Avery Dennison Corporation (AVY) AI Stock Analysis

Avery Dennison Corporation operates in materials science and digital identification solutions, focusing on branding and information labeling. The company produces pressure-sensitive materials, RFID inlays and tags, and converted solutions. These products enhance branded packaging, integrate physical and digital information, and optimize performance across industries such as home and personal care, apparel, e-commerce, logistics, food and grocery, pharmaceuticals, and automotive. Founded in 1935 and headquartered in Mentor, Ohio, Avery Dennison employs 35,000 people and serves customers on a global scale.

Avery Dennison's revenue grew at a 5-year CAGR of 4.9% from FY2020 to FY2025. Annual revenue was $8.41B in FY2021, rose to $9.04B in FY2022, and fell 7.5% to $8.36B in FY2023. Revenue subsequently rebounded to $8.76B in FY2024 and $8.86B in FY2025. Net income stood at $740.1M in FY2021, dipped to $503.0M in FY2023, and reached $688.0M in FY2025, yielding an EPS of $9.54. Operating margins remained between 11.4% and 12.9% across the five-year span. For the quarter ended June 30, 2026, quarterly revenue increased 10.9% year-over-year, while quarterly earnings grew 10.8%.

As of June 30, 2026, Avery Dennison held $227.3M in cash and short-term investments against total debt of $3.68B, resulting in net debt of $3.45B. Shareholders' equity stood at $2.32B, with a debt-to-equity ratio of 1.58 and a current ratio of 1.13. In FY2025, operating cash flow reached $881.4M and free cash flow was $712.4M. The company deployed cash toward $169.0M in capital expenditures, $572.3M in share buybacks, and $288.4M in dividends paid, contributing to an 8.3% share count reduction over five years.

Avery Dennison closed at $175.31 on October 16, 2026, trading at a trailing P/E of 19.2x and a forward P/E of 15.3x. These multiples sit slightly below the median of its S&P 500 Consumer Cyclical peers, which report a trailing P/E of 20.1x and a forward P/E of 15.7x. The company's EV/EBITDA of 11.4x and price-to-sales of 1.4x also compare with peer medians of 13.8x and 2.0x. Over the past year, AVY gained 12.5%, trailing the S&P 500 return of 16.8%. Over five years, the stock fell 8.5% compared to an 83.0% gain for the S&P 500.

Avery Dennison pays a quarterly dividend with an annualized forward rate of $4.00, representing a dividend yield of 2.28%. The company maintains a payout ratio of 38.1% and has paid dividends for 40 consecutive years. Its dividend has grown at an annualized rate of 9.4% over the past 5 years. The most recent ex-dividend date was September 2, 2026.

Wall Street sentiment reflects 7 Strong Buy, 2 Buy, and 2 Hold ratings. The mean price target is $199.50, implying 13.8% upside from the closing price of $175.31. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $10.18 on revenue of $9.34B. Avery Dennison beat EPS expectations in each of the last 4 quarters. The company is scheduled to report its next earnings on October 29, 2026.

This page is an AI-written research summary of Avery Dennison Corporation (AVY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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