One-glance verdict
Within fair range
$197.37 our estimate vs market $188.05
Wall Street consensus: $203.30 (3.0% higher than our fair-value estimate)
5% below our estimate
Fundamentals snapshot
Avery Dennison Corporation
AVY · NYQ · Consumer Cyclical · Packaging & Containers
Current price
$188.05
52-week range
$152.42 - $199.54
Market cap
$14.20B
Balance sheet
Stretched
8.30x Adequate
Net debt $3.30B. 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 5.7% last year.
- Reward Returns 30.8% 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 sticky labels and other materials you see on everything from food packaging to car decals. Their money primarily comes from selling these everyday materials, and this is important because it means their business is tied to how much stuff companies produce and sell across many different industries.
How the company got here
Avery Dennison started in 1935 as a small company focused on creating innovative adhesive products. It was originally called Avery International Corporation but changed its name to Avery Dennison in 1990 to better reflect its diverse offerings. Over the decades, the company grew by expanding its product lines and entering new markets globally. This evolution has positioned Avery Dennison as a leader in materials science and digital identification solutions, serving a wide range of industries from its headquarters in Mentor, Ohio.
What it actually does
Avery Dennison is a company that makes materials and provides digital solutions that help other businesses label, identify, and track their products. Think of the sticky labels on your groceries, the reflective tape on safety vests, or the special tags that help stores manage their inventory – Avery Dennison likely plays a role in creating these. They combine materials science, like developing advanced adhesives and films, with digital technology to offer solutions that improve how products are branded, tracked, and managed throughout their journey from factory to consumer.
Materials Group
This is the largest part of Avery Dennison's business, making up a significant portion of its revenue. This segment produces pressure-sensitive materials, which are essentially the sticky stuff used for labels on everything from food packaging to shipping boxes. They also create performance tapes used in various industrial applications and durable films for graphics and signage. Customers in industries like home and personal care, apparel, and logistics rely on these materials to brand their products and ensure they are properly identified.
Solutions Group
The Solutions Group is a smaller but important part of Avery Dennison, focusing on digital identification and branding solutions. This includes things like RFID (Radio Frequency Identification) tags, which are tiny chips that can store information and be read wirelessly, helping businesses track inventory more efficiently. They also provide solutions for price marking, brand protection, and sustainable packaging. This segment helps companies enhance their supply chain visibility and improve in-store operations, serving retailers, apparel brands, and logistics providers.
What management is betting on now
Avery Dennison's leadership is focused on growing its business through innovation and sustainability. They are investing in developing new materials and digital solutions that help customers meet their own environmental goals, such as using more recycled content or creating more efficient packaging. The company is also prioritizing growth in its Solutions Group, particularly in areas like RFID technology, to provide more advanced tracking and data management capabilities. This strategy aims to strengthen Avery Dennison's position as a leader in materials science and digital identification while adapting to evolving market demands for efficiency and sustainability.
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 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
FY2026 Q3
$251.20M
Revenue
$2.33B
Net income
$169.70M
Diluted EPS
2.24
Operating cash flow
$298.80M
Free cash flow
$251.20M
Fetching…
Sources
Revenue
$2.46B
Net income
$204.10M
Diluted EPS
2.67
Operating cash flow
$408.20M
Free cash flow
$369.00M
Fetching…
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
Fetching…
Sources
Is it cheap or expensive?
Fair value $197.37 vs current price $188.05
Wall Street consensus is the average analyst price target: $203.30 (3.0% higher than our fair-value estimate).
Our most-likely fair value is $197.37 a share — about 5.0% away from today's price of $188.05, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $3.3B. Interest coverage 8.3x.
Net debt
$3.30B
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 $3.62B Interest coverage 8.30x This is the baseline the peer rows are being compared against.
Total debt $4.41B Interest coverage 15.87x +91% vs AVY Carries about 1.9x more debt cushion than AVY.
Total debt $5.45B Interest coverage 4.37x -47% vs AVY Carries about 1.9x less debt cushion than AVY.
Total debt $2.19B Interest coverage 2.83x -66% vs AVY Carries about 2.9x less debt cushion than AVY.
Total debt $10.35B 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 5.7% last year.
-
Returns 30.8% 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)
20.35x
Forward P/E
16.97x
P/B
5.95x
P/S
1.52x
EV/EBITDA
11.68x
PEG ratio
1.92x
Profitability
How much profit each dollar creates
Gross margin
28.8%
Operating margin
12.1%
Net margin
7.6%
ROE
30.8%
ROA
8.3%
Health
Liquidity and balance-sheet strength
Debt / equity
1.52x
Current ratio
1.16x
Quick ratio
0.70x
Total debt
$3.62B
Total cash
$318.50M
Growth
How the business has been compounding
Revenue TTM
$9.36B
Revenue 5Y CAGR
1.3%
EPS TTM
9.24
EPS 5Y CAGR
-1.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.22B
Free CF TTM
$712.40M
FCF margin
7.6%
Dividend
Shareholder payout
Yield
2.1%
Payout ratio
42.0%
Last ex-div date
2026-12-02