Avery Dennison
Market Cap
US$11.2b
Last Updated
2020/02/23 00:40 UTC
Data Sources
Company Financials +
Executive Summary
Avery Dennison Corporation produces and sells pressure-sensitive materials worldwide.
Rewards
Risk Analysis
Snowflake Analysis
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
Stable Share Price: AVY has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-3.0%
AVY
-0.05%
US Packaging
-1.1%
US Market
1 Year Return
25.3%
AVY
11.0%
US Packaging
17.9%
US Market
Return vs Industry: AVY exceeded the US Packaging industry which returned 11% over the past year.
Return vs Market: AVY exceeded the US Market which returned 17.9% over the past year.
Shareholder returns
| AVY | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.0% | -0.05% | -1.1% |
| 30 Day | 3.3% | 1.3% | 1.4% |
| 90 Day | 3.6% | 3.4% | 6.9% |
| 1 Year | 27.8%25.3% | 13.6%11.0% | 20.3%17.9% |
| 3 Year | 76.9%66.9% | 24.5%16.3% | 47.8%38.3% |
| 5 Year | 177.8%150.1% | 33.5%16.9% | 71.9%53.0% |
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
2 days ago | Simply Wall St
Here's What Avery Dennison Corporation's (NYSE:AVY) P/E Is Telling Us1 week ago | Simply Wall St
Would Avery Dennison Corporation (NYSE:AVY) Be Valuable To Income Investors?3 weeks ago | Simply Wall St
Avery Dennison Corporation Just Beat EPS By 11%: Here's What Analysts Think Will Happen NextValuation
Is Avery Dennison undervalued compared to its fair value and its price relative to the market?
37.5x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: AVY ($133.95) is trading above our estimate of fair value ($131.3)
Significantly Below Fair Value: AVY is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: AVY is poor value based on its PE Ratio (37.5x) compared to the Packaging industry average (20.2x).
PE vs Market: AVY is poor value based on its PE Ratio (37.5x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: AVY is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: AVY is overvalued based on its PB Ratio (9.4x) compared to the US Packaging industry average (3.3x).
Next Steps
Future Growth
How is Avery Dennison forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
24.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AVY's forecast earnings growth (24.1% per year) is above the savings rate (1.7%).
Earnings vs Market: AVY's earnings (24.1% per year) are forecast to grow faster than the US market (14.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: AVY's revenue (3.8% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: AVY's revenue (3.8% 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 (37.4%)
Next Steps
Past Performance
How has Avery Dennison performed over the past 5 years?
1.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AVY has a large one-off loss of $497.3M impacting its December 28 2019 financial results.
Growing Profit Margin: AVY's current net profit margins (4.3%) are lower than last year (6.5%).
Past Earnings Growth Analysis
Earnings Trend: AVY's earnings have grown by 1.1% 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 (-34.8%) over the past year, making it difficult to compare to the Packaging industry average (-6.5%).
Return on Equity
High ROE: Whilst AVY's Return on Equity (25.22%) is high, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Avery Dennison's financial position?
Financial Position Analysis
Short Term Liabilities: AVY's short term assets ($2.3B) exceed its short term liabilities ($2.3B).
Long Term Liabilities: AVY's short term assets ($2.3B) exceed its long term liabilities ($2.0B).
Debt to Equity History and Analysis
Debt Level: AVY's debt to equity ratio (147.1%) is considered high.
Reducing Debt: AVY's debt to equity ratio has increased from 107.7% to 147.1% over the past 5 years.
Debt Coverage: AVY's debt is well covered by operating cash flow (42.2%).
Interest Coverage: AVY's interest payments on its debt are well covered by EBIT (10.9x 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 1.3x debt).
Next Steps
Dividend
What is Avery Dennison's current dividend yield, its reliability and sustainability?
1.73%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Avery Dennison before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: AVY's dividend (1.73%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: AVY's dividend (1.73%) is low compared to the top 25% of dividend payers in the US market (3.73%).
Stability and Growth of Payments
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: With its reasonable payout ratio (63.3%), AVY's dividend 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 (32.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
9.7yrs
Average management tenure
CEO
Mitch Butier (48yo)
3.8yrs
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 ($USD10.81M).
Compensation vs Earnings: Mitch's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 3.8yrs | US$8.71m | 0.19% $21.5m | |
| Senior VP & CFO | 2.9yrs | US$2.41m | 0.029% $3.2m | |
| Senior VP | 11.9yrs | US$2.15m | 0.017% $1.9m | |
| Vice President of Global Operations & Supply Chain | 14.1yrs | no data | no data | |
| Chief Accounting Officer | 9.7yrs | no data | 0.018% $2.0m | |
| GM of Global Graphics & Reflective Solutions and VP of Global Technology & Ventures | 0yrs | no data | no data | |
| VP & Chief Information Officer | 1.9yrs | no data | no data | |
| Vice President of Finance & Investor Relations | 0yrs | no data | no data | |
| Vice President of Strategy & Corporate Development | 0yrs | no data | no data | |
| Senior VP & Chief Human Resources Officer | 12.9yrs | US$2.21m | 0.024% $2.7m |
9.7yrs
Average Tenure
52yo
Average Age
Experienced Management: AVY's management team is seasoned and experienced (9.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 3.8yrs | US$8.71m | 0.19% $21.5m | |
| Independent Director | 14.8yrs | US$257.26k | 0.017% $1.9m | |
| Lead Independent Director | 9.8yrs | US$277.26k | 0.021% $2.3m | |
| Independent Director | 17.1yrs | US$262.26k | 0.022% $2.4m | |
| Independent Director | 12.6yrs | US$247.26k | 0.030% $3.4m | |
| Independent Director | 17.1yrs | US$262.26k | 0.036% $4.0m | |
| Independent Director | 9.8yrs | US$239.51k | 0.021% $2.4m | |
| Independent Director | 7.2yrs | US$237.26k | 0.0034% $383.7k | |
| Independent Director | 7yrs | US$247.26k | 0.016% $1.7m | |
| Independent Director | 3yrs | US$237.26k | 0.0041% $463.1k |
9.8yrs
Average Tenure
63yo
Average Age
Experienced Board: AVY's board of directors are considered experienced (9.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$11.185b
- Shares outstanding: 83.50m
- 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 |
| 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 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 00:40 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/28 |
| 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.