Is Avery Dennison (NYSE:AVY) A Risky Investment?
May 14
U.S. Packaging Industry Analysis
UpdatedMay 20, 2024
DataAggregated Company Financials
Companies26
- 7D1.0%
- 3M10.0%
- 1Y19.8%
- YTD9.8%
The Packaging is pretty flat in the last 7 days, but WestRock has stood out, gaining 3.6%. The past year has been better, since the industry has gained 20% in that time. Looking forward, earnings are forecast to grow by 12% annually.
Industry Valuation and Performance
Has the U.S. Packaging Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 20 May 2024 | US$161.1b | US$156.7b | US$6.1b | 22.8x | 26.3x | 1x |
| Wed, 17 Apr 2024 | US$150.4b | US$159.1b | US$4.4b | 18x | 33.9x | 0.9x |
| Fri, 15 Mar 2024 | US$153.2b | US$159.1b | US$4.4b | 18.1x | 34.5x | 1x |
| Sun, 11 Feb 2024 | US$139.6b | US$154.1b | US$4.6b | 17.2x | 30.4x | 0.9x |
| Tue, 09 Jan 2024 | US$142.1b | US$155.9b | US$5.4b | 15.7x | 26.3x | 0.9x |
| Thu, 07 Dec 2023 | US$138.3b | US$156.1b | US$5.4b | 15x | 25.4x | 0.9x |
| Sat, 04 Nov 2023 | US$130.8b | US$156.0b | US$5.6b | 15.8x | 23.5x | 0.8x |
| Mon, 02 Oct 2023 | US$131.2b | US$159.5b | US$7.0b | 13x | 18.6x | 0.8x |
| Wed, 30 Aug 2023 | US$135.0b | US$159.8b | US$7.1b | 13.6x | 19x | 0.8x |
| Fri, 28 Jul 2023 | US$139.5b | US$166.4b | US$7.3b | 14.1x | 19x | 0.8x |
| Sun, 25 Jun 2023 | US$129.3b | US$168.2b | US$7.9b | 12.2x | 16.4x | 0.8x |
| Tue, 23 May 2023 | US$131.3b | US$168.6b | US$7.9b | 12.9x | 16.6x | 0.8x |
| Thu, 20 Apr 2023 | US$137.2b | US$170.1b | US$10.8b | 13x | 12.7x | 0.8x |
| Sat, 18 Mar 2023 | US$128.7b | US$170.0b | US$10.8b | 12x | 11.9x | 0.8x |
| Mon, 13 Feb 2023 | US$141.9b | US$170.2b | US$10.5b | 13.8x | 13.6x | 0.8x |
| Wed, 11 Jan 2023 | US$143.5b | US$170.4b | US$10.0b | 13.9x | 14.4x | 0.8x |
| Fri, 09 Dec 2022 | US$140.4b | US$170.4b | US$10.0b | 13.6x | 14.1x | 0.8x |
| Sun, 06 Nov 2022 | US$131.0b | US$169.8b | US$9.8b | 13x | 13.4x | 0.8x |
| Tue, 04 Oct 2022 | US$126.5b | US$166.6b | US$8.5b | 12.6x | 14.9x | 0.8x |
| Thu, 01 Sep 2022 | US$144.1b | US$166.4b | US$8.5b | 14.1x | 17x | 0.9x |
| Sat, 30 Jul 2022 | US$156.9b | US$164.1b | US$8.7b | 16.7x | 18.1x | 1x |
| Mon, 27 Jun 2022 | US$131.9b | US$146.4b | US$6.7b | 16.4x | 19.8x | 0.9x |
| Wed, 25 May 2022 | US$135.3b | US$146.1b | US$6.7b | 16.8x | 20.3x | 0.9x |
| Fri, 22 Apr 2022 | US$155.2b | US$140.2b | US$5.8b | 18.5x | 26.7x | 1.1x |
| Sun, 20 Mar 2022 | US$154.6b | US$140.4b | US$5.8b | 19x | 26.5x | 1.1x |
| Tue, 15 Feb 2022 | US$148.2b | US$135.1b | US$6.1b | 20.2x | 24.4x | 1.1x |
| Thu, 13 Jan 2022 | US$151.9b | US$136.8b | US$7.7b | 22.9x | 19.8x | 1.1x |
| Sat, 11 Dec 2021 | US$150.2b | US$136.8b | US$7.7b | 22.7x | 19.6x | 1.1x |
| Mon, 08 Nov 2021 | US$155.4b | US$135.1b | US$6.1b | 23.2x | 25.5x | 1.2x |
| Wed, 06 Oct 2021 | US$154.5b | US$132.2b | US$5.3b | 21.2x | 29.1x | 1.2x |
| Fri, 03 Sep 2021 | US$162.4b | US$125.1b | US$5.0b | 21.7x | 32.2x | 1.3x |
| Sun, 01 Aug 2021 | US$148.9b | US$125.1b | US$5.0b | 20.5x | 29.6x | 1.2x |
Price to Earnings Ratio
34.1x
Current Industry PE
- Investors are optimistic on the American Packaging industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 26.3x which is higher than its 3-year average PE of 21.9x.
- The industry is trading close to its 3-year average PS ratio of 0.95x.
Past Earnings Growth
- The earnings for companies in the Packaging industry have grown 9.8% per year over the last three years.
- Revenues for these companies have grown 9.5% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the U.S. Materials industry?
| US Market | 1.79% | |
| Materials | 0.78% | |
| Packaging | 0.99% | |
| Paper Packaging | 1.18% | |
| Metal and Glass Containers | 0.66% | |
Industry PE
- Investors are most optimistic about the Paper Packaging industry, which is trading close to its 3-year average PE ratio of 26.3x.
- Analysts are expecting annual earnings growth of 16.7%, which is higher than its past year's earnings decline of 21.4% per year.
- Investors are most pessimistic about the Metal and Glass Containers industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 20.3x.
Forecasted Growth
- Analysts are most optimistic on the Paper Packaging industry, expecting annual earnings growth of 17% over the next 5 years.
- This is better than its past earnings decline of 21% per year.
- In contrast, the Metal and Glass Containers industry is expected to see its earnings grow by 4.5% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| WRK WestRock | US$52.94 | 3.6% +US$475.0m | 88.9% | PE44.8x | |
| IP International Paper | US$40.64 | 2.8% +US$388.6m | 28.1% | PE75.9x | |
| BALL Ball | US$70.11 | 1.2% +US$260.7m | 29.3% | PE33x | |
| PKG Packaging Corporation of America | US$183.13 | 0.9% +US$151.5m | 41.9% | PE22.8x | |
| BERY Berry Global Group | US$60.68 | 1.6% +US$112.1m | 2.8% | PE13.8x |
