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AVY

Avery DennisonNYSE:AVY Stock Report

Market Cap

US$17.7b

7D

-1.3%

1Y

86.2%

Updated

23 Sep, 2021

Data

Company Financials +
AVY fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance4/6
Financial Health4/6
Dividends4/6

AVY Overview

Avery Dennison Corporation manufactures and markets pressure-sensitive materials in the United States, Europe, Asia, Latin America, and internationally.

Avery Dennison Competitors

International Paper

NYSE:IP

US$21.9b

Packaging Corporation of America

NYSE:PKG

US$13.3b

WestRock

NYSE:WRK

US$13.0b

Sealed Air

NYSE:SEE

US$8.4b

Price History & Performance

Summary of all time highs, changes and price drops for Avery Dennison
Historical stock prices
Current Share PriceUS$218.51
52 Week HighUS$115.77
52 Week LowUS$228.88
Beta1.01
1 Month Change-0.27%
3 Month Change4.72%
1 Year Change86.19%
3 Year Change102.66%
5 Year Change183.60%
Change since IPO1,239.53%

Recent News & Updates

Shareholder Returns

AVYUS PackagingUS Market
7D-1.3%-0.8%-0.5%
1Y86.2%36.7%37.5%

Return vs Industry: AVY exceeded the US Packaging industry which returned 35.6% over the past year.

Return vs Market: AVY exceeded the US Market which returned 36.2% over the past year.

Price Volatility

Is AVY's price volatile compared to industry and market?
AVY volatility
AVY Beta1.01
Industry Beta0.94
Market Beta1

Stable Share Price: AVY is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: AVY's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
193531,840Mitch Butierhttps://www.averydennison.com

Avery Dennison Corporation manufactures and markets pressure-sensitive materials 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; 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.

Avery Dennison Fundamentals Summary

How do Avery Dennison's earnings and revenue compare to its market cap?
AVY fundamental statistics
Market CapUS$17.69b
Earnings (TTM)US$735.30m
Revenue (TTM)US$7.87b

24.6x

P/E Ratio

2.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AVY income statement (TTM)
RevenueUS$7.87b
Cost of RevenueUS$5.64b
Gross ProfitUS$2.23b
ExpensesUS$1.49b
EarningsUS$735.30m

Last Reported Earnings

Jul 03, 2021

Next Earnings Date

n/a

Earnings per share (EPS)8.84
Gross Margin28.31%
Net Profit Margin9.34%
Debt/Equity Ratio122.0%

How did AVY perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

28%

Payout Ratio

Valuation

Is Avery Dennison undervalued compared to its fair value and its price relative to the market?

24.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AVY ($218.51) is trading above our estimate of fair value ($187.46)

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 (24.6x) compared to the US Packaging industry average (19.3x).

PE vs Market: AVY is poor value based on its PE Ratio (24.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: AVY is poor value based on its PEG Ratio (15.7x)


Price to Book Ratio

PB vs Industry: AVY is overvalued based on its PB Ratio (10.6x) compared to the US Packaging industry average (3.3x).


Future Growth

How is Avery Dennison forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVY's forecast earnings growth (1.6% per year) is below the savings rate (2%).

Earnings vs Market: AVY's earnings (1.6% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: AVY's earnings are forecast to grow, but not significantly.

Revenue vs Market: AVY's revenue (5.6% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: AVY's revenue (5.6% 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 (36.2%)


Past Performance

How has Avery Dennison performed over the past 5 years?

15.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVY has high quality earnings.

Growing Profit Margin: AVY's current net profit margins (9.3%) are higher than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: AVY's earnings have grown by 15.6% per year over the past 5 years.

Accelerating Growth: AVY's earnings growth over the past year (41%) exceeds its 5-year average (15.6% per year).

Earnings vs Industry: AVY earnings growth over the past year (41%) underperformed the Packaging industry 41%.


Return on Equity

High ROE: Whilst AVY's Return on Equity (43.16%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Avery Dennison's financial position?


Financial Position Analysis

Short Term Liabilities: AVY's short term assets ($2.7B) exceed its short term liabilities ($2.1B).

Long Term Liabilities: AVY's short term assets ($2.7B) exceed its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: AVY's debt to equity ratio (122%) is considered high.

Reducing Debt: AVY's debt to equity ratio has increased from 118.5% to 122% over the past 5 years.

Debt Coverage: AVY's debt is well covered by operating cash flow (50.2%).

Interest Coverage: AVY's interest payments on its debt are well covered by EBIT (16.7x coverage).


Balance Sheet


Dividend

What is Avery Dennison current dividend yield, its reliability and sustainability?

1.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AVY's dividend (1.24%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: AVY's dividend (1.24%) is low compared to the top 25% of dividend payers in the US market (3.63%).


Stability and Growth of Payments

Stable Dividend: AVY's dividends per share have been stable in the past 10 years.

Growing Dividend: AVY's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.3%), AVY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AVY's dividends in 3 years are forecast to be well covered by earnings (31.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.1yrs

Average management tenure


CEO

Mitch Butier (50 yo)

5.33yrs

Tenure

US$8,709,348

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 ($USD8.71M) is about average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: Mitch's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: AVY's management team is seasoned and experienced (5.1 years average tenure).


Board Members

Experienced Board: AVY's board of directors are considered experienced (8.7 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 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$17.686b
  • Shares outstanding: 82.88m
  • Website: https://www.averydennison.com

Number of Employees


Location

  • Avery Dennison Corporation
  • 207 Goode Avenue
  • Glendale
  • California
  • 91203
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 22:55
End of Day Share Price2021/09/23 00:00
Earnings2021/07/03
Annual Earnings2021/01/02


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.