Avery Dennison
Market Cap
US$10.0b
Last Updated
2019/10/22 23:31 UTC
Data Sources
Company Financials +
Executive Summary
Avery Dennison Corporation produces and sells pressure-sensitive materials worldwide.
Snowflake
Fundamentals
Reasonable growth potential with adequate balance sheet and pays a dividend.
Similar Companies
Share Price & News
How has Avery Dennison's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
4.2%
AVY
2.6%
US Packaging
0.07%
US Market
1 Year Return
28.2%
AVY
18.6%
US Packaging
8.9%
US Market
Return vs Industry: AVY exceeded the US Packaging industry which returned 18.6% over the past year.
Return vs Market: AVY exceeded the US Market which returned 8.9% over the past year.
Shareholder returns
| AVY | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.2% | 2.6% | 0.07% |
| 30 Day | 5.0% | 2.4% | -0.3% |
| 90 Day | 1.6% | -2.4% | -1.6% |
| 1 Year | 30.9%28.2% | 21.5%18.6% | 11.3%8.9% |
| 3 Year | 65.9%56.3% | 27.1%19.1% | 46.3%36.8% |
| 5 Year | 186.7%157.5% | 47.5%30.2% | 62.1%44.3% |
Price Volatility Vs. Market
How volatile is Avery Dennison's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Estimating The Intrinsic Value Of Avery Dennison Corporation (NYSE:AVY)2 weeks ago | Simply Wall St
What Is Avery Dennison Corporation's (NYSE:AVY) Share Price Doing?3 weeks ago | Simply Wall St
Did You Miss Avery Dennison's (NYSE:AVY) Impressive 157% Share Price Gain?Valuation
Is Avery Dennison undervalued compared to its fair value and its price relative to the market?
8.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AVY ($118.43) is trading below our estimate of fair value ($129.52)
Significantly Below Fair Value: AVY is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: AVY is poor value based on its PE Ratio (41.7x) compared to the Packaging industry average (17.6x).
PE vs Market: AVY is poor value based on its PE Ratio (41.7x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: AVY is good value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: AVY is overvalued based on its PB Ratio (9.4x) compared to the US Packaging industry average (3.5x).
Next Steps
Future Growth
How is Avery Dennison forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
42.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AVY's forecast earnings growth (42.5% per year) is above the savings rate (2.7%).
Earnings vs Market: AVY's earnings (42.5% per year) are forecast to grow faster than the US market (14.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: AVY's revenue (3.6% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: AVY's revenue (3.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AVY's Return on Equity is forecast to be very high in 3 years time (46.4%).
Next Steps
Past Performance
How has Avery Dennison performed over the past 5 years?
4.9%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: AVY's earnings have grown by 4.9% per year over the past 5 years.
Accelerating Growth: AVY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AVY had negative earnings growth (-9.9%) over the past year, making it difficult to compare to the Packaging industry average (-1.4%).
Return on Equity
High ROE: Whilst AVY's Return on Equity (22.88%) is high, this metric is skewed due to their high level of debt.
Return on Assets
ROA vs Industry: AVY has a higher Return on Assets than the Packaging industry average last year.
Return on Capital Employed
ROCE Improving: AVY has significantly improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is Avery Dennison's financial position?
Financial Position Analysis
Short Term Liabilities: AVY's short term assets ($2.4B) exceeds its short term liabilities ($2.3B)
Long Term Liabilities: AVY's short term assets (2.4B) exceeds its long term liabilities (2.0B)
Debt to Equity History and Analysis
Debt Level: AVY's debt to equity ratio (192.2%) is considered high
Reducing Debt: AVY's debt to equity ratio has increased from 82.1% to 192.2% over the past 5 years.
Debt Coverage: AVY's debt is well covered by operating cash flow (23.9%).
Interest Coverage: AVY's interest payments on its debt are well covered by EBIT (11.3x coverage).
Balance Sheet
Inventory Level: AVY has a high level of physical assets or inventory.
Debt Coverage by Assets: AVY's debt is covered by short term assets (assets are 1.163980x debt).
Next Steps
Dividend
What is Avery Dennison's current dividend yield, its reliability and sustainability?
1.96%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: AVY's dividend (1.96%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: AVY's dividend (1.96%) is low compared to the top 25% of dividend payers in the US market (3.68%).
Stable Dividend: AVY's dividend payments have been volatile in the past 10 years.
Growing Dividend: AVY's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (75.3%), AVY's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AVY's dividends in 3 years are forecast to be well covered by earnings (29.1% payout ratio).
Next Steps
Management
What is the CEO of Avery Dennison's salary, the management and board of directors tenure and is there insider trading?
4.5yrs
Average management tenure
CEO
Mitch Butier (48yo)
3.4yrs
Tenure
US$8,709,697
Compensation
Mr. Mitchell R. Butier, also known as Mitch, has been the Chief Executive Officer of Avery Dennison Corporation since May 1, 2016 and as its President since November 1, 2014 and has been its Chairman of th ...
CEO Compensation Analysis
Compensation vs. Market: Mitch's total compensation ($USD8.71M) is about average for companies of similar size in the US market ($USD11.18M).
Compensation vs Earnings: Mitch's compensation has been consistent with company performance over the past year.
Management Age and Tenure
4.5yrs
Average Tenure
52yo
Average Age
Experienced Management: AVY's management team is considered experienced (4.5 years average tenure).
Board Age and Tenure
9.5yrs
Average Tenure
63yo
Average Age
Experienced Board: AVY's board of directors are considered experienced (9.5 years average tenure).
Insider Trading
Insider Buying: AVY insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,150 |
| Max Price | US$114.54 |
| Entity | Individual |
| Shares | 18,631 |
| Max Price | US$114.98 |
| Entity | Individual |
| Shares | 10,000 |
| Max Price | US$116.41 |
| Entity | Individual |
| Role | Senior Key Executive President of Label & Graphic Materials |
| Shares | 2,500 |
| Max Price | US$116.88 |
| Entity | Individual |
| Role | Senior Key Executive President of Label & Graphic Materials |
| Shares | 14,000 |
| Max Price | US$110.66 |
Ownership Breakdown
Management Team
Lori Bondar (58yo)
Chief Accounting Officer
- Tenure: 9.3yrs
Mitch Butier (48yo)
Chairman
- Tenure: 3.4yrs
- Compensation: US$8.71m
Danny Allouche
Vice President of Strategy & Corporate Development
- Tenure: 0yrs
Sue Miller (59yo)
Senior VP
- Tenure: 11.6yrs
- Compensation: US$2.15m
Cynthia Guenther
Vice President of Finance & Investor Relations
- Tenure: 0yrs
Nick Colisto (52yo)
VP & Chief Information Officer
- Tenure: 1.6yrs
Georges Gravanis (61yo)
President of Label & Graphic Materials
- Tenure: 4.5yrs
- Compensation: US$2.37m
Hassan Rmaile (41yo)
GM of Global Graphics & Reflective Solutions and VP of Global Technology & Ventures
- Tenure: 0yrs
Greg Lovins (46yo)
Senior VP & CFO
- Tenure: 2.6yrs
- Compensation: US$2.41m
Kamran Kian
Vice President of Global Operations & Supply Chain
- Tenure: 13.8yrs
Board Members
Patrick Thomas Siewert (63yo)
Independent Director
- Tenure: 14.5yrs
- Compensation: US$257.26k
David E. Pyott (66yo)
Lead Independent Director
- Tenure: 9.5yrs
- Compensation: US$277.26k
Julia Stewart (63yo)
Independent Director
- Tenure: 16.8yrs
- Compensation: US$262.26k
Ken Hicks (67yo)
Independent Director
- Tenure: 12.3yrs
- Compensation: US$247.26k
Peter Barker (70yo)
Independent Director
- Tenure: 16.8yrs
- Compensation: US$262.26k
Brad Alford (62yo)
Independent Director
- Tenure: 9.5yrs
- Compensation: US$239.51k
Tony Anderson (63yo)
Independent Director
- Tenure: 6.8yrs
- Compensation: US$237.26k
Mitch Butier (48yo)
Chairman
- Tenure: 3.4yrs
- Compensation: US$8.71m
Martha Sullivan (62yo)
Independent Director
- Tenure: 6.7yrs
- Compensation: US$247.26k
Andres Lopez (56yo)
Independent Director
- Tenure: 2.7yrs
- Compensation: US$237.26k
Company Information
Avery Dennison Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Avery Dennison Corporation
- Ticker: AVY
- Exchange: NYSE
- Founded: 1935
- Industry: Paper Packaging
- Sector: Materials
- Market Cap: US$9.975b
- Shares outstanding: 84.23m
- Website: https://www.averydennison.com
Number of Employees
Location
- Avery Dennison Corporation
- 207 Goode Avenue
- Glendale
- California
- 91203
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AVY | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| AV3 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| 0HJR | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1968 |
Biography
Avery Dennison Corporation produces and sells pressure-sensitive materials worldwide. The company’s Label and Graphic Materials segment offers pressure-sensitive label and packaging materials; and graphics ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/22 23:31 |
| End of Day Share Price | 2019/10/22 00:00 |
| Earnings | 2019/06/29 |
| Annual Earnings | 2018/12/29 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.