A Business at a Glance
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Avery Dennison Corp
AVY
$12.6B
Mkt Cap
$160.90
+3.67%
Avery Dennison Corp (AVY) has a current P/E ratio of 18.3, compared to its historical median P/E of 21.1. The stock is currently considered Fair based on its historical valuation range.
Avery Dennison Corp (AVY) has a 5-year average return on invested capital (ROIC) of 16.4%. This indicates strong capital allocation and a potential competitive advantage.
Avery Dennison Corp (AVY) has a market capitalization of $12.3B. It is classified as a large-cap stock.
Yes, Avery Dennison Corp (AVY) pays a dividend with a trailing twelve-month yield of 2.36%. The company also returns capital through share buybacks, with a buyback yield of 3.01%.
Based on historical P/E analysis, Avery Dennison Corp (AVY) appears fair. The current P/E of 18.3 is 13% below its historical median of 21.1. The estimated fair value CAGR (P/E method) is 10.5%.
Avery Dennison Corp (AVY) operates in the Converted Paper & Paperboard Prods (No Contaners/Boxes) industry, within the Materials sector.
Avery Dennison Corp (AVY) reported annual revenue of $8.9 billion in its most recent fiscal year, based on SEC EDGAR filings.
Avery Dennison is a global leader in materials science and digital identification solutions, operating through two reportable segments: Materials Group (69% of 2025 net sales) and Solutions Group (31%). The Materials Group manufactures and sells pressure-sensitive label materials, graphics and reflective products, and performance tapes under brands including Fasson, JAC, Mactac, and Avery Dennison, serving converters and end-markets in food, home and personal care, pharmaceuticals, automotive, and logistics. The Solutions Group provides information and branding solutions including ultra-high-frequency RFID inlays and tags, item-level RFID solutions, price ticketing, brand protection, and Vestcom shelf-edge productivity and media solutions, serving apparel, retail, food and grocery, and logistics customers. The company operates over 200 manufacturing and distribution facilities across more than 50 countries, with approximately 69% of 2025 net sales from international operations and approximately 40% from emerging markets. Avery Dennison's competitive advantages include technical expertise, size and scale of operations, broad product lines, innovation capabilities in materials science and process engineering, reliable service, and global distribution network. The business model combines asset-intensive manufacturing with converter and direct customer channels, generating revenue through both transactional sales of materials and solutions-based offerings including software and services.
【Strategic shift to high-value categories】 Management expects the enterprise-wide Intelligent Labels platform to deliver growth in 2026 above 2025 levels, with performance weighted toward the second half as major programs scale, particularly through a significant rollout with the largest U.S. grocery retailer in bakery, meat, and deli categories. In apparel and general retail, the company anticipates a return to growth as tariff policy impacts normalize, while food adoption is set to accelerate through the Walmart fresh grocery rollout ramping in the back half of 2026. The company is implementing pricing increases across the globe to manage high single-digit sequential raw material inflation in the near term, with low to mid single-digit price impacts expected sequentially while facing some carryover deflation year-over-year. Management expects continued sequential earnings growth throughout 2026 in line with historical seasonal patterns, driven by productivity actions, high-value category expansion, and share buybacks, while maintaining strong adjusted free cash flow targeting approximately 100% conversion with fixed and IT capital spending of approximately $260 million.
| Metric | Target | Period |
|---|---|---|
| Restructuring savings | greater than $55 million | Full year 2026 |
| Fixed and IT capital spending | approximately $260 million | Full year 2026 |
| Adjusted free cash flow conversion | roughly 100% | Full year 2026 |
| Restructuring savings | approximately $50 million | Full year 2026 |
| Fixed and IT capital spending | approximately $260 million | Full year 2026 |
Restructuring savings (Full year 2026): “We've increased our expectations for restructuring savings, now anticipating greater than $55 million as we continue to lean into our productivity levers.”
Fixed and IT capital spending (Full year 2026): “We remain committed to strong adjusted free cash flow, targeting roughly 100% conversion for the year with fixed and IT capital spending at approximately $260 million.”
Adjusted free cash flow conversion (Full year 2026): “We remain committed to strong adjusted free cash flow, targeting roughly 100% conversion for the year with fixed and IT capital spending at approximately $260 million.”
Restructuring savings (Full year 2026): “We expect restructuring savings of approximately $50 million as we continue to execute our productivity playbook, and we expect the normalization of a majority of the 2025 temporary savings, which was largely related to lower incentive compensation costs.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q1 FY2025 Earnings Call, Q4 FY2024 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 9.0B | 8.9B | 8.8B | 8.4B | 9.0B | 7.0B |
| Net Income | 690M | 688M | 705M | 503M | 757M | 556M |
| EPS | $8.92 | $8.79 | $8.73 | $6.20 | $9.21 | $6.61 |
| Free Cash Flow | 873M | 712M | 730M | 561M | 683M | 550M |
| ROIC | 0.0% | 14.4% | 16.5% | 12.5% | 20.3% | 18.3% |
| Gross Margin | 28.8% | 28.8% | 28.9% | 27.2% | 26.6% | 27.6% |
| Debt/Equity | 1.69 | 1.85 | 1.23 | 1.36 | 1.45 | 1.41 |
| Dividends/Share | $3.80 | $3.70 | $3.45 | $3.18 | $2.93 | $2.36 |
| Operating Income | 0 | 1.1B | 1.1B | 814M | 1.1B | 804M |
| Operating Margin | 0.0% | 12.0% | 12.2% | 9.7% | 12.0% | 11.5% |
| ROE | 30.0% | 30.2% | 31.8% | 24.2% | 43.1% | 37.4% |
| Shares Outstanding | 77M | 78M | 81M | 81M | 82M | 84M |
| Metric | 2014 | 2020 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 6.3B | 6.3B | 6.1B | 6.6B | 7.2B | 7.1B | 7.0B | 7.0B | 9.0B | 8.4B | 8.8B | 8.9B | 9.0B |
| Gross Margin | 26.1% | 26.1% | 27.9% | 27.4% | 26.8% | 26.9% | 27.6% | 27.6% | 26.6% | 27.2% | 28.9% | 28.8% | 28.8% |
| R&D | 103M | 103M | 90M | 93M | 98M | 93M | 113M | 113M | 136M | 136M | 138M | 137M | 137M |
| SG&A | 1.2B | 1.2B | 1.1B | 1.1B | 1.1B | 1.1B | 1.1B | 1.1B | 1.3B | 1.3B | 1.4B | 1.4B | 1.5B |
| EBIT | 426M | 422M | 537M | 653M | 611M | 323M | 804M | 804M | 1.1B | 814M | 1.1B | 1.1B | 0 |
| Op. Margin | 6.7% | 6.7% | 8.8% | 9.9% | 8.5% | 4.6% | 11.5% | 11.5% | 12.0% | 9.7% | 12.2% | 12.0% | 0.0% |
| Net Income | 249M | 245M | 321M | 282M | 467M | 304M | 556M | 556M | 757M | 503M | 705M | 688M | 690M |
| Net Margin | 3.9% | 3.9% | 5.3% | 4.3% | 6.5% | 4.3% | 8.0% | 8.0% | 8.4% | 6.0% | 8.1% | 7.8% | 7.7% |
| Non-Recurring | 0 | 2.5M | 1.1M | 0 | 0 | 0 | 0 | 55M | 9.1M | 79M | 42M | 60M | 58M |
| Returns on Capital | |||||||||||||
| ROIC | 16.2% | 14.6% | 19.5% | 18.1% | 21.8% | 12.5% | 20.2% | 18.3% | 20.3% | 12.5% | 16.5% | 14.4% | 0.0% |
| ROE | 19.6% | 23.4% | 32.5% | 28.8% | 47.0% | 28.1% | 41.3% | 37.4% | 43.1% | 24.2% | 31.8% | 30.2% | 30.0% |
| ROA | 5.5% | 5.6% | 7.3% | 5.9% | 9.1% | 5.7% | 9.6% | 9.1% | 10.8% | 6.2% | 8.5% | 8.0% | 7.7% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 374M | 355M | 582M | 646M | 458M | 747M | 751M | 751M | 961M | 826M | 939M | 881M | 1.0B |
| Free Cash Flow | 226M | 207M | 405M | 455M | 231M | 527M | 550M | 550M | 683M | 561M | 730M | 712M | 873M |
| Owner Earnings | 144M | 125M | 375M | 437M | 243M | 533M | 522M | 522M | 623M | 505M | 598M | 525M | 671M |
| CapEx | 148M | 148M | 177M | 191M | 227M | 219M | 201M | 201M | 278M | 265M | 209M | 169M | 161M |
| Maint. CapEx | 202M | 202M | 180M | 179M | 181M | 179M | 205M | 205M | 291M | 298M | 312M | 328M | 337M |
| Growth CapEx | 0 | 0 | 0 | 12M | 46M | 40M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 202M | 202M | 180M | 179M | 181M | 179M | 205M | 205M | 291M | 298M | 312M | 328M | 337M |
| CapEx/OCF | N/A | 41.7% | 30.4% | 29.5% | 49.5% | 29.4% | N/A | 26.8% | 28.9% | 32.1% | 22.2% | 19.2% | 15.6% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 125M | 125M | 143M | 156M | 175M | 190M | 197M | 197M | 239M | 257M | 278M | 288M | 291M |
| Dividend Yield | N/A | 2.7% | 2.6% | 2.2% | 2.1% | 2.2% | N/A | 1.3% | 1.7% | 1.8% | 1.7% | 2.1% | 2.4% |
| Share Buybacks | 356M | 356M | 262M | 130M | 393M | 238M | 104M | 104M | 380M | 138M | 248M | 572M | 371M |
| Buyback Yield | 0.0% | 7.0% | 4.8% | 1.4% | 5.6% | 2.4% | 0.0% | 0.6% | 2.7% | 0.9% | 1.7% | 4.0% | 3.0% |
| Stock-Based Comp | 28M | 28M | 27M | 30M | 34M | 35M | 24M | 24M | 47M | 22M | 29M | 28M | 26M |
| Debt Repayment | 0 | 1.6M | 2.7M | 254M | 6.4M | 19M | 0 | 270M | 6.3M | 256M | 308M | 559M | 559M |
| Balance Sheet | |||||||||||||
| Net Debt | 923M | 937M | 1.0B | 1.4B | 1.7B | 1.5B | 1.8B | 1.8B | 2.8B | 2.7B | 2.5B | 4.0B | 3.6B |
| Cash & Equiv. | 227M | 207M | 195M | 224M | 232M | 254M | 252M | 252M | 167M | 215M | 329M | 203M | 255M |
| Long-Term Debt | 945M | 940M | 713M | 1.3B | 1.8B | 1.5B | 2.0B | 2.0B | 2.5B | 2.6B | 2.6B | 3.2B | 3.2B |
| Debt/Equity | 1.08 | 1.09 | 1.29 | 1.53 | 1.98 | 1.46 | 1.41 | 1.41 | 1.45 | 1.36 | 1.23 | 1.85 | 1.69 |
| Interest Coverage | 6.7 | 6.7 | 9.0 | 10.4 | 10.4 | 4.3 | 11.5 | 11.5 | 12.9 | 6.8 | 9.1 | 7.8 | 7.8 |
| Equity | 1.1B | 1.0B | 926M | 1.0B | 955M | 1.2B | 1.5B | 1.5B | 2.0B | 2.1B | 2.3B | 2.2B | 2.3B |
| Total Assets | 4.4B | 4.4B | 4.4B | 5.1B | 5.2B | 5.5B | 6.1B | 6.1B | 8.0B | 8.2B | 8.4B | 8.8B | 9.0B |
| Total Liabilities | 3.3B | 3.3B | 3.5B | 4.1B | 4.2B | 4.3B | 4.6B | 4.6B | 5.9B | 6.1B | 6.1B | 6.6B | 41M |
| Intangibles | 722M | 67M | 67M | 166M | 144M | 127M | 1.1B | 225M | 840M | 849M | 755M | 828M | 801M |
| Retained Earnings | 2.1B | 2.1B | 2.5B | 2.6B | 2.9B | 3.0B | 3.3B | 3.3B | 4.4B | 4.7B | 5.2B | 5.6B | 5.7B |
| Working Capital | 324M | 328M | -100M | 266M | 304M | 87M | 490M | 490M | -18M | 97M | 216M | 337M | 420M |
| Current Assets | 1.9B | 1.9B | 1.9B | 2.2B | 2.3B | 2.3B | 2.4B | 2.4B | 2.8B | 2.8B | 3.1B | 3.0B | 3.2B |
| Current Liabilities | 1.6B | 1.6B | 2.0B | 2.0B | 2.0B | 2.3B | 1.9B | 1.9B | 2.8B | 2.7B | 2.9B | 2.7B | 2.8B |
| Per Share Data | |||||||||||||
| EPS | 2.60 | 2.56 | 3.54 | 3.13 | 5.28 | 3.57 | 6.61 | 6.61 | 9.21 | 6.20 | 8.73 | 8.79 | 8.92 |
| Owner EPS | 1.51 | 1.31 | 4.14 | 4.85 | 2.74 | 6.27 | 6.21 | 6.21 | 7.58 | 6.23 | 7.40 | 6.71 | 8.76 |
| Book Value | 11.14 | 10.94 | 10.22 | 11.47 | 10.79 | 14.16 | 17.66 | 17.66 | 24.72 | 26.23 | 28.64 | 28.65 | 30.01 |
| Cash Flow/Share | 3.91 | 3.71 | 6.43 | 7.17 | 5.17 | 8.78 | 8.93 | 8.93 | 11.69 | 10.18 | 11.63 | 11.26 | 13.40 |
| Dividends/Share | 1.34 | 1.34 | 1.60 | 1.76 | 2.01 | 2.26 | 2.36 | 2.36 | 2.93 | 3.18 | 3.45 | 3.70 | 3.80 |
| Shares Out. | 95.7M | 95.7M | 90.6M | 90.0M | 88.5M | 85.0M | 84.1M | 84.1M | 82.2M | 81.1M | 80.7M | 78.3M | 76.7M |
| Valuation | |||||||||||||
| P/E Ratio | N/A | 20.8 | 17.0 | 32.0 | 14.9 | 33.3 | N/A | 30.3 | 18.4 | 31.5 | 21.1 | 20.8 | 18.0 |
| P/FCF | N/A | 24.6 | 13.5 | 19.8 | 30.1 | 19.2 | N/A | 30.6 | 20.4 | 28.3 | 20.4 | 20.1 | 14.1 |
| EV/EBIT | N/A | 11.9 | 12.0 | 13.9 | N/A | N/A | N/A | 24.6 | 15.3 | 626.3 | 16.8 | 17.1 | N/A |
| Price/Book | N/A | N/A | 5.9 | 8.7 | 7.3 | 8.4 | N/A | N/A | 6.9 | 7.4 | 6.4 | 6.4 | 5.4 |
| Price/Sales | N/A | 0.7 | 0.9 | 1.1 | 1.1 | 1.2 | N/A | 2.3 | 1.5 | 1.7 | 1.9 | 1.5 | 1.4 |
| FCF Yield | N/A | 4.1% | 7.4% | 5.0% | 3.3% | 5.2% | N/A | 3.3% | 4.9% | 3.5% | 4.9% | 5.0% | 7.1% |
| Market Cap | 0 | 5.1B | 5.5B | 9.0B | 7.0B | 10.1B | 0 | 16.8B | 13.9B | 15.9B | 14.9B | 14.3B | 12.3B |
| Avg. Price | 0.00 | 48.17 | 60.57 | 77.90 | 92.59 | 100.97 | 0.00 | 186.75 | 168.59 | 171.88 | 206.20 | 173.90 | 160.90 |
| Year-End Price | 0.00 | 53.28 | 60.27 | 100.30 | 78.59 | 118.77 | 0.00 | 200.12 | 169.57 | 195.40 | 184.56 | 182.54 | 160.90 |
Avery Dennison Corp passes 5 of 9 quality checks, suggesting mixed fundamentals.
Avery Dennison Corp trades at 18.3x trailing earnings, compared to its 15-year median P/E of 21.1x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 17.7x vs a median of 20.4x. The company's 5-year average ROIC is 16.4% with a gross margin of 27.8%. Total shareholder yield (dividends + buybacks) is 5.4%. At current prices, the estimated annualized return to fair value is +9.4%.
Avery Dennison Corp (AVY) has a net profit margin of 7.8%. This is a modest margin.
Avery Dennison Corp (AVY) generated $712 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Avery Dennison Corp (AVY) has a debt-to-equity ratio of 1.85. This indicates higher leverage, which may increase financial risk.
Avery Dennison Corp (AVY) reported earnings per share (EPS) of $8.79 in its most recent fiscal year.
Avery Dennison Corp (AVY) has a return on equity (ROE) of 30.2%. This indicates the company generates strong returns for shareholders.
Avery Dennison Corp (AVY) has a 5-year average gross margin of 27.8%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 17 years of financial data for Avery Dennison Corp (AVY), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Avery Dennison Corp (AVY) has a book value per share of $28.65, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects the enterprise-wide Intelligent Labels platform to deliver growth in 2026 above 2025 levels, with performance weighted toward the second half as major programs scale, particularly through a significant rollout with the largest U.S. grocery retailer in bakery, meat, and deli categories. In apparel and general retail, the company anticipates a return to growth as tariff policy impacts normalize, while food adoption is set to accelerate through the Walmart fresh grocery rollout ramping in the back half of 2026. The company is implementing pricing increases across the globe to manage high single-digit sequential raw material inflation in the near term, with low to mid single-digit price impacts expected sequentially while facing some carryover deflation year-over-year. Management expects continued sequential earnings growth throughout 2026 in line with historical seasonal patterns, driven by productivity actions, high-value category expansion, and share buybacks, while maintaining strong adjusted free cash flow targeting approximately 100% conversion with fixed and IT capital spending of approximately $260 million.
Based on recent SEC filings and earnings calls, Avery Dennison Corp (AVY) has provided the following forward guidance: Restructuring savings: greater than $55 million (Full year 2026); Fixed and IT capital spending: approximately $260 million (Full year 2026); Adjusted free cash flow conversion: roughly 100% (Full year 2026); Restructuring savings: approximately $50 million (Full year 2026); Fixed and IT capital spending: approximately $260 million (Full year 2026).
Fixed and IT capital spending (Full year 2026): “We remain committed to strong free cash flow, again, targeting roughly 100% conversion with fixed and IT capital spending of approximately $260 million.”
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