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Avery Dennison

NYSE:AVY
Snowflake Description

Reasonable growth potential with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AVY
NYSE
$8B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

Avery Dennison Corporation produces and sells pressure-sensitive materials worldwide. The last earnings update was 82 days ago. More info.


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AVY Share Price and Events
7 Day Returns
2.1%
NYSE:AVY
2.1%
US Packaging
2.8%
US Market
1 Year Returns
-20.4%
NYSE:AVY
-16.8%
US Packaging
-5.6%
US Market
AVY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Avery Dennison (AVY) 2.1% 12.4% -0.4% -20.4% 59% 96.6%
US Packaging 2.1% 11.4% 4.3% -16.8% 31% 25.6%
US Market 2.8% 9.6% -3.2% -5.6% 40.1% 41%
1 Year Return vs Industry and Market
  • AVY underperformed the Packaging industry which returned -16.8% over the past year.
  • AVY underperformed the Market in United States of America which returned -5.6% over the past year.
Price Volatility
AVY
Industry
5yr Volatility vs Market

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Avery Dennison.

NYSE:AVY Discounted Cash Flow Data Sources
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 10.3%
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.

Calculation of Discount Rate/ Cost of Equity for NYSE:AVY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.3%
Packaging Unlevered Beta Simply Wall St/ S&P Global 0.88
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.882 (1 + (1- 21%) (22.3%))
1.037
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.04
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.037 * 7.27%)
10.27%

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 use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:AVY DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 527.67 634.35 648.21 662.38 676.85
Source Analyst x7 Analyst x4 Est @ 2.19% Est @ 2.19% Est @ 2.19%
Present Value
Discounted (@ 10.27%)
478.54 521.71 483.47 448.03 415.19
Present value of next 5 years cash flows $2,346.93
NYSE:AVY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $676.85 × (1 + 2.73%) ÷ (10.27% – 2.73%)
$9,224.30
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $9,224.30 ÷ (1 + 10.27%)5
$5,658.29
NYSE:AVY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $2,346.93 + $5,658.29
$8,005.22
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $8,005.22 / 86.71
$92.32
NYSE:AVY Discount to Share Price
Calculation Result
Value per share (USD) From above. $92.32
Current discount Discount to share price of $96.57
= -1 x ($96.57 - $92.32) / $92.32
-4.6%

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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NYSE:AVY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-29) in USD $3.54
NYSE:AVY Share Price ** NYSE (2019-01-18) in USD $96.57
United States of America Packaging Industry PE Ratio Median Figure of 15 Publicly-Listed Packaging Companies 17.64x
United States of America Market PE Ratio Median Figure of 3,025 Publicly-Listed Companies 17.12x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Avery Dennison.

NYSE:AVY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:AVY Share Price ÷ EPS (both in USD)

= 96.57 ÷ 3.54

27.28x

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?
Raw Data
NYSE:AVY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 27.28x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
20.4%per year
United States of America Packaging Industry PEG Ratio Median Figure of 15 Publicly-Listed Packaging Companies 1.51x
United States of America Market PEG Ratio Median Figure of 2,108 Publicly-Listed Companies 1.28x

*Line of best fit is calculated by linear regression .

NYSE:AVY PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 27.28x ÷ 20.4%

1.34x

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?
Raw Data
NYSE:AVY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-29) in USD $12.03
NYSE:AVY Share Price * NYSE (2019-01-18) in USD $96.57
United States of America Packaging Industry PB Ratio Median Figure of 19 Publicly-Listed Packaging Companies 3.26x
United States of America Market PB Ratio Median Figure of 5,100 Publicly-Listed Companies 1.77x
NYSE:AVY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:AVY Share Price ÷ Book Value per Share (both in USD)

= 96.57 ÷ 12.03

8.02x

* 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.
X
Value checks
We assess Avery Dennison's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Packaging industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Packaging industry average (and greater than 0)? (1 check)
  5. 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

 How is Avery Dennison expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

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!
Annual Growth Rate
20.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Avery Dennison expected to grow at an attractive rate?
  • 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 expected to exceed 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
Raw Data
NYSE:AVY Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:AVY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 20.4%
NYSE:AVY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 3.9%
United States of America Packaging Industry Earnings Growth Rate Market Cap Weighted Average 11.1%
United States of America Packaging Industry Revenue Growth Rate Market Cap Weighted Average 2.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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
Raw Data
NYSE:AVY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:AVY Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 8,638 1
2022-12-31 8,419 2
2021-12-31 8,125 3
2020-12-31 7,711 889 625 7
2019-12-31 7,429 779 561 10
2018-12-31 7,178 577 477 10
NYSE:AVY Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-29 7,126 448 311
2018-06-30 7,045 684 270
2018-03-31 6,818 652 295
2017-12-30 6,614 650 282
2017-09-30 6,429 610 403
2017-07-01 6,259 545 384
2017-04-01 6,173 606 343
2016-12-31 6,087 585 321
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
2015-10-03 6,117 437 288

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Avery Dennison's earnings are expected to grow significantly at over 20% yearly.
  • Avery Dennison's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:AVY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 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 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AVY Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 7.21 7.57 6.85 2.00
2019-12-31 6.41 6.67 6.05 4.00
2018-12-31 5.35 5.61 4.83 3.00
NYSE:AVY Past Financials Data
Date (Data in USD Millions) EPS *
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
2015-10-03 3.16

*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%).
X
Future performance checks
We assess Avery Dennison's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Avery Dennison has a total score of 4/6, 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
Below we compare Avery Dennison's growth in the last year to its industry (Packaging).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Avery Dennison's year on year earnings growth rate has been positive over the past 5 years.
  • Avery Dennison's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Avery Dennison's 1-year earnings growth is negative, it can't be compared to the US Packaging industry average.
Earnings and Revenue History
Avery Dennison's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Avery Dennison Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AVY Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
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 1,011.90 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 has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), 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).
X
Past performance checks
We assess Avery Dennison's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Packaging industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Avery Dennison has a total score of 3/6, 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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Avery Dennison's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.3x 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.
Raw Data

All data from Avery Dennison Company Filings, last reported 3 months ago.

NYSE:AVY Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
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 (178.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (67.7% vs 178.3% today).
  • Debt is well covered by operating cash flow (24%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 14x coverage).
X
Financial health checks
We assess Avery Dennison's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Avery Dennison has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
2.15%
Current annual income from Avery Dennison dividends. Estimated to be 2.18% next year.
If you bought $2,000 of Avery Dennison shares you are expected to receive $43 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Avery Dennison's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Avery Dennison's dividend is below the markets top 25% of dividend payers in United States of America (3.7%).
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.
Raw Data
NYSE:AVY Annualized Past and Future Dividends
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 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1986 Stocks 2.6%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.9%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:AVY Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 2.16 4.00
2019-12-31 2.07 6.00
2018-12-31 1.94 6.00
NYSE:AVY Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-10-25 2.080 2.272
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
2009-01-22 1.640 7.234
2009-01-21 1.640 5.684

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 covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.7x coverage).
X
Income/ dividend checks
We assess Avery Dennison's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Avery Dennison's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mitch Butier
COMPENSATION $8,959,468
AGE 47
TENURE AS CEO 2.7 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:

5.8
Average Tenure
54
Average Age
  • The average tenure for the Avery Dennison management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Mitch Butier

TITLE
President
COMPENSATION
$9M
AGE
47
TENURE
2.7 yrs

Greg Lovins

TITLE
Senior VP & CFO
COMPENSATION
$2M
AGE
45
TENURE
1.8 yrs

Sue Miller

TITLE
Senior VP
COMPENSATION
$4M
AGE
58
TENURE
10.8 yrs

Anne Hill

TITLE
Senior VP & Chief Human Resources Officer
COMPENSATION
$2M
AGE
58
TENURE
11.8 yrs

Georges Gravanis

TITLE
President of Label & Graphic Materials
COMPENSATION
$2M
AGE
60
TENURE
3 yrs

Kamran Kian

TITLE
Vice President of Global Operations & Supply Chain
TENURE
13 yrs

Lori Bondar

TITLE
Chief Accounting Officer
AGE
57
TENURE
8.6 yrs

Hassan Rmaile

TITLE
GM of Global Graphics & Reflective Solutions and VP of Global Technology & Ventures
AGE
40

Nick Colisto

TITLE
VP & Chief Information Officer
AGE
51
TENURE
0.8 yrs

Cynthia Guenther

TITLE
Vice President of Finance & Investor Relations
Board of Directors Tenure

Average tenure and age of the Avery Dennison board of directors in years:

8.8
Average Tenure
62
Average Age
  • The tenure for the Avery Dennison board of directors is about average.
Board of Directors

Dean Scarborough

TITLE
Non-Executive Chairman
COMPENSATION
$8M
AGE
63
TENURE
8.8 yrs

Mitch Butier

TITLE
President
COMPENSATION
$9M
AGE
47
TENURE
2.8 yrs

Peter Barker

TITLE
Independent Director
COMPENSATION
$262K
AGE
69
TENURE
16 yrs

Julia Stewart

TITLE
Independent Director
COMPENSATION
$262K
AGE
62
TENURE
16 yrs

Patrick Siewert

TITLE
Independent Director
COMPENSATION
$257K
AGE
62
TENURE
13.8 yrs

David E. Pyott

TITLE
Lead Independent Director
COMPENSATION
$284K
AGE
65
TENURE
8.8 yrs

Ken Hicks

TITLE
Independent Director
COMPENSATION
$247K
AGE
66
TENURE
11.5 yrs

Brad Alford

TITLE
Independent Director
COMPENSATION
$244K
AGE
61
TENURE
8.8 yrs

Tony Anderson

TITLE
Independent Director
COMPENSATION
$237K
AGE
62
TENURE
6.1 yrs

Martha Sullivan

TITLE
Independent Director
COMPENSATION
$237K
AGE
61
TENURE
5.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
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
X
Management checks
We assess Avery Dennison's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

External News
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Simply Wall St News

Is 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 -

Why 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 -

Did 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 -

A 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 -

Is 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 -

Is Avery Dennison Corporation (NYSE:AVY) A Smart Pick For Income Investors?

Historically, Avery Dennison Corporation (NYSE:AVY) has paid dividends to shareholders, and these days it yields 2.2%. … 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 -

Understanding Your Return On Investment In Avery Dennison Corporation (NYSE:AVY)

and want to begin learning the link between Avery Dennison Corporation (NYSE:AVY)’s return fundamentals and stock market performance. … Therefore, looking at how efficiently Avery Dennison is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).

Simply Wall St -

Is Avery Dennison Corporation's (NYSE:AVY) ROE Of 26% Impressive?

By way of learning-by-doing, we'll look at ROE to gain a better understanding Avery Dennison Corporation (NYSE:AVY). … That means that for every $1 worth of shareholders' equity, it generated $0.26 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is There Now An Opportunity In Avery Dennison Corporation (NYSE:AVY)?

This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price? … A question to answer is whether Avery Dennison's current trading price of $97.58 reflective of the actual value of the? … Let’s take a look at Avery Dennison’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Who Are The Major Shareholders Of Avery Dennison Corporation (NYSE:AVY)?

In this article, I'm going to take a look at Avery Dennison Corporation’s (NYSE:AVY) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … Check out our latest analysis for Avery Dennison … NYSE:AVY Ownership Summary August 20th 18

Simply Wall St -

Company Info

Map
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. It also offers durable cast and reflective films. This segment offers 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. Its Retail Branding and Information Solutions segment designs, manufactures, and sells various branding and information solutions, including 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. This segment 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, Yongle, and Vancive brand names. This segment serves automotive, electronics, building and construction, personal care, and other industrial segments, as well as converters, original equipment manufacturers, and medical device manufacturers. The company was formerly known as Avery International Corporation and changed its name to Avery Dennison Corporation in 1990. The company was founded in 1935 and is headquartered in Glendale, California.

Details
Name: Avery Dennison Corporation
AVY
Exchange: NYSE
Founded: 1935
$8,373,608,649
86,710,248
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
Staff numbers
30,000
Avery Dennison employees.
Industry
Paper Packaging
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/01/20 23:33
End of day share price update: 2019/01/18 00:00
Last estimates confirmation: 2019/01/18
Last earnings filing: 2018/10/30
Last earnings reported: 2018/09/29
Last annual earnings reported: 2017/12/30


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.