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Avery Dennison
(NYSE:AVY)
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Rating:74Outperform
Price Target:
$202.00
▲(10.79% Upside)
Action:Reiterated
Date:10/29/26
AVY scores well on fundamentals and outlook: strong profitability and cash generation (including >100% FCF conversion target) support a solid base score despite elevated leverage. Technically, the stock has positive momentum with price above key moving averages, though near-overbought readings temper the near-term view. Valuation is reasonable but not a clear catalyst at ~19.8x earnings with a ~2.15% yield, while guidance and productivity/restructuring progress are constructive despite destocking, cost inflation, and the delayed large-scale rollout timing.
Positive Factors
Strong cash generation
Avery Dennison’s substantial operating and free cash flow supports internal funding for investment, debt reduction, dividends, and repurchases. High conversion also indicates that reported earnings are translating into cash, providing durable financial capacity over the next several quarters.
Negative Factors
Elevated leverage
A relatively high debt burden reduces financial flexibility if industrial or consumer demand weakens. Although cash generation is strong, only moderate operating-cash-flow coverage means deleveraging may take time and can constrain acquisitions, investment, or shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Avery Dennison’s substantial operating and free cash flow supports internal funding for investment, debt reduction, dividends, and repurchases. High conversion also indicates that reported earnings are translating into cash, providing durable financial capacity over the next several quarters.
Read all positive factors
Avery Dennison Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how much each business segment contributes to total revenue, highlighting areas of strength and potential growth within the company’s diverse operations.
Shows how much each business segment contributes to total revenue, highlighting areas of strength and potential growth within the company’s diverse operations.
Data provided by:
The Fly
The FlyAvery Dennison (AVY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.81B
Dividend Yield2.13%
Average Volume (3M)707.27K
Price to Earnings (P/E)19.7
Beta (1Y)0.52
Revenue Growth6.77%
EPS GrowthN/A
CountryUS
Employees35,000
SectorConsumer Cyclical
Sector Strength84
IndustryPackaging & Containers
Share Statistics
EPS (TTM)9.24
Shares Outstanding75,788,140
10 Day Avg. Volume597,081
30 Day Avg. Volume707,269
Financial Highlights & Ratios
PEG Ratio25.78
Price to Book (P/B)6.28
Price to Sales (P/S)1.59
P/FCF Ratio19.76
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue1.74
Enterprise Value/Gross Profit6.04
Enterprise Value/Ebitda11.16
Forecast
1Y Price Target
$200.75Price Target Upside10.10% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)10.18
Revenue Forecast (FY)$9.34B
Avery Dennison Business Overview & Revenue Model
Company Description
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 consi...
How the Company Makes Money
Avery Dennison makes money primarily by manufacturing and selling specialized materials and finished components used in labeling, packaging, branding, and product identification.
1) Core revenue stream: sale of label and packaging materials (Labe...
Avery Dennison Earnings Call Summary
Earnings Call Date:Oct 29, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 03, 2027
Earnings Call Sentiment Positive
The call was predominantly positive. Avery Dennison delivered better-than-expected third-quarter results, estimated stronger underlying growth after adjusting for destocking, generated robust free cash flow, expanded Solutions Group margins, raised the full-year guidance midpoint and highlighted significant Intelligent Labels, productivity and share-gain opportunities. These positives were tempered by ongoing customer destocking, Materials Group and company-level margin pressure, logistics declines, cautious consumer demand, cost inflation and the delayed Walmart Fresh commercial ramp.Positive Updates
Strong Third-Quarter Results and Underlying Growth
Organic sales grew 4% and adjusted EPS grew 2% year-over-year to $2.42, exceeding expectations. After considering customer inventory management, management estimated underlying organic sales growth of 6% and adjusted EPS growth of 8%.
Negative Updates
Customer Inventory Destocking Remained a Headwind
Customer inventory destocking unfavorably impacted company sales by roughly 2 points and adjusted EPS by roughly $0.15, or 6 points, in the quarter. Destocking is ongoing, with the vast majority of first-half prebuy inventory expected to unwind by the end of the fourth quarter, primarily in Europe.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Results and Underlying Growth
Organic sales grew 4% and adjusted EPS grew 2% year-over-year to $2.42, exceeding expectations. After considering customer inventory management, management estimated underlying organic sales growth of 6% and adjusted EPS growth of 8%.
Read all positive updates
Company Guidance
For full year 2026, Avery Dennison is narrowing adjusted EPS guidance to $10.10 to $10.24, with the new midpoint representing roughly 7% growth year-over-year; reported sales growth is expected to be approximately 5.5%, including organic sales growth of approximately 3.5%, approximately 1.5 points from currency translation, roughly 1 point from the Taylor Adhesives acquisition and approximate 40 basis point headwind from the calendar adjustment. Guidance includes incremental restructuring savings now exceeding $65 million, a net EPS benefit of approximately $0.30 from favorable currency translation and lower share count, stronger free cash flow targeting conversion of greater than 100% for the year, and capital expenditures anticipated approximately $240 million; the vast majority of the remaining balance of customer inventory destocking is expected to conclude by the end of the fourth quarter, which will also have an approximate 1.5% headwind to sales growth and modest headwind to EPS growth from the calendar shift, while Intelligent Labels food is expected to deliver robust growth next year, with a commercial ramp through '27 and double-digit growth over the next couple of years.Avery Dennison Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.36B | 8.86B | 8.76B | 8.36B | 9.04B | 8.41B |
| Gross Profit | 2.70B | 2.55B | 2.53B | 2.27B | 2.40B | 2.31B |
| EBITDA | 1.46B | 1.39B | 1.38B | 1.11B | 1.37B | 1.31B |
| Net Income | 708.30M | 688.00M | 704.90M | 503.00M | 757.10M | 740.10M |
Balance Sheet | ||||||
| Total Assets | 9.17B | 8.80B | 8.40B | 8.21B | 7.95B | 7.97B |
| Cash, Cash Equivalents and Short-Term Investments | 271.40M | 202.80M | 367.20M | 215.00M | 167.20M | 162.70M |
| Total Debt | 3.62B | 3.73B | 3.15B | 3.24B | 3.10B | 3.10B |
| Total Liabilities | 6.78B | 6.56B | 6.09B | 6.08B | 5.92B | 6.05B |
| Stockholders Equity | 2.39B | 2.24B | 2.31B | 2.13B | 2.03B | 1.92B |
Cash Flow | ||||||
| Free Cash Flow | 1.03B | 712.40M | 730.00M | 540.90M | 662.50M | 774.70M |
| Operating Cash Flow | 1.22B | 881.40M | 938.80M | 826.00M | 961.00M | 1.05B |
| Investing Cash Flow | -686.20M | -596.00M | -243.10M | -459.00M | -332.70M | -1.74B |
| Financing Cash Flow | -799.60M | -414.90M | -576.10M | -317.20M | -615.20M | 604.30M |
Avery Dennison Technical Analysis
Positive
182.33
Price Trends
173.98
Positive
169.57
Positive
170.52
Positive
Market Momentum
3.04
Negative
63.78
Neutral
64.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVY, the sentiment is Positive. The current price of 182.33 is above the 20-day moving average (MA) of 175.58, above the 50-day MA of 173.98, and above the 200-day MA of 170.52, indicating a bullish trend. The MACD of 3.04 indicates Negative momentum. The RSI at 63.78 is Neutral, neither overbought nor oversold. The STOCH value of 64.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $13.81B | 19.72 | 30.62% | 2.13% | 6.77% | ― | |
72 Outperform | $12.88B | 16.54 | 27.10% | 1.10% | 13.75% | -11.09% | |
65 Neutral | $21.91B | 17.62 | 9.49% | 5.49% | 56.62% | 32.08% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $2.65B | 13.56 | 5.92% | 4.92% | 0.02% | -63.11% | |
54 Neutral | $22.53B | 47.88 | 2.56% | 4.15% | 1.11% | -37.09% | |
53 Neutral | $4.94B | -23.68 | -6.12% | 4.28% | 3.56% | -11673.60% |
* Consumer Cyclical Sector Average
AVY
Avery Dennison
182.22
11.24
6.57%
CCK
Crown Holdings
119.24
23.25
24.22%
GPK
Graphic Packaging
8.95
-6.41
-41.72%
SON
Sonoco Products
49.96
11.07
28.46%
SW
Smurfit Westrock
43.09
7.68
21.67%
AMCR
Amcor
47.39
10.15
27.27%
Avery Dennison Corporate Events
Business Operations and StrategyExecutive/Board Changes
Avery Dennison Appoints Helen Sheirbon to Lead Solutions
Positive
Oct 13, 2026
On October 9, 2026, Avery Dennison’s board elected Helen J. Sheirbon as president of its Solutions Group and an executive officer, with her appointment effective November 3, 2026, following her departure from HP Inc. at the end of October. T...
Executive/Board Changes
Avery Dennison Chief Legal Officer Announces Upcoming Resignation
Neutral
Oct 5, 2026
Avery Dennison Corporation reported that Senior Vice President and Chief Legal Officer Ignacio J. Walker has decided to resign from his position to pursue another professional opportunity. He notified the company of his decision on September 30, 2...
Business Operations and StrategyExecutive/Board Changes
Avery Dennison Announces New Independent Board Chair
Positive
Aug 19, 2026
On August 18, 2026, Avery Dennison’s Board of Directors unanimously elected William Wagner as independent Board Chair, effective September 1, 2026, for the remainder of the term ending at the 2027 Annual Meeting of Stockholders. Mitchell But...
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.