Avery Dennison (AVY) AI Stock Analysis

• Market Cap: $13.60B
• Dividend Yield: 2%
• Average Volume (3M): 765.36K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.67
• Revenue Growth: 1.03%
• EPS Growth: 5.52%
• Country: US
• Employees: 35,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Business Equipment & Supplies
• EPS (TTM): 2.37
• Shares Outstanding: 77,295,395
• 10 Day Avg. Volume: 993,704
• 30 Day Avg. Volume: 765,362
• PEG Ratio: 0.54
• Price to Book (P/B): 6.55
• Price to Sales (P/S): 1.73
• P/FCF Ratio: 20.76
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 1.79
• Enterprise Value/Gross Profit: 6.28
• Enterprise Value/Ebitda: 11.19
• 1Y Price Target: $201.25
• Price Target Upside: 14.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 73 Outperform
• Price Target: $202.00 ▲(14.82% Upside)

Avery Dennison's overall stock score is driven by strong financial performance and positive earnings call highlights. The company's strategic partnerships and growth in high-value categories are significant strengths. However, technical indicators suggest potential overbought conditions, and increased leverage poses a risk. The valuation is fair, providing a balanced investment opportunity.

Positive Factors

Strategic Partnerships

The partnership with Walmart for RFID solutions enhances Avery Dennison's market position and growth potential in the retail sector, providing a durable competitive advantage through increased product visibility and supply chain efficiency.

Revenue Growth

Consistent growth in high-value categories like VESCOM and Embellix indicates strong demand and effective market penetration, supporting long-term revenue expansion and business sustainability.

Cash Generation

Strong free cash flow growth demonstrates Avery Dennison's ability to effectively convert earnings into cash, providing financial flexibility for investments and shareholder returns.

Negative Factors

Increased Leverage

Higher leverage could strain financial resources and limit strategic options, posing a risk to long-term financial stability if not managed carefully.

Trade Policy Impacts

Trade policy changes create uncertainty and potential revenue loss in key segments, challenging the company's ability to maintain stable growth in affected markets.

Operating Efficiency

Decreased margins suggest pressure on operating efficiency, which could impact profitability if cost management and productivity improvements are not addressed.

Avery Dennison Business Overview & Revenue Model

Company Description

Avery Dennison Corporation manufactures and markets pressure-sensitive materials and products in the United States, Europe, Asia, Latin America, and internationally. The company's Label and Graphic Materials segment offers pressure-sensitive label and packaging materials; and graphics and reflective products under the Fasson, JAC, Avery Dennison, and Mactac brands, as well as durable cast and reflective films. It provides its products to the home and personal care, beer and beverage, durables, pharmaceutical, wine and spirits, and food market segments; architectural, commercial sign, digital printing, and other related market segments; construction, automotive, and fleet transportation market segments, as well as traffic and safety applications; and sign shops, commercial printers, and designers. The company's Retail Branding and Information Solutions segment designs, manufactures, and sells brand embellishments, graphic tickets, tags and labels, and sustainable packaging solutions, as well as offers creative services; radio-frequency identification products; visibility and loss prevention solutions; price ticketing and marking solutions; care, content, and country of origin compliance solutions; and brand protection and security solutions. It serves retailers, brand owners, apparel manufacturers, distributors, and industrial customers. The company's Industrial and Healthcare Materials segment offers tapes; pressure-sensitive adhesive based materials and converted products; medical fasteners; and performance polymers under the Fasson, Avery Dennison, and Yongle brands. It serves automotive, electronics, building and construction, general industrial, personal care, and medical markets. 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 Glendale, California.

How the Company Makes Money

Avery Dennison generates revenue primarily through the sale of its labeling and packaging materials. The company's revenue model is based on several key streams: the production and sale of pressure-sensitive adhesives and labels, RFID tags and solutions, and various retail branding products. The majority of its revenue comes from its Label and Graphic Materials segment, where it sells to manufacturers and retailers. Additionally, the Retail Branding and Information Solutions segment contributes significantly by providing integrated solutions that enhance brand visibility and supply chain efficiency. Avery Dennison also benefits from strategic partnerships with key players in various industries, which enhance its market reach and product offerings. Factors such as the growing demand for sustainable packaging solutions and technological advancements in labeling and RFID technology further contribute to its earnings.

Avery Dennison Financial Statement Overview

Summary

Avery Dennison demonstrates solid financial performance with strong revenue growth and profitability. However, increased leverage and slight pressure on operating efficiency are concerns. Effective cash flow management and a strong return on equity are positive indicators.

Income Statement

Avery Dennison shows strong revenue growth in the TTM period with a 36.7% increase, indicating robust demand. The gross profit margin is healthy at 28.87% for the latest annual report, though slightly lower in the TTM at 28.57%. The net profit margin remains stable around 8%, reflecting consistent profitability. However, EBIT and EBITDA margins have slightly decreased in the TTM, suggesting some pressure on operating efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.71 in the TTM, indicating higher leverage, which could pose a risk if not managed carefully. Return on equity remains strong at 31.28%, showcasing effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced approach to financing assets.

Cash Flow

Operating cash flow remains strong, though it has decreased slightly in the TTM. Free cash flow growth is positive at 9.31%, indicating good cash generation. The free cash flow to net income ratio is robust at 0.80, suggesting efficient conversion of earnings into cash. However, the operating cash flow to net income ratio has decreased, which may require monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.77B	8.76B	8.36B	9.04B	8.41B	6.97B
Gross Profit	2.50B	2.53B	2.27B	2.40B	2.31B	1.92B
EBITDA	1.41B	1.38B	1.11B	1.37B	1.31B	1.01B
Net Income	695.60M	704.90M	503.00M	757.10M	740.10M	555.90M
Balance Sheet
Total Assets	8.87B	8.40B	8.21B	7.95B	7.97B	6.10B
Cash, Cash Equivalents and Short-Term Investments	536.30M	367.20M	215.00M	167.20M	162.70M	252.30M
Total Debt	3.78B	3.38B	3.24B	3.10B	3.10B	2.12B
Total Liabilities	6.66B	6.09B	6.08B	5.92B	6.05B	4.60B
Stockholders Equity	2.21B	2.31B	2.13B	2.03B	1.92B	1.50B
Cash Flow
Free Cash Flow	684.40M	730.00M	540.90M	662.50M	774.70M	532.70M
Operating Cash Flow	855.80M	938.80M	826.00M	961.00M	1.05B	751.30M
Investing Cash Flow	-178.20M	-243.10M	-459.00M	-332.70M	-1.74B	-554.20M
Financing Cash Flow	-351.90M	-576.10M	-317.20M	-615.20M	604.30M	-207.70M

Avery Dennison Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 175.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVY, the sentiment is Positive. The current price of 175.93 is above the 20-day moving average (MA) of 167.37, above the 50-day MA of 166.92, and above the 200-day MA of 174.17, indicating a bullish trend. The MACD of 3.95 indicates Negative momentum. The RSI at 60.48 is Neutral, neither overbought nor oversold. The STOCH value of 60.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVY.

Avery Dennison Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCK	―	$11.18B	11.82	34.10%	1.04%	2.93%	893.61%
PKG	―	$17.65B	19.88	―	2.54%	7.30%	15.30%
AVY	―	$13.60B	20.01	30.21%	2.00%	1.03%	5.52%
SLGN	―	$4.09B	13.14	14.58%	2.04%	11.10%	6.55%
SON	―	$3.87B	4,092.78	6.39%	5.35%	8.31%	-99.39%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GPK	―	$4.76B	9.22	17.71%	2.64%	-5.05%	-24.52%

Avery Dennison Corporate Events

Avery Dennison Reports Solid Q3 2025 Performance

Avery Dennison Corporation is a global leader in materials science and digital identification solutions, specializing in labeling, RFID inlays, and software applications that enhance supply chain efficiency and customer experience across various industries. In its third quarter of 2025, Avery Dennison reported a solid performance with a reported EPS of $2.13 and an adjusted EPS of $2.37, reflecting a 2% increase. The company achieved net sales of $2.2 billion, marking a 1.5% growth compared to the previous year. The Materials Group saw a slight sales increase of 1.2%, while the Solutions Group experienced a 2.0% rise in sales, driven by growth in high-value categories such as Intelligent Labels. Avery Dennison’s strategic focus on high-value categories, cost controls, and disciplined capital allocation has contributed to its stable financial performance. The company returned $670 million to shareholders through share repurchases and dividends, demonstrating a strong commitment to capital deployment. Looking ahead, Avery Dennison remains focused on executing its core strategies to drive growth, with a fourth-quarter adjusted EPS guidance of $2.35 to $2.45, indicating confidence in its ability to navigate a dynamic market environment.

Avery Dennison’s Earnings Call: Growth Amid Challenges

The recent earnings call of Avery Dennison presented a mixed outlook, balancing positive results in earnings, strategic partnerships, and acquisitions against challenges from trade policy impacts and declines in certain segments. The company demonstrated resilience with strong financial performance, yet acknowledged the hurdles posed by external market conditions.

Avery Dennison Appoints New President for Intelligent Labels

Francisco Melo has been appointed as President of Intelligent Labels Technologies and Digital Solutions at Avery Dennison Corporation, effective October 1, 2025. This change marks a shift in his responsibilities, as he will no longer be considered an officer under certain sections of the Securities Exchange Act of 1934.

The most recent analyst rating on (AVY) stock is a Hold with a $177.00 price target. To see the full list of analyst forecasts on Avery Dennison stock, see the AVY Stock Forecast page.

Avery Dennison Issues €500 Million in Senior Notes

On September 11, 2025, Avery Dennison Corporation completed the issuance of €500 million in senior notes due in 2035, with net proceeds of approximately €493.5 million. The company plans to use these funds for general corporate purposes, including financing acquisitions and repaying existing debt. This strategic financial move is expected to support Avery Dennison’s operational flexibility and strengthen its market position by enabling potential growth opportunities and debt management.

The most recent analyst rating on (AVY) stock is a Buy with a $206.00 price target. To see the full list of analyst forecasts on Avery Dennison stock, see the AVY Stock Forecast page.