AVERY DENNISON CORP's gross profit margin for the second quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. AVERY DENNISON CORP has weak liquidity. Currently, the Quick Ratio is 0.83 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 5.64% 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.
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|Income Statement||Q2 FY14||Q2 FY13|
|Net Sales ($mil)||1615.8||1552.3|
|Net Income ($mil)||42.5||68.8|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||239.3||229.1|
|Total Assets ($mil)||4616.6||5191.0|
|Total Debt ($mil)||1172.7||1389.6|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||28.9||29.59|
|Return on Assets||4.39||4.5|
|Return on Equity||15.58||13.3|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||94.11||98.48|
|Div / share||0.35||0.29|
|Book value / share||15.18||15.38|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||646410.0||824822.0|
BUY. AVERY DENNISON CORP's P/E ratio indicates a discount compared to an average of 25.03 for the Containers & Packaging industry and a value on par with the S&P 500 average of 19.81. Conducting a second comparison, its price-to-book ratio of 3.21 indicates a premium versus the S&P 500 average of 2.74 and a significant discount versus the industry average of 7.49. 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 21.55||Peers 25.03||AVY 15.60||Peers 11.26|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
AVY is trading at a 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 significant premium to its peers.
|AVY 14.12||Peers 17.67||AVY 0.91||Peers 0.96|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
AVY is trading at a valuation on par with its peers.
Average. 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 valuation on par to its peers.
|AVY 3.21||Peers 7.49||AVY 13.56||Peers 39.53|
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 0.73||Peers 0.96||AVY 4.57||Peers 7.46|
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 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
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