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Avery Dennison
(NYSE:AVY)
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Rating:70Outperform
Price Target:
$184.00
▲(14.36% Upside)
Action:Upgraded
Date:07/30/26
AVY scores well primarily on solid financial performance—especially strong and improving free cash flow and steady margins—supported by a constructive earnings call with reinstated full-year guidance. The score is tempered by higher leverage on the balance sheet and mixed technical positioning (below the 200-day moving average), while valuation appears reasonable with a moderate dividend yield.
Positive Factors
Free Cash Flow Strength
Avery Dennison's ~ $1.06B TTM free cash flow and ~22% growth provide durable funding for capex, dividends, and buybacks. Strong FCF supports reinvestment in specialty materials and RFID, underpins capital discipline, and cushions the business during cyclical slowdowns.
Negative Factors
Elevated Leverage
Relatively high leverage limits financial flexibility and raises sensitivity to downturns or higher rates. While management uses leverage to generate strong ROE, elevated debt increases refinancing and covenant risk and constrains opportunistic M&A or faster buybacks during stress periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Avery Dennison's ~ $1.06B TTM free cash flow and ~22% growth provide durable funding for capex, dividends, and buybacks. Strong FCF supports reinvestment in specialty materials and RFID, underpins capital discipline, and cushions the business during cyclical slowdowns.
Read all positive factors
Avery Dennison Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Reveals the profitability of each business segment, indicating which areas are most effective at generating profit and where there may be opportunities for improvement.
Reveals the profitability of each business segment, indicating which areas are most effective at generating profit and where there may be opportunities for improvement.
Data provided by:
The Fly
The FlyAvery Dennison (AVY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.78B
Dividend Yield2.19%
Average Volume (3M)705.15K
Price to Earnings (P/E)19.0
Beta (1Y)0.54
Revenue Growth2.89%
EPS Growth1.99%
CountryUS
Employees35,000
SectorConsumer Cyclical
Sector Strength84
IndustryPackaging & Containers
Share Statistics
EPS (TTM)9.13
Shares Outstanding76,490,390
10 Day Avg. Volume708,490
30 Day Avg. Volume705,154
Financial Highlights & Ratios
PEG Ratio25.78
Price to Book (P/B)6.28
Price to Sales (P/S)1.59
P/FCF Ratio19.76
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$201.43Price Target Upside25.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)10.02
Revenue Forecast (FY)$9.26B
Avery Dennison Business Overview & Revenue Model
Company Description
Avery Dennison Corporation operates as a materials science and digital identification solutions company in the North America, Europe, the Middle East, North Africa, Asia, and Latin America. It offers pressure-sensitive label materials, which consi...
How the Company Makes Money
Avery Dennison primarily makes money by manufacturing and selling materials and finished products used in labels, packaging, and item identification, with revenue largely driven by volume sold and pricing/mix across its product portfolio. Its bigg...
Avery Dennison Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum (accelerating organic growth, 19% adjusted EPS growth, robust free cash flow, margin expansion, and reinstated full-year guidance) while flagging near-term cyclical headwinds from customer pre-buys/destocking, raw material inflation, and employee-related cost pressures. Management emphasized productivity, pricing, restructuring benefits (> $60 million), and capital discipline to offset these pressures and maintain confidence in achieving full-year targets.Positive Updates
Strong Organic Sales Growth
Organic sales grew 8% year-over-year in Q2 2026, reflecting acceleration versus prior periods and balanced growth across base and high-value categories.
Negative Updates
Customer Inventory Pre-Buys / Destocking Dynamics
Customer inventory pre-buys materially affected Q2 results: management estimates roughly half of Q2 organic growth was due to pre-buys. The company estimates a ~ $0.25 EPS tailwind in Q2 from pre-buys, with an approximate $0.25 headwind expected in Q3 (management expects a ~ $0.50 Q2-to-Q3 sequential impact overall tied to inventory unwind).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Organic Sales Growth
Organic sales grew 8% year-over-year in Q2 2026, reflecting acceleration versus prior periods and balanced growth across base and high-value categories.
Read all positive updates
Company Guidance
Avery Dennison reinstated full‑year 2026 guidance calling for adjusted EPS of $10.00–$10.30 (≈7% growth at the midpoint) and organic sales growth of 3%–4% (reported sales growth 5%–6%), which reflects roughly +1.5 points from currency, +1.0 point from the Taylor Adhesives acquisition and about a 0.5‑point fiscal calendar headwind; management expects ~100% free‑cash‑flow conversion with fixed and IT capex of ≈$260M, productivity actions including >$60M of restructuring, an estimated ~$0.30 net benefit from currency/share count/interest/tax, a Q3 sequential EPS headwind of about $0.50 as customer pre‑buying (~$0.25 benefit in Q2) unwinds, and to maintain a strong balance sheet (quarter‑end net debt/adjusted EBITDA ~2.3x) while continuing dividends and share repurchases.Avery Dennison Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
62
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.25B | 8.86B | 8.76B | 8.36B | 9.04B | 8.41B |
| Gross Profit | 2.68B | 2.55B | 2.53B | 2.27B | 2.40B | 2.31B |
| EBITDA | 1.36B | 1.30B | 1.38B | 1.11B | 1.37B | 1.31B |
| Net Income | 704.90M | 688.00M | 704.90M | 503.00M | 757.10M | 740.10M |
Balance Sheet | ||||||
| Total Assets | 9.21B | 8.80B | 8.40B | 8.21B | 7.95B | 7.97B |
| Cash, Cash Equivalents and Short-Term Investments | 227.30M | 202.80M | 367.20M | 215.00M | 167.20M | 162.70M |
| Total Debt | 3.68B | 3.73B | 3.15B | 3.24B | 3.10B | 3.10B |
| Total Liabilities | 6.89B | 6.56B | 6.09B | 6.08B | 5.92B | 6.05B |
| Stockholders Equity | 2.32B | 2.24B | 2.31B | 2.13B | 2.03B | 1.92B |
Cash Flow | ||||||
| Free Cash Flow | 1.06B | 712.40M | 730.00M | 540.90M | 662.50M | 774.70M |
| Operating Cash Flow | 1.23B | 881.40M | 938.80M | 826.00M | 961.00M | 1.05B |
| Investing Cash Flow | -685.20M | -596.00M | -243.10M | -459.00M | -332.70M | -1.74B |
| Financing Cash Flow | -536.00M | -414.90M | -576.10M | -317.20M | -615.20M | 604.30M |
Avery Dennison Technical Analysis
Positive
160.90
Price Trends
159.93
Positive
163.06
Positive
170.84
Positive
Market Momentum
-0.69
Positive
51.86
Neutral
28.23
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 160.9 is below the 20-day moving average (MA) of 161.69, above the 50-day MA of 159.93, and below the 200-day MA of 170.84, indicating a bullish trend. The MACD of -0.69 indicates Positive momentum. The RSI at 51.86 is Neutral, neither overbought nor oversold. The STOCH value of 28.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVY.
Avery Dennison Risk Analysis
Avery Dennison disclosed 37 risk factors in its most recent earnings report. Avery Dennison reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Avery Dennison Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $13.38B | 17.36 | 26.54% | 1.01% | 10.63% | 45.93% | |
70 Outperform | $12.78B | 19.05 | 30.81% | 2.37% | 2.89% | 1.99% | |
70 Outperform | $5.83B | 9.35 | 18.34% | 3.66% | 12.01% | ― | |
68 Neutral | $22.22B | 32.76 | 14.88% | 2.06% | 10.35% | -23.14% | |
64 Neutral | $4.51B | 18.05 | 15.74% | 1.77% | 8.43% | -9.80% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $3.35B | 12.53 | 8.38% | 3.99% | -0.17% | -55.17% |
* Consumer Cyclical Sector Average
AVY
Avery Dennison
174.82
10.76
6.56%
CCK
Crown Holdings
118.37
20.20
20.58%
GPK
Graphic Packaging
10.96
-10.65
-49.29%
PKG
Packaging
248.63
59.55
31.49%
SLGN
Silgan Holdings
41.06
-4.55
-9.98%
SON
Sonoco Products
56.82
13.71
31.81%
Avery Dennison Corporate Events
Executive/Board Changes
Avery Dennison Names Danny Allouche Materials Group President
Positive
Jun 4, 2026
On May 29, 2026, Avery Dennison’s Materials Group president Ryan D. Yost notified the company of his decision to resign to pursue another opportunity, remaining in his role through May 31 and departing on June 12, 2026. On May 31, 2026, the ...
Executive/Board ChangesShareholder Meetings
Avery Dennison Shareholders Back Board, Pay and Auditor
Positive
May 1, 2026
Avery Dennison held its 2026 Annual Meeting of Stockholders in a virtual-only format on April 30, 2026, with 93.1% of outstanding shares represented, constituting a quorum and underscoring robust investor participation. Shareholders elected ten di...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.