Avery Dennison Corp

Consumer Discretionary
Containers/Packaging
www.averydennison.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $16.51B
PE 24
Debt $3.16B
Cash $212.70M
EV $19.45B
FCF $667.90M

Earnings

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Sales & Net Margins

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Earnings	$674.00M
EBIT	$1.03B
ROE	28%
ROA	12%
FCF	$667.90M
Equity	$2.39B
Growth Stability	73%
PE	24.49
PEG	5.66
PB	6.89
P/FCF	24.71
P/S	1.9
Price/Cash	0.01
Debt/Equity	1.32
Debt/FCF	4.73
Net Margins	8%
Gross Margins	29%
Op. Margins	12%
Earnings CAGR	13%
Sales Growth YoY	4%
Sales Growth QoQ	-2%
Sales CAGR	5%
FCF CAGR	9%
Equity CAGR	11%
Earnings Stability	0.56
Earnings Growth YoY	31%
Earnings Growth QoQ	3%
Earnings CAGR 5Y	4%

Sales CAGR 5Y	6%
FCF CAGR 5Y	2%
Equity CAGR 5Y	15%
Earnings CAGR 3Y	-1%
Sales CAGR 3Y	-1%
FCF CAGR 3Y	-3%
Equity CAGR 3Y	7%
Market Cap	$16.51B
Revenue	$8.68B
Dividend Yield	2%
Payout Ratio	40%
Assets	$8.45B
Total Debt	$3.16B
Cash	$212.70M
Shares Outstanding	80.44M
EV	19.45B
Earnings Score	79%
Moat Score	93%
Safety Score	81%
Final Score	84%
Working Capital	-264.3M
Current Ratio	0.92
Gross Profit	$2.52B
Shares Growth 3y	-1%
Equity Growth QoQ	5%
Equity Growth YoY	16%

Assets & ROA

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Stockholders Equity & ROE

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Avery Dennison manufactures pressure-sensitive materials, merchandise tags, and labels. The company also runs a specialty converting business that produces radio-frequency identification inlays and labels. Avery Dennison draws a significant amount of revenue from outside the United States, with international operations accounting for the majority of total sales.

SEC Filings

Direct access to Avery Dennison Corp (AVY) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 28
- 10-Q Jun 29
- 10-Q Mar 30
2023
- 10-K Dec 30
- 10-Q Sep 30
- 10-Q Jul 01
- 10-Q Apr 01
2022
- 10-K Dec 31
- 10-Q Oct 01
- 10-Q Jul 02
- 10-Q Apr 02
- 10-K Jan 01

Sector Comparison

How does Avery Dennison Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Avery Dennison Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 13%

Stability 56%

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Avery Dennison Corp Discounted Cash Flow

Fully customizable DCF calculator online for Avery Dennison Corp.

Years

Calculation mode

= $13B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$668M	$731M	$800M	$876M	$959M	$1B	$1.1B	$1.3B	$1.4B	$1.5B	$1.7B	$17B
DCF		$665M	$661M	$658M	$655M	$652M	$649M	$646M	$642M	$639M	$636M	$6.4B
Value	$13B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	01/2015	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	TTM
Net Margins	4%	5%	5%	4%	7%	4%	8%	9%	8%	6%	8%
ROA	-	11%	12%	13%	12%	6%	13%	13%	14%	10%	12%
ROE	-	28%	35%	27%	49%	25%	37%	38%	37%	24%	28%

Net Margins (8.08%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	01/2015	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	3.13	3.16	3.44	8.5	3.68	3.85	3.92	4.54	5.79	4.73
Debt over Equity	1.08	1.1	1.4	1.51	2.06	1.61	1.43	1.61	1.53	1.52	1.32
Growth Stability	-	-	-	100%	100%	85%	100%	100%	100%	73%	73%

Bad Debt/FCF ratio (4.73)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Neutral Debt/Equity ratio (1.32)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (73%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	01/2015	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-6%	2%	9%	8%	-1%	-1%	21%	8%	-7%	6%
Earnings YoY growth	-	10%	17%	-12%	66%	-35%	83%	33%	2%	-34%	4%
Equity YoY growth	-	-9%	-4%	13%	-9%	26%	23%	30%	6%	5%	15%
FCF YoY growth	-	49%	21%	13%	-50%	128%	4%	44%	-14%	-18%	2%