5Y9.13%
FCF growth 1Y33.96%
FCF growth 3Y-3.37%
FCF growth 5Y7.39%
OCF growth 1Y7.35%
OCF growth 3Y-3.56%
OCF growth 5Y4.69%