Avery Dennison (AVY) AI Stock Analysis

• Market Cap: $14.04B
• Dividend Yield: 2.03%
• Average Volume (3M): 727.96K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.60
• 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: 778,064
• 30 Day Avg. Volume: 727,956
• 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: 1.12
• Enterprise Value/Revenue: 1.79
• Enterprise Value/Gross Profit: 6.28
• Enterprise Value/Ebitda: 11.19
• 1Y Price Target: $201.25
• Price Target Upside: 10.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 9.5
• Revenue Forecast (FY): $8.88B

• Rating: 73 Outperform
• Price Target: $195.00 ▲(6.79% Upside)

Avery Dennison's overall stock score reflects strong financial performance and a positive outlook from recent earnings. The company's strategic initiatives and partnerships, particularly in high-growth areas, bolster its long-term prospects. However, challenges such as increased leverage and trade policy impacts require careful management.

Positive Factors

Strategic Partnerships

The partnership with Walmart enhances Avery Dennison's market position in RFID solutions, driving long-term growth in the grocery sector.

Revenue Growth

Consistent growth in high-value categories indicates strong demand and effective product positioning, supporting sustained revenue expansion.

Cash Generation

Robust free cash flow growth reflects efficient operations and financial health, enabling reinvestment and shareholder returns.

Negative Factors

Increased Leverage

Higher leverage can strain financial flexibility and increase risk, necessitating careful debt management to maintain stability.

Trade Policy Impact

Trade policy changes create uncertainty and can disrupt supply chains, impacting sales and profitability in key segments.

Materials Group Sales Decline

Decline in Materials Group sales suggests challenges in maintaining volume growth, potentially affecting overall revenue.

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 key revenue streams include the Label and Graphic Materials segment, which contributes a significant portion of the company's sales through products such as pressure-sensitive labels and specialty films. The Retail Branding and Information Solutions segment also plays a crucial role in revenue generation by providing brand identification products and services to retailers and manufacturers. The company benefits from long-term partnerships with major consumer brands, enabling it to maintain a steady demand for its products. Additionally, Avery Dennison invests in innovative technologies, such as RFID and smart labeling solutions, which cater to evolving market needs and drive further revenue growth.

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	3.15B	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: 182.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 182.6 is above the 20-day moving average (MA) of 172.65, above the 50-day MA of 170.30, and above the 200-day MA of 171.80, indicating a bullish trend. The MACD of 2.50 indicates Negative momentum. The RSI at 64.70 is Neutral, neither overbought nor oversold. The STOCH value of 85.90 is Negative, 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
PKG	76 Outperform	$18.23B	20.48	19.68%	2.44%	7.30%	15.31%
AVY	73 Outperform	$14.04B	20.63	30.21%	2.03%	1.03%	5.52%
CCK	73 Outperform	$10.96B	11.76	34.10%	1.06%	2.94%	893.70%
SLGN	68 Neutral	$4.14B	13.32	14.58%	2.00%	11.10%	6.54%
SON	63 Neutral	$4.14B	4,322.68	6.39%	4.97%	8.31%	-99.39%
GPK	62 Neutral	$4.72B	9.42	16.24%	2.64%	-3.93%	-27.37%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Avery Dennison Corporate Events

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.

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.