Avery Dennison
Market Cap
US$13.3b
Last Updated
2021/01/18 23:22 UTC
Data Sources
Company Financials +
Executive Summary
Avery Dennison Corporation produces and sells pressure-sensitive materials worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Solid track record established dividend payer.
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
Stable Share Price: AVY is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: AVY's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-1.2%
AVY
-1.8%
US Packaging
-0.4%
US Market
1 Year Return
18.3%
AVY
18.2%
US Packaging
19.5%
US Market
Return vs Industry: AVY matched the US Packaging industry which returned 18.2% over the past year.
Return vs Market: AVY underperformed the US Market which returned 19.6% over the past year.
Shareholder returns
| AVY | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.2% | -1.8% | -0.4% |
| 30 Day | 4.2% | 1.3% | 2.3% |
| 90 Day | 18.6% | 10.2% | 12.7% |
| 1 Year | 20.6%18.3% | 20.8%18.2% | 22.3%19.5% |
| 3 Year | 39.9%32.0% | 25.8%16.6% | 44.4%34.8% |
| 5 Year | 202.6%174.0% | 125.0%99.5% | 128.7%103.3% |
Long-Term 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
1 week ago | Simply Wall St
Avery Dennison (NYSE:AVY) Has Gifted Shareholders With A Fantastic 194% Total Return On Their Investment2 weeks ago | Simply Wall St
When Should You Buy Avery Dennison Corporation (NYSE:AVY)?3 weeks ago | Simply Wall St
Can Avery Dennison Corporation (NYSE:AVY) Maintain Its Strong Returns?Valuation
Is Avery Dennison undervalued compared to its fair value and its price relative to the market?
16.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AVY ($159.33) is trading below our estimate of fair value ($190.33)
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 (25.2x) compared to the US Packaging industry average (24.3x).
PE vs Market: AVY is poor value based on its PE Ratio (25.2x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: AVY is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: AVY is overvalued based on its PB Ratio (10x) compared to the US Packaging industry average (3.3x).
Next Steps
Future Growth
How is Avery Dennison forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
11.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AVY's forecast earnings growth (11.3% per year) is above the savings rate (2%).
Earnings vs Market: AVY's earnings (11.3% per year) are forecast to grow slower than the US market (21.5% per year).
High Growth Earnings: AVY's earnings are forecast to grow, but not significantly.
Revenue vs Market: AVY's revenue (3.9% per year) is forecast to grow slower than the US market (10.3% per year).
High Growth Revenue: AVY's revenue (3.9% 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 high in 3 years time (37.7%)
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Past Performance
How has Avery Dennison performed over the past 5 years?
8.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AVY has high quality earnings.
Growing Profit Margin: AVY's current net profit margins (7.8%) are higher than last year (3.4%).
Past Earnings Growth Analysis
Earnings Trend: AVY's earnings have grown by 8.5% per year over the past 5 years.
Accelerating Growth: AVY's earnings growth over the past year (121.2%) exceeds its 5-year average (8.5% per year).
Earnings vs Industry: AVY earnings growth over the past year (121.2%) exceeded the Packaging industry -8.9%.
Return on Equity
High ROE: Whilst AVY's Return on Equity (39.48%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Avery Dennison's financial position?
Financial Position Analysis
Short Term Liabilities: AVY's short term assets ($2.4B) exceed its short term liabilities ($1.8B).
Long Term Liabilities: AVY's short term assets ($2.4B) do not cover its long term liabilities ($2.6B).
Debt to Equity History and Analysis
Debt Level: AVY's debt to equity ratio (149.1%) is considered high.
Reducing Debt: AVY's debt to equity ratio has increased from 100.1% to 149.1% over the past 5 years.
Debt Coverage: AVY's debt is well covered by operating cash flow (36.2%).
Interest Coverage: AVY's interest payments on its debt are well covered by EBIT (11.1x coverage).
Balance Sheet
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Dividend
What is Avery Dennison current dividend yield, its reliability and sustainability?
1.56%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AVY's dividend (1.56%) is higher than the bottom 25% of dividend payers in the US market (1.39%).
High Dividend: AVY's dividend (1.56%) is low compared to the top 25% of dividend payers in the US market (3.85%).
Stability and Growth of Payments
Stable Dividend: AVY's dividends per share have been stable in the past 10 years.
Growing Dividend: AVY's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (36.7%), AVY's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AVY's dividends in 3 years are forecast to be well covered by earnings (30% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
4.1yrs
Average management tenure
CEO
Mitch Butier (49 yo)
4.67yrs
Tenure
US$8,495,032
Compensation
Mr. Mitchell R. Butier, also known as Mitch, has been the Chief Executive Officer of Avery Dennison Corporation since May 1, 2016 and as its President since November 1, 2014 and has been its Chairman of th...
CEO Compensation Analysis
Compensation vs Market: Mitch's total compensation ($USD8.50M) is about average for companies of similar size in the US market ($USD10.56M).
Compensation vs Earnings: Mitch's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 4.67yrs | US$8.50m | 0.25% $ 33.5m | |
| Senior VP & CFO | 3.83yrs | US$2.74m | 0.040% $ 5.3m | |
| VP and GM of Retail Branding & Information Solutions | 4.42yrs | US$2.13m | 0.031% $ 4.1m | |
| VP, Controller | 10.58yrs | no data | 0.025% $ 3.4m | |
| GM of Global Graphics & Reflective Solutions and VP of Global Technology & Ventures | no data | no data | no data | |
| VP & Chief Information Officer | 2.83yrs | no data | 0.0012% $ 155.5k | |
| Vice President of Finance & Investor Relations | no data | no data | no data | |
| Chief Legal Officer | 1yr | no data | 0.0035% $ 463.9k | |
| Vice President of Strategy & Corporate Development | no data | no data | no data | |
| Chief Human Resources Officer | 1yr | no data | 0.0053% $ 707.1k | |
| Executive Vice President of Business Development | 10.67yrs | US$3.39m | no data |
4.1yrs
Average Tenure
51yo
Average Age
Experienced Management: AVY's management team is considered experienced (4.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 4.67yrs | US$8.50m | 0.25% $ 33.5m | |
| Independent Director | 2.33yrs | US$251.78k | 0.0027% $ 365.5k | |
| Lead Independent Director | 0.75yr | US$281.78k | 0.018% $ 2.4m | |
| Independent Director | 18yrs | US$276.78k | 0.023% $ 3.1m | |
| Independent Director | 13.5yrs | US$261.78k | 0.032% $ 4.3m | |
| Independent Director | 18yrs | US$276.78k | 0.037% $ 5.0m | |
| Independent Director | 10.75yrs | US$259.28k | 0.023% $ 3.1m | |
| Independent Director | 8.08yrs | US$251.78k | 0.0051% $ 681.8k | |
| Independent Director | 7.92yrs | US$261.78k | 0.017% $ 2.3m | |
| Independent Director | 3.92yrs | US$251.78k | 0.0058% $ 776.2k |
8.0yrs
Average Tenure
63.5yo
Average Age
Experienced Board: AVY's board of directors are considered experienced (8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AVY insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$13.291b
- Shares outstanding: 83.42m
- 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 |
| AVY | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH 3 REP 1 ORD USD1 | AR | ARS | Dec 2000 | |
| A1VY34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 2 REPR 1 COM | BR | BRL | Jan 2020 |
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 | 2021/01/18 23:22 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/26 |
| Annual Earnings | 2019/12/28 |
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.