AVY

Avery Dennison Corporation

Fundamental data last updated:October 29, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Packaging & Containers

Exchange

NYSE

County of HQ

US

Next Earnings Date

10/29/2026

Business Summary

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 consist of papers, plastic films, and metal foils; performance tapes products, including mechanical fasteners, which are precision-extruded and injection-molded plastic devices; and other pressure-sensitive adhesive-based materials and converted products under the Fasson, JAC, and Avery Dennison brands. The company provides graphics and reflective products that include films and other products for the architectural, commercial sign, digital printing, and other related market segments; durable cast and reflective films to the construction, automotive, and fleet transportation markets; sign shops, commercial printers, and designers for pressure-sensitive materials; reflective films for traffic and safety applications; and pressure-sensitive vinyl and specialty materials for digital imaging, screen printing, and sign cutting applications under the Avery Dennison and Mactac brand names. In addition, it offers branding solutions, which include brand embellishments, graphic tickets, tags, labels, and sustainable packaging; information solutions, such as item-level RFID, visibility and loss prevention, price ticketing and marking, productivity and media, and brand protection and security solutions; and shelf-edge productivity and media solutions under the Vestcom brand names, as well as care, content, and country of origin compliance solutions. It serves home and personal care, apparel, general retail, e-commerce, logistics, food and grocery, pharmaceuticals, and automotive industries. The company was formerly known as Avery International Corporation and changed its name to Avery Dennison Corporation in 1990. The company was founded in 1935 and is headquartered in Mentor, Ohio.

 


VALUATION

P/E

20.08

Market Cap ($M USD)

$13.89B

Forward P/E

18.01

PEG

2.77

PRICE TO SALES

1.50

PRICE TO BOOK

6.05

EV / EBITDA

11.96

5-Year Average P/E

Free Cash Flow Yield

7.65%

DCF Value

$154.14

Graham Number

$79.13

Price to FCF

13.07

EV to FCF

16.31

Earnings Yield

5.01%

FCF Yield

7.65%

DIVIDEND

Yield

2.12%

Annual Payout

$3.88

Payout Ratio

41.71%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$9.19

Next Year EPS Growth Estimate

$10.18

Next Year Revenue Growth Estimate

$9.34B

Return on Equity (ROE)

31.07%

FREE CASH FLOW

Operating Margin

12.41%

Debt-to-Equity

1.58

Piotroski F-Score

7

Altman Z-Score

3.54

Return on Invested Capital (ROIC)

12.49%

Current Ratio

1.13

Quick Ratio

0.79

Net Debt to EBITDA

2.38

Interest Coverage

8.08

Gross Profit margin

28.98%

FCF PER SHARE

$13.86

REVENUE PER SHARE

$120.57

Gainseekers Quantitative Analysis

Summary

Avery Dennison’s valuation presents a compelling narrative. Recent pricing indicated it traded above its DCF value, suggesting a potential overvaluation. However, the Forward P/E of 13.17 and a robust Earnings Yield of 5.48% highlight its growth potential. The Altman Z-score of 3.47 underscores financial stability, mitigating bankruptcy risk. Despite the market’s premium, the company’s fundamentals suggest resilience and growth prospects.

AI Exposure / Tech Reliance

Operating in the Business Equipment & Supplies industry, Avery Dennison is strategically positioned to leverage AI and tech advancements. Its focus on innovation in labeling and packaging solutions aligns with digital transformation trends. This adaptability could enhance operational efficiency and customer engagement.

The Bull Case

For value and GARP investors, Avery Dennison offers an attractive proposition. With an ROIC of 18.15%, the company demonstrates exceptional capital efficiency. A Piotroski F-Score of 6 and a solid FCF Yield of 6.98% indicate strong financial health and cash generation. Its operating margin of 12.45% reflects pricing power, suggesting a competitive edge in its market.

The Bear Case

Despite its strengths, Avery Dennison faces structural risks. The Price/Book ratio of 5.47 and Price/Sales of 1.39 suggest a rich valuation, potentially limiting upside. The Quick Ratio of 0.80 raises concerns about short-term liquidity. Additionally, trading close to its 52-week high, the stock may be technically overextended, warranting caution.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$197.25

Institutional Ownership %

1-Year Beta

0.80

Insider Buying % (6 Mo)

Distance to 52-Week High

8.86%

Distance to 52-Week Low

16.85%

EARNINGS SURPRISE %

17.00%

50-DAY SMA

$173.93

200-DAY SMA

$172.12

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.