Avery Dennison AVY
Avery Dennison is a materials and labeling solutions company that designs and manufactures products for consumer goods, retail, and industrial applications, including smart labels and brand management solutions. Avery Dennison shows solid fundamentals with a ROE of 31.16% and an operating margin of 13.59%, supported by revenue growth of 10.90% and a reasonable valuation (P/E 18.62, FCF yield 7.78%), although net debt/EBITDA of 2.28 and sector pressure limit upside potential.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Avery Dennison is a materials and labeling solutions company that designs and manufactures products for consumer goods, retail, and industrial applications, including smart labels and brand management solutions. Avery Dennison shows solid fundamentals with a ROE of 31.16% and an operating margin of 13.59%, supported by revenue growth of 10.90% and a reasonable valuation (P/E 18.62, FCF yield 7.78%), although net debt/EBITDA of 2.28 and sector pressure limit upside potential.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.8 |
| Quality / Moat | 7.2 |
| Valuation | 7.0 |
| Growth | 6.6 |
| Dividend | 7.1 |
| Momentum | 5.7 |
| Risk & Context | 6.8 |
OVERALL SCORE: 6.7/10
Context and risks
Avery Dennison operates in the packaging sector, with exposure to raw material and energy costs, but its operating margin of 13.59% and focus on high-value categories mitigate the direct impact of rising crude. The main risk is margin pressure from input costs, though not materially aggravated by the current geopolitical context.
News considered in the analysis
- Zacks Industry Outlook Highlights Avery Dennison, AptarGroup and Karat Packaging — Artículo de perspectiva sectorial sin información nueva específica sobre la empresa.
- 3 Packaging Stocks Worth Watching Despite Industry Pressure — Mención genérica en un listado, sin datos concretos que afecten a la valoración.
- Avery Dennison Eyes Margin Gains as High-Value Categories Near Half of Sales — La compañía busca mejorar márgenes impulsada por categorías de alto valor, lo que podría apoyar el crecimiento futuro de beneficios.
- Is Avery Dennison (AVY) A Bargain After Reflective Materials Growth Optimism? — Optimismo sobre el crecimiento en materiales reflectantes, un segmento de nicho con potencial, aunque aún no materializado en resultados.
- Avery Dennison Stock: Is AVY Outperforming the Consumer Discretionary Sector? — Comparación de rendimiento bursátil sin implicaciones fundamentales nuevas.
Verdict: Hold; business quality and attractive valuation justify holding positions, but without clear short-term catalysts.
Main risk: The main risk is margin pressure from rising raw material and energy costs, which could erode the operating margin of 13.59% if not passed through to prices.
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