Avery Dennison Corp
Exchange: NYSESector: Consumer CyclicalIndustry: Packaging & Containers
Avery Dennison Corporation is a global materials science and digital identification solutions company. We are Making Possible™ products and solutions that help advance the industries we serve, providing branding and information solutions that optimize labor and supply chain efficiency, reduce waste, advance sustainability, circularity and transparency, and better connect brands and consumers. We design and develop labeling and functional materials, radio-frequency identification (RFID) inlays and tags, software applications that connect the physical and digital, and offerings that enhance branded packaging and carry or display information that improves the customer experience. Serving industries worldwide — including home and personal care, apparel, general retail, e-commerce, logistics, food and grocery, pharmaceuticals and automotive — we employ approximately 35,000 employees in more than 50 countries. Our reported sales in 2024 were $8.8 billion.
Did you know?
Carries 18.4x more debt than cash on its balance sheet.
Current Price
$171.47
-0.94%GoodMoat Value
$228.94
33.5% undervaluedProfile
Valuation (TTM)
Market Cap$13.25B
P/E19.26
EV$16.27B
P/B5.91
Shares Out77.30M
P/Sales1.50
Revenue$8.86B
EV/EBITDA12.09
Avery Dennison Corp (AVY) Stock Analysis
GoodMoat Analysis
Avery Dennison appears to be a high-quality, profitable business with a moderate competitive moat, trading at a price that suggests a favourable margin of safety relative to its estimated fair value. Its strong ROE and free cash flow yield are key strengths for a value investor. The combination of business quality and valuation makes it a candidate for further investigation.
Read full analysis
Avery Dennison is a global leader in materials science, specializing in labeling and functional materials used in packaging, retail apparel branding, and industrial applications. Applying the GoodMoat framework, the company demonstrates several potential moat sources, including niche dominance in pressure-sensitive materials, switching costs through mission-critical labeling systems integrated into client supply chains, and a strong brand in retail branding solutions. While not a high-growth tech company, its moat score likely meets the 5+ threshold for a durable advantage, supported by its consistent profitability. The company exhibits high-quality financials, with a Return on Equity of 30.7% far exceeding the 15-20% high-ROIC benchmark and a solid Free Cash Flow Yield of 5.3%. Its debt level, with a Debt/Equity of 1.66, is a point for closer scrutiny but is manageable given its cash generation. The valuation is compelling: with a P/E of 19.2 and the provided GoodMoat Target of $228.94, the current price of $170.64 implies a margin of safety of approximately 25%, which falls into the 'Favourable' 20-40% band in the Decision Framework. This suggests the stock passes the initial Moat & Quality Gate and presents a favourable valuation opportunity, warranting a deeper dive into its specific moat drivers and growth trajectory. Analysis based on data as of 2024-05-15.
Market Cap$13.25B
Current Price$171.47
P/E Ratio19.26
Forward P/E—
PEG Ratio—
EPS$8.79
Book Value$29.01
P/B Ratio5.91
AVY Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 6.0% FCF growth (CAGR)
Cash vs Debt
Net Debt: 3.5B
Revenue
7.1B
FY19
7.0B
FY21
8.4B
FY22
9.0B
FY22
8.4B
FY23
8.8B
FY24
8.9B
FY25
Net Income
304M
FY19
556M
FY21
740M
FY22
757M
FY22
503M
FY23
705M
FY24
688M
FY25
AVY 52-Week Range
$155.87
$196.46
50-Day MA: $182.16200-Day MA: $174.56
Did you know?
Profit margin stands at 7.8%.
Avery Dennison Corp (AVY) Financial Summary
Avery Dennison Corp (AVY) is a Consumer Cyclical company in the Packaging & Containers industry, listed on NYSE. The stock currently trades at $171.47 with a market capitalization of $13.25B.
Key valuation metrics include a P/E ratio of 19.26, price-to-book ratio of 5.91, and EPS of $8.79. The company reports a profit margin of 7.8% and return on equity of 30.7%.
AVY Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $13.25B |
| P/E Ratio | 19.26 |
| EPS | $8.79 |
| P/B Ratio | 5.91 |
| P/S Ratio | 1.50 |
| EV/EBITDA | 12.09 |
| Dividend Yield | 2.18% |
| Profit Margin | 7.8% |
| Return on Equity | 30.7% |
| Debt/Equity | 1.66 |
AVY Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $7.07B | $303.60M |
| FY21 | $6.97B | $555.90M |
| FY22 | $8.41B | $740.10M |
| FY22 | $9.04B | $740.10M |
| FY23 | $8.36B | $503.00M |
| FY24 | $8.76B | $704.90M |
| FY25 | $8.86B | $688.00M |
Avery Dennison Corp (AVY) Valuation
Based on GoodMoat's DCF model, Avery Dennison Corp has a fair value estimate of $228.94. At the current price of $171.47, the stock appears 25.1% undervalued relative to our intrinsic value estimate.
AVY Quality Indicators
Avery Dennison Corp maintains a profit margin of 7.8% and an operating margin of 12.7%. Return on equity stands at 30.7%. The current ratio is 1.13. Debt-to-equity ratio is 1.66.
About Avery Dennison Corp
Avery Dennison Corporation is a global materials science and digital identification solutions company. We are Making Possible™ products and solutions that help advance the industries we serve, providing branding and information solutions that optimize labor and supply chain efficiency, reduce waste, advance sustainability, circularity and transparency, and better connect brands and consumers. We design and develop labeling and functional materials, radio-frequency identification (RFID) inlays and tags, software applications that connect the physical and digital, and offerings that enhance branded packaging and carry or display information that improves the customer experience. Serving industries worldwide — including home and personal care, apparel, general retail, e-commerce, logistics, food and grocery, pharmaceuticals and automotive — we employ approximately 35,000 employees in more than 50 countries. Our reported sales in 2024 were $8.8 billion.
AVY Free Cash Flow
Avery Dennison Corp generated $703.60M in trailing twelve-month free cash flow, representing an FCF yield of 5.31%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
AVY Shares Outstanding
Avery Dennison Corp has 0.08 billion shares outstanding at a share price of $171.47, giving it a market capitalization of $13.25B.
AVY Recent Insider Trades
Recent insider transactions at Avery Dennison Corp include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Butier Mitchell R | SELL | 4,123 | $714000.11 |
| Butier Mitchell R | SELL | 4,365 | $763752.34 |
| Butier Mitchell R | SELL | 10,633 | $1.95M |