AVY

Avery Dennison

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Consumer Cyclical

industry

Packaging & Containers

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/28/26

Business Summary

Antero Midstream operates energy infrastructure assets that gather, process, and transport hydrocarbons, generating revenue through contracted fee-based arrangements rather than direct commodity price speculation. Its moat stems from embedded infrastructure networks that are costly and time-intensive to replicate, creating high switching costs for producers. Cash flow stability is supported by long-lived physical assets tied to production volumes, allowing it to sustain margins like the current 20.90%. The capital intensity of the business creates barriers to entry, but returns ultimately depend on disciplined leverage and maintaining ROIC above capital costs.

VALUATION

P/E

19.5

Market Cap ($M USD)

$13,165

Forward P/E

15.1

PEG

2.6

PRICE TO SALES

1.5

PRICE TO BOOK

5.9

EV / EBITDA

12

5-Year Average P/E

DIVIDEND

Yield

2.20%

Annual Payout

$3.76

Payout Ratio

42.00%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

8.70%

Financial Health & Profitability

Earnings Per Share

$8.81

Next Year EPS Growth Estimate

$11.35

Next Year Revenue Growth Estimate

3.90%

Return on Equity (ROE)

30.70%

Operating Margin

12.70%

Debt-to-Equity

1.7

Piotroski F-Score

5

Altman Z-Score

3.6

Return on Invested Capital (ROIC)

13.80%%

Current Ratio

1.1

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 25.6x trailing earnings but just 14.8x forward earnings, the market is clearly pricing in a material earnings step-up, yet the PEG Forward of 2 suggests that growth is not cheap relative to expectations. The Altman Z-Score of 2.3 places the company in a gray zone—financially stable but not fortress-like—while a Piotroski F-Score of 7 signals fundamentally solid operating trends. With a 20.90% operating margin and 10.60% ROIC, the business is economically viable, but the valuation spread between trailing and forward earnings implies execution risk. This is not a distressed mispricing; it’s a cautiously priced midstream operator with moderate balance sheet safety and incremental growth expectations embedded.

AI Exposure / Tech Reliance

As an Oil & Gas Midstream operator, the company’s exposure to AI is indirect but structurally stable, as energy infrastructure remains essential regardless of software-driven disruption. AI-driven efficiency gains in pipeline monitoring, predictive maintenance, and flow optimization could incrementally support margins like the current 20.90%. However, this is an asset-heavy Energy name, not a tech-adaptive growth platform.

The Bull Case

A GARP investor could justify ownership based on a 14.8 forward P/E combined with a 10.60% ROIC and a strong Piotroski F-Score of 7, indicating operational strength and disciplined capital structure trends. The 20.90% operating margin demonstrates real pricing power or cost control within a capital-intensive sector, and a 3.4 current ratio shows short-term liquidity is not an issue. Return on Equity at 6.10% is modest, but with Debt/Equity at 58.20%, leverage is not excessive for midstream infrastructure. Institutional ownership at $22.43 signals professional participation, and the $10,421M market cap places it firmly in established territory rather than speculative small-cap risk.

The Bear Case

The red flags are clear: a PEG Forward of 2 implies growth is expensive relative to its trajectory, and a 25.6 trailing P/E for a midstream operator is hardly deep value. Debt/Equity at 58.20% combined with an Altman Z-Score of 2.3 leaves little room for macro or commodity-driven shocks. The Short % of Float at -6.10% is an anomaly but reflects positioning volatility, and the consensus rating of 3.00% with a mean target price of 3.34 suggests limited conviction. With ROE at just 6.10%, capital efficiency is not elite, and the payout ratio listed at $0.90 raises sustainability questions relative to forward EPS of $0.86.

Market Sentiment & Smart Money

Short Interest %

2.80%

Analyst Consensus

1.64

Average Analyst Price Target

$207.31

Institutional Ownership %

98.60%

1-Year Beta

0.72

Insider Buying % (6 Mo)

0.60%%

Distance to 52-Week High

85.80%%

Distance to 52-Week Low

109.60%%