AVERY DENNISON CORP's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. AVERY DENNISON CORP has weak liquidity. Currently, the Quick Ratio is 0.75 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.
During the same period, stockholders' equity ("net worth") has decreased by 5.62% 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||Q1 FY16||Q1 FY15|
|Net Sales ($mil)||1485.5||1528.0|
|Net Income ($mil)||89.6||71.6|
|Balance Sheet||Q1 FY16||Q1 FY15|
|Cash & Equiv. ($mil)||169.6||213.3|
|Total Assets ($mil)||4249.4||4312.6|
|Total Debt ($mil)||1228.2||1211.0|
|Profitability||Q1 FY16||Q1 FY15|
|Gross Profit Margin||31.43||30.31|
|Return on Assets||6.87||5.69|
|Return on Equity||30.19||24.1|
|Debt||Q1 FY16||Q1 FY15|
|Share Data||Q1 FY16||Q1 FY15|
|Shares outstanding (mil)||89.97||90.83|
|Div / share||0.37||0.35|
|Book value / share||10.76||11.3|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||968447.0||812277.0|
BUY. The current P/E ratio indicates a significant discount compared to an average of 34.26 for the Containers & Packaging industry and a value on par with the S&P 500 average of 24.22. For additional comparison, its price-to-book ratio of 6.92 indicates a significant premium versus the S&P 500 average of 2.76 and a discount versus the industry average of 8.16. The current price-to-sales ratio is well below the S&P 500 average, but above the industry average. 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 23.49||Peers 34.26||AVY 14.59||Peers 9.65|
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 significant premium to its peers.
|AVY 17.61||Peers 17.18||AVY 0.86||Peers 1.43|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
AVY is trading at a premium 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 significant discount to its peers.
|AVY 6.92||Peers 8.16||AVY 20.53||Peers 1.92|
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 discount to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
AVY is expected to have an earnings growth rate that significantly exceeds its peers.
|AVY 1.13||Peers 1.06||AVY -6.09||Peers -2.68|
Average. 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 valuation on par with 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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