Avery Dennison Corp. (AVY)
NYSE:AVY
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Avery Dennison
(NYSE:AVY)
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Rating:70Outperform
Price Target:
$182.00
▲(5.52% Upside)
Action:ReiteratedDate:02/05/26
The score is driven primarily by resilient financial fundamentals (steady margins and strong, repeatable cash generation) and constructive technical momentum. Offsetting factors are leverage-related balance-sheet risk, modest valuation support (P/E ~21 with a ~1.9% yield), and earnings-call commentary pointing to limited near-term organic growth and tariff-related demand uncertainty despite stable EPS/FCF guidance.
Positive Factors
Free cash flow generation
Sustained, high free cash flow and >100% conversion provide durable funding for capex, R&D, dividends and buybacks without needing external financing. This cash resilience supports strategic investments and weathering cyclical demand swings while preserving capital allocation optionality.
Negative Factors
High leverage
Material net debt relative to equity reduces balance‑sheet flexibility and raises interest and refinancing risk in a downturn. Elevated leverage can constrain strategic options, limit cyclical investment or buybacks, and heighten sensitivity to earnings shocks or slower cash flow periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Sustained, high free cash flow and >100% conversion provide durable funding for capex, R&D, dividends and buybacks without needing external financing. This cash resilience supports strategic investments and weathering cyclical demand swings while preserving capital allocation optionality.
Read all positive factors
Avery Dennison (AVY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.73B
Dividend Yield2.04%
Average Volume (3M)640.36K
Price to Earnings (P/E)21.1
Beta (1Y)0.59
Revenue Growth1.14%
EPS Growth0.49%
CountryUS
Employees35,000
SectorConsumer Cyclical
Sector Strength84
IndustryBusiness Equipment & Supplies
Share Statistics
EPS (TTM)2.45
Shares Outstanding76,917,030
10 Day Avg. Volume596,849
30 Day Avg. Volume640,361
Financial Highlights & Ratios
PEG Ratio25.52
Price to Book (P/B)6.28
Price to Sales (P/S)1.59
P/FCF Ratio19.76
Enterprise Value/Market Cap1.28
Enterprise Value/Revenue1.84
Enterprise Value/Gross Profit6.39
Enterprise Value/Ebitda12.48
Forecast
1Y Price Target
$204.63Price Target Upside18.64% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)10.07
Revenue Forecast (FY)$9.27B
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...
How the Company Makes Money
Avery Dennison makes money primarily by manufacturing and selling materials, components, and finished solutions used to label, identify, protect, and enhance products across supply chains. Its revenue is largely generated through two operating seg...
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 Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call reported several clear positives — strong free cash flow ($700M), disciplined capital returns (~$860M), resilient margins (mid-teens EBITDA margins), meaningful progress expanding high-value categories (now ~45% of sales) and targeted growth in intelligent labels outside apparel (food/logistics). However, top-line organic growth remains weak, apparel and general retail continue to be pressured by tariff uncertainty, employee-cost inflation and the normalization of temporary savings create 2026 headwinds, and the company missed a multi-year EPS target. Overall, the company appears financially resilient and strategically positioned for longer-term growth, but near-term revenue visibility and tariff-driven demand weakness are material risks.Positive Updates
Strong Cash Generation and Shareholder Returns
Generated $300M adjusted free cash flow in Q4 and $700M for full-year 2025 with free cash flow conversion >100%. Returned approximately $860M to shareholders in 2025 (≈$572M buybacks, $288M dividends).
Negative Updates
Disappointing Organic Revenue Growth
Management expressed dissatisfaction with organic revenue trajectory; 2026 organic sales guidance only 0%–2%, indicating limited near-term top-line improvement despite other positives.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Cash Generation and Shareholder Returns
Generated $300M adjusted free cash flow in Q4 and $700M for full-year 2025 with free cash flow conversion >100%. Returned approximately $860M to shareholders in 2025 (≈$572M buybacks, $288M dividends).
Read all positive updates
Company Guidance
For 2026 the company guided to reported sales growth of 5%–7% (composed of organic growth of 0%–2%, ~4% from currency translation and ~1% from the recent adhesives acquisition) and adjusted EPS of $2.40–$2.46 (about 6% growth at the midpoint); management expects roughly a $0.25 EPS benefit from favorable currency and a lower share count (partially offset by higher tax and interest), about $50 million of restructuring savings, fixed and IT capital spending of ~ $260 million, continued strong free‑cash‑flow targeting ≈100% conversion, and a sequential increase in earnings through the year while assuming no macro tailwinds and anticipating stronger second‑half growth as intelligent‑label programs (including the Walmart fresh grocery rollout) ramp.Avery Dennison Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
76
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.86B | 8.76B | 8.36B | 9.04B | 8.41B |
| Gross Profit | 2.55B | 2.53B | 2.27B | 2.40B | 2.31B |
| EBITDA | 1.30B | 1.38B | 1.11B | 1.37B | 1.31B |
| Net Income | 688.00M | 704.90M | 503.00M | 757.10M | 740.10M |
Balance Sheet | |||||
| Total Assets | 8.80B | 8.40B | 8.21B | 7.95B | 7.97B |
| Cash, Cash Equivalents and Short-Term Investments | 202.80M | 367.20M | 215.00M | 167.20M | 162.70M |
| Total Debt | 3.73B | 3.15B | 3.24B | 3.10B | 3.10B |
| Total Liabilities | 6.56B | 6.09B | 6.08B | 5.92B | 6.05B |
| Stockholders Equity | 2.24B | 2.31B | 2.13B | 2.03B | 1.92B |
Cash Flow | |||||
| Free Cash Flow | 712.40M | 730.00M | 540.90M | 662.50M | 774.70M |
| Operating Cash Flow | 881.40M | 938.80M | 826.00M | 961.00M | 1.05B |
| Investing Cash Flow | -596.00M | -243.10M | -459.00M | -332.70M | -1.74B |
| Financing Cash Flow | -414.90M | -576.10M | -317.20M | -615.20M | 604.30M |
Avery Dennison Technical Analysis
Neutral
172.48
Price Trends
179.06
Negative
179.90
Negative
174.40
Negative
Market Momentum
-1.74
Negative
50.20
Neutral
31.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVY, the sentiment is Neutral. The current price of 172.48 is above the 20-day moving average (MA) of 169.56, below the 50-day MA of 179.06, and below the 200-day MA of 174.40, indicating a neutral trend. The MACD of -1.74 indicates Negative momentum. The RSI at 50.20 is Neutral, neither overbought nor oversold. The STOCH value of 31.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $12.73B | 21.15 | 31.18% | 2.04% | 1.14% | 0.49% | |
67 Neutral | $11.35B | 16.16 | 25.41% | 1.01% | 4.68% | 79.07% | |
67 Neutral | $18.95B | 27.46 | 16.02% | 2.42% | 7.86% | -13.84% | |
65 Neutral | $4.79B | 19.61 | 30.14% | 4.33% | 17.41% | ― | |
63 Neutral | $4.12B | 14.78 | 13.03% | 1.97% | 10.73% | 4.38% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $2.77B | 10.06 | 13.67% | 2.91% | -2.16% | -31.44% |
* Consumer Cyclical Sector Average
AVY
Avery Dennison
165.50
-1.15
-0.69%
CCK
Crown Holdings
101.13
12.35
13.91%
GPK
Graphic Packaging
9.35
-15.25
-61.99%
PKG
Packaging
212.87
30.95
17.01%
SLGN
Silgan Holdings
39.02
-11.79
-23.20%
SON
Sonoco Products
48.45
4.08
9.21%
Avery Dennison Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Avery Dennison Updates Bylaws and Director Retirement Policies
Neutral
Feb 26, 2026
On February 26, 2026, Avery Dennison’s board approved an amendment and restatement of the company’s bylaws that tightens disclosure and procedural requirements around shareholder proposals and director nominations. Proposing shareholde...
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.