Avery Dennison Corp

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AVY : NYSE : Consumer Goods
$93.19 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 619900.0
08/22/17 - 4:02 PM ET

Financial Analysis

AVERY DENNISON CORP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged 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 0.69 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 increased by 11.84% 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 FY17 Q2 FY16
Net Sales ($mil)1626.91541.5
EBITDA ($mil)206.8194.5
EBIT ($mil)175.9164.9
Net Income ($mil)120.980.0

Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)231.1233.9
Total Assets ($mil)5091.84294.8
Total Debt ($mil)1720.31161.9
Equity ($mil)1069.8956.5

Profitability Q2 FY17 Q2 FY16
Gross Profit Margin29.7230.08
EBITDA Margin12.7112.61
Operating Margin10.8110.7
Sales Turnover1.231.39
Return on Assets7.547.17
Return on Equity35.9132.13
Debt Q2 FY17 Q2 FY16
Current Ratio1.121.22
Interest Expense16.216.2
Interest Coverage10.8610.18

Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)88.3988.93
Div / share0.450.41
Book value / share12.110.76
Institutional Own % n/a n/a
Avg Daily Volume605107.0649116.0


BUY. This stock's P/E ratio indicates a discount compared to an average of 29.17 for the Containers & Packaging industry and a discount compared to the S&P 500 average of 24.23. Conducting a second comparison, its price-to-book ratio of 7.70 indicates a significant premium versus the S&P 500 average of 3.02 and a premium versus the industry average of 6.50. The current price-to-sales ratio is well below the S&P 500 average, but above the industry average.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AVY 21.87 Peers 29.17   AVY 14.99 Peers 12.78

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
AVY 17.58 Peers 18.78   AVY 0.59 Peers 0.95

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.


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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AVY 7.70 Peers 6.50   AVY 27.54 Peers 13.18

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

AVY is trading at a premium 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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AVY 1.32 Peers 1.18   AVY 5.18 Peers 6.27

Premium. 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 premium to its industry on this measurement.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

AVY trails its peers on the basis of sales growth



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