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AVERY DENNISON CORP (AVY) Stock Fundamental Analysis

NYSE:AVY - New York Stock Exchange, Inc. - US0536111091 - Common Stock - Currency: USD

182.13  -1.21 (-0.66%)

After market: 182.13 0 (0%)

Fundamental Rating

6

AVY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 22 industry peers in the Containers & Packaging industry. AVY scores excellent on profitability, but there are some minor concerns on its financial health. AVY is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

9

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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

1.2 Ratios

AVY has a better Return On Assets (8.36%) than 95.45% of its industry peers.
AVY's Return On Equity of 32.20% is amongst the best of the industry. AVY outperforms 95.45% of its industry peers.
The Return On Invested Capital of AVY (15.21%) 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 7.43%.
The 3 year average ROIC (14.25%) for AVY is below the current ROIC(15.21%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 8.36%
ROE 32.2%
ROIC 15.21%
ROA(3y)8.01%
ROA(5y)8.49%
ROE(3y)30.46%
ROE(5y)33.45%
ROIC(3y)14.25%
ROIC(5y)14.29%
AVY Yearly ROA, ROE, ROICAVY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

Looking at the Profit Margin, with a value of 7.98%, AVY belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
AVY's Profit Margin has improved in the last couple of years.
AVY has a Operating Margin of 12.83%. 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 grown nicely.
The Gross Margin of AVY (28.79%) is better than 81.82% of its industry peers.
AVY's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 12.83%
PM (TTM) 7.98%
GM 28.79%
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%
AVY Yearly Profit, Operating, Gross MarginsAVY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AVY is creating value.
AVY has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AVY has less shares outstanding
AVY has a better debt/assets ratio than last year.
AVY Yearly Shares OutstandingAVY Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
AVY Yearly Total Debt VS Total AssetsAVY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.2 Solvency

AVY has an Altman-Z score of 3.77. This indicates that AVY is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.77, AVY belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
AVY has a debt to FCF ratio of 6.02. This is a slightly negative value and a sign of low solvency as AVY would need 6.02 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.02, AVY belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
A Debt/Equity ratio of 1.19 is on the high side and indicates that AVY has dependencies on debt financing.
With a decent Debt to Equity ratio value of 1.19, AVY is doing good in the industry, outperforming 63.64% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.19
Debt/FCF 6.02
Altman-Z 3.77
ROIC/WACC1.93
WACC7.89%
AVY Yearly LT Debt VS Equity VS FCFAVY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

AVY has a Current Ratio of 1.03. 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 1.03. This is in the lower half of the industry: AVY underperforms 77.27% of its industry peers.
A Quick Ratio of 0.68 indicates that AVY may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.68, AVY is doing worse than 77.27% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.03
Quick Ratio 0.68
AVY Yearly Current Assets VS Current LiabilitesAVY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 5.72% 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 7.41% on average per year.
AVY shows a small growth in Revenue. In the last year, the Revenue has grown by 3.57%.
The Revenue has been growing slightly by 4.37% on average over the past years.
EPS 1Y (TTM)5.72%
EPS 3Y1.83%
EPS 5Y7.41%
EPS Q2Q%0.44%
Revenue 1Y (TTM)3.57%
Revenue growth 3Y1.36%
Revenue growth 5Y4.37%
Sales Q2Q%-0.14%

3.2 Future

AVY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.69% yearly.
The Revenue is expected to grow by 4.41% on average over the next years.
EPS Next Y6.22%
EPS Next 2Y8.89%
EPS Next 3Y9.72%
EPS Next 5Y7.69%
Revenue Next Year1.01%
Revenue Next 2Y2.48%
Revenue Next 3Y3.19%
Revenue Next 5Y4.41%

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.
AVY Yearly Revenue VS EstimatesAVY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8 10

4

4. Valuation

4.1 Price/Earnings Ratio

AVY is valuated rather expensively with a Price/Earnings ratio of 19.31.
AVY's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 24.95, AVY is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.31, which indicates a correct valuation of AVY.
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 68.18% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.99. AVY is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 19.31
Fwd PE 16.31
AVY Price Earnings VS Forward Price EarningsAVY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVY indicates a slightly more expensive valuation: AVY is more expensive than 68.18% of the companies listed in the same industry.
AVY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AVY is cheaper than 63.64% of the companies in the same industry.
Industry RankSector Rank
P/FCF 24.76
EV/EBITDA 12.19
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 an expensive valuation of the company.
The excellent profitability rating of AVY may justify a higher PE ratio.
PEG (NY)3.1
PEG (5Y)2.61
EPS Next 2Y8.89%
EPS Next 3Y9.72%

5

5. Dividend

5.1 Amount

AVY has a Yearly Dividend Yield of 2.17%. Purely for dividend investing, there may be better candidates out there.
AVY's Dividend Yield is comparable with the industry average which is at 3.32.
Compared to an average S&P500 Dividend Yield of 2.41, AVY has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.17%

5.2 History

The dividend of AVY is nicely growing with an annual growth rate of 14.44%!
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)14.44%
Div Incr Years14
Div Non Decr Years14
AVY Yearly Dividends per shareAVY Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

AVY pays out 40.30% 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.
DP40.3%
EPS Next 2Y8.89%
EPS Next 3Y9.72%
AVY Yearly Income VS Free CF VS DividendAVY Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M
AVY Dividend Payout.AVY Dividend Payout, showing the Payout Ratio.AVY Dividend Payout.PayoutRetained Earnings

AVERY DENNISON CORP

NYSE:AVY (5/13/2025, 8:17:58 PM)

After market: 182.13 0 (0%)

182.13

-1.21 (-0.66%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)04-23 2025-04-23/bmo
Earnings (Next)07-21 2025-07-21/bmo
Inst Owners94.74%
Inst Owner Change0.67%
Ins Owners0.55%
Ins Owner Change4.68%
Market Cap14.24B
Analysts75.79
Price Target198.36 (8.91%)
Short Float %3.06%
Short Ratio2.74
Dividend
Industry RankSector Rank
Dividend Yield 2.17%
Yearly Dividend3.46
Dividend Growth(5Y)14.44%
DP40.3%
Div Incr Years14
Div Non Decr Years14
Ex-Date06-04 2025-06-04 (0.94)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.32%
Min EPS beat(2)-1.77%
Max EPS beat(2)-0.87%
EPS beat(4)1
Avg EPS beat(4)0.69%
Min EPS beat(4)-1.77%
Max EPS beat(4)6.18%
EPS beat(8)3
Avg EPS beat(8)2.75%
EPS beat(12)5
Avg EPS beat(12)1.12%
EPS beat(16)8
Avg EPS beat(16)2.14%
Revenue beat(2)0
Avg Revenue beat(2)-1.07%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-0.95%
Revenue beat(4)1
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-1.74%
Max Revenue beat(4)1.42%
Revenue beat(8)1
Avg Revenue beat(8)-1.49%
Revenue beat(12)1
Avg Revenue beat(12)-2.2%
Revenue beat(16)5
Avg Revenue beat(16)-0.53%
PT rev (1m)-7.82%
PT rev (3m)-13.9%
EPS NQ rev (1m)-2.91%
EPS NQ rev (3m)-5.74%
EPS NY rev (1m)-1.1%
EPS NY rev (3m)-5.15%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)-0.78%
Revenue NY rev (3m)-1.62%
Valuation
Industry RankSector Rank
PE 19.31
Fwd PE 16.31
P/S 1.63
P/FCF 24.76
P/OCF 17.74
P/B 6.56
P/tB N/A
EV/EBITDA 12.19
EPS(TTM)9.43
EY5.18%
EPS(NY)11.17
Fwd EY6.13%
FCF(TTM)7.35
FCFY4.04%
OCF(TTM)10.27
OCFY5.64%
SpS111.96
BVpS27.76
TBVpS-7.11
PEG (NY)3.1
PEG (5Y)2.61
Profitability
Industry RankSector Rank
ROA 8.36%
ROE 32.2%
ROCE 20.79%
ROIC 15.21%
ROICexc 15.78%
ROICexgc 33.13%
OM 12.83%
PM (TTM) 7.98%
GM 28.79%
FCFM 6.57%
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-Score8
Asset Turnover1.05
Health
Industry RankSector Rank
Debt/Equity 1.19
Debt/FCF 6.02
Debt/EBITDA 1.8
Cap/Depr 72.79%
Cap/Sales 2.6%
Interest Coverage 250
Cash Conversion 55.91%
Profit Quality 82.28%
Current Ratio 1.03
Quick Ratio 0.68
Altman-Z 3.77
F-Score8
WACC7.89%
ROIC/WACC1.93
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)5.72%
EPS 3Y1.83%
EPS 5Y7.41%
EPS Q2Q%0.44%
EPS Next Y6.22%
EPS Next 2Y8.89%
EPS Next 3Y9.72%
EPS Next 5Y7.69%
Revenue 1Y (TTM)3.57%
Revenue growth 3Y1.36%
Revenue growth 5Y4.37%
Sales Q2Q%-0.14%
Revenue Next Year1.01%
Revenue Next 2Y2.48%
Revenue Next 3Y3.19%
Revenue Next 5Y4.41%
EBIT growth 1Y9.78%
EBIT growth 3Y1.58%
EBIT growth 5Y6.16%
EBIT Next Year30.24%
EBIT Next 3Y14.03%
EBIT Next 5Y9.97%
FCF growth 1Y9.8%
FCF growth 3Y-3.37%
FCF growth 5Y7.39%
OCF growth 1Y-4.06%
OCF growth 3Y-3.56%
OCF growth 5Y4.69%