Avery Dennison (AVY)
Materials · $13.0B market cap · SEC CIK 0000008818
fundamentals score out of 100
Next reports on Oct 20, 2026, before the open, with analysts expecting $2.35 in earnings per share.
The case for AVY
- Earns 31% back on shareholder equity.
- Pays a modest 1.7% dividend.
- Free-cash-flow yield of 5.5% is higher than 96% of Materials companies.
The case against
- Growth is weak (38/100): revenue +5.8%, EPS +2.3%, +4.9% a year over five years.
- Long-term debt of $3.2B against $203M of cash.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Materials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 70 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 38 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 65 |
| Momentumhow the price has behaved lately | 52 |
| Stabilityhow violently it moves, what it owes and what it pays you | 69 |
- Each factor except momentum is half fixed thresholds, half rank among the 26 Materials companies.
Key numbers
| Price / earnings | 18.5× |
|---|---|
| Price / book | 5.35× |
| Price / sales | 1.4× |
| Revenue growth (YoY) | +5.8% |
| EPS growth (YoY) | +2.3% |
| Gross margin | 29% |
| Operating margin | 10% |
| Net margin | 8% |
| Return on equity | 31% |
| Debt / equity | 1.58× |
| Current ratio | 1.13 |
| Dividend yield | 1.71% |
| Beta | 0.81 |
| 52-week range | $152.42 – $199.54 |
| Position in that range | 42% of the way up |
| 3-month return | +6.7% |
| 1-year return | +3.0% |
Five years of financials, as filed
Pulled from Avery Dennison's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $8.9B | $8.8B | $8.4B | $9.0B | $8.4B |
| Gross profit | $2.5B | $2.5B | $2.3B | $2.4B | $2.3B |
| Net income | $688M | $705M | $503M | $757M | $740M |
| Operating cash flow | $881M | $939M | $826M | $961M | $1.0B |
| Capital expenditure | $169M | $209M | $265M | $278M | $255M |
| Total assets | $8.8B | $8.4B | $8.2B | $8.0B | $8.0B |
| Shareholder equity | $2.2B | $2.3B | $2.1B | $2.0B | $1.9B |
| Cash | $203M | $329M | $215M | $167M | $163M |
| Long-term debt | $3.2B | $2.6B | $2.6B | $2.5B | $2.8B |
| Free cash flow | $712M | $730M | $561M | $683M | $792M |
| Gross margin | 28.8% | 28.9% | 27.2% | 26.6% | 27.5% |
| Net margin | 7.8% | 8.1% | 6.0% | 8.4% | 8.8% |
| Diluted shares | 78.3M | 80.7M | 81.1M | 82.2M | 83.8M |
Share count is down 6.6% over 4 years. Buybacks have been shrinking the pie.
What Avery Dennison says it does
Company Background Avery Dennison Corporation ("Avery Dennison" or the "Company" and generally referred to as "we" or "us") was founded in 1935 and incorporated in Delaware in 1977 as Avery International Corporation, the successor corporation to a California corporation of the same name incorporated in 1946. In 1990, we merged one of our subsidiaries into Dennison Manufacturing Company ("Dennison"), as a result of which Dennison became our wholly-owned subsidiary and in connection with which we changed our name to Avery Dennison Corporation. You can learn more about us by visiting our website at www.averydennison.com. Our website is not intended to function as a hyperlink and the information on our website is not, nor should it be considered, part of this report or incorporated by reference into this report. Business Overview and Reportable Segments We are a global leader in materials science and digital identification solutions. We…
Risk factors AVY lists in its 10-K
- Risk Related to Our International Operations
- Foreign currency exchange rates, and fluctuations in those rates, affect our business
- Our operations and activities outside of the U.S. subject us to risks different from and potentially greater than those associated with our domestic operations
- Our strategy includes continuing to grow in emerging markets, which exposes us to less stable geopolitical conditions, civil unrest, economic volatility, and other risks applicable to operating in these regions
- We have recently acquired companies and are likely to acquire other companies. Acquisitions come with significant risks and uncertainties, including those related to integration, technology and employees
- A significant consolidation of our customer base could negatively impact our business
- Because some of our products are sold by third parties, our business depends in part on the financial condition of these parties and their customers
- Our ability to develop and successfully market new products and applications impacts our competitive position
- Our infrastructure needs impact our business and expenditures
- Difficulty in the collection of receivables as a result of economic conditions or other market factors could have a material adverse effect on our business
- There is a rapidly evolving awareness and focus from certain stakeholders, including our investors, customers and employees, with respect to our company’s sustainability and governance practices, which could affect our business
- Risks Related to Information Technology
- Significant disruption to the information technology infrastructure that stores our information and runs our operations could materially adversely affect our business
- Cybersecurity or other security breaches could compromise our information and expose us to liability, which could have a material adverse effect on our business and reputation