One-glance verdict
Within fair range
$176.99 our estimate vs market $170.34
Wall Street consensus: $201.80 (14.0% higher than our fair-value estimate)
4% below our estimate
Fundamentals snapshot
Avery Dennison Corporation
AVY · NYQ · Consumer Cyclical · Packaging & Containers
Current price
$170.34
52-week range
$152.42 - $199.54
Market cap
$12.91B
Balance sheet
Stretched
8.30x Adequate
Net debt $3.41B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 4.4% last year.
- Reward Returns 31.2% on equity, ahead of 80% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Net debt grew 20.3% over 3 years.
What this company does
Avery Dennison Corporation
Avery Dennison makes the essential sticky materials for labels, tapes, and graphics found on everything from packaged foods to delivery vehicles. A growing part of their business is selling high-tech digital ID tags that help companies track products through their entire supply chain (the journey from factory to store). Because their products are used on so many physical goods, the company's performance is often linked to the overall health of the manufacturing and retail economy.
How the company got here
Avery Dennison's story starts in 1935 when its founder, R. Stanton Avery, invented the world's first self-adhesive label with a $100 loan. This simple idea of a sticker that could be easily applied and removed without leaving a mark was a game-changer for how products were priced and merchandised. The company grew over the years and in 1990, it merged with the Dennison Manufacturing Company, a business that started in the 1840s making jewelry boxes and tags, to become the Avery Dennison we know today. A key move was selling its office products division (the one that made the binders and file labels you might know) to focus on the materials and solutions that are its core business now.
What it actually does
At its heart, Avery Dennison is a company that makes things stick to other things, but in very smart ways. Think about the label on your shampoo bottle, the wrap on a delivery truck, or the price tag on a new shirt—there's a good chance Avery Dennison made the materials for it. They specialize in 'pressure-sensitive materials,' which is the technical term for self-sticking labels and films used on countless products you see every day. Beyond just labels, the company also creates digital identification solutions, like RFID tags (tiny trackers that use radio waves to send information), which help stores keep track of their inventory (the products they have in stock) and manage their supply chain (the entire process of getting a product to you).
Materials Group
This is the larger of Avery Dennison's two main business segments, making up a majority of the company's sales. It manufactures and sells the foundational sticky materials that other companies use to make their final products. This includes giant rolls of paper, plastic film, and foil that are coated with adhesive and sold to label printers and converters. This segment also produces specialty tapes for industrial and medical uses, as well as films for things like colorful vehicle wraps and reflective safety signs on highways.
Solutions Group
This part of the business provides solutions to help companies, especially in the clothing and retail industries, manage their brands and inventory. It designs and makes things like the graphic tags, price tickets, and woven labels you find on apparel. A fast-growing and important part of this segment is 'Intelligent Labels,' which includes RFID tags that can be embedded in products. These tags allow a retailer to know exactly how many jeans of a certain size they have in a store at any given moment, which helps prevent running out of stock and improves the efficiency of their supply chain (the journey of a product from factory to shelf).
What management is betting on now
The company is heavily focused on growing what it calls 'high-value categories,' which are areas where they can use their technology to solve bigger problems for customers. A major priority is expanding its 'Intelligent Labels' business, using RFID technology to connect physical products to the digital world for better tracking and consumer engagement. Management is also investing in sustainable solutions, such as developing labels that make it easier to recycle plastic packaging and using more recycled materials in their products. Their stated financial goals include steady sales growth and improving their margins (the profit made on each dollar of sales) by focusing on these more innovative and specialized products.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$227.10M
FY2024 Q4
$281.70M
FY2025 Q1
$-52.30M
FY2025 Q2
$178.80M
FY2025 Q3
$276.20M
FY2025 Q4
$309.70M
FY2026 Q1
$108.20M
FY2026 Q2
$369.00M
Revenue
$2.46B
Net income
$204.10M
Diluted EPS
2.67
Operating cash flow
$408.20M
Free cash flow
$369.00M
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Sources
Revenue
$2.30B
Net income
$168.10M
Diluted EPS
2.18
Operating cash flow
$136.50M
Free cash flow
$108.20M
Fetching…
Sources
Revenue
$2.27B
Net income
$166.40M
Diluted EPS
2.16
Operating cash flow
$376.80M
Free cash flow
$309.70M
Fetching…
Sources
Revenue
$2.22B
Net income
$166.30M
Diluted EPS
2.13
Operating cash flow
$312.10M
Free cash flow
$276.20M
Fetching…
Sources
Revenue
$2.22B
Net income
$189.00M
Diluted EPS
2.41
Operating cash flow
$208.80M
Free cash flow
$178.80M
Fetching…
Sources
Revenue
$2.15B
Net income
$166.30M
Diluted EPS
2.09
Operating cash flow
$-16.30M
Free cash flow
$-52.30M
Fetching…
Sources
Revenue
$2.19B
Net income
$174.00M
Diluted EPS
2.17
Operating cash flow
$351.20M
Free cash flow
$281.70M
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Sources
Revenue
$2.18B
Net income
$181.70M
Diluted EPS
2.25
Operating cash flow
$270.10M
Free cash flow
$227.10M
Fetching…
Sources
Is it cheap or expensive?
Fair value $176.99 vs current price $170.34
Wall Street consensus is the average analyst price target: $201.80 (14.0% higher than our fair-value estimate).
Our most-likely fair value is $176.99 a share — about 3.9% away from today's price of $170.34, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $3.4B. Interest coverage 8.3x.
Net debt
$3.41B
Interest coverage
8.30x
Avery Dennison Corporation's profit covers its interest bill about 8.3 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
AVY
BASELINE
Avery Dennison Corporation
Total debt $3.69B Interest coverage 8.30x This is the baseline the peer rows are being compared against.
Total debt $4.40B Interest coverage 15.87x +91% vs AVY Carries about 1.9x more debt cushion than AVY.
Total debt $5.47B Interest coverage 4.37x -47% vs AVY Carries about 1.9x less debt cushion than AVY.
Total debt $2.05B Interest coverage 2.83x -66% vs AVY Carries about 2.9x less debt cushion than AVY.
Total debt $9.90B Interest coverage -0.02x -100% vs AVY This peer has almost no interest-payment cushion compared with AVY.
What you should know
The case for and against AVY
3 Rewards
1 Risk
Rewards
-
Revenue grew 4.4% last year.
-
Returns 31.2% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 20.3% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
18.64x
Forward P/E
15.23x
P/B
5.57x
P/S
1.40x
EV/EBITDA
10.91x
PEG ratio
1.92x
Profitability
How much profit each dollar creates
Gross margin
29.0%
Operating margin
13.6%
Net margin
7.6%
ROE
31.2%
ROA
8.4%
Health
Liquidity and balance-sheet strength
Debt / equity
1.59x
Current ratio
1.13x
Quick ratio
0.69x
Total debt
$3.69B
Total cash
$274.70M
Growth
How the business has been compounding
Revenue TTM
$9.25B
Revenue 5Y CAGR
1.3%
EPS TTM
9.14
EPS 5Y CAGR
-1.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.23B
Free CF TTM
$712.40M
FCF margin
7.7%
Dividend
Shareholder payout
Yield
2.4%
Payout ratio
41.8%
Last ex-div date
2026-09-02