AVERY DENNISON CORP (AVY) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:AVY • US0536111091
185.38 USD
+0.51 (+0.28%)
At close: Jan 29, 2026
185.366 USD
-0.01 (-0.01%)
After Hours: 1/29/2026, 8:04:00 PM
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 has a great profitability rating, there are some minor concerns on its financial health. AVY has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- AVY had positive earnings in the past year.
- In the past year AVY had a positive cash flow from operations.
- AVY had positive earnings in each of the past 5 years.
- 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.
- Looking at the Return On Equity, with a value of 31.46%, AVY belongs to the top 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
- With an excellent Profit Margin value of 7.93%, 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 Profit Margin of AVY has grown nicely.
- AVY has a better Operating Margin (12.80%) than 81.82% of its industry peers.
- AVY's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 28.56%, AVY is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
- 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
- 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.
- The number of shares outstanding for AVY has been reduced compared to 5 years ago.
- The debt/assets ratio for AVY has been reduced compared to a year ago.
2.2 Solvency
- AVY has an Altman-Z score of 3.67. This indicates that AVY is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 3.67, AVY belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
- 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.
- AVY has a better Debt to FCF ratio (5.79) than 77.27% 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.
- With a Debt to Equity ratio value of 1.45, AVY is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 3.67 |
ROIC/WACC1.62
WACC8.33%
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 has a Current ratio of 1.26. This is comparable to the rest of the industry: AVY outperforms 40.91% 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
- The earnings per share for AVY have decreased by -1.87% in the last year.
- AVY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.41% yearly.
- 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
- The Earnings Per Share is expected to grow by 7.39% on average over the next years.
- 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 Y1.81%
EPS Next 2Y5.39%
EPS Next 3Y7.33%
EPS Next 5Y7.39%
Revenue Next Year1.25%
Revenue Next 2Y2.79%
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
- AVY is valuated rather expensively with a Price/Earnings ratio of 19.58.
- AVY's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 28.39. AVY is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 17.72, AVY is valued on the expensive side.
- AVY's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. AVY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 17.72 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as AVY.
- 72.73% of the companies in the same industry are more expensive than AVY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.96 | ||
| EV/EBITDA | 12.11 |
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)10.84
PEG (5Y)2.64
EPS Next 2Y5.39%
EPS Next 3Y7.33%
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 2.38.
- Compared to an average S&P500 Dividend Yield of 1.82, AVY has a dividend comparable with the average S&P500 company.
| 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 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 2Y5.39%
EPS Next 3Y7.33%
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 19.58 and the Price/Book (PB) ratio is 6.48.
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 1.81% in the next year.