Avery Dennison (AVY)
NYSE:AVY
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Avery Dennison
(NYSE:AVY)
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Rating:65Neutral
Price Target:
$165.00
â–¼(-4.34% Downside)
Action:Reiterated
Date:06/05/26
AVY scores as a solid but not low-risk setup: strong cash flow and steady margins support the investment case, while leverage is a meaningful constraint. The technical picture is notably weak (below major moving averages with negative MACD), and earnings-call guidance points to modest growth with real near-term headwinds (inflation timing and destocking), keeping the overall score in the mid-range.
Positive Factors
Strong cash generation
Consistent trailing‑twelve‑month operating cash flow and growing free cash flow give Avery Dennison durable financial flexibility. High FCF conversion (~81% of net income) supports capex, dividends, opportunistic buybacks and M&A, reducing reliance on external funding over a multi‑quarter horizon.
Negative Factors
Elevated leverage
A higher leverage profile reduces financial flexibility and raises interest and refinancing sensitivity. While returns on equity are strong, much of that performance is leverage‑supported; sustained debt levels could constrain capacity for large organic investments or hostile shocks over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent trailing‑twelve‑month operating cash flow and growing free cash flow give Avery Dennison durable financial flexibility. High FCF conversion (~81% of net income) supports capex, dividends, opportunistic buybacks and M&A, reducing reliance on external funding over a multi‑quarter horizon.
Read all positive factors
Avery Dennison Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Reveals the profitability of each business segment, indicating which areas are most effective at generating profit and where there may be opportunities for improvement.
Reveals the profitability of each business segment, indicating which areas are most effective at generating profit and where there may be opportunities for improvement.
Data provided by:
The Fly
The FlyAvery Dennison (AVY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.01B
Dividend Yield2.04%
Average Volume (3M)667.39K
Price to Earnings (P/E)17.4
Beta (1Y)0.58
Revenue Growth2.89%
EPS Growth1.99%
CountryUS
Employees35,000
SectorConsumer Cyclical
Sector Strength84
IndustryPackaging & Containers
Share Statistics
EPS (TTM)8.88
Shares Outstanding76,490,390
10 Day Avg. Volume650,525
30 Day Avg. Volume667,392
Financial Highlights & Ratios
PEG Ratio25.52
Price to Book (P/B)6.28
Price to Sales (P/S)1.59
P/FCF Ratio19.76
Enterprise Value/Market Cap1.31
Enterprise Value/Revenue1.74
Enterprise Value/Gross Profit6.06
Enterprise Value/Ebitda12.63
Forecast
1Y Price Target
$197.80Price Target Upside14.68% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)10.05
Revenue Forecast (FY)$9.28B
Avery Dennison Business Overview & Revenue Model
Company Description
Avery Dennison Corporation manufactures and markets pressure-sensitive materials and products in the United States, Europe, Asia, Latin America, and internationally. The company's Label and Graphic Materials segment offers pressure-sensitive label...
How the Company Makes Money
Avery Dennison makes money primarily by manufacturing and selling materials, components, and finished solutions used to label, identify, protect, and enhance products across supply chains. Its revenue is largely generated through two operating seg...
Avery Dennison Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call presented a mix of clear operational and financial strengths—modest organic revenue growth, 7% adjusted EPS growth, strong Materials Group performance, solid cash generation, disciplined capital returns, and a strategic $75M investment in Williard—paired with meaningful near-term headwinds: Solutions Group margin decline, Intelligent Labels logistics weakness, a March inflation spike, and the unwind of customer prebuys that could pressure Q2 volumes. Management emphasized proactive pricing, procurement, restructuring (> $55M) and productivity actions to offset inflation and drive sequential earnings improvement through the year.Positive Updates
Organic Sales and EPS Growth
First quarter organic sales increased 1% year-over-year, driven by mid single-digit volume/mix growth; adjusted EPS was $2.47, up 7% versus prior year.
Negative Updates
Solutions Group Sales and Margin Pressure
Solutions Group reported sales decreased 3% year-over-year (organic sales down ~1%); adjusted EBITDA margin for the segment was 16.4%, down 80 basis points versus prior year, pressured by higher employee-related costs, lower base category volumes, and targeted growth investments.
Read all updates
Q1-2026 Updates
Positive
Negative
Organic Sales and EPS Growth
First quarter organic sales increased 1% year-over-year, driven by mid single-digit volume/mix growth; adjusted EPS was $2.47, up 7% versus prior year.
Read all positive updates
Company Guidance
For Q2 Avery Dennison guided reported sales growth of 2%–4% (organic 0%–2%, roughly +1% from currency and +1% from the Taylor Adhesives acquisition) and adjusted EPS of $2.43–$2.53 (≈3% growth at the midpoint); management expects high‑single‑digit sequential raw‑material inflation in Q2 that will be largely offset by low‑to‑mid‑single‑digit price actions, while noting some destocking pressure on label volumes in the back half of Q2. For 2026 they continue to expect Intelligent Labels to outpace 2025 with performance weighted to the second half (apparel full‑year growth, food ramping in 2H, logistics normalizing), see an approximate $0.25 EPS benefit from favorable currency and a lower share count (partially offset by higher tax and interest), plan >$55 million of restructuring savings, target ~100% adjusted free‑cash‑flow conversion with fixed/IT CapEx of about $260 million, and remain focused on sequential earnings improvement after a Q1 that delivered $2.47 adjusted EPS (+7% y/y), $104M adjusted FCF, a 16.4% adjusted EBITDA margin, and net debt/adjusted EBITDA of 2.4x.Avery Dennison Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
60
Neutral
Cash Flow
77
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.01B | 8.86B | 8.76B | 8.36B | 9.04B | 8.41B |
| Gross Profit | 2.59B | 2.55B | 2.53B | 2.27B | 2.40B | 2.31B |
| EBITDA | 1.24B | 1.30B | 1.38B | 1.11B | 1.37B | 1.31B |
| Net Income | 689.80M | 688.00M | 704.90M | 503.00M | 757.10M | 740.10M |
Balance Sheet | ||||||
| Total Assets | 8.98B | 8.80B | 8.40B | 8.21B | 7.95B | 7.97B |
| Cash, Cash Equivalents and Short-Term Investments | 255.10M | 202.80M | 367.20M | 215.00M | 167.20M | 162.70M |
| Total Debt | 3.79B | 3.73B | 3.15B | 3.24B | 3.10B | 3.10B |
| Total Liabilities | 6.68B | 6.56B | 6.09B | 6.08B | 5.92B | 6.05B |
| Stockholders Equity | 2.30B | 2.24B | 2.31B | 2.13B | 2.03B | 1.92B |
Cash Flow | ||||||
| Free Cash Flow | 872.90M | 712.40M | 730.00M | 540.90M | 662.50M | 774.70M |
| Operating Cash Flow | 1.03B | 881.40M | 938.80M | 826.00M | 961.00M | 1.05B |
| Investing Cash Flow | -595.40M | -596.00M | -243.10M | -459.00M | -332.70M | -1.74B |
| Financing Cash Flow | -380.60M | -414.90M | -576.10M | -317.20M | -615.20M | 604.30M |
Avery Dennison Technical Analysis
Negative
172.48
Price Trends
163.76
Negative
173.70
Negative
171.41
Negative
Market Momentum
-2.18
Negative
40.75
Neutral
19.63
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVY, the sentiment is Negative. The current price of 172.48 is above the 20-day moving average (MA) of 158.48, above the 50-day MA of 163.76, and above the 200-day MA of 171.41, indicating a bearish trend. The MACD of -2.18 indicates Negative momentum. The RSI at 40.75 is Neutral, neither overbought nor oversold. The STOCH value of 19.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $20.03B | 26.80 | 15.95% | 2.42% | 7.86% | -13.88% | |
65 Neutral | $12.01B | 17.40 | 30.81% | 2.04% | 2.89% | 1.99% | |
65 Neutral | $4.86B | 4.67 | 30.14% | 4.33% | 17.41% | 167.71% | |
63 Neutral | $10.70B | 14.72 | 24.33% | 1.01% | 7.06% | 35.16% | |
63 Neutral | $3.89B | 13.50 | 12.47% | 1.97% | 9.55% | -1.62% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $3.18B | 11.71 | 8.38% | 2.91% | -0.17% | -55.17% |
* Consumer Cyclical Sector Average
AVY
Avery Dennison
155.89
-17.90
-10.30%
CCK
Crown Holdings
94.50
-2.00
-2.07%
GPK
Graphic Packaging
10.81
-10.67
-49.68%
PKG
Packaging
224.39
34.36
18.08%
SLGN
Silgan Holdings
36.24
-16.25
-30.96%
SON
Sonoco Products
48.50
5.39
12.51%
Avery Dennison Corporate Events
Executive/Board Changes
Avery Dennison Names Danny Allouche Materials Group President
Positive
Jun 4, 2026
On May 29, 2026, Avery Dennison’s Materials Group president Ryan D. Yost notified the company of his decision to resign to pursue another opportunity, remaining in his role through May 31 and departing on June 12, 2026. On May 31, 2026, the ...
Executive/Board ChangesShareholder Meetings
Avery Dennison Shareholders Back Board, Pay and Auditor
Positive
May 1, 2026
Avery Dennison held its 2026 Annual Meeting of Stockholders in a virtual-only format on April 30, 2026, with 93.1% of outstanding shares represented, constituting a quorum and underscoring robust investor participation. Shareholders elected ten di...
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.