Avery Dennison Corporation produces and sells pressure-sensitive materials worldwide.
+ 2 more risks
Reasonable growth potential with adequate balance sheet and pays a dividend.
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's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: AVY exceeded the US Packaging industry which returned -17.4% over the past year.
Return vs Market: AVY underperformed the US Market which returned -13.6% over the past year.
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
1 week ago | Simply Wall StAvery Dennison (NYSE:AVY) Has A Pretty Healthy Balance Sheet
4 weeks ago | Simply Wall StInsider Buying: The Avery Dennison Corporation (NYSE:AVY) VP, Controller Just Bought US$56k Worth Of Shares
1 month ago | Simply Wall StOnly 4 Days Left To Cash In On Avery Dennison Corporation's (NYSE:AVY) Dividend
Is Avery Dennison undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AVY ($95.9) is trading below our estimate of fair value ($124.59)
Significantly Below Fair Value: AVY is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AVY is poor value based on its PE Ratio (26.5x) compared to the Packaging industry average (14.3x).
PE vs Market: AVY is poor value based on its PE Ratio (26.5x) compared to the US market (12.9x).
Price to Earnings Growth Ratio
PEG Ratio: AVY is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: AVY is overvalued based on its PB Ratio (6.6x) compared to the US Packaging industry average (2.5x).
How is Avery Dennison forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AVY's forecast earnings growth (21% per year) is above the savings rate (1.7%).
Earnings vs Market: AVY's earnings (21% per year) are forecast to grow faster than the US market (12.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: AVY's revenue (3.1% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: AVY's revenue (3.1% 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 (34.9%)
How has Avery Dennison performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AVY has a large one-off loss of $494.7M 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 (-5.6%).
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.
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 ($2.0B).
Debt to Equity History and Analysis
Debt Level: AVY's debt to equity ratio (158.7%) is considered high.
Reducing Debt: AVY's debt to equity ratio has increased from 107.7% to 158.7% over the past 5 years.
Debt Coverage: AVY's debt is well covered by operating cash flow (39.1%).
Interest Coverage: AVY's interest payments on its debt are well covered by EBIT (10.8x coverage).
Inventory Level: AVY has a high level of physical assets or inventory.
Debt Coverage by Assets: AVY's debt is covered by short term assets (assets are 1.2x debt).
What is Avery Dennison's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AVY's dividend (2.42%) is higher than the bottom 25% of dividend payers in the US market (2%).
High Dividend: AVY's dividend (2.42%) is low compared to the top 25% of dividend payers in the US market (5.56%).
Stability and Growth of Payments
Stable Dividend: AVY's dividend payments have been volatile in the past 10 years.
Growing Dividend: AVY's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (62.5%), AVY's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AVY's dividends in 3 years are forecast to be well covered by earnings (33.7% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mitch Butier (48yo)
Mr. Mitchell R. Butier, also known as Mitch, has been the Chief Executive Officer of Avery Dennison Corporation since May 1, 2016 and as its President since November 1, 2014 and has been its Chairman of th ...
CEO Compensation Analysis
Compensation vs Market: Mitch's total compensation ($USD8.50M) is about average for companies of similar size in the US market ($USD7.59M).
Compensation vs Earnings: Mitch's compensation has been consistent with company performance over the past year.
|Senior VP & CFO||3.08yrs||US$2.74m||0.039% $3.0m|
|Senior VP||12.08yrs||US$3.12m||0.024% $1.9m|
|Vice President of Global Operations & Supply Chain||14.25yrs||no data||no data|
|VP, Controller||9.83yrs||no data||0.025% $2.0m|
|GM of Global Graphics & Reflective Solutions and VP of Global Technology & Ventures||no data||no data||no data|
|VP & Chief Information Officer||2.08yrs||no data||no data|
|Vice President of Finance & Investor Relations||no data||no data||no data|
|Vice President of Strategy & Corporate Development||no data||no data||no data|
|Senior VP & Chief Human Resources Officer||13.08yrs||US$2.21m||0.038% $3.0m|
Experienced Management: AVY's management team is seasoned and experienced (9.8 years average tenure).
|Lead Independent Director||15yrs||US$281.78k||0.017% $1.3m|
|Lead Independent Director||10yrs||US$298.91k||0.021% $1.6m|
|Independent Director||17.25yrs||US$276.78k||0.022% $1.7m|
|Independent Director||12.75yrs||US$261.78k||0.030% $2.4m|
|Independent Director||17.25yrs||US$276.78k||0.036% $2.8m|
|Independent Director||10yrs||US$259.28k||0.022% $1.7m|
|Independent Director||7.33yrs||US$251.78k||0.0034% $268.2k|
|Independent Director||7.17yrs||US$261.78k||0.016% $1.2m|
|Independent Director||3.17yrs||US$251.78k||0.0042% $323.6k|
Experienced Board: AVY's board of directors are seasoned and experienced ( 10 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AVY insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Avery Dennison Corporation's company bio, employee growth, exchange listings and data sources
- Name: Avery Dennison Corporation
- Ticker: AVY
- Exchange: NYSE
- Founded: 1935
- Industry: Paper Packaging
- Sector: Materials
- Market Cap: US$7.797b
- Shares outstanding: 83.30m
- Website: https://www.averydennison.com
Number of Employees
- Avery Dennison Corporation
- 207 Goode Avenue
- 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|
|AV3||BRSE (Berne Stock Exchange)||Yes||Common Stock||CH||CHF||Jan 1968|
|A1VY34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 2 REPR 1 COM||BR||BRL||Jan 2020|
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 brand embellishments, graphic tickets, tags and labels, and sustainable packaging solutions, as well as offers creative services; 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; pressure-sensitive adhesive based materials and converted products; medical fasteners; and performance polymers under the Fasson, Avery Dennison, and Yongle brands. It serves automotive, electronics, building and construction, general industrial, personal care, and medical markets. 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||2020/04/04 04:54|
|End of Day Share Price||2020/04/03 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.