Avery Dennison Corp

Find Ratings Reports
AVY : NYSE : Consumer Goods
$75.50 | %
Today's Range: 74.91 - 75.72
Avg. Daily Volume: 577,400
10/21/16 - 4:02 PM ET

Financial Analysis

AVERY DENNISON CORP's gross profit margin for the second 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 0.79 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 decreased by 12.78% 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 FY16 Q2 FY15
Net Sales ($mil)1541.51516.0
EBITDA ($mil)194.5176.0
EBIT ($mil)164.9144.3
Net Income ($mil)80.063.7

Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)233.9263.5
Total Assets ($mil)4294.84353.6
Total Debt ($mil)1161.91151.7
Equity ($mil)956.51096.7

Profitability Q2 FY16 Q2 FY15
Gross Profit Margin30.0829.64
EBITDA Margin12.6111.6
Operating Margin10.79.52
Sales Turnover1.391.43
Return on Assets7.176.11
Return on Equity32.1324.37
Debt Q2 FY16 Q2 FY15
Current Ratio1.221.29
Interest Expense16.216.4
Interest Coverage10.188.8

Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)88.9391.57
Div / share0.410.37
Book value / share10.7611.98
Institutional Own % n/a n/a
Avg Daily Volume585551.0751945.0


BUY. AVERY DENNISON CORP's P/E ratio indicates a discount compared to an average of 29.87 for the Containers & Packaging industry and a value on par with the S&P 500 average of 24.54. For additional comparison, its price-to-book ratio of 7.04 indicates a significant premium versus the S&P 500 average of 2.72 and a discount versus the industry average of 7.62. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AVY 22.67 Peers 29.87   AVY 12.99 Peers 9.82

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
AVY 17.21 Peers 17.55   AVY 0.67 Peers 1.15

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 7.04 Peers 7.62   AVY 16.37 Peers 30.01

Average. 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 valuation on par with 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 1.13 Peers 1.07   AVY -4.17 Peers 3.65

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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