AVERY DENNISON CORP (AVY) Stock Fundamental Analysis
USA - NYSE:AVY - US0536111091 - Common Stock
174.89 USD
-1.04 (-0.59%)
174.89 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to AVY. AVY was compared to 22 industry peers in the Containers & Packaging industry. AVY scores excellent on profitability, but there are some minor concerns on its financial health. AVY has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year AVY was profitable.
In the past year AVY had a positive cash flow from operations.
In the past 5 years AVY has always been profitable.
AVY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 7.84%, AVY belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
AVY has a better Return On Equity (31.46%) than 100.00% of its industry peers.
AVY has a better Return On Invested Capital (13.30%) than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AVY is significantly above the industry average of 7.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.84% | ||
| ROE | 31.46% | ||
| ROIC | 13.3% |
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's Profit Margin of 7.93% is amongst the best of the industry. AVY outperforms 86.36% of its industry peers.
AVY's Profit Margin has improved in the last couple of years.
The Operating Margin of AVY (12.61%) is better than 81.82% of its industry peers.
AVY's Operating Margin has improved in the last couple of years.
AVY has a better Gross Margin (28.56%) than 81.82% of its industry peers.
AVY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.61% | ||
| PM (TTM) | 7.93% | ||
| GM | 28.56% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AVY is still creating some value.
The number of shares outstanding for AVY has been reduced compared to 1 year ago.
Compared to 5 years ago, AVY has less shares outstanding
The debt/assets ratio for AVY has been reduced compared to a year ago.
2.2 Solvency
AVY has an Altman-Z score of 3.60. This indicates that AVY is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.60, AVY belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
AVY has a debt to FCF ratio of 5.79. This is a neutral value as AVY would need 5.79 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.79, AVY belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
AVY has a Debt/Equity ratio of 1.45. This is a high value indicating a heavy dependency on external financing.
AVY has a Debt to Equity ratio (1.45) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 3.6 |
ROIC/WACC1.63
WACC8.14%
2.3 Liquidity
A Current Ratio of 1.26 indicates that AVY should not have too much problems paying its short term obligations.
AVY has a Current ratio (1.26) which is comparable to the rest of the industry.
A Quick Ratio of 0.89 indicates that AVY may have some problems paying its short term obligations.
AVY has a Quick ratio (0.89) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
AVY shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.87%.
The Earnings Per Share has been growing slightly by 7.41% on average over the past years.
The Revenue has been growing slightly by 1.03% in the past year.
Measured over the past years, AVY shows a small growth in Revenue. The Revenue has been growing by 4.37% on average per year.
EPS 1Y (TTM)-1.87%
EPS 3Y1.83%
EPS 5Y7.41%
EPS Q2Q%1.72%
Revenue 1Y (TTM)1.03%
Revenue growth 3Y1.36%
Revenue growth 5Y4.37%
Sales Q2Q%1.47%
3.2 Future
Based on estimates for the next years, AVY will show a small growth in Earnings Per Share. The EPS will grow by 7.40% on average per year.
The Revenue is expected to grow by 3.91% on average over the next years.
EPS Next Y2%
EPS Next 2Y6.38%
EPS Next 3Y7.86%
EPS Next 5Y7.4%
Revenue Next Year1.07%
Revenue Next 2Y2.52%
Revenue Next 3Y3.14%
Revenue Next 5Y3.91%
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 18.47, AVY is valued on the expensive side.
63.64% of the companies in the same industry are cheaper than AVY, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AVY to the average of the S&P500 Index (26.10), we can say AVY is valued slightly cheaper.
The Price/Forward Earnings ratio is 16.40, which indicates a correct valuation of AVY.
72.73% of the companies in the same industry are cheaper than AVY, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AVY to the average of the S&P500 Index (22.52), we can say AVY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.47 | ||
| Fwd PE | 16.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AVY is valued a bit more expensive than 63.64% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AVY is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.9 | ||
| EV/EBITDA | 11.84 |
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)9.24
PEG (5Y)2.49
EPS Next 2Y6.38%
EPS Next 3Y7.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.14%, AVY has a reasonable but not impressive dividend return.
AVY's Dividend Yield is comparable with the industry average which is at 3.54.
Compared to an average S&P500 Dividend Yield of 2.37, AVY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.44%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
41.17% of the earnings are spent on dividend by AVY. 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.
DP41.17%
EPS Next 2Y6.38%
EPS Next 3Y7.86%
174.89
-1.04 (-0.59%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners96.88%
Inst Owner Change0.03%
Ins Owners0.63%
Ins Owner Change0.65%
Market Cap13.64B
Revenue(TTM)8.77B
Net Income(TTM)695.60M
Analysts73.33
Price Target202.49 (15.78%)
Short Float %2.57%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Yearly Dividend3.46
Dividend Growth(5Y)14.44%
DP41.17%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.48%
Min EPS beat(2)0.07%
Max EPS beat(2)0.9%
EPS beat(4)2
Avg EPS beat(4)-0.42%
Min EPS beat(4)-1.77%
Max EPS beat(4)0.9%
EPS beat(8)5
Avg EPS beat(8)3.53%
EPS beat(12)6
Avg EPS beat(12)0.42%
EPS beat(16)8
Avg EPS beat(16)1.45%
Revenue beat(2)0
Avg Revenue beat(2)-1.6%
Min Revenue beat(2)-1.96%
Max Revenue beat(2)-1.23%
Revenue beat(4)0
Avg Revenue beat(4)-1.33%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)-0.95%
Revenue beat(8)1
Avg Revenue beat(8)-0.86%
Revenue beat(12)1
Avg Revenue beat(12)-2.39%
Revenue beat(16)3
Avg Revenue beat(16)-1.61%
PT rev (1m)0.99%
PT rev (3m)1.54%
EPS NQ rev (1m)-1.7%
EPS NQ rev (3m)-1.06%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-1.42%
Revenue NQ rev (1m)1.09%
Revenue NQ rev (3m)1.09%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.47 | ||
| Fwd PE | 16.4 | ||
| P/S | 1.56 | ||
| P/FCF | 20.9 | ||
| P/OCF | 15.94 | ||
| P/B | 6.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.84 |
EPS(TTM)9.47
EY5.41%
EPS(NY)10.66
Fwd EY6.1%
FCF(TTM)8.37
FCFY4.79%
OCF(TTM)10.97
OCFY6.28%
SpS112.46
BVpS28.35
TBVpS-6.58
PEG (NY)9.24
PEG (5Y)2.49
Graham Number77.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.84% | ||
| ROE | 31.46% | ||
| ROCE | 18.18% | ||
| ROIC | 13.3% | ||
| ROICexc | 14.59% | ||
| ROICexgc | 28.69% | ||
| OM | 12.61% | ||
| PM (TTM) | 7.93% | ||
| GM | 28.56% | ||
| FCFM | 7.44% |
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%
ROICexgc growth 3Y5.53%
ROICexgc 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-Score5
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 5.79 | ||
| Debt/EBITDA | 2.25 | ||
| Cap/Depr | 63.32% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60% | ||
| Profit Quality | 93.82% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 3.6 |
F-Score5
WACC8.14%
ROIC/WACC1.63
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)-1.87%
EPS 3Y1.83%
EPS 5Y7.41%
EPS Q2Q%1.72%
EPS Next Y2%
EPS Next 2Y6.38%
EPS Next 3Y7.86%
EPS Next 5Y7.4%
Revenue 1Y (TTM)1.03%
Revenue growth 3Y1.36%
Revenue growth 5Y4.37%
Sales Q2Q%1.47%
Revenue Next Year1.07%
Revenue Next 2Y2.52%
Revenue Next 3Y3.14%
Revenue Next 5Y3.91%
EBIT growth 1Y0.1%
EBIT growth 3Y1.58%
EBIT growth 5Y6.16%
EBIT Next Year27.36%
EBIT Next 3Y12.89%
EBIT Next 5Y9.13%
FCF growth 1Y14.45%
FCF growth 3Y-3.37%
FCF growth 5Y7.39%
OCF growth 1Y-0.48%
OCF growth 3Y-3.56%
OCF growth 5Y4.69%
AVERY DENNISON CORP / AVY FAQ
What is the fundamental rating for AVY stock?
ChartMill assigns a fundamental rating of 6 / 10 to AVY.
What is the valuation status for AVY stock?
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 9 / 10.
Can you provide the PE and PB ratios for AVY stock?
The Price/Earnings (PE) ratio for AVERY DENNISON CORP (AVY) is 18.47 and the Price/Book (PB) ratio is 6.17.
Can you provide the financial health for AVY stock?
The financial health rating of AVERY DENNISON CORP (AVY) is 6 / 10.