Avery Dennison Corporation (AVY) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Avery Dennison Corporation (AVY) Industrial Operations Profile

Avery Dennison Corporation, a global leader in pressure-sensitive materials and solutions, serves diverse industries with its Label and Graphic Materials, Retail Branding and Information Solutions, and Industrial and Healthcare Materials segments, leveraging its established brands and global reach to maintain a competitive edge.

What Is the Investment Thesis for AVY?

The company's consistent profitability, demonstrated by a 7.7% profit margin, and a stable dividend yield of 2.30%, offer investors a blend of growth and income. Key value drivers include the increasing demand for sustainable packaging solutions and the expansion of its RFID technology in the retail sector. Growth catalysts involve leveraging its established brands and expanding into emerging markets. Potential risks include fluctuations in raw material costs and increased competition from lower-cost manufacturers. With a Beta of 1.00, AVY's stock price generally moves with the market.

Based on FMP financials and quantitative analysis

AVY Key Highlights

Market capitalization of $12.9B, reflecting its significant presence in the business equipment and supplies industry.

• P/E ratio of 18.49, indicating a reasonable valuation relative to its earnings.
• Profit margin of 7.7%, showcasing its ability to generate profit from its revenue.
• Gross margin of 28.8%, demonstrating efficiency in managing production costs.
• Dividend yield of 2.30%, providing a steady income stream for investors.

Who Are AVY's Competitors?

AVY is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are AVY's Key Strengths?

Global market presence and distribution network.

• Diversified product portfolio across multiple segments.
• Strong brand recognition and reputation.
• Technological innovation in pressure-sensitive materials and RFID solutions.

What Are AVY's Weaknesses?

Exposure to fluctuations in raw material costs.

• Dependence on economic conditions in various regions.
• Potential for increased competition from lower-cost manufacturers.
• Vulnerability to supply chain disruptions.

What Could Drive AVY Stock Higher?

AVY catalyst: Continued expansion of RFID technology in the retail sector, driving increased adoption and revenue growth.

• Growing demand for sustainable packaging solutions, leading to higher sales of eco-friendly products.
• Strategic partnerships with key players in emerging markets, facilitating market penetration and expansion.
• Innovation in healthcare materials, catering to the evolving needs of the healthcare industry.
• Development of advanced digital printing solutions, enhancing capabilities and market reach.

What Are the Key Risks for AVY?

Fluctuations in raw material costs, impacting profit margins and financial performance.

• Economic downturns in key markets, reducing demand for labeling and packaging solutions.
• Increased competition from lower-cost manufacturers, eroding market share and pricing power.
• Changes in regulatory requirements and environmental standards, requiring adjustments to product offerings and operations.
• Disruptions in global supply chains, affecting production and distribution capabilities.

What Are the Growth Opportunities for AVY?

• Expansion of RFID Technology: Avery Dennison can capitalize on the growing demand for RFID solutions in the retail and supply chain sectors. The RFID market is projected to reach $17.4 billion by 2026, offering substantial growth potential. By leveraging its existing RFID capabilities and developing innovative applications, Avery Dennison can enhance its market position and drive revenue growth.
• Sustainable Packaging Solutions: The increasing focus on sustainability presents a significant growth opportunity for Avery Dennison. The sustainable packaging market is expected to grow to $440.3 billion by 2027. Avery Dennison can leverage its expertise in developing eco-friendly labeling and packaging materials to meet the evolving needs of environmentally conscious consumers and businesses, thereby expanding its market share.
• Emerging Markets Penetration: Expanding its presence in emerging markets, particularly in Asia and Latin America, offers substantial growth opportunities. These regions are experiencing rapid economic growth and increasing demand for labeling and packaging solutions. By establishing strategic partnerships and tailoring its product offerings to local market needs, Avery Dennison can tap into these high-growth markets and diversify its revenue streams.
• Healthcare Materials Innovation: The healthcare sector presents a promising avenue for growth. Avery Dennison can leverage its expertise in developing medical fasteners and performance polymers to cater to the evolving needs of the healthcare industry. The global medical device market is projected to reach $603.4 billion by 2028, offering significant growth potential for Avery Dennison's healthcare materials segment.
• Digital Printing Solutions: Capitalizing on the growth of digital printing technology can drive revenue growth. The digital printing market is expected to reach $40.7 billion by 2027. Avery Dennison can develop innovative digital printing solutions for labels and graphics, catering to the increasing demand for customized and short-run printing, thereby expanding its market reach and enhancing its competitive advantage.

What Are AVY's Competitive Advantages?

• Strong brand recognition and reputation.
• Global distribution network.
• Diversified product portfolio.
• Technological expertise in pressure-sensitive materials and RFID solutions.
• Established relationships with key customers across various industries.

What Does AVY Do?

Avery Dennison Corporation, founded in 1935 and headquartered in Glendale, California, is a global manufacturer and marketer of pressure-sensitive materials and products. Originally known as Avery International Corporation until 1990, the company has evolved into a diversified provider of labeling and packaging solutions. Its Label and Graphic Materials segment offers a wide array of pressure-sensitive label and packaging materials, along with graphics and reflective products under brands like Fasson, JAC, Avery Dennison, and Mactac. These products cater to various market segments, including home and personal care, food and beverage, pharmaceuticals, and wine and spirits. The Retail Branding and Information Solutions segment designs, manufactures, and sells brand embellishments, graphic tickets, tags, labels, and sustainable packaging solutions. It also provides creative services, radio-frequency identification (RFID) products, and solutions for visibility, loss prevention, price ticketing, and brand protection, serving retailers, brand owners, and apparel manufacturers. The Industrial and Healthcare Materials segment offers tapes, pressure-sensitive adhesive-based materials, converted products, medical fasteners, and performance polymers under the Fasson, Avery Dennison, and Yongle brands, targeting automotive, electronics, construction, and healthcare markets. Avery Dennison operates in the United States, Europe, Asia, Latin America, and internationally, maintaining a significant global presence.

What Products and Services Does AVY Offer?

• Manufactures pressure-sensitive labeling materials.
• Produces graphic and reflective products.
• Designs and sells brand embellishments.
• Offers radio-frequency identification (RFID) products.
• Provides visibility and loss prevention solutions.
• Develops sustainable packaging solutions.
• Offers industrial and healthcare material solutions.

How Does AVY Make Money?

• Manufacturing and selling pressure-sensitive materials and products.
• Providing labeling and packaging solutions to various industries.
• Generating revenue through three main segments: Label and Graphic Materials, Retail Branding and Information Solutions, and Industrial and Healthcare Materials.
• Offering value-added services such as creative design and RFID technology integration.

What Industry Does AVY Operate In?

Avery Dennison operates in the business equipment and supplies industry, which is characterized by increasing demand for sustainable and technologically advanced solutions. The market is driven by the growth of e-commerce, the need for efficient supply chain management, and the rising adoption of RFID technology. The competitive landscape includes companies like ATI Inc. (ATI), Textron Inc. (TXT), and Lincoln Electric Holdings, Inc. (LECO), each vying for market share through innovation and strategic partnerships. Avery Dennison's diversified product portfolio and global reach position it favorably to capitalize on these trends.

Who Are AVY's Key Customers?

• Home and personal care product manufacturers.
• Food and beverage companies.
• Pharmaceutical companies.
• Retailers and brand owners.
• Automotive and electronics manufacturers.

Company Profile

Avery Dennison Corporation operates in the Packaging & Containers industry within the Consumer Cyclical sector. It is headquartered in Mentor, US. The company is led by CEO Deon Stander. AVY has traded publicly since 1973.

Avery Dennison Corporation Financial Trajectory

Avery Dennison Corporation (AVY) reported $2.46B in revenue for Jun 2026, reflecting 7.2% growth compared to the prior quarter. The company recorded net income of $204.1M, with diluted EPS of $2.66. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this large-cap Industrials company. Across the four most recent quarters, AVY averaged $2.28 in diluted EPS.

How Avery Dennison Corporation Is Valued

Avery Dennison Corporation carries a market capitalization of $12.9B, placing it in the large-cap category. Analyst price targets span from $175.00 to $225.00, with a consensus of $200.25. At the current price of $168.77, that implies approximately 19% upside potential. Relative to its peer group, AVY's quantitative score of 71/100 is roughly in line with the peer average of 62/100.

Return on equity for Avery Dennison Corporation stands at 30.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 7.7%, showing how much profit it generates from its asset base. AVY trades at a trailing price-to-earnings ratio of 18.49, below the Industrials sector average of ~28.00x. Its free cash flow yield is 7.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.15 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 5.9%, the inverse of the P/E and a quick read on earnings relative to price.

Avery Dennison Corporation's Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 3.47 places it in the safe zone, indicating low near-term bankruptcy risk.

Avery Dennison Corporation has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 2.8% above estimates on average.

Wall Street analysts project Avery Dennison Corporation revenue of about $9.34B for fiscal 2026, with EPS near $10.17. The estimate reflects 8 contributing analysts.

Over the past six months, Avery Dennison Corporation insiders filed 36 SEC Form 4 transactions — 14 sales and 22 purchases. On net that is roughly 8K shares acquired (about $466K) — insiders putting money in tends to read as conviction.

AVY Financials

AVY earnings history & estimates →

AVY Latest News

AVY Analyst Consensus

AVY MoonshotScore

Common Questions About AVY (Industrials)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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