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Avery Dennison

NYSE:AVY
Snowflake Description

Reasonable growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AVY
NYSE
$10B
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 81 days ago. More info.


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AVY Share Price and Events
7 Day Returns
0.3%
NYSE:AVY
-0.2%
US Packaging
-1.2%
US Market
1 Year Returns
9.5%
NYSE:AVY
6.1%
US Packaging
3.4%
US Market
AVY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Avery Dennison (AVY) 0.3% 0.9% 0.4% 9.5% 56.8% 131.2%
US Packaging -0.2% 2% 4.7% 6.1% 24.3% 27.2%
US Market -1.2% 1.2% 1.7% 3.4% 35.5% 41.6%
1 Year Return vs Industry and Market
  • AVY outperformed the Packaging industry which returned 6.1% over the past year.
  • AVY outperformed the Market in United States of America which returned 3.4% 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 8.6%
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 6%
Packaging Unlevered Beta Simply Wall St/ S&P Global 0.82
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.82 (1 + (1- 21%) (23.59%))
0.982
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.98
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.982 * 5.96%)
8.58%

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 try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:AVY DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.58%)
2020 534.64 Analyst x7 492.39
2021 602.00 Analyst x2 510.60
2022 656.91 Est @ 9.12% 513.14
2023 704.23 Est @ 7.2% 506.63
2024 745.51 Est @ 5.86% 493.94
2025 782.20 Est @ 4.92% 477.29
2026 815.56 Est @ 4.26% 458.31
2027 846.58 Est @ 3.8% 438.15
2028 876.06 Est @ 3.48% 417.57
2029 904.59 Est @ 3.26% 397.09
Present value of next 10 years cash flows $4,705.10
NYSE:AVY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $904.59 × (1 + 2.73%) ÷ (8.58% – 2.73%)
$15,880.88
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $15,880.88 ÷ (1 + 8.58%)10
$6,971.28
NYSE:AVY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,705.10 + $6,971.28
$11,676.39
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $11,676.39 / 84.42
$138.32
NYSE:AVY Discount to Share Price
Calculation Result
Value per share (USD) From above. $138.32
Current discount Discount to share price of $113.86
= -1 x ($113.86 - $138.32) / $138.32
17.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Avery Dennison is available for.
Intrinsic value
18%
Share price is $113.86 vs Future cash flow value of $138.32
Current Discount Checks
For Avery Dennison to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Avery Dennison's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Avery Dennison's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 (2019-03-30) in USD $2.26
NYSE:AVY Share Price ** NYSE (2019-07-19) in USD $113.86
United States of America Packaging Industry PE Ratio Median Figure of 15 Publicly-Listed Packaging Companies 17.52x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 17.88x

* 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)

= 113.86 ÷ 2.26

50.36x

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 50.36x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
44.3%per year
United States of America Packaging Industry PEG Ratio Median Figure of 14 Publicly-Listed Packaging Companies 1.28x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*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

= 50.36x ÷ 44.3%

1.14x

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 (2019-03-30) in USD $11.75
NYSE:AVY Share Price * NYSE (2019-07-19) in USD $113.86
United States of America Packaging Industry PB Ratio Median Figure of 20 Publicly-Listed Packaging Companies 3.81x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.79x
NYSE:AVY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 113.86 ÷ 11.75

9.69x

* 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
44.3%
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 44.3%
NYSE:AVY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 3.8%
United States of America Packaging Industry Earnings Growth Rate Market Cap Weighted Average 14.6%
United States of America Packaging Industry Revenue Growth Rate Market Cap Weighted Average 3.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*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 8,482 2
2022-12-31 8,137 2
2021-12-31 7,769 868 635 5
2020-12-31 7,497 793 584 10
2019-12-31 7,234 762 277 10
NYSE:AVY Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-30 7,123 477 195
2018-12-29 7,159 458 467
2018-09-29 7,126 444 311
2018-06-30 7,045 680 270
2018-03-31 6,818 648 295
2017-12-30 6,614 646 282
2017-09-30 6,429 610 403
2017-07-01 6,259 545 384
2017-04-01 6,173 606 343
2016-12-31 6,087 582 321
2016-10-01 5,991 557 315
2016-07-02 5,950 519 307
2016-04-02 5,924 463 292

*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 3.8% 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 7.90 8.21 7.58 2.00
2020-12-31 6.99 7.47 6.31 4.00
2019-12-31 3.22 3.35 3.12 3.00
NYSE:AVY Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-30 2.26
2018-12-29 5.35
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

*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, however the most recent earnings are below average.
  • 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
2019-03-30 7,122.70 195.30 1,004.20 98.10
2018-12-29 7,159.00 467.40 1,013.40 98.20
2018-09-29 7,125.60 310.70 1,028.70 97.90
2018-06-30 7,045.40 269.50 1,021.80 97.00
2018-03-31 6,818.10 294.80 990.70 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 1,012.10 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

*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.
  • Avery Dennison has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Avery Dennison used its assets less efficiently than the US Packaging industry average last year based on Return on Assets.
  • Avery Dennison has 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 2/6, 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 1.1x 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
2019-03-30 991.90 2,090.90 252.10
2018-12-29 955.10 1,966.20 258.10
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 1,027.60 189.20
2015-07-04 1,096.70 1,125.70 263.50
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
  • Avery Dennison's level of debt (212.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (75% vs 212.7% today).
  • Debt is well covered by operating cash flow (22.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 12.3x 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
2.04%
Current annual income from Avery Dennison dividends. Estimated to be 2.01% next year.
If you bought $2,000 of Avery Dennison shares you are expected to receive $41 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 (1.44%).
  • Avery Dennison's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
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 2.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2016 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

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 2.41 4.00
2020-12-31 2.30 6.00
2019-12-31 2.19 6.00
NYSE:AVY Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-25 2.320 2.120
2019-01-30 2.080 1.904
2018-10-25 2.080 2.257
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
2008-10-23 1.640 5.317
2008-07-23 1.640 3.804

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 not well covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.5x 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 0.8%) - 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 3/6, 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 $8,709,697
AGE 48
TENURE AS CEO 3.2 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 and has been its Chairman of the Board since April 25, 2019. 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, both up more than 20%.
  • Mitch's remuneration is about 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:

4.3
Average Tenure
52
Average Age
  • The tenure for the Avery Dennison management team is about average.
Management Team

Mitch Butier

TITLE
Chairman
COMPENSATION
$9M
AGE
48
TENURE
3.2 yrs

Greg Lovins

TITLE
Senior VP & CFO
COMPENSATION
$2M
AGE
46
TENURE
2.3 yrs

Sue Miller

TITLE
Senior VP
COMPENSATION
$2M
AGE
59
TENURE
11.3 yrs

Georges Gravanis

TITLE
President of Label & Graphic Materials
COMPENSATION
$2M
AGE
61
TENURE
4.3 yrs

Kamran Kian

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

Lori Bondar

TITLE
Chief Accounting Officer
AGE
58
TENURE
9.1 yrs

Hassan Rmaile

TITLE
GM of Global Graphics & Reflective Solutions and VP of Global Technology & Ventures
AGE
41

Nick Colisto

TITLE
VP & Chief Information Officer
AGE
52
TENURE
1.3 yrs

Cynthia Guenther

TITLE
Vice President of Finance & Investor Relations

Danny Allouche

TITLE
Vice President of Strategy & Corporate Development
Board of Directors Tenure

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

9.3
Average Tenure
63
Average Age
  • The tenure for the Avery Dennison board of directors is about average.
Board of Directors

Mitch Butier

TITLE
Chairman
COMPENSATION
$9M
AGE
48
TENURE
0.3 yrs

Peter Barker

TITLE
Independent Director
COMPENSATION
$262K
AGE
70
TENURE
16.5 yrs

Julia Stewart

TITLE
Independent Director
COMPENSATION
$262K
AGE
63
TENURE
16.5 yrs

Patrick Thomas Siewert

TITLE
Independent Director
COMPENSATION
$257K
AGE
63
TENURE
14.3 yrs

David E. Pyott

TITLE
Lead Independent Director
COMPENSATION
$277K
AGE
66
TENURE
9.3 yrs

Ken Hicks

TITLE
Independent Director
COMPENSATION
$247K
AGE
67
TENURE
12 yrs

Brad Alford

TITLE
Independent Director
COMPENSATION
$240K
AGE
62
TENURE
9.3 yrs

Tony Anderson

TITLE
Independent Director
COMPENSATION
$237K
AGE
63
TENURE
6.6 yrs

Martha Sullivan

TITLE
Independent Director
COMPENSATION
$247K
AGE
62
TENURE
6.4 yrs

Andres Lopez

TITLE
Independent Director
COMPENSATION
$237K
AGE
56
TENURE
2.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. Mar 19 Sell Georges Gravanis Individual 12. Mar 19 12. Mar 19 -14,000 $110.66 $-1,549,240
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

Simply Wall St News

An Examination Of Avery Dennison Corporation (NYSE:AVY)

By this I mean, I look at stocks holistically, from their financial health to their future outlook. … For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Avery Dennison here. … Reasonable growth potential with adequate balance sheet One reason why investors are attracted to AVY is its earnings growth potential in the near future of 44% underlying the notable 52% return on equity over the next few years leading up to 2022.

Simply Wall St -

Calculating The Fair Value Of Avery Dennison Corporation (NYSE:AVY)

Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to today's value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $534.6m $602.5m $657.8m $705.5m $747.0m $783.9m $817.5m $848.6m $878.2m $906.9m Growth Rate Estimate Source Analyst x7 Analyst x2 Est @ 9.18% Est @ 7.24% Est @ 5.89% Est @ 4.94% Est @ 4.28% Est @ 3.81% Est @ 3.49% Est @ 3.26% Present Value ($, Millions) Discounted @ 8.53% $492.6 $511.6 $514.6 $508.6 $496.2 $479.8 $461.0 $441.0 $420.5 $400.1 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $4.7b After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$907m × (1 + 2.7%) ÷ (8.5% – 2.7%) = US$16b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$16b ÷ ( 1 + 8.5%)10 = $7.09b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $11.82b.

Simply Wall St -

Is Avery Dennison Corporation (NYSE:AVY) A Strong Dividend Stock?

Is Avery Dennison Corporation (NYSE:AVY) a good dividend stock? … As Avery Dennison's dividend was not well covered by earnings, we need to check its balance sheet for signs of financial distress. … Dividend Growth Potential While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term.

Simply Wall St -

When Should You Buy Avery Dennison Corporation (NYSE:AVY)?

Avery Dennison Corporation (NYSE:AVY), which is in the packaging business, and is based in United States, saw significant share price movement during recent months on the NYSE, rising to highs of $116.37 and falling to the lows of $99.69. … According to my valuation model, Avery Dennison seems to be fairly priced at around 17% below my intrinsic value, which means if you buy Avery Dennison today, you’d be paying a fair price for it. … AVY’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value.

Simply Wall St -

How Did Avery Dennison Corporation's (NYSE:AVY) 20% ROE Fare Against The Industry?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Avery Dennison: 20% = US$195m ÷ US$992m (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does Avery Dennison Have A Good Return On Equity? … The Importance Of Debt To Return On Equity Companies usually need to invest money to grow their profits.

Simply Wall St -

Despite Its High P/E Ratio, Is Avery Dennison Corporation (NYSE:AVY) Still Undervalued?

To keep it practical, we'll show how Avery Dennison Corporation's (NYSE:AVY) P/E ratio could help you assess the value on offer. … Avery Dennison has a price to earnings ratio of 47.25, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Should You Like Avery Dennison Corporation’s (NYSE:AVY) High Return On Capital Employed?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Have Insiders Been Selling Avery Dennison Corporation (NYSE:AVY) Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So shareholders might well want to know whether insiders have been buying or selling shares in Avery Dennison Corporation (NYSE:AVY). … Avery Dennison insiders didn't buy any shares over the last year

Simply Wall St -

A Look At Avery Dennison Corporation's (NYSE:AVY) Exceptional Fundamentals

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. … , dividend-paying company with a

Simply Wall St -

What Are Analysts Saying About Avery Dennison Corporation's (NYSE:AVY) Growth?

On 29 December 2018, Avery Dennison Corporation (NYSE:AVY) released its earnings update. … as a 20% increase in profits is expected in the upcoming year, … the past 5-year average growth rate of 9.5%.

Simply Wall St -

Company Info

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, 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.

Details
Name: Avery Dennison Corporation
AVY
Exchange: NYSE
Founded: 1935
$9,611,589,022
84,415,853
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
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: 2019/07/20 23:32
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/17
Last earnings filing: 2019/04/30
Last earnings reported: 2019/03/30
Last annual earnings reported: 2018/12/29


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.