Compoundeer Logo
COMPOUNDEER
Uncovering Potential
RankingCompaniesDCF
AVY Logo

Avery Dennison Corp

AVY

Converted Paper & Paperboard Prods (No Contaners/Boxes)

Mkt Cap

$17.05B

PE

33.91

Debt

$3.244B

Cash

$215M

EV

$20.08B

FCF

$560.7M

Market Cap

$17.05B

P/E Ratio

33.91

Debt

$3.244B

Cash

$215M

EV

$20.08B

FCF

$560.7M
Charts data: {"Earnings":[{"time":"2015-01-02","value":248900000},{"time":"2016-01-01","value":274300000},{"time":"2016-12-30","value":320700000},{"time":"2017-12-29","value":281800000},{"time":"2018-12-28","value":467400000},{"time":"2019-12-27","value":303600000},{"time":"2021-01-01","value":555900000},{"time":"2021-12-31","value":740100000},{"time":"2022-12-30","value":757100000},{"time":"2023-12-29","value":503000000}],"Sales":[{"time":"2015-01-02","value":6330300000},{"time":"2016-01-01","value":5966900000},{"time":"2016-12-30","value":6086500000},{"time":"2017-12-29","value":6613800000},{"time":"2018-12-28","value":7159000000},{"time":"2019-12-27","value":7070100000},{"time":"2021-01-01","value":6971500000},{"time":"2021-12-31","value":8408300000},{"time":"2022-12-30","value":9039300000},{"time":"2023-12-29","value":8364300000}],"Net Margins":[{"time":"2015-01-02","value":0.03931883165094861},{"time":"2016-01-01","value":0.045970269319076905},{"time":"2016-12-30","value":0.05269038034995482},{"time":"2017-12-29","value":0.04260788049230397},{"time":"2018-12-28","value":0.06528844810727755},{"time":"2019-12-27","value":0.04294140111172402},{"time":"2021-01-01","value":0.07973893710105429},{"time":"2021-12-31","value":0.08802017054577026},{"time":"2022-12-30","value":0.08375648556857279},{"time":"2023-12-29","value":0.06013653264469233}],"Assets":[{"time":"2015-01-02","value":4360200000},{"time":"2016-01-01","value":4133700000},{"time":"2016-12-30","value":4396400000},{"time":"2017-12-29","value":5136900000},{"time":"2018-12-28","value":5177500000},{"time":"2019-12-27","value":5488800000},{"time":"2021-01-01","value":6083900000},{"time":"2021-12-31","value":7971600000},{"time":"2022-12-30","value":7950500000},{"time":"2023-12-29","value":8209800000}],"Stockholders Equity":[{"time":"2015-01-02","value":1066500000},{"time":"2016-01-01","value":965700000},{"time":"2016-12-30","value":925500000},{"time":"2017-12-29","value":1046200000},{"time":"2018-12-28","value":955100000},{"time":"2019-12-27","value":1204000000},{"time":"2021-01-01","value":1484900000},{"time":"2021-12-31","value":1924400000},{"time":"2022-12-30","value":2032200000},{"time":"2023-12-29","value":2127900000}],"ROE":[{"time":"2015-01-02","value":0.23338021565869668},{"time":"2016-01-01","value":0.2840426633530082},{"time":"2016-12-30","value":0.34651539708265805},{"time":"2017-12-29","value":0.26935576371630665},{"time":"2018-12-28","value":0.4893728405402576},{"time":"2019-12-27","value":0.2521594684385382},{"time":"2021-01-01","value":0.3743686443531551},{"time":"2021-12-31","value":0.3845874038661401},{"time":"2022-12-30","value":0.37255191418167505},{"time":"2023-12-29","value":0.2363832886883782}],"ROA":[{"time":"2015-01-02","value":0.09809183064997018},{"time":"2016-01-01","value":0.11355444275104627},{"time":"2016-12-30","value":0.12214539168410518},{"time":"2017-12-29","value":0.12702213397185072},{"time":"2018-12-28","value":0.11845485272815065},{"time":"2019-12-27","value":0.059266141961813144},{"time":"2021-01-01","value":0.13269448873255643},{"time":"2021-12-31","value":0.13332329770685936},{"time":"2022-12-30","value":0.13626815923526822},{"time":"2023-12-29","value":0.09911325489049673}]}

Avery Dennison Corporation operates as materials science and digital identification solutions company. It provides branding and information labeling solutions, including pressure-sensitive materials, radio-frequency identification (RFID) inlays and tags, and various converted products and solutions. The company designs and manufactures a range of labeling and functional materials that enhance branded packaging, carry or display information that connects the physical and the digital, and improve customers' product performance. It serves an array of industries, including home and personal care, apparel, e-commerce, logistics, food and grocery, pharmaceuticals, and automotive worldwide. 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 Mentor, Ohio.

Sector

  • KMB Logo

    KMB

  • PACK Logo

    PACK

Growth

%

%

Discount

%

%

Multiple

g\r+10%+11%+12%+13%+14%
0%109887
+1%1110988
+2%13111098
+3%141311109
+4%1714121110
Years012345678910TV
FCF$560.7M$612.2M$665.5M$720.4M$776.5M$833.3M$890.4M$947.4M$1.004B$1.058B$1.111B$11.11B
DCF$532.3M$503.2M$473.7M$443.9M$414.3M$385M$356.1M$328.1M$300.8M$274.7M$2.747B
Value$6.759B

In the chart Earnings are multiplied by this value.

Earnings Growth 13%
Earnings Stability 58%


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.

Years01-201612-201612-201712-201812-201901-202112-202112-202212-2023TTM
Net Margin4.6%5.3%4.3%6.5%4.3%8%8.8%8.4%6%6%
ROA11%12%13%12%5.9%13%13%14%9.9%9.9%
ROE28%35%27%49%25%37%38%37%24%24%

What is the average Net Margin?

The average Net Margin over the past 5 years is +7%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.3%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +11.32%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.39%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +35.16%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -2.55%.


Safety & Stabiliy

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.

Years01-201612-201612-201712-201812-201901-202112-202112-202212-2023TTM
Debt FCF3.133.163.448.503.683.853.924.545.795.79
Debt Equity1.101.401.512.061.611.431.611.531.521.52
MIN
Graham Stability--100%100%85%100%100%100%73%73%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 5.79.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.31.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.73.


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.

Years12-201612-201801-202112-2022Trend
Revenue4.6%3.2%6.3%-7.5%0.4%
Net Income6.6%1.5%-3.3%-34%-1.9%
Stockholders Equity13%17%13%4.7%2.5%
FCF4.6%19%0.65%-18%-4.3%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +3.16%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.4%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +1.48%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -1.85%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +17.38%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +2.52%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +19.38%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -4.26%.