Avery Dennison AI Stock Analysis
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Avery Dennison (AVY) AI Stock Analysis
Avery Dennison
(NYSE:AVY)
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.
Avery Dennison Key Performance Indicators (KPIs)
Revenue by SegmentShows how much each business segment contributes to total revenue, highlighting areas of strength and potential growth within the company’s diverse operations.
Materials Group is the clear growth engine—recovering since 2024 with accelerating volume/mix and margin expansion—but Q2 strength was partly driven by customer pre‑buys, so expect some sequential pullback in Q3. Solutions is stabilizing with tangible margin improvement from productivity and program wins in apparel, though logistics remains a weak spot. Management’s reinstated guidance, strong free cash flow and buybacks signal confidence, but monitor raw‑material inflation and the timing of the pre‑buy unwind as near‑term risks to the topline and EPS cadence.
Avery Dennison (AVY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $14.21B
- Dividend Yield
- 2.06%
- Average Volume (3M)
- 831.36K
- Price to Earnings (P/E)
- 20.4
- Beta (1Y)
- 0.52
- Revenue Growth
- 6.77%
- EPS Growth
- 4.93%
- Country
- US
- Employees
- 35,000
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Packaging & Containers
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 consist...
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 (Label an...
Avery Dennison Earnings Call Summary
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.
Q3-2026 Updates
Positive Updates
Negative 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
Strong operating profile supported by a TTM rebound in revenue (~+25%), healthy EBIT/EBITDA margins (~12%/~16%), and robust free cash flow generation (~$1.04B; ~86% of net income). The main constraint is elevated leverage (debt-to-equity ~1.6x; OCF-to-debt ~0.41x), which increases downturn sensitivity, and some cyclicality/volatility in revenue and free cash flow.
Income Statement
78PositiveBalance Sheet
64PositiveCash Flow
71Positive| 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
Price Trends
Market Momentum
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 188.18 is above the 20-day moving average (MA) of 183.36, above the 50-day MA of 175.63, and above the 200-day MA of 170.71, indicating a bullish trend. The MACD of 4.10 indicates Negative momentum. The RSI at 62.00 is Neutral, neither overbought nor oversold. The STOCH value of 59.41 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.
Latest Risks Added
3 New RisksAvery Dennison Peers Comparison
Overall Rating
AVY74Outperform
CCK71Outperform
AMCR69Neutral
SW54Neutral
GPK50Neutral
SON45Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| 74Outperform | $14.27B | 20.36 | 30.62% | 2.06% | 6.77% | 4.93% | |
| 71Outperform | $13.32B | 16.92 | 27.10% | 1.15% | 13.75% | -11.09% | |
| 69Neutral | $20.89B | 18.96 | 9.32% | 5.86% | 37.30% | 36.83% | |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| 54Neutral | $23.20B | 49.47 | 2.61% | 4.06% | 1.11% | -37.06% | |
| 50Neutral | $3.30B | 44.28 | 2.27% | 3.97% | 0.35% | -85.33% | |
| 45Neutral | $4.92B | -23.51 | -6.12% | 4.33% | 3.56% | -11673.60% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| AVY | Avery Dennison | 188.18 | 15.71 | 9.11% | |
| CCK | Crown Holdings | 122.02 | 22.30 | 22.37% | |
| GPK | Graphic Packaging Holding | 11.07 | -4.41 | -28.50% | |
| SON | Sonoco Products Company | 49.60 | 9.66 | 24.19% | |
| SW | Smurfit Westrock PLC | 44.03 | 10.38 | 30.85% | |
| AMCR | Amcor | 44.39 | 3.95 | 9.76% |
Avery Dennison Corporate Events
Avery Dennison Appoints Helen Sheirbon to Lead Solutions
PositiveOn 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. The move b...
Avery Dennison Chief Legal Officer Announces Upcoming Resignation
NeutralAvery 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, 2026...
Avery Dennison Announces New Independent Board Chair
PositiveOn 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 Butier will...
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.
Date of analysis: Oct 29, 2026
