AVY Stock Overview
Avery Dennison Corporation manufactures and markets pressure-sensitive materials and products in the United States, Europe, Asia, Latin America, and internationally.
Avery Dennison Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$162.70|
|52 Week High||US$229.24|
|52 Week Low||US$151.62|
|1 Month Change||-12.28%|
|3 Month Change||-1.06%|
|1 Year Change||-22.39%|
|3 Year Change||46.10%|
|5 Year Change||62.15%|
|Change since IPO||897.40%|
Recent News & Updates
Here's Why Avery Dennison (NYSE:AVY) Can Manage Its Debt Responsibly
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Avery Dennison: The Easy Money Has Been Made, But Further Upside Potential Exists
Summary Avery Dennison has done well to increase its sales and profits over the past couple of quarters. Management also now has a more favorable view of the 2022 fiscal year, but it's also true that the easy money has been made. Upside from here is more limited, but it is still enough to warrant investor consideration. One of the more niche companies I have come across recently has been Avery Dennison (AVY). This producer of pressure-sensitive materials, such as papers, plastic films, metal foils, and fabrics, that are then sold to label printers and converters for the purpose of label production and other related products, also offers the benefit of quality fundamentals and attractive growth. Of course, the picture has not always been this way. Prior to the pandemic, some of the company's fundamental figures were volatile and it was only in 2021 that we began seeing some really nice growth for the enterprise. But fast forward to today, and that growth continues while shares are trading at levels that are not unrealistic. I would argue, of course, that much of the easy money in the company has already been made. But so long as its fundamental health remains robust, I do think there might be some additional upside on the table for investors to benefit from. This is despite the fact that similar companies are trading at levels that are much cheaper by comparison. Strength persists Back in March of this year, I wrote an article about Avery Dennison that took a bullish stance on the firm. I called the company a unique player that was slightly underpriced. I based this assessment not just on the company's share price from a valuation perspective but also on the fact that the company had been exhibiting attractive growth since the pandemic came to an end. At the end of the day, I rated the business a ‘buy’, indicating my belief that it did offer some upside potential for investors relative to the broader market. Since then, the company has performed quite well. At a time when the S&P 500 is down by 3.5%, investors in Avery Dennison would have generated a return of 15.2%. Author - SEC EDGAR Data This increase in price was not because of random market fluctuations alone. I would argue that it was largely driven by continued strength demonstrated by the company. When I last wrote about the firm, we only had data covering through the 2021 fiscal year for the business. Today, we now have data covering the first half of 2022. So far, those numbers are quite robust. For the first half of the year as a whole, revenue came in at just under $4.70 billion. This represents an increase of 13.1% over the $4.15 billion the company generated the same time one year earlier. Author - SEC EDGAR Data This growth in sales was driven by strength across the board. However, the greatest upside on a percentage basis came from its Retail Branding and Information Solutions operations. Revenue here jumped by 32.1% from $1.01 billion to $1.34 billion. It is worth noting, however, that actual organic growth from this set of operations was a more modest but still respectable 12%. The company benefited from its acquisition of Vestcom as well. Given current market conditions, it is fair to put particular scrutiny on the most recent quarter since said uncertainty could result in the picture changing rather rapidly. But what data we do have in this regard is also encouraging. During the second quarter alone, sales came in at $2.35 billion. That's 11.7% above the $2.10 billion generated the second quarter of 2021. With this increase in sales, we have also seen a nice increase in profitability. Consider, as an example, net income. For the first half of the year, net income came in at $412.7 million. That's 4.9% higher than the $393.3 million generated in the first half of 2021. A fair argument is that profitability is not climbing at the same rate that revenue is, therefore implying margin contraction. However, this picture is a little more complicated than that. Yes, for the first half of the year as a whole, margins did decrease, with the company's cost of products sold climbing from 71.8% of revenue to 72.6%. This may not seem like much of a change, but the impact when applied to last year's revenue translates to $67.3 million in additional pre-tax cash flow missing from the business. Management attributed this pain to the net impact of pricing, freight, and raw material costs, as well as to higher employee-related expenses. It was, of course, offset to some degree by greater volume and favorable product mix. Despite this pain, the picture did improve in the second quarter itself, as evidenced by the fact that the cost of products sold, relative to revenue, remained flat in that quarter compared to the same quarter last year. Strong volume and product mix in the second quarter perfectly offset higher pricing, freight, and raw material costs, as well as the aforementioned employee-related expenses. We should also pay attention, of course, to other profitability metrics. Operating cash flow is interesting because, unlike earnings, it actually worsened year over year, following from $476.8 million in the first half of 2021 to $394.4 million the same time this year. If we adjust for changes in working capital, however, it would have risen nicely from $563.7 million to $629.3 million. And over that same window of time, EBITDA for the company also improved, rising from $663.6 million to $742.3 million. Just as was the case with earnings, which shot up by 16.7% from $183.8 million in the second quarter of last year to $214.5 million the same time this year, the real improvement and the other profitability metrics also occurred in the second quarter. Operating cash flow inched up from $267.5 million to $268.2 million. On an adjusted basis, this figure rose from $276.4 million to $323.5 million. Meanwhile, EBITDA for the company shot up from $213.8 million to $384 million. Thanks to the improvements in the second quarter of the year, management now has a more favorable outlook regarding profitability for 2022 as a whole. Previously, the company anticipated earnings per share of between $9.35 and $9.75. This has now been revised up to between $9.60 and $9.90. It's also worth noting that these estimates include a $0.10 per share restructuring charge that should prove to be one-time in nature. Adding that restructuring charge back into the equation, the company should generate net income of $808.7 million for the year. That should translate to a 9.3% increase over the $740.1 million generated in 2021. No guidance was given when it came to other profitability metrics. But if we assume that they will increase at the same rate that earnings should, then we should anticipate adjusted operating cash flow of nearly $1.20 billion and EBITDA of $1.46 billion.
Avery Dennison (NYSE:AVY) Has Announced That It Will Be Increasing Its Dividend To $0.75
The board of Avery Dennison Corporation ( NYSE:AVY ) has announced that it will be paying its dividend of $0.75 on the...
|AVY||US Packaging||US Market|
Return vs Industry: AVY exceeded the US Packaging industry which returned -27.2% over the past year.
Return vs Market: AVY matched the US Market which returned -23.2% over the past year.
|AVY Average Weekly Movement||4.2%|
|Packaging Industry Average Movement||5.1%|
|Market Average Movement||6.8%|
|10% most volatile stocks in US Market||15.5%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: AVY is not significantly more volatile than the rest 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.
About the Company
Avery Dennison Corporation manufactures and markets pressure-sensitive materials and products in the United States, Europe, Asia, Latin America, and internationally. The company’s Label and Graphic Materials segment offers pressure-sensitive label and packaging materials under the Fasson, JAC, and Avery Dennison brands; graphics products under the Avery Dennison and Mactac brands; and reflective products under the Avery Dennison brand. This segment 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; traffic and safety applications; and sign shops, commercial printers, and designers.
Avery Dennison Fundamentals Summary
|AVY fundamental statistics|
Is AVY overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|AVY income statement (TTM)|
|Cost of Revenue||US$6.53b|
Last Reported Earnings
Jul 02, 2022
Next Earnings Date
|Earnings per share (EPS)||9.35|
|Net Profit Margin||8.48%|
How did AVY perform over the long term?See historical performance and comparison
1.8%Current Dividend Yield
Is AVY undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for AVY?
Other financial metrics that can be useful for relative valuation.
|What is AVY's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does AVY's PE Ratio compare to its peers?
|AVY PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
PKG Packaging Corporation of America
IP International Paper
AVY Avery Dennison
Price-To-Earnings vs Peers: AVY is expensive based on its Price-To-Earnings Ratio (17.4x) compared to the peer average (11.7x).
Price to Earnings Ratio vs Industry
How does AVY's PE Ratio compare vs other companies in the North American Packaging Industry?
Price-To-Earnings vs Industry: AVY is expensive based on its Price-To-Earnings Ratio (17.4x) compared to the North American Packaging industry average (12.6x)
Price to Earnings Ratio vs Fair Ratio
What is AVY's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||17.4x|
|Fair PE Ratio||18.4x|
Price-To-Earnings vs Fair Ratio: AVY is good value based on its Price-To-Earnings Ratio (17.4x) compared to the estimated Fair Price-To-Earnings Ratio (18.4x).
Share Price vs Fair Value
What is the Fair Price of AVY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: AVY ($162.7) is trading below our estimate of fair value ($431.24)
Significantly Below Fair Value: AVY is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is Avery Dennison forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AVY's forecast earnings growth (8.2% per year) is above the savings rate (1.9%).
Earnings vs Market: AVY's earnings (8.2% per year) are forecast to grow slower than the US market (14.8% per year).
High Growth Earnings: AVY's earnings are forecast to grow, but not significantly.
Revenue vs Market: AVY's revenue (4.3% per year) is forecast to grow slower than the US market (7.7% per year).
High Growth Revenue: AVY's revenue (4.3% 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 (33.9%)
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How has Avery Dennison performed over the past 5 years?
Past Performance Score2/6
Past Performance Score 2/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AVY has high quality earnings.
Growing Profit Margin: AVY's current net profit margins (8.5%) are lower than last year (9.3%).
Past Earnings Growth Analysis
Earnings Trend: AVY's earnings have grown significantly by 22.2% per year over the past 5 years.
Accelerating Growth: AVY's earnings growth over the past year (3.5%) is below its 5-year average (22.2% per year).
Earnings vs Industry: AVY earnings growth over the past year (3.5%) underperformed the Packaging industry 12.1%.
Return on Equity
High ROE: Whilst AVY's Return on Equity (39.21%) is high, this metric is skewed due to their high level of debt.
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How is Avery Dennison's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: AVY's short term assets ($2.9B) do not cover its short term liabilities ($3.0B).
Long Term Liabilities: AVY's short term assets ($2.9B) do not cover its long term liabilities ($3.2B).
Debt to Equity History and Analysis
Debt Level: AVY's net debt to equity ratio (156.7%) is considered high.
Reducing Debt: AVY's debt to equity ratio has increased from 156.6% to 166.9% over the past 5 years.
Debt Coverage: AVY's debt is well covered by operating cash flow (29.8%).
Interest Coverage: AVY's interest payments on its debt are well covered by EBIT (13.9x coverage).
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What is Avery Dennison current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|Avery Dennison Dividend Yield vs Market|
|Company (Avery Dennison)||1.8%|
|Market Bottom 25% (US)||1.7%|
|Market Top 25% (US)||4.7%|
|Industry Average (Packaging)||3.1%|
|Analyst forecast in 3 Years (Avery Dennison)||1.9%|
Notable Dividend: AVY's dividend (1.84%) is higher than the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: AVY's dividend (1.84%) is low compared to the top 25% of dividend payers in the US market (4.73%).
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.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (30.3%), AVY's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (36.6%), AVY's dividend payments are well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mitch Butier (51 yo)
Mr. Mitchell R. Butier, also known as Mitch, has been the Chief Executive Officer of Avery Dennison Corporation since May 1, 2016 and was as its President since November 1, 2014 until March 1, 2022 and has...
CEO Compensation Analysis
|Mitch Butier's Compensation vs Avery Dennison Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jul 02 2022||n/a||n/a|
|Apr 02 2022||n/a||n/a|
|Jan 01 2022||US$12m||US$1m|
|Oct 02 2021||n/a||n/a|
|Jul 03 2021||n/a||n/a|
|Apr 03 2021||n/a||n/a|
|Jan 02 2021||US$9m||US$1m|
|Sep 26 2020||n/a||n/a|
|Jun 27 2020||n/a||n/a|
|Mar 28 2020||n/a||n/a|
|Dec 28 2019||US$8m||US$1m|
|Sep 28 2019||n/a||n/a|
|Jun 29 2019||n/a||n/a|
|Mar 30 2019||n/a||n/a|
|Dec 29 2018||US$9m||US$1m|
|Sep 29 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 30 2017||US$9m||US$1m|
|Sep 30 2017||n/a||n/a|
|Jul 01 2017||n/a||n/a|
|Apr 01 2017||n/a||n/a|
|Dec 31 2016||US$10m||US$988k|
|Oct 01 2016||n/a||n/a|
|Jul 02 2016||n/a||n/a|
|Apr 02 2016||n/a||n/a|
|Jan 02 2016||US$7m||US$761k|
Compensation vs Market: Mitch's total compensation ($USD12.43M) is about average for companies of similar size in the US market ($USD13.04M).
Compensation vs Earnings: Mitch's compensation has increased by more than 20% in the past year.
Experienced Management: AVY's management team is seasoned and experienced (5.1 years average tenure).
Experienced Board: AVY's board of directors are seasoned and experienced ( 11.2 years average tenure).
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
|14 Sep 22||SellUS$500,699||Anthony Anderson||Individual||2,800||US$178.82|
|29 Oct 21||SellUS$303,800||Deena Baker-Nel||Individual||1,400||US$217.00|
|Owner Type||Number of Shares||Ownership Percentage|
|State or Government||42,432||0.05%|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Avery Dennison Corporation's employee growth, exchange listings and data sources
- Name: Avery Dennison Corporation
- Ticker: AVY
- Exchange: NYSE
- Founded: 1935
- Industry: Paper Packaging
- Sector: Materials
- Implied Market Cap: US$13.220b
- Shares outstanding: 81.26m
- Website: https://www.averydennison.com
Number of Employees
- Avery Dennison Corporation
- 8080 Norton Parkway
- United States
|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|
|AVYD||BASE (Buenos Aires Stock Exchange)||CEDEAR EACH 3 REP 1 ORD USD1||AR||USD||Dec 2000|
|A1VY34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 2 REPR 1 COM||BR||BRL||Jan 2020|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/10/02 00:00|
|End of Day Share Price||2022/09/30 00:00|
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.