AVERY DENNISON CORP (AVY) Stock Fundamental Analysis
USA - NYSE:AVY - US0536111091 - Common Stock
164.38 USD
-0.66 (-0.4%)
164.38 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to AVY. AVY was compared to 23 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AVY was profitable.
AVY had a positive operating cash flow in the past year.
In the past 5 years AVY has always been profitable.
In the past 5 years AVY always reported a positive cash flow from operatings.
1.2 Ratios
AVY has a Return On Assets of 8.30%. This is amongst the best in the industry. AVY outperforms 95.65% 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.
The Return On Invested Capital of AVY (14.89%) is better than 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 7.26%.
The last Return On Invested Capital (14.89%) for AVY is above the 3 year average (14.25%), which is a sign of increasing profitability.
| 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 Profit Margin of 8.14%. This is amongst the best in the industry. AVY outperforms 86.96% of its industry peers.
In the last couple of years the Profit Margin of AVY has grown nicely.
AVY has a better Operating Margin (12.83%) than 82.61% of its industry peers.
In the last couple of years the Operating Margin of AVY has grown nicely.
AVY has a better Gross Margin (28.57%) than 82.61% 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 | 12.83% | ||
| 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
Compared to 5 years ago, AVY has less shares outstanding
AVY has a better debt/assets ratio than last year.
2.2 Solvency
AVY has an Altman-Z score of 3.56. This indicates that AVY is financially healthy and has little risk of bankruptcy at the moment.
AVY has a Altman-Z score of 3.56. This is amongst the best in the industry. AVY outperforms 82.61% of its industry peers.
AVY has a debt to FCF ratio of 5.90. This is a neutral value as AVY would need 5.90 years to pay back of all of its debts.
AVY has a Debt to FCF ratio of 5.90. This is amongst the best in the industry. AVY outperforms 91.30% of its industry peers.
AVY has a Debt/Equity ratio of 1.19. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of AVY (1.19) is better than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 5.9 | ||
| Altman-Z | 3.56 |
ROIC/WACC1.96
WACC7.59%
2.3 Liquidity
AVY has a Current Ratio of 1.04. 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 worse Current ratio (1.04) than 73.91% of its industry peers.
A Quick Ratio of 0.70 indicates that AVY may have some problems paying its short term obligations.
With a Quick ratio value of 0.70, AVY is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
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
The Earnings Per Share has been growing slightly by 0.11% over the past year.
The Earnings Per Share has been growing slightly by 7.41% on average over the past years.
AVY shows a small growth in Revenue. In the last year, the Revenue has grown by 1.66%.
AVY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.37% yearly.
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
AVY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.40% yearly.
Based on estimates for the next years, AVY will show a small growth in Revenue. The Revenue will grow by 3.84% on average per year.
EPS Next Y2.4%
EPS Next 2Y6.57%
EPS Next 3Y8.16%
EPS Next 5Y7.4%
Revenue Next Year1.12%
Revenue Next 2Y2.52%
Revenue Next 3Y3.24%
Revenue Next 5Y3.84%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.43, AVY is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as AVY.
AVY is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.36, AVY is valued correctly.
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 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.43 | ||
| Fwd PE | 15.36 |
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.
Based on the Price/Free Cash Flow ratio, AVY is valued a bit cheaper than the industry average as 73.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.29 | ||
| EV/EBITDA | 11.19 |
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.
The excellent profitability rating of AVY may justify a higher PE ratio.
PEG (NY)7.27
PEG (5Y)2.35
EPS Next 2Y6.57%
EPS Next 3Y8.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.28%, AVY has a reasonable but not impressive dividend return.
AVY's Dividend Yield is comparable with the industry average which is at 3.22.
AVY's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
5.2 History
On average, the dividend of AVY grows each year by 14.44%, which is quite nice.
AVY has been paying a dividend for at least 10 years, so it has 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)14.44%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
AVY pays out 39.97% of its income as dividend. This is a 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%
164.38
-0.66 (-0.4%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners96.12%
Inst Owner Change-0.96%
Ins Owners0.63%
Ins Owner Change1.02%
Market Cap12.82B
Analysts73.33
Price Target200.5 (21.97%)
Short Float %2.08%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
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)-2.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.43 | ||
| Fwd PE | 15.36 | ||
| P/S | 1.47 | ||
| P/FCF | 21.29 | ||
| P/OCF | 15.75 | ||
| P/B | 5.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.19 |
EPS(TTM)9.43
EY5.74%
EPS(NY)10.7
Fwd EY6.51%
FCF(TTM)7.72
FCFY4.7%
OCF(TTM)10.44
OCFY6.35%
SpS112.05
BVpS28.23
TBVpS-6.96
PEG (NY)7.27
PEG (5Y)2.35
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 | 3.56 |
F-Score6
WACC7.59%
ROIC/WACC1.96
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 Year1.12%
Revenue Next 2Y2.52%
Revenue Next 3Y3.24%
Revenue Next 5Y3.84%
EBIT growth 1Y3.98%
EBIT growth 3Y1.58%
EBIT growth 5Y6.16%
EBIT Next Year27.36%
EBIT Next 3Y12.89%
EBIT Next 5Y9.06%
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%