AVERY DENNISON CORP's gross profit margin for the fourth quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. AVERY DENNISON CORP has weak liquidity. Currently, the Quick Ratio is 0.74 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 28.52% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
|Income Statement||Q4 FY14||Q4 FY13|
|Net Sales ($mil)||1604.8||1583.9|
|Net Income ($mil)||70.9||42.7|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||227.0||369.0|
|Total Assets ($mil)||4417.4||4610.6|
|Total Debt ($mil)||1149.6||1027.5|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||25.87||28.66|
|Return on Assets||5.63||4.68|
|Return on Equity||23.54||16.37|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||92.39||96.18|
|Div / share||0.35||0.29|
|Book value / share||11.54||15.52|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||854725.0||936001.0|
BUY. AVERY DENNISON CORP's P/E ratio indicates a discount compared to an average of 29.19 for the Containers & Packaging industry and a value on par with the S&P 500 average of 19.92. To use another comparison, its price-to-book ratio of 4.70 indicates a significant premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 9.91. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, AVERY DENNISON CORP proves to trade at a discount to investment alternatives within the industry.
|AVY 20.73||Peers 29.19||AVY 13.41||Peers 11.85|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
AVY is trading at a significant discount to its peers.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
AVY is trading at a premium to its peers.
|AVY 14.48||Peers 18.89||AVY 0.80||Peers 0.93|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
AVY is trading at a discount to its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
AVY trades at a discount to its peers.
|AVY 4.70||Peers 9.91||AVY 7.81||Peers 12.22|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
AVY is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, AVY is expected to significantly trail its peers on the basis of its earnings growth rate.
|AVY 0.79||Peers 1.10||AVY 3.09||Peers 6.93|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
AVY is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
AVY significantly trails its peers on the basis of sales growth
Select the service that is right for you!COMPARE ALL SERVICES
Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV