US0536111091 - Common Stock

**AVY** gets a fundamental rating of **5** out of 10. The analysis compared the fundamentals against 23 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 expensive valuation and it also scores bad on growth.

In the past year **AVY** had a positive cash flow from operations.

In the past 5 years **AVY** has always been profitable.

With an excellent **Return On Equity** value of **23.40%**, **AVY** belongs to the best of the industry, outperforming **82.61%** of the companies in the same industry.

With an excellent **Return On Invested Capital** value of **12.35%**, **AVY** belongs to the best of the industry, outperforming **91.30%** of the companies in the same industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 5.94% | ||

ROE | 23.4% | ||

ROIC | 12.35% |

ROA(3y)9.31%

ROA(5y)8.5%

ROE(3y)37.72%

ROE(5y)37.46%

ROIC(3y)15.08%

ROIC(5y)16.18%

In the last couple of years the **Profit Margin** of **AVY** has grown nicely.

The **Operating Margin** of **AVY** (**10.66%**) is better than **65.22%** of its industry peers.

With a decent **Gross Margin** value of **26.35%**, **AVY** is doing good in the industry, outperforming **78.26%** 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 | 10.66% | ||

PM (TTM) | 5.83% | ||

GM | 26.35% |

OM growth 3Y0.5%

OM growth 5Y1.42%

PM growth 3Y24.94%

PM growth 5Y14.47%

GM growth 3Y-0.42%

GM growth 5Y-0.59%

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), **AVY** 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.

Compared to 1 year ago, **AVY** has about the same debt to assets ratio.

An Altman-Z score of **3.73** indicates that **AVY** is not in any danger for bankruptcy at the moment.

The **Altman-Z score** of **AVY** (**3.73**) is better than **91.30%** of its industry peers.

The Debt to FCF ratio of **AVY** is **5.81**, which is a neutral value as it means it would take **AVY**, **5.81** years of fcf income to pay off all of its debts.

A Debt/Equity ratio of **1.26** is on the high side and indicates that **AVY** has dependencies on debt financing.

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 1.26 | ||

Debt/FCF | 5.81 | ||

Altman-Z | 3.73 |

ROIC/WACC1.59

WACC7.76%

The **Current ratio** of **AVY** (**1.03**) is worse than **86.96%** of its industry peers.

A Quick Ratio of **0.68** indicates that **AVY** may have some problems paying its short term obligations.

The **Quick ratio** of **AVY** (**0.68**) is worse than **82.61%** of its industry peers.

Industry Rank | Sector Rank | ||
---|---|---|---|

Current Ratio | 1.03 | ||

Quick Ratio | 0.68 |

The earnings per share for **AVY** have decreased strongly by **-23.47%** in the last year.

Measured over the past years, **AVY** shows a quite strong growth in **Earnings Per Share**. The EPS has been growing by **12.80%** on average per year.

Looking at the last year, **AVY** shows a decrease in **Revenue**. The Revenue has decreased by **-9.97%** in the last year.

EPS 1Y (TTM)-23.47%

EPS 3Y11.56%

EPS 5Y12.8%

EPS growth Q2Q-14.63%

Revenue 1Y (TTM)-9.97%

Revenue growth 3Y8.53%

Revenue growth 5Y6.45%

Revenue growth Q2Q-9.44%

Based on estimates for the next years, **AVY** will show a small growth in **Earnings Per Share**. The EPS will grow by **6.44%** on average per year.

EPS Next Y-11.31%

EPS Next 2Y4.71%

EPS Next 3Y7.47%

EPS Next 5Y6.44%

Revenue Next Year-7.05%

Revenue Next 2Y-0.3%

Revenue Next 3Y1.54%

Revenue Next 5Y2.25%

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

With a **Price/Earnings** ratio of **26.55**, **AVY** can be considered very expensive at the moment.

Based on the **Price/Earnings** ratio, **AVY** is valued more expensive than 82.61% of the companies in the same industry.

The average S&P500 **Price/Earnings** ratio is at **24.69**. **AVY** is around the same levels.

Based on the **Price/Forward Earnings** ratio of **19.51**, the valuation of **AVY** can be described as rather expensive.

Compared to the rest of the industry, the **Price/Forward Earnings** ratio of **AVY** indicates a slightly more expensive valuation: **AVY** is more expensive than 73.91% of the companies listed in the same industry.

Compared to an average S&P500 **Price/Forward Earnings** ratio of **19.79**, **AVY** is valued at the same level.

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 26.55 | ||

Fwd PE | 19.51 |

91.30% of the companies in the same industry are cheaper than **AVY**, based on the **Enterprise Value to EBITDA** ratio.

Based on the **Price/Free Cash Flow** ratio, **AVY** is valued a bit more expensive than the industry average as 60.87% of the companies are valued more cheaply.

Industry Rank | Sector Rank | ||
---|---|---|---|

P/FCF | 27.64 | ||

EV/EBITDA | 15.94 |

The decent profitability rating of **AVY** may justify a higher PE ratio.

PEG (NY)N/A

PEG (5Y)2.07

EPS Next 2Y4.71%

EPS Next 3Y7.47%

With a **Yearly Dividend Yield** of **1.71%**, **AVY** has a reasonable but not impressive dividend return.

Compared to an average industry **Dividend Yield** of **3.09**, **AVY** is paying slightly less dividend.

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 1.71% |

The dividend of **AVY** is nicely growing with an annual growth rate of **18.43%**!

Dividend Growth(5Y)18.43%

Div Incr Years12

Div Non Decr Years12

DP52.22%

EPS Next 2Y4.71%

EPS Next 3Y7.47%

**AVERY DENNISON CORP**

NYSE:AVY (12/1/2023, 11:36:06 AM)

**195.705**

**+1.21 (+0.62%) **

Chartmill FA Rating

GICS SectorMaterials

GICS IndustryGroupMaterials

GICS IndustryContainers & Packaging

Earnings (Last)10-25 2023-10-25/bmo

Earnings (Next)01-31 2024-01-31/amc

Inst Owners90.47%

Inst Owner Change0.67%

Ins Owners0.89%

Ins Owner Change-1.36%

Market Cap15.76B

Analysts85

Price Target203.64 (4.05%)

Dividend

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 1.71% |

Dividend Growth(5Y)18.43%

DP52.22%

Div Incr Years12

Div Non Decr Years12

Ex-Date12-05 2023-12-05 (0.81)

Surprises & Revisions

EPS beat(2)0

Avg EPS beat(2)-2.65%

Min EPS beat(2)-4.33%

Max EPS beat(2)-0.96%

EPS beat(4)1

Avg EPS beat(4)-5.81%

Min EPS beat(4)-19.29%

Max EPS beat(4)1.35%

Revenue beat(2)0

Avg Revenue beat(2)-4.08%

Min Revenue beat(2)-4.27%

Max Revenue beat(2)-3.89%

Revenue beat(4)0

Avg Revenue beat(4)-5.45%

Min Revenue beat(4)-7.54%

Max Revenue beat(4)-3.89%

PT rev (1m)-3.45%

PT rev (3m)0.58%

EPS NQ rev (1m)-6.28%

EPS NQ rev (3m)-7.14%

EPS NY rev (1m)0%

EPS NY rev (3m)-0.84%

Revenue NQ rev (1m)-4.33%

Revenue NQ rev (3m)-5.15%

Revenue NY rev (1m)0%

Revenue NY rev (3m)0.52%

Valuation

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 26.55 | ||

Fwd PE | 19.51 | ||

P/S | 1.9 | ||

P/FCF | 27.64 | ||

P/OCF | 18.33 | ||

P/B | 7.64 | ||

P/tB | N/A | ||

EV/EBITDA | 15.94 |

EPS(TTM)7.37

EY3.77%

EPS(NY)10.03

Fwd EY5.13%

FCF(TTM)7.08

FCFY3.62%

OCF(TTM)10.68

OCFY5.46%

SpS102.82

BVpS25.63

TBVpS-9.6

PEG (NY)N/A

PEG (5Y)2.07

Profitability

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 5.94% | ||

ROE | 23.4% | ||

ROCE | 16.38% | ||

ROIC | 12.35% | ||

ROICexc | 12.85% | ||

ROICexgc | 28.4% | ||

OM | 10.66% | ||

PM (TTM) | 5.83% | ||

GM | 26.35% | ||

FCFM | 6.89% |

ROA(3y)9.31%

ROA(5y)8.5%

ROE(3y)37.72%

ROE(5y)37.46%

ROIC(3y)15.08%

ROIC(5y)16.18%

ROICexc(3y)15.72%

ROICexc(5y)17.12%

ROICexgc(3y)31.37%

ROICexgc(5y)31.43%

ROCE(3y)20.4%

ROCE(5y)22.14%

ROICexcg growth 3Y4.12%

ROICexcg growth 5Y5.32%

ROICexc growth 3Y-6.89%

ROICexc growth 5Y-1.2%

OM growth 3Y0.5%

OM growth 5Y1.42%

PM growth 3Y24.94%

PM growth 5Y14.47%

GM growth 3Y-0.42%

GM growth 5Y-0.59%

F-Score5

Asset Turnover1.02

Health

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 1.26 | ||

Debt/FCF | 5.81 | ||

Debt/EBITDA | 2.21 | ||

Cap/Depr | 98.24% | ||

Cap/Sales | 3.5% | ||

Interest Coverage | 250 | ||

Cash Conversion | 73.02% | ||

Profit Quality | 118.1% | ||

Current Ratio | 1.03 | ||

Quick Ratio | 0.68 | ||

Altman-Z | 3.73 |

F-Score5

WACC7.76%

ROIC/WACC1.59

Cap/Depr(3y)106.88%

Cap/Depr(5y)121.22%

Cap/Sales(3y)3.22%

Cap/Sales(5y)3.38%

Profit Quality(3y)96%

Profit Quality(5y)98.45%

Growth

EPS 1Y (TTM)-23.47%

EPS 3Y11.56%

EPS 5Y12.8%

EPS growth Q2Q-14.63%

EPS Next Y-11.31%

EPS Next 2Y4.71%

EPS Next 3Y7.47%

EPS Next 5Y6.44%

Revenue 1Y (TTM)-9.97%

Revenue growth 3Y8.53%

Revenue growth 5Y6.45%

Revenue growth Q2Q-9.44%

Revenue Next Year-7.05%

Revenue Next 2Y-0.3%

Revenue Next 3Y1.54%

Revenue Next 5Y2.25%

EBIT growth 1Y-22.45%

EBIT growth 3Y9.07%

EBIT growth 5Y7.96%

EBIT Next Year12.34%

EBIT Next 3Y11.75%

EBIT Next 5Y7.9%

FCF growth 1Y-30.36%

FCF growth 3Y10.63%

FCF growth 5Y9.56%

OCF growth 1Y-19.81%

OCF growth 3Y8.78%

OCF growth 5Y8.28%