Avery Dennison
Avery Dennison Corporation produces and sells pressure-sensitive materials worldwide. The last earnings update was 21 days ago. More info.
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AVY Share Price and Events
7 Day Returns
1 Year Returns
AVY Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Avery Dennison (AVY) | 0% | 4.8% | 26.9% | -0.1% | 54.1% | 122% |
| US Packaging | 0.2% | 2.2% | 16.2% | -2.7% | 27.7% | 29.4% |
| US Market | 1.2% | 2.1% | 14.6% | 3% | 39% | 43.5% |
1 Year Return vs Industry and Market
- AVY outperformed the Packaging industry which returned -2.7% over the past year.
- AVY underperformed the Market in United States of America which returned 3% over the past year.
Value
Is Avery Dennison undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Avery Dennison
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Avery Dennison.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 10 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.9% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Packaging Unlevered Beta | Simply Wall St/ S&P Global | 0.9 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.898 (1 + (1- 21%) (21.29%)) |
1.033 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.03 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.033 * 5.96%) |
8.89% |
Discounted Cash Flow Calculation for NYSE:AVY using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Avery Dennison is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 8.89%) |
|
|---|---|---|---|
| 2019 | 464.29 | Analyst x7 | 426.40 |
| 2020 | 536.49 | Analyst x7 | 452.49 |
| 2021 | 570.00 | Analyst x2 | 441.53 |
| 2022 | 598.85 | Est @ 5.06% | 426.02 |
| 2023 | 624.98 | Est @ 4.36% | 408.32 |
| 2024 | 649.18 | Est @ 3.87% | 389.52 |
| 2025 | 672.10 | Est @ 3.53% | 370.36 |
| 2026 | 694.21 | Est @ 3.29% | 351.33 |
| 2027 | 715.89 | Est @ 3.12% | 332.73 |
| 2028 | 737.39 | Est @ 3% | 314.75 |
| Present value of next 10 years cash flows | $3,913.44 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $737.39 × (1 + 2.73%) ÷ (8.89% – 2.73%) |
$12,305.04 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $12,305.04 ÷ (1 + 8.89%)10 |
$5,252.36 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $3,913.44 + $5,252.36 |
$9,165.80 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $9,165.80 / 83.97 |
$109.15 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $109.15 |
| Current discount | Discount to share price of
$109.98
= -1 x ($109.98 - $109.15) / $109.15 |
-0.8% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Avery Dennison is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Avery Dennison's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Avery Dennison's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-29) in USD | $5.35 |
| NYSE:AVY Share Price ** | NYSE (2019-03-20) in USD | $109.98 |
| United States of America Packaging Industry PE Ratio | Median Figure of 15 Publicly-Listed Packaging Companies | 17.6x |
| United States of America Market PE Ratio | Median Figure of 3,058 Publicly-Listed Companies | 17.69x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Avery Dennison.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:AVY Share Price ÷ EPS (both in USD) = 109.98 ÷ 5.35 |
20.54x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Avery Dennison is overvalued based on earnings compared to the US Packaging industry average.
- Avery Dennison is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Avery Dennison's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 20.54x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts |
10.2%per year |
| United States of America Packaging Industry PEG Ratio | Median Figure of 14 Publicly-Listed Packaging Companies | 1.72x |
| United States of America Market PEG Ratio | Median Figure of 2,103 Publicly-Listed Companies | 1.48x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 20.54x ÷ 10.2% |
2.02x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Avery Dennison is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Avery Dennison's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-29) in USD | $11.27 |
| NYSE:AVY Share Price * | NYSE (2019-03-20) in USD | $109.98 |
| United States of America Packaging Industry PB Ratio | Median Figure of 19 Publicly-Listed Packaging Companies | 3.64x |
| United States of America Market PB Ratio | Median Figure of 5,156 Publicly-Listed Companies | 1.89x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:AVY Share Price ÷ Book Value per Share (both in USD) = 109.98 ÷ 11.27 |
9.76x |
* Primary Listing of Avery Dennison.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Avery Dennison is overvalued based on assets compared to the US Packaging industry average.
Value checks
We assess Avery Dennison's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Packaging industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Packaging industry average (and greater than 0)? (1 check) Avery Dennison has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Avery Dennison's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Avery Dennison's earnings growth is positive but not above the United States of America market average.
- Avery Dennison's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:AVY Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts | 10.2% |
| NYSE:AVY Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts | 3.5% |
| United States of America Packaging Industry Earnings Growth Rate | Market Cap Weighted Average | 14.6% |
| United States of America Packaging Industry Revenue Growth Rate | Market Cap Weighted Average | 2.6% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 10 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 8,572 | 2 | ||
| 2022-12-31 | 8,224 | 2 | ||
| 2021-12-31 | 7,875 | 939 | 645 | 5 |
| 2020-12-31 | 7,584 | 832 | 590 | 10 |
| 2019-12-31 | 7,318 | 778 | 559 | 10 |
| 2018-12-31 | 7,178 | 577 | 477 | 10 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-29 | 7,159 | 458 | 467 |
| 2018-09-29 | 7,126 | 448 | 311 |
| 2018-06-30 | 7,045 | 684 | 270 |
| 2018-03-31 | 6,818 | 652 | 295 |
| 2017-12-30 | 6,614 | 646 | 282 |
| 2017-09-30 | 6,429 | 610 | 403 |
| 2017-07-01 | 6,259 | 545 | 384 |
| 2017-04-01 | 6,173 | 606 | 343 |
| 2016-12-31 | 6,087 | 582 | 321 |
| 2016-10-01 | 5,991 | 557 | 315 |
| 2016-07-02 | 5,950 | 519 | 307 |
| 2016-04-02 | 5,924 | 463 | 292 |
| 2016-01-02 | 5,967 | 474 | 274 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 10 Analyst Estimates (S&P Global) | See Below |
All data from Avery Dennison Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | ||||
| 2022-12-31 | ||||
| 2021-12-31 | 8.02 | 8.41 | 7.64 | 2.00 |
| 2020-12-31 | 7.06 | 7.58 | 6.43 | 4.00 |
| 2019-12-31 | 6.61 | 6.62 | 6.60 | 2.00 |
| 2018-12-31 | 5.61 | 5.61 | 5.61 | 2.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-29 | 5.35 |
| 2018-09-29 | 3.54 |
| 2018-06-30 | 3.06 |
| 2018-03-31 | 3.34 |
| 2017-12-30 | 3.19 |
| 2017-09-30 | 4.56 |
| 2017-07-01 | 4.33 |
| 2017-04-01 | 3.86 |
| 2016-12-31 | 3.60 |
| 2016-10-01 | 3.52 |
| 2016-07-02 | 3.41 |
| 2016-04-02 | 3.22 |
| 2016-01-02 | 3.02 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Avery Dennison is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
Future performance checks
We assess Avery Dennison's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Avery Dennison has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Avery Dennison performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Avery Dennison's year on year earnings growth rate has been positive over the past 5 years.
- Avery Dennison's 1-year earnings growth exceeds its 5-year average (65.1% vs 9.5%)
- Avery Dennison's earnings growth has exceeded the US Packaging industry average in the past year (65.1% vs 7.6%).
Earnings and Revenue History
All data from Avery Dennison Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-29 | 7,159.00 | 467.40 | 1,013.40 | 98.20 |
| 2018-09-29 | 7,125.60 | 310.70 | 1,033.90 | 97.90 |
| 2018-06-30 | 7,045.40 | 269.50 | 1,021.80 | 97.00 |
| 2018-03-31 | 6,818.10 | 294.80 | 1,000.20 | 95.30 |
| 2017-12-30 | 6,613.80 | 281.80 | 986.90 | 93.40 |
| 2017-09-30 | 6,429.30 | 403.40 | 987.60 | 92.30 |
| 2017-07-01 | 6,258.50 | 384.20 | 988.60 | 91.10 |
| 2017-04-01 | 6,173.10 | 343.30 | 1,017.40 | 90.30 |
| 2016-12-31 | 6,086.50 | 320.70 | 1,012.10 | 89.70 |
| 2016-10-01 | 5,990.50 | 315.20 | 1,013.70 | 88.70 |
| 2016-07-02 | 5,949.90 | 307.40 | 994.60 | 88.50 |
| 2016-04-02 | 5,924.40 | 292.10 | 984.00 | 88.60 |
| 2016-01-02 | 5,966.90 | 274.40 | 1,019.10 | 91.90 |
| 2015-10-03 | 6,116.90 | 287.70 | 1,000.50 | 96.10 |
| 2015-07-04 | 6,208.40 | 267.90 | 1,000.60 | 99.00 |
| 2015-04-04 | 6,308.20 | 247.60 | 1,026.80 | 103.20 |
| 2015-01-03 | 6,330.30 | 247.30 | 1,013.10 | 102.50 |
| 2014-09-27 | 6,309.40 | 222.20 | 1,049.30 | 102.00 |
| 2014-06-28 | 6,254.70 | 222.70 | 1,096.30 | 99.30 |
| 2014-03-29 | 6,191.20 | 249.10 | 1,085.30 | 97.40 |
| 2013-12-28 | 6,140.00 | 241.70 | 1,042.30 | 96.00 |
| 2013-09-28 | 6,039.20 | 227.60 | 1,053.50 | 95.10 |
| 2013-06-29 | 5,981.30 | 201.50 | 1,058.20 | 96.40 |
| 2013-03-30 | 5,919.40 | 179.80 | 1,056.40 | 97.60 |
| 2012-12-29 | 5,863.50 | 157.60 | 1,050.30 | 98.60 |
| 2012-09-29 | 5,835.00 | 158.60 | 1,157.20 | 3.40 |
| 2012-06-30 | 5,888.40 | 158.10 | 1,138.30 | 5.80 |
| 2012-03-31 | 5,942.80 | 162.10 | 1,142.70 | 2.20 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Whilst Avery Dennison made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
- Avery Dennison used its assets more efficiently than the US Packaging industry average last year based on Return on Assets.
- Avery Dennison has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Avery Dennison's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Packaging industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Avery Dennison has a total score of 5/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Avery Dennison's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Avery Dennison's finances.
The net worth of a company is the difference between its assets and liabilities.
- Avery Dennison is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Avery Dennison's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Avery Dennison Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-29 | 955.10 | 1,966.20 | 258.10 |
| 2018-09-29 | 1,047.10 | 1,867.00 | 243.00 |
| 2018-06-30 | 1,021.90 | 1,674.00 | 238.10 |
| 2018-03-31 | 1,089.70 | 1,713.00 | 209.70 |
| 2017-12-30 | 1,046.20 | 1,581.70 | 246.70 |
| 2017-09-30 | 1,134.90 | 1,681.40 | 253.80 |
| 2017-07-01 | 1,069.80 | 1,720.30 | 231.10 |
| 2017-04-01 | 1,014.60 | 1,583.40 | 312.80 |
| 2016-12-31 | 925.50 | 1,292.50 | 212.70 |
| 2016-10-01 | 1,042.40 | 1,300.60 | 207.90 |
| 2016-07-02 | 956.50 | 1,161.90 | 233.90 |
| 2016-04-02 | 968.30 | 1,228.20 | 191.10 |
| 2016-01-02 | 965.70 | 1,058.90 | 176.40 |
| 2015-10-03 | 1,055.30 | 1,053.60 | 189.20 |
| 2015-07-04 | 1,096.70 | 1,151.70 | 263.50 |
| 2015-04-04 | 1,026.00 | 1,211.00 | 230.10 |
| 2015-01-03 | 1,047.70 | 1,144.40 | 224.30 |
| 2014-09-27 | 1,306.80 | 1,112.20 | 213.10 |
| 2014-06-28 | 1,429.10 | 1,172.70 | 239.30 |
| 2014-03-29 | 1,495.00 | 1,118.30 | 222.50 |
| 2013-12-28 | 1,492.20 | 1,027.50 | 369.00 |
| 2013-09-28 | 1,573.90 | 1,065.70 | 326.60 |
| 2013-06-29 | 1,514.60 | 1,389.60 | 229.10 |
| 2013-03-30 | 1,573.70 | 1,357.40 | 225.40 |
| 2012-12-29 | 1,580.90 | 1,222.40 | 253.10 |
| 2012-09-29 | 1,585.50 | 1,377.10 | 197.20 |
| 2012-06-30 | 1,570.50 | 1,374.70 | 168.30 |
| 2012-03-31 | 1,664.20 | 1,316.90 | 203.20 |
- Avery Dennison's level of debt (205.9%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (69% vs 205.9% today).
- Debt is well covered by operating cash flow (23.3%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 13.7x coverage).
Financial health checks
We assess Avery Dennison's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Avery Dennison has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Avery Dennison's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Avery Dennison
shares you are expected to receive
$38
in your first year as a dividend.
Dividend Amount
- Avery Dennison's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
- Avery Dennison's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 10 Analyst Estimates (S&P Global) | See Below |
| United States of America Packaging Industry Average Dividend Yield | Market Cap Weighted Average of 13 Stocks | 2.6% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2004 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | ||
| 2022-12-31 | ||
| 2021-12-31 | 2.30 | 4.00 |
| 2020-12-31 | 2.23 | 6.00 |
| 2019-12-31 | 2.11 | 6.00 |
| 2018-12-31 | 1.94 | 6.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-01-30 | 2.080 | 1.950 |
| 2018-10-25 | 2.080 | 2.257 |
| 2018-07-26 | 2.080 | 1.960 |
| 2018-04-26 | 2.080 | 1.977 |
| 2018-01-31 | 1.800 | 1.616 |
| 2017-10-27 | 1.800 | 1.584 |
| 2017-07-27 | 1.800 | 1.865 |
| 2017-04-27 | 1.800 | 2.076 |
| 2017-02-01 | 1.640 | 2.042 |
| 2016-10-28 | 1.640 | 2.283 |
| 2016-08-02 | 1.640 | 2.136 |
| 2016-04-28 | 1.640 | 2.196 |
| 2016-02-03 | 1.480 | 2.149 |
| 2015-10-22 | 1.480 | 2.353 |
| 2015-07-23 | 1.480 | 2.479 |
| 2015-04-23 | 1.480 | 2.459 |
| 2015-01-28 | 1.400 | 2.649 |
| 2014-10-23 | 1.400 | 2.808 |
| 2014-07-28 | 1.400 | 3.014 |
| 2014-04-24 | 1.400 | 2.819 |
| 2014-01-29 | 1.160 | 2.325 |
| 2013-10-24 | 1.160 | 2.370 |
| 2013-07-25 | 1.160 | 2.637 |
| 2013-04-25 | 1.160 | 2.677 |
| 2013-01-23 | 1.080 | 2.653 |
| 2012-10-25 | 1.080 | 3.166 |
| 2012-07-26 | 1.080 | 3.483 |
| 2012-04-26 | 1.080 | 3.748 |
| 2012-01-31 | 1.080 | 3.620 |
| 2011-10-27 | 1.000 | 3.644 |
| 2011-07-27 | 1.000 | 3.694 |
| 2011-02-02 | 1.000 | 2.515 |
| 2010-10-29 | 0.800 | 2.002 |
| 2010-07-22 | 0.800 | 2.223 |
| 2010-04-22 | 0.800 | 2.291 |
| 2010-01-28 | 0.800 | 2.345 |
| 2009-10-22 | 0.800 | 2.110 |
| 2009-07-30 | 0.800 | 2.484 |
| 2009-04-23 | 1.640 | 6.091 |
| 2009-03-23 | 1.640 | 6.587 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Avery Dennison's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (2.7x coverage).
- Dividends after 3 years are expected to be well covered by earnings (3.5x coverage).
Income/ dividend checks
We assess Avery Dennison's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Avery Dennison afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Avery Dennison has a total score of 4/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $8,709,697 |
| AGE | 47 |
| TENURE AS CEO | 2.8 years |
CEO Bio
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. Mr. Butier served as the Chief Operating Officer of Avery Dennison Corporation from November 1, 2014 to May 1, 2016 and as its Chief Financial Officer from June 1, 2010 to March 23, 2015. Mr. Butier served as Senior Vice President at Avery Dennison Corporation since June 1, 2010. He served as the Chief Accounting Officer of Avery Dennison Corp. from March 1, 2007 to June 1, 2010. Mr. Butier was responsible for Avery Dennison's domestic and international accounting policies and practices, financial reporting requirements and maintenance of fiscal records. He served as Controller of Avery Dennison Corp. since March 1, 2007 and also as its Vice President of Global Finance from March 1, 2007 to June 1, 2010. He also lead Avery Dennison Corp's global Finance organization supporting all business units. He joined Avery Dennison Corp. in 2000 as Finance Director of Office Products North America and became Group Director of Finance for Roll Materials Europe in 2002 and then served as Vice President of Finance for Retail Information Services since 2004. He served as Controller of Avery Dennison Corp. since March 1, 2007. He has been a Director of Avery Dennison Corporation since April 28, 2016. Mr. Butier earned a B.S.A. at Loyola Marymount University.
CEO Compensation
- Mitch's compensation has been consistent with company performance over the past year.
- Mitch's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Avery Dennison management team in years:
- The tenure for the Avery Dennison management team is about average.
Management Team
Mitch Butier
President
$9M
47
2.8 yrs
Greg Lovins
Senior VP & CFO
$2M
45
2 yrs
Sue Miller
Senior VP
$2M
58
11 yrs
Georges Gravanis
President of Label & Graphic Materials
$2M
60
3.2 yrs
Kamran Kian
Vice President of Global Operations & Supply Chain
13.2 yrs
Lori Bondar
Chief Accounting Officer
57
8.8 yrs
Hassan Rmaile
GM of Global Graphics & Reflective Solutions and VP of Global Technology & Ventures
40
Nick Colisto
VP & Chief Information Officer
51
1 yrs
Cynthia Guenther
Vice President of Finance & Investor Relations
Danny Allouche
Vice President of Strategy & Corporate Development
Board of Directors Tenure
Average tenure and age of the Avery Dennison board of directors in years:
- The tenure for the Avery Dennison board of directors is about average.
Board of Directors
Dean Scarborough
Non-Executive Chairman
$281K
63
8.9 yrs
Mitch Butier
President
$9M
47
2.9 yrs
Peter Barker
Independent Director
$262K
69
16.2 yrs
Julia Stewart
Independent Director
$262K
62
16.2 yrs
Patrick Siewert
Independent Director
$257K
62
13.9 yrs
David E. Pyott
Lead Independent Director
$277K
65
8.9 yrs
Ken Hicks
Independent Director
$247K
66
11.7 yrs
Brad Alford
Independent Director
$240K
61
8.9 yrs
Tony Anderson
Independent Director
$237K
62
6.3 yrs
Martha Sullivan
Independent Director
$247K
61
6.1 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 14. Mar 19 | Sell | Georges Gravanis | Individual | 12. Mar 19 | 12. Mar 19 | -14,000 | $110.66 | $-1,549,240 | ||
| 11. Sep 18 | Sell | Anthony Anderson | Individual | 07. Sep 18 | 07. Sep 18 | -1,275 | $104.75 | $-133,556 | ||
| 01. Aug 18 | Sell | Georges Gravanis | Individual | 30. Jul 18 | 30. Jul 18 | -13,000 | $112.67 | $-1,464,710 | ||
Management checks
We assess Avery Dennison's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Avery Dennison has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Is Avery Dennison's (NYSE:AVY) Share Price Gain Of 115% Well Earned?
It's also good to see the share price up 21% over the last quarter. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Over half a decade, Avery Dennison managed to grow its earnings per share at 17% a year.
Simply Wall St - – Full articleIs Avery Dennison Corporation (NYSE:AVY) Excessively Paying Its CEO?
First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Mitch Butier's Compensation Compare With Similar Sized Companies. … According to our data, Avery Dennison Corporation has a market capitalization of US$9.1b, and pays its CEO total annual compensation worth US$9.0m.
Simply Wall St - – Full articleShould Avery Dennison Corporation (NYSE:AVY) Be Part Of Your Portfolio?
Historically, Avery Dennison Corporation (NYSE:AVY) has been paying a dividend to shareholders. … Let's dig deeper into whether Avery Dennison should have a place in your portfolio. … Check out our latest analysis for Avery Dennison
Simply Wall St - – Full articleIs It Time To Consider Buying Avery Dennison Corporation (NYSE:AVY)?
received a lot of attention from a substantial price increase on the NYSE over the last few months. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Let’s take a look at Avery Dennison’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Simply Wall St - – Full articleAvery Dennison Corporation (NYSE:AVY) Delivered A Better ROE Than Its Industry
This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.30 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleIs Avery Dennison Corporation's (NYSE:AVY) High P/E Ratio A Problem For Investors?
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Avery Dennison has a price to earnings ratio of 26.55, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleWhy We Think Avery Dennison Corporation (NYSE:AVY) Could Be Worth Looking At
As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … In the case of Avery Dennison Corporation (NYSE:AVY), it
Simply Wall St - – Full articleDid Avery Dennison Corporation (NYSE:AVY) Insiders Sell Shares?
So before you buy or sell Avery Dennison Corporation (NYSE:AVY), you may well want to know whether insiders have been buying or selling. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … Over the last year we saw more insider selling of Avery Dennison shares, than buying.
Simply Wall St - – Full articleA Look At The Fair Value Of Avery Dennison Corporation (NYSE:AVY)
by projecting its future cash flows and then discounting them to today's value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model
Simply Wall St - – Full articleIs Avery Dennison Corporation's (NYSE:AVY) CEO Paid At A Competitive Rate?
How Does Mitch Butier's Compensation Compare With Similar Sized Companies. … According to our data, Avery Dennison Corporation has a market capitalization of US$8.3b, and pays its CEO total annual compensation worth US$9.0m. … We think total compensation is more important but we note that the CEO salary is lower, at US$1.1m
Simply Wall St - – Full articleCompany Info
Description
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 and reflective products under the Fasson, JAC, Avery Dennison, and Mactac brands, as well as durable cast and reflective films. It provides its products to the home and personal care, beer and beverage, durables, pharmaceutical, wine and spirits, and food market segments; architectural, commercial sign, digital printing, and other related market segments; construction, automotive, and fleet transportation market segments, as well as traffic and safety applications; and sign shops, commercial printers, and designers. The company’s Retail Branding and Information Solutions segment designs, manufactures, and sells creative services, brand embellishments, graphic tickets, tags and labels, and sustainable packaging solutions; item-level radio-frequency identification solutions; visibility and loss prevention solutions; price ticketing and marking solutions; care, content, and country of origin compliance solutions; and brand protection and security solutions. It serves retailers, brand owners, apparel manufacturers, distributors, and industrial customers. The company’s Industrial and Healthcare Materials segment offers tapes and fasteners; medical pressure-sensitive adhesive based materials and products; and performance polymers under the Fasson, Avery Dennison, Vancive, and Yongle brands. It serves the automotive, electronics, building and construction, other industrial, and personal care markets, as well as medical device manufacturers, converters, clinicians, and patients. The company was formerly known as Avery International Corporation and changed its name to Avery Dennison Corporation in 1990. Avery Dennison Corporation was founded in 1935 and is headquartered in Glendale, California.
Details
| Name: | Avery Dennison Corporation |
| AVY | |
| Exchange: | NYSE |
| Founded: | 1935 |
| $9,235,335,912 | |
| 83,972,867 | |
| Website: | http://www.averydennison.com |
| Address: |
Avery Dennison Corporation 207 Goode Avenue, Glendale, California, 91203, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | AVY | Common Stock | New York Stock Exchange | US | USD | 02. Jan 1968 | |
| DB | AV3 | Common Stock | Deutsche Boerse AG | DE | EUR | 02. Jan 1968 | |
| BST | AV3 | Common Stock | Boerse-Stuttgart | DE | EUR | 02. Jan 1968 | |
| LSE | 0HJR | Common Stock | London Stock Exchange | GB | USD | 02. Jan 1968 |
Number of employees
Current staff
Industry
| Paper Packaging | |
| Materials |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/20 23:32 |
| End of day share price update: | 2019/03/20 00:00 |
| Last estimates confirmation: | 2019/03/20 |
| Last earnings filing: | 2019/02/27 |
| Last earnings reported: | 2018/12/29 |
| Last annual earnings reported: | 2018/12/29 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
