Avery Dennison Corp

Consumer Discretionary
Containers/Packaging
www.averydennison.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $13.35B
PE 19
Debt $3.46B
Cash $195.90M
EV $16.61B
FCF $606.70M

Earnings

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Sales & Net Margins

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Earnings	$698.80M
EBIT	$946.10M
ROE	32%
ROA	11%
FCF	$606.70M
Equity	$2.17B
Growth Stability	73%
PE	19.11
PEG	30.9
PB	6.15
P/FCF	22.01
P/S	1.53
Price/Cash	0.01
Debt/Equity	1.59
Debt/FCF	5.7
Net Margins	8%
Gross Margins	29%
Op. Margins	11%
Earnings CAGR	12%
Sales Growth YoY	-0%
Sales Growth QoQ	-2%
Sales CAGR	5%
FCF CAGR	9%
Equity CAGR	11%
Earnings Stability	0.55
Earnings Growth YoY	-4%
Earnings Growth QoQ	-4%
Earnings CAGR 5Y	1%

Sales CAGR 5Y	5%
FCF CAGR 5Y	0%
Equity CAGR 5Y	12%
Earnings CAGR 3Y	-1%
Sales CAGR 3Y	-1%
FCF CAGR 3Y	4%
Equity CAGR 3Y	7%
Market Cap	$13.35B
Revenue	$8.75B
Dividend Yield	2%
Payout Ratio	40%
Assets	$8.35B
Total Debt	$3.46B
Cash	$195.90M
Shares Outstanding	78.55M
EV	16.61B
Earnings Score	77%
Moat Score	92%
Safety Score	77%
Final Score	82%
Working Capital	77.6M
Current Ratio	1.03
Gross Profit	$2.52B
Shares Growth 3y	-1%
Equity Growth QoQ	-6%
Equity Growth YoY	-2%

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.

2025
- 10-Q Mar 29
2024
- 10-K Dec 28
- 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

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 12%

Stability 55%

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Avery Dennison Corp Discounted Cash Flow

Fully customizable DCF calculator online for Avery Dennison Corp.

Years

Calculation mode

= $11B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$607M	$661M	$720M	$785M	$855M	$932M	$1B	$1.1B	$1.2B	$1.3B	$1.4B	$14B
DCF		$601M	$595M	$590M	$584M	$579M	$573M	$568M	$562M	$557M	$552M	$5.5B
Value	$11B

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	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	5%	5%	4%	7%	4%	8%	9%	8%	6%	8%	8%
ROA	-	12%	13%	12%	6%	13%	13%	14%	10%	11%	11%
ROE	-	35%	27%	49%	25%	37%	38%	37%	24%	30%	32%

Net Margins (7.74%)

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	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	3.16	3.44	8.5	3.68	3.85	3.92	4.54	5.79	4.32	5.7
Debt over Equity	1.1	1.4	1.51	2.06	1.61	1.43	1.61	1.53	1.52	1.36	1.59
Growth Stability	-	-	-	100%	85%	100%	100%	100%	73%	100%	73%

Bad Debt/FCF ratio (5.7)

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

Bad Debt/Equity ratio (1.59)

The company is overleveraged and has a bad balance between equity and debt.

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	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	2%	9%	8%	-1%	-1%	21%	8%	-7%	5%	5%
Earnings YoY growth	-	17%	-12%	66%	-35%	83%	33%	2%	-34%	40%	1%
Equity YoY growth	-	-4%	13%	-9%	26%	23%	30%	6%	5%	9%	12%
FCF YoY growth	-	21%	13%	-50%	128%	4%	44%	-14%	-18%	30%	0%