Avery Dennison Corp

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AVY : NYSE : Consumer Goods
$72.15 | %
Today's Range: 71.81 - 72.95
Avg. Daily Volume: 780600.0
01/13/17 - 4:01 PM ET

Financial Analysis

AVERY DENNISON CORP's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. AVERY DENNISON CORP has weak liquidity. Currently, the Quick Ratio is 0.62 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.22% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)1508.71468.1
EBITDA ($mil)177.5168.2
EBIT ($mil)147.3137.8
Net Income ($mil)89.181.7

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)207.9189.2
Total Assets ($mil)4600.44248.9
Total Debt ($mil)1300.61053.6
Equity ($mil)1042.41055.3

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin29.6829.72
EBITDA Margin11.7611.45
Operating Margin9.769.39
Sales Turnover1.31.44
Return on Assets6.866.77
Return on Equity30.2327.26
Debt Q3 FY16 Q3 FY15
Current Ratio0.981.3
Interest Expense15.515.6
Interest Coverage9.58.83

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)89.291.33
Div / share0.410.37
Book value / share11.6911.56
Institutional Own % n/a n/a
Avg Daily Volume774130.0582587.0


BUY. The current P/E ratio indicates a significant discount compared to an average of 36.90 for the Containers & Packaging industry and a discount compared to the S&P 500 average of 25.49. For additional comparison, its price-to-book ratio of 6.17 indicates a significant premium versus the S&P 500 average of 2.84 and a discount versus the industry average of 7.09. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AVY 20.91 Peers 36.90   AVY 11.66 Peers 48.52

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.


Discount. 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 discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
AVY 16.54 Peers 18.28   AVY 0.61 Peers 4.01

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 6.17 Peers 7.09   AVY 11.29 Peers 21.46

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.


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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AVY 1.07 Peers 1.14   AVY -2.07 Peers 2.47

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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