AVERY DENNISON CORP (AVY) Fundamental Analysis & Valuation

NYSE:AVY • US0536111091

Current stock price

164.42 USD
+3.26 (+2.02%)
Last:

This AVY fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. AVY Profitability Analysis

1.1 Basic Checks

  • AVY had positive earnings in the past year.
  • 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.
AVY Yearly Net Income VS EBIT VS OCF VS FCFAVY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

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's Return On Equity of 30.69% is amongst the best of the industry. AVY outperforms 95.45% of its industry peers.
  • With an excellent Return On Invested Capital value of 13.55%, AVY belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • AVY had an Average Return On Invested Capital over the past 3 years of 13.81%. This is significantly above the industry average of 7.18%.
Industry RankSector 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%
AVY Yearly ROA, ROE, ROICAVY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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 Operating Margin of 12.69%. This is amongst the best in the industry. AVY outperforms 81.82% of its industry peers.
  • In the last couple of years the Operating Margin of AVY has remained more or less at the same level.
  • AVY has a Gross Margin of 28.75%. This is in the better half of the industry: AVY outperforms 72.73% of its industry peers.
  • AVY's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
AVY Yearly Profit, Operating, Gross MarginsAVY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

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5

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.
  • The number of shares outstanding for AVY has been reduced compared to 1 year ago.
  • The number of shares outstanding for AVY has been reduced compared to 5 years ago.
  • AVY has a worse debt/assets ratio than last year.
AVY Yearly Shares OutstandingAVY Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M
AVY Yearly Total Debt VS Total AssetsAVY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.2 Solvency

  • An Altman-Z score of 3.50 indicates that AVY is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of AVY (3.50) is better than 86.36% of its industry peers.
  • The Debt to FCF ratio of AVY is 5.48, which is a neutral value as it means it would take AVY, 5.48 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 5.48, AVY belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
  • AVY has a Debt/Equity ratio of 1.43. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.43, AVY is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.43
Debt/FCF 5.48
Altman-Z 3.5
ROIC/WACC1.75
WACC7.74%
AVY Yearly LT Debt VS Equity VS FCFAVY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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's Current ratio of 1.13 is on the low side compared to the rest of the industry. AVY is outperformed by 68.18% of its industry peers.
  • AVY has a Quick Ratio of 1.13. This is a bad value and indicates that AVY is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of AVY (0.76) is worse than 68.18% of its industry peers.
Industry RankSector Rank
Current Ratio 1.13
Quick Ratio 0.76
AVY Yearly Current Assets VS Current LiabilitesAVY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. AVY Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 1.27% over the past year.
  • 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.
  • Measured over the past years, AVY shows a small growth in Revenue. The Revenue has been growing by 4.90% on average per year.
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

  • The Earnings Per Share is expected to grow by 8.97% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 6.34% on average over the next years.
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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • 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.
AVY Yearly Revenue VS EstimatesAVY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2B 4B 6B 8B 10B
AVY Yearly EPS VS EstimatesAVY Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8 10

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3

4. AVY Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 17.23, the valuation of AVY can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of AVY is on the same level as its industry peers.
  • When comparing the Price/Earnings ratio of AVY to the average of the S&P500 Index (25.23), we can say AVY is valued slightly cheaper.
  • Based on the Price/Forward Earnings ratio of 16.03, the valuation of AVY can be described as correct.
  • AVY's Price/Forward Earnings is on the same level as the industry average.
  • AVY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.42, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 17.23
Fwd PE 16.03
AVY Price Earnings VS Forward Price EarningsAVY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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.
  • AVY's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 18.57
EV/EBITDA 10.9
AVY Per share dataAVY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80 100

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)2.3
PEG (5Y)2.85
EPS Next 2Y9.29%
EPS Next 3Y10.26%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. AVY Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.31%, AVY has a reasonable but not impressive dividend return.
  • AVY's Dividend Yield is comparable with the industry average which is at 2.67.
  • Compared to an average S&P500 Dividend Yield of 1.89, AVY pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.31%

5.2 History

  • On average, the dividend of AVY grows each year by 12.68%, 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)12.68%
Div Incr Years14
Div Non Decr Years14
AVY Yearly Dividends per shareAVY Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

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.
  • The dividend of AVY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.92%
EPS Next 2Y9.29%
EPS Next 3Y10.26%
AVY Yearly Income VS Free CF VS DividendAVY Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
AVY Dividend Payout.AVY Dividend Payout, showing the Payout Ratio.AVY Dividend Payout.PayoutRetained Earnings

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AVY Fundamentals: All Metrics, Ratios and Statistics

AVERY DENNISON CORP

NYSE:AVY (3/23/2026, 10:16:02 AM)

164.42

+3.26 (+2.02%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)02-04
Earnings (Next)04-21
Inst Owners98.68%
Inst Owner Change-0.9%
Ins Owners0.64%
Ins Owner Change-12.78%
Market Cap12.65B
Revenue(TTM)8.86B
Net Income(TTM)688.00M
Analysts80
Price Target212.74 (29.39%)
Short Float %2.47%
Short Ratio2.88
Dividend
Industry RankSector Rank
Dividend Yield 2.31%
Yearly Dividend3.68
Dividend Growth(5Y)12.68%
DP41.92%
Div Incr Years14
Div Non Decr Years14
Ex-Date03-04
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%
EPS NQ rev (3m)-1.25%
EPS NY rev (1m)-1.65%
EPS NY rev (3m)-3.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.29%
Valuation
Industry RankSector Rank
PE 17.23
Fwd PE 16.03
P/S 1.43
P/FCF 18.57
P/OCF 14.35
P/B 5.64
P/tB N/A
EV/EBITDA 10.9
EPS(TTM)9.54
EY5.8%
EPS(NY)10.25
Fwd EY6.24%
FCF(TTM)8.85
FCFY5.38%
OCF(TTM)11.46
OCFY6.97%
SpS115.13
BVpS29.15
TBVpS-11.15
PEG (NY)2.3
PEG (5Y)2.85
Graham Number79.1
Profitability
Industry RankSector 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 RankSector 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 3.5
F-Score5
WACC7.74%
ROIC/WACC1.75
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 Fundamental Analysis 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 17.23 and the Price/Book (PB) ratio is 5.64.


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.