AVERY DENNISON CORP (AVY) Fundamental Analysis & Valuation
NYSE:AVY • US0536111091
171.01 USD
-3.55 (-2.03%)
At close: Mar 12, 2026
171.01 USD
0 (0%)
After Hours: 3/12/2026, 8:24:08 PM
This AVY fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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 decent growth rate and is not valued too expensively.
1. AVY Profitability Analysis
1.1 Basic Checks
- In the past year AVY was profitable.
- In the past year AVY had a positive cash flow from operations.
- Each year in the past 5 years AVY has been profitable.
- In the past 5 years AVY always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 7.82%, AVY belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
- AVY has a better Return On Equity (30.69%) than 95.45% of its industry peers.
- AVY has a better Return On Invested Capital (13.55%) than 100.00% of its industry peers.
- AVY had an Average Return On Invested Capital over the past 3 years of 13.81%. This is significantly above the industry average of 7.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.82% | ||
| ROE | 30.69% | ||
| ROIC | 13.55% |
ROA(3y)7.44%
ROA(5y)8.23%
ROE(3y)28.27%
ROE(5y)32.1%
ROIC(3y)13.82%
ROIC(5y)14.13%
1.3 Margins
- Looking at the Profit Margin, with a value of 7.77%, AVY belongs to the top 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 remained more or less at the same level.
- AVY has a better Operating Margin (12.69%) than 81.82% of its industry peers.
- AVY's Operating Margin has been stable in the last couple of years.
- AVY has a better Gross Margin (28.75%) 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 | 12.69% | ||
| PM (TTM) | 7.77% | ||
| GM | 28.75% |
OM growth 3Y2.24%
OM growth 5Y0.5%
PM growth 3Y-2.47%
PM growth 5Y-0.52%
GM growth 3Y2.63%
GM growth 5Y0.83%
2. AVY Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AVY is creating some value.
- AVY has less shares outstanding than it did 1 year ago.
- AVY has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for AVY is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.57 indicates that AVY is not in any danger for bankruptcy at the moment.
- AVY has a better Altman-Z score (3.57) than 86.36% of its industry peers.
- AVY has a debt to FCF ratio of 5.48. This is a neutral value as AVY would need 5.48 years to pay back of all of its debts.
- AVY has a Debt to FCF ratio of 5.48. This is amongst the best in the industry. AVY outperforms 81.82% of its industry peers.
- AVY has a Debt/Equity ratio of 1.43. This is a high value indicating a heavy dependency on external financing.
- AVY's Debt to Equity ratio of 1.43 is on the low side compared to the rest of the industry. AVY is outperformed by 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 5.48 | ||
| Altman-Z | 3.57 |
ROIC/WACC1.69
WACC8.03%
2.3 Liquidity
- AVY has a Current Ratio of 1.13. 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 1.13. This is in the lower half of the industry: AVY underperforms 68.18% of its industry peers.
- A Quick Ratio of 0.76 indicates that AVY may have some problems paying its short term obligations.
- AVY has a Quick ratio of 0.76. This is in the lower half of the industry: AVY underperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.76 |
3. AVY Growth Analysis
3.1 Past
- AVY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.27%.
- Measured over the past 5 years, AVY shows a small growth in Earnings Per Share. The EPS has been growing by 6.06% on average per year.
- Looking at the last year, AVY shows a small growth in Revenue. The Revenue has grown by 1.14% in the last year.
- AVY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.90% yearly.
EPS 1Y (TTM)1.27%
EPS 3Y1.4%
EPS 5Y6.06%
EPS Q2Q%2.94%
Revenue 1Y (TTM)1.14%
Revenue growth 3Y-0.68%
Revenue growth 5Y4.9%
Sales Q2Q%3.91%
3.2 Future
- Based on estimates for the next years, AVY will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.97% on average per year.
- Based on estimates for the next years, AVY will show a small growth in Revenue. The Revenue will grow by 6.34% on average per year.
EPS Next Y7.48%
EPS Next 2Y9.29%
EPS Next 3Y10.26%
EPS Next 5Y8.97%
Revenue Next Year4.1%
Revenue Next 2Y3.84%
Revenue Next 3Y3.97%
Revenue Next 5Y6.34%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. AVY Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 17.93, AVY is valued on the expensive side.
- AVY's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 25.71, AVY is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 16.68, AVY is valued correctly.
- AVY's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 23.82. AVY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.93 | ||
| Fwd PE | 16.68 |
4.2 Price Multiples
- AVY's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, AVY is valued a bit cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.31 | ||
| EV/EBITDA | 11.42 |
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)2.4
PEG (5Y)2.96
EPS Next 2Y9.29%
EPS Next 3Y10.26%
5. AVY Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 2.05%, AVY has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.36, AVY has a dividend in line with its industry peers.
- 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 | 2.05% |
5.2 History
- The dividend of AVY is nicely growing with an annual growth rate of 12.68%!
- AVY has paid a dividend for at least 10 years, which is 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)12.68%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
- AVY pays out 41.92% of its income as dividend. This is a bit on the high side, but may be sustainable.
- AVY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP41.92%
EPS Next 2Y9.29%
EPS Next 3Y10.26%
AVY Fundamentals: All Metrics, Ratios and Statistics
171.01
-3.55 (-2.03%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)02-04 2026-02-04/bmo
Earnings (Next)04-21 2026-04-21/bmo
Inst Owners98.68%
Inst Owner Change-0.9%
Ins Owners0.64%
Ins Owner Change-7.57%
Market Cap13.15B
Revenue(TTM)8.86B
Net Income(TTM)688.00M
Analysts80
Price Target212.74 (24.4%)
Short Float %2.78%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
Yearly Dividend3.68
Dividend Growth(5Y)12.68%
DP41.92%
Div Incr Years14
Div Non Decr Years14
Ex-Date03-04 2026-03-04 (0.94)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.01%
Min EPS beat(2)0.9%
Max EPS beat(2)1.13%
EPS beat(4)3
Avg EPS beat(4)0.08%
Min EPS beat(4)-1.77%
Max EPS beat(4)1.13%
EPS beat(8)5
Avg EPS beat(8)1.26%
EPS beat(12)7
Avg EPS beat(12)2.12%
EPS beat(16)9
Avg EPS beat(16)1.57%
Revenue beat(2)0
Avg Revenue beat(2)-1.39%
Min Revenue beat(2)-1.55%
Max Revenue beat(2)-1.23%
Revenue beat(4)0
Avg Revenue beat(4)-1.42%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)-0.95%
Revenue beat(8)1
Avg Revenue beat(8)-1.02%
Revenue beat(12)1
Avg Revenue beat(12)-1.89%
Revenue beat(16)2
Avg Revenue beat(16)-1.82%
PT rev (1m)2.44%
PT rev (3m)4.39%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)-1.25%
EPS NY rev (1m)-1.65%
EPS NY rev (3m)-3.06%
Revenue NQ rev (1m)0.57%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.93 | ||
| Fwd PE | 16.68 | ||
| P/S | 1.48 | ||
| P/FCF | 19.31 | ||
| P/OCF | 14.92 | ||
| P/B | 5.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.42 |
EPS(TTM)9.54
EY5.58%
EPS(NY)10.25
Fwd EY6%
FCF(TTM)8.86
FCFY5.18%
OCF(TTM)11.46
OCFY6.7%
SpS115.19
BVpS29.16
TBVpS-11.16
PEG (NY)2.4
PEG (5Y)2.96
Graham Number79.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.82% | ||
| ROE | 30.69% | ||
| ROCE | 18.28% | ||
| ROIC | 13.55% | ||
| ROICexc | 14.13% | ||
| ROICexgc | 29.79% | ||
| OM | 12.69% | ||
| PM (TTM) | 7.77% | ||
| GM | 28.75% | ||
| FCFM | 7.69% |
ROA(3y)7.44%
ROA(5y)8.23%
ROE(3y)28.27%
ROE(5y)32.1%
ROIC(3y)13.82%
ROIC(5y)14.13%
ROICexc(3y)14.5%
ROICexc(5y)14.72%
ROICexgc(3y)32.22%
ROICexgc(5y)32.59%
ROCE(3y)18.63%
ROCE(5y)19.27%
ROICexgc growth 3Y-5.28%
ROICexgc growth 5Y3.39%
ROICexc growth 3Y-3.98%
ROICexc growth 5Y-2.8%
OM growth 3Y2.24%
OM growth 5Y0.5%
PM growth 3Y-2.47%
PM growth 5Y-0.52%
GM growth 3Y2.63%
GM growth 5Y0.83%
F-Score5
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 5.48 | ||
| Debt/EBITDA | 2.21 | ||
| Cap/Depr | 61.06% | ||
| Cap/Sales | 2.26% | ||
| Interest Coverage | 8.56 | ||
| Cash Conversion | 60.7% | ||
| Profit Quality | 98.98% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 3.57 |
F-Score5
WACC8.03%
ROIC/WACC1.69
Cap/Depr(3y)77.8%
Cap/Depr(5y)89.51%
Cap/Sales(3y)2.8%
Cap/Sales(5y)2.99%
Profit Quality(3y)101.89%
Profit Quality(5y)99.57%
High Growth Momentum
Growth
EPS 1Y (TTM)1.27%
EPS 3Y1.4%
EPS 5Y6.06%
EPS Q2Q%2.94%
EPS Next Y7.48%
EPS Next 2Y9.29%
EPS Next 3Y10.26%
EPS Next 5Y8.97%
Revenue 1Y (TTM)1.14%
Revenue growth 3Y-0.68%
Revenue growth 5Y4.9%
Sales Q2Q%3.91%
Revenue Next Year4.1%
Revenue Next 2Y3.84%
Revenue Next 3Y3.97%
Revenue Next 5Y6.34%
EBIT growth 1Y0.75%
EBIT growth 3Y1.54%
EBIT growth 5Y5.43%
EBIT Next Year35.82%
EBIT Next 3Y15.43%
EBIT Next 5Y11.25%
FCF growth 1Y-2.58%
FCF growth 3Y0.92%
FCF growth 5Y5.03%
OCF growth 1Y-6.11%
OCF growth 3Y-2.84%
OCF growth 5Y3.25%
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 8 / 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 17.93 and the Price/Book (PB) ratio is 5.86.
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 7.48% in the next year.