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Avery Dennison Corp AVY

Morningstar Rating
$216.83 +1.71 (0.79%)
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Company Report

Avery Dennison Is Well Positioned to Capitalize on RFID Adoption but Apparel Headwinds Remain

Avery Dennison is the largest supplier of pressure-sensitive adhesive materials and passive radio frequency identifiers in the world. Rising consumer packaged good penetration in emerging markets should benefit label growth, while growth in omnichannel retailing and increased radio frequency identification, or RFID, adoption in other industries should aid RFID sales at Avery Dennison.

Price vs Fair Value

AVY is trading within a range we consider fairly valued.
Price
$216.83
Fair Value
$133.00
Uncertainty
Medium
1-Star Price
$615.80
5-Star Price
$547.90
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Emerging-market adoption of consumer-packaged goods will provide a long runway for sales growth.

Bears

Competitors could increase their RFID inlay production due to recent market growth and force Avery to compete on price.

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News

Trading Information

Previous Close Price
$215.12
Day Range
$213.99216.93
52-Week Range
$165.21231.53
Bid/Ask
$216.04 / $216.91
Market Cap
$17.47 Bil
Volume/Avg
235,541 / 436,267

Key Statistics

Price/Earnings (Normalized)
25.60
Price/Sales
2.08
Dividend Yield (Trailing)
1.53%
Dividend Yield (Forward)
1.62%
Total Yield
2.11%

Company Profile

Avery Dennison manufactures pressure-sensitive materials, merchandise tags, and labels. The company also runs a specialty converting business that produces radio-frequency identification, or RFID, inlays and labels. Avery Dennison draws a significant amount of revenue from outside the United States, with international operations accounting for the majority of total sales.
Sector
Consumer Cyclical
Industry
Packaging & Containers
Stock Style Box
Mid Core
Total Number of Employees
35,000

Competitors

Valuation

Metric
AVY
HON
MMM
Price/Earnings (Normalized)
25.6022.3910.52
Price/Book Value
7.938.4111.56
Price/Sales
2.083.821.73
Price/Cash Flow
18.4822.759.57
Price/Earnings
AVY
HON
MMM

Financial Strength

Metric
AVY
HON
MMM
Quick Ratio
0.501.181.19
Current Ratio
0.871.661.64
Interest Coverage
7.289.46−7.27
Quick Ratio
AVY
HON
MMM

Profitability

Metric
AVY
HON
MMM
Return on Assets (Normalized)
8.34%9.52%10.67%
Return on Equity (Normalized)
32.77%35.30%71.61%
Return on Invested Capital (Normalized)
14.14%16.16%23.61%
Return on Assets
AVY
HON
MMM
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