NYSE:AVY

Stock Analysis Report

Executive Summary

Avery Dennison Corporation produces and sells pressure-sensitive materials worldwide.

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Avery Dennison's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.3%

AVY

3.3%

US Packaging

3.4%

US Market


1 Year Return

13.2%

AVY

10.6%

US Packaging

5.4%

US Market

Return vs Industry: AVY matched the US Packaging industry which returned 10.6% over the past year.

Return vs Market: AVY exceeded the US Market which returned 5.4% over the past year.


Shareholder returns

AVYIndustryMarket
7 Day4.3%3.3%3.4%
30 Day-2.5%-2.2%-1.0%
90 Day0.3%-1.2%-0.4%
1 Year15.6%13.2%13.3%10.6%7.7%5.4%
3 Year57.8%48.6%21.1%13.4%46.2%36.8%
5 Year183.3%154.5%44.1%27.2%65.6%47.5%

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

Valuation

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

13.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: AVY ($113.62) is trading below our estimate of fair value ($130.91)

Significantly Undervalued: AVY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AVY is poor value based on its PE Ratio (40x) compared to the Packaging industry average (16.6x).

PE vs Market: AVY is poor value based on its PE Ratio (40x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: AVY is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: AVY is overvalued based on its PB Ratio (9x) compared to the US Packaging industry average (3.4x).


Next Steps

Future Growth

How is Avery Dennison forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

42.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVY's forecast earnings growth (42.5% per year) is above the savings rate (2.7%).

Earnings vs Market: AVY's earnings (42.5% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AVY's revenue (3.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: AVY's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: AVY's Return on Equity is forecast to be very high in 3 years time (47.1%).


Next Steps

Past Performance

How has Avery Dennison performed over the past 5 years?

4.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AVY's earnings have grown by 4.9% 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 (-9.9%) over the past year, making it difficult to compare to the Packaging industry average (-1.4%).


Return on Equity

High ROE: Whilst AVY's Return on Equity (22.88%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: AVY's Return on Assets is below or equal to the Packaging industry average last year.


Return on Capital Employed

ROCE Improving: AVY has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Avery Dennison's financial position?


Financial Position Analysis

Short Term Liabilities: AVY's short term assets ($2.4B) exceeds its short term liabilities ($2.3B)

Long Term Liabilities: AVY's short term assets (2.4B) exceeds its long term liabilities (2.0B)


Debt to Equity History and Analysis

Debt Level: AVY's debt to equity ratio (192.2%) is considered high

Reducing Debt: AVY's debt to equity ratio has increased from 82.1% to 192.2% over the past 5 years.

Debt Coverage: AVY's debt is well covered by operating cash flow (23.9%).

Interest Coverage: AVY's interest payments on its debt are well covered by EBIT (11.3x coverage).


Balance Sheet

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 1.163980x debt).


Next Steps

Dividend

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

2.04%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.5%markettop25%3.8%industryaverage2.6%forecastin3Years2.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AVY's dividend (2.04%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: AVY's dividend (2.04%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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: At its current payout ratio (75.3%), AVY's 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 (29.3% payout ratio).


Next Steps

Management

What is the CEO of Avery Dennison's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

Mitch Butier (48yo)

3.4yrs

Tenure

US$8,709,697

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 ($USD8.71M) is about average for companies of similar size in the US market ($USD6.81M).

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


Management Age and Tenure

4.5yrs

Average Tenure

52yo

Average Age

Experienced Management: AVY's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

9.5yrs

Average Tenure

63yo

Average Age

Experienced Board: AVY's board of directors are considered experienced (9.5 years average tenure).


Insider Trading

Insider Buying: AVY insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$246,26109 Sep 19
Anthony Anderson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,150
Max PriceUS$114.54
SellUS$2,142,19231 Jul 19
Anne Hill
EntityIndividual
Shares18,631
Max PriceUS$114.98
SellUS$1,164,10030 Jul 19
Deon Stander
EntityIndividual
Shares10,000
Max PriceUS$116.41
SellUS$292,20026 Jul 19
Georges Gravanis
EntityIndividual
Role
Senior Key Executive
President of Label & Graphic Materials
Shares2,500
Max PriceUS$116.88
SellUS$1,549,24014 Mar 19
Georges Gravanis
EntityIndividual
Role
Senior Key Executive
President of Label & Graphic Materials
Shares14,000
Max PriceUS$110.66

Ownership Breakdown


Management Team

  • Lori Bondar (58yo)

    Chief Accounting Officer

    • Tenure: 9.3yrs
  • Mitch Butier (48yo)

    Chairman

    • Tenure: 3.4yrs
    • Compensation: US$8.71m
  • Danny Allouche

    Vice President of Strategy & Corporate Development

    • Tenure: 0yrs
  • Sue Miller (59yo)

    Senior VP

    • Tenure: 11.6yrs
    • Compensation: US$2.15m
  • Cynthia Guenther

    Vice President of Finance & Investor Relations

    • Tenure: 0yrs
  • Nick Colisto (52yo)

    VP & Chief Information Officer

    • Tenure: 1.6yrs
  • Georges Gravanis (61yo)

    President of Label & Graphic Materials

    • Tenure: 4.5yrs
    • Compensation: US$2.37m
  • Hassan Rmaile (41yo)

    GM of Global Graphics & Reflective Solutions and VP of Global Technology & Ventures

    • Tenure: 0yrs
  • Greg Lovins (46yo)

    Senior VP & CFO

    • Tenure: 2.6yrs
    • Compensation: US$2.41m
  • Kamran Kian

    Vice President of Global Operations & Supply Chain

    • Tenure: 13.8yrs

Board Members

  • Patrick Thomas Siewert (63yo)

    Independent Director

    • Tenure: 14.5yrs
    • Compensation: US$257.26k
  • David E. Pyott (66yo)

    Lead Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$277.26k
  • Julia Stewart (63yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$262.26k
  • Ken Hicks (67yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$247.26k
  • Peter Barker (70yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$262.26k
  • Brad Alford (62yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$239.51k
  • Tony Anderson (63yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$237.26k
  • Mitch Butier (48yo)

    Chairman

    • Tenure: 3.4yrs
    • Compensation: US$8.71m
  • Martha Sullivan (62yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$247.26k
  • Andres Lopez (56yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$237.26k

Company Information

Avery Dennison Corporation's company bio, 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$9.570b
  • Shares outstanding: 84.23m
  • Website: https://www.averydennison.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVYNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
AV3DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0HJRLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 23:32
End of Day Share Price2019/10/15 00:00
Earnings2019/06/29
Annual Earnings2018/12/29


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.