Avery Dennison Corporation (NYSE:AVY) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of AVY, it is a financially-robust , dividend-paying company with a an impressive track record of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Avery Dennison here.
Solid track record with adequate balance sheet and pays a dividend
AVY delivered a bottom-line expansion of 65% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did AVY outperformed its past performance, its growth also exceeded the Packaging industry expansion, which generated a 7.6% earnings growth. This is what investors like to see! AVY is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that AVY manages its cash and cost levels well, which is a crucial insight into the health of the company. AVY seems to have put its debt to good use, generating operating cash levels of 0.23x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
Income investors would also be happy to know that AVY is a great dividend company, with a current yield standing at 1.8%. AVY has also been regularly increasing its dividend payments to shareholders over the past decade.
For Avery Dennison, I’ve put together three fundamental factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for AVY’s future growth? Take a look at our free research report of analyst consensus for AVY’s outlook.
- Valuation: What is AVY worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether AVY is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AVY? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.