IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
AVY Stock Analysis: Hold (Score 57.9/100) | Blank Capital Research | Blank Capital Research
AVY
Avery Dennison Corp
$171.16
-2.65 (-1.52%)
Score57.9
Data as of Apr 6, 2026
AVY
Avery Dennison Corp
IndustrialsBusiness Supplies
$171.16
-2.65 (-1.52%)
Open $174.22High $174.42Low $170.52Prev $173.81Vol ---52W: $156.23 – $199.54
Hold
Composite score
01234567890123456789.0123456789
Global rank
#1,040
Percentile
Top 23%
Business quality
76th
percentile
Exceptional capital efficiency and structural profitability. This enterprise generates superior returns on invested capital compared to industry peers.
Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 76.3GRADE B+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
31.4%
Sector: 8.9%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
Sign up for free access to institutional-quality research tools.
Based on our 6-factor quantitative model, Avery Dennison Corp (AVY) receives a "Hold" rating with a composite score of 57.9/100, ranked #1040 out of 4446 stocks. Key factor scores: Quality 76/100, Value 62/100, Momentum 46/100. This is quantitative analysis only — not investment advice.
Avery Dennison Corp (AVY) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Avery Dennison Corp Do?
Avery Dennison Corporation manufactures and markets pressure-sensitive materials and products in the United States, Europe, Asia, Latin America, and internationally. The company's Label and Graphic Materials segment offers pressure-sensitive label and packaging materials; and graphics and reflective products under the Fasson, JAC, Avery Dennison, and Mactac brands, as well as durable cast and reflective films. It provides its products to the home and personal care, beer and beverage, durables, pharmaceutical, wine and spirits, and food market segments; architectural, commercial sign, digital printing, and other related market segments; construction, automotive, and fleet transportation market segments, as well as traffic and safety applications; and sign shops, commercial printers, and designers. The company's Retail Branding and Information Solutions segment designs, manufactures, and sells brand embellishments, graphic tickets, tags and labels, and sustainable packaging solutions, as well as offers creative services; radio-frequency identification products; visibility and loss prevention solutions; price ticketing and marking solutions; care, content, and country of origin compliance solutions; and brand protection and security solutions. It serves retailers, brand owners, apparel manufacturers, distributors, and industrial customers. The company's Industrial and Healthcare Materials segment offers tapes; pressure-sensitive adhesive based materials and converted products; medical fasteners; and performance polymers under the Fasson, Avery Dennison, and Yongle brands. It serves automotive, electronics, building and construction, general industrial, personal care, and medical markets. The company was formerly known as Avery International Corporation and changed its name to Avery Dennison Corporation in 1990. Avery Dennison Corporation was founded in 1935 and is headquartered in Glendale, California. Avery Dennison Corp (AVY) is classified as a large-cap stock in the Industrials sector, specifically within the Business Supplies industry. The company is led by CEO Mitchell R. Butier and employs approximately 36,000 people, headquartered in Glendale, Ohio. With a market capitalization of $13.3B, AVY is one of the prominent companies in the Industrials sector.
Avery Dennison Corp (AVY) Stock Rating — Hold (April 2026)
As of April 2026, Avery Dennison Corp receives a Hold rating with a composite score of 57.9/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.AVY ranks #1,040 out of 4,446 stocks in our coverage universe. Within the Industrials sector, Avery Dennison Corp ranks #175 of 752 stocks, placing it in the top quartile of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
AVY Stock Price and 52-Week Range
Avery Dennison Corp (AVY) currently trades at $171.16. The stock lost $2.65 (1.5%) in the most recent trading session. The 52-week high for AVY is $199.54, which means the stock is currently trading -14.2% from its annual peak. The 52-week low is $156.23, putting the stock 9.6% above its annual trough. Recent trading volume was 634K shares, suggesting relatively thin trading activity.
Is AVY Overvalued or Undervalued? — Valuation Analysis
Avery Dennison Corp (AVY) carries a value factor score of 62/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 19.17x, compared to the Industrials sector average of 28.33x — a discount of 32%. The price-to-book ratio stands at 6.01x, versus the sector average of 2.23x. The price-to-sales ratio is 1.54x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, AVY trades at 17.44x EV/EBITDA, versus 5.70x for the sector.
Overall, AVY's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Avery Dennison Corp Profitability — ROE, Margins, and Quality Score
Avery Dennison Corp (AVY) earns a quality factor score of 76/100, reflecting elite profitability and capital efficiency that places it among the highest-quality businesses in the market. The return on equity (ROE) is 31.4%, compared to the Industrials sector average of 8.9%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 8.0% versus the sector average of 3.3%.
On a margin basis, Avery Dennison Corp reports gross margins of 28.8%, compared to 35.8% for the sector. The operating margin is 10.9% (sector: 6.2%). Net profit margin stands at 8.0%, versus 3.9% for the average Industrials stock. Revenue growth is running at -0.9% on a trailing basis, compared to 6.4% for the sector. These metrics collectively paint a picture of a highly profitable business with durable competitive advantages.
AVY Debt, Balance Sheet, and Financial Health
Avery Dennison Corp has a debt-to-equity ratio of 143.0%, compared to the Industrials sector average of 70.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.13x, suggesting adequate working capital coverage. Total debt on the balance sheet is $3.20B. Cash and equivalents stand at $536M.
AVY has a beta of 0.61, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Avery Dennison Corp is 85/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
Avery Dennison Corp Revenue and Earnings History — Quarterly Trend
In TTM 2026, Avery Dennison Corp reported revenue of $8.77B and earnings per share (EPS) of $8.81. Net income for the quarter was $703M. Gross margin was 28.8%. Operating income came in at $957M.
In FY 2025, Avery Dennison Corp reported revenue of $8.86B and earnings per share (EPS) of $8.81. Net income for the quarter was $688M. Gross margin was 28.7%. Revenue grew 1.1% year-over-year compared to FY 2024. Operating income came in at $925M.
In Q3 2025, Avery Dennison Corp reported revenue of $2.22B and earnings per share (EPS) of $2.13. Net income for the quarter was $166M. Gross margin was 28.7%. Revenue grew 1.5% year-over-year compared to Q3 2024. Operating income came in at $235M.
In Q2 2025, Avery Dennison Corp reported revenue of $2.22B and earnings per share (EPS) of $2.42. Net income for the quarter was $189M. Gross margin was 28.8%. Revenue grew -0.7% year-over-year compared to Q2 2024. Operating income came in at $256M.
Over the past 8 quarters, Avery Dennison Corp has demonstrated a growth trajectory, with revenue expanding from $2.24B to $8.77B. Investors analyzing AVY stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
AVY Dividend Yield and Income Analysis
Avery Dennison Corp (AVY) does not currently pay a dividend. This is common among growth-oriented companies in the Business Supplies industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Industrials dividend stocks may want to explore other Industrials stocks or use the stock screener to filter by dividend yield.
AVY Momentum and Technical Analysis Profile
Avery Dennison Corp (AVY) has a momentum factor score of 46/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 34/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 24/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
AVY vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing AVY against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full AVY vs S&P 500 (SPY) comparison to assess how Avery Dennison Corp stacks up against the broader market across all factor dimensions.
AVY Next Earnings Date
No upcoming earnings date has been announced for Avery Dennison Corp (AVY) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy AVY? — Investment Thesis Summary
Avery Dennison Corp presents a balanced picture with arguments on both sides. The quality score of 76/100 indicates above-average profitability and business fundamentals. The value score of 62/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 85/100) reduces downside risk.
In summary, Avery Dennison Corp (AVY) earns a Hold rating with a composite score of 57.9/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on AVY stock.
We'll email you when stocks you follow change their composite rating.
Institutional Research Dossier
Avery Dennison Corp (AVY) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Avery Dennison (AVY). While the company exhibits strong profitability and returns, as evidenced by its high Quality score and superior ROE compared to the industrials sector, concerns surrounding its growth prospects and capital allocation efficiency temper our enthusiasm. The current valuation appears fair, but not compelling enough to warrant an upgrade, given the headwinds in revenue growth and the company's relatively high debt levels.
Avery Dennison's robust operating and net margins, significantly exceeding sector averages, highlight its operational efficiency. However, its negative revenue growth and relatively weak free cash flow generation raise questions about its ability to sustain its current performance and invest in future growth opportunities. The Hold rating reflects a balanced view of the company's strengths and weaknesses, suggesting that investors should await clearer signs of improved growth and capital allocation before considering a more bullish stance.
Business Strategy & Overview
Avery Dennison operates through three primary segments: Label and Graphic Materials (LGM), Retail Branding and Information Solutions (RBIS), and Industrial and Healthcare Materials (IHM). The LGM segment, the largest revenue contributor, focuses on pressure-sensitive materials for labels and packaging, serving diverse end markets from home and personal care to food and beverage. RBIS provides branding and information solutions to retailers and apparel manufacturers, including tags, labels, and RFID technology. IHM offers tapes, adhesives, and medical fasteners for automotive, electronics, and healthcare industries. This diversification provides some resilience against cyclical downturns in specific sectors.
The company's strategic positioning centers on innovation and sustainability. Avery Dennison invests in research and development to create new materials and technologies that meet evolving customer needs and regulatory requirements. Its focus on sustainability is evident in its development of eco-friendly labeling and packaging solutions, aligning with growing consumer and corporate demand for sustainable products. This emphasis on sustainability not only enhances its brand image but also creates opportunities for differentiation and market leadership.
Avery Dennison's business model relies on strong relationships with its customers and suppliers. The company works closely with its customers to understand their specific needs and develop customized solutions. It also maintains a global supply chain to ensure the availability of raw materials and efficient production. This collaborative approach allows Avery Dennison to deliver high-quality products and services while managing costs effectively.
The company's growth strategy involves expanding its presence in emerging markets and leveraging its technological capabilities to capture new opportunities. Avery Dennison is investing in its operations in Asia and Latin America to capitalize on the growing demand for labeling and packaging solutions in these regions. It is also exploring new applications for its RFID technology in areas such as inventory management and supply chain optimization. These initiatives are aimed at driving long-term growth and enhancing shareholder value.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-0.9%
Sector: 6.4%
-114% VS SCTR
Economic Moat Analysis
Avery Dennison possesses a Narrow economic moat, primarily derived from intangible assets and switching costs. The company's well-established brands, such as Fasson and Avery Dennison, enjoy strong recognition and reputation in the labeling and packaging industry. These brands represent a valuable intangible asset that provides a competitive advantage over smaller, less-known players. Customers often prefer to work with trusted brands that have a proven track record of quality and reliability.
Switching costs also contribute to Avery Dennison's moat. For many of its customers, changing labeling and packaging suppliers can be a complex and time-consuming process. It requires re-engineering production lines, retraining employees, and validating new materials. These costs, both direct and indirect, create a barrier to entry for competitors and make it more difficult for customers to switch to alternative suppliers. This is particularly true for customers in highly regulated industries, such as pharmaceuticals and healthcare, where compliance requirements add to the complexity of switching.
However, the moat is not wide due to the commoditized nature of some of its products and the presence of numerous competitors in the labeling and packaging market. While Avery Dennison has a strong market position, it faces competition from both large multinational corporations and smaller regional players. The company's ability to maintain its competitive advantage depends on its continued investment in innovation and its ability to differentiate its products and services.
The increasing focus on sustainability and eco-friendly packaging could potentially widen Avery Dennison's moat. As demand for sustainable solutions grows, the company's expertise in this area could become a more significant competitive advantage. However, other companies are also investing in sustainable packaging, so Avery Dennison needs to stay ahead of the curve to maintain its leadership position. The company's ability to develop and commercialize innovative sustainable solutions will be crucial in determining the future strength of its moat.
Financial Health & Profitability
Avery Dennison demonstrates a mixed financial profile. The company's profitability metrics are strong, with an ROE of 31.4% significantly exceeding the sector average of 9.2%. Operating and net margins of 10.9% and 8.0%, respectively, also outperform the industrials sector averages of 6.2% and 3.7%. This indicates efficient operations and effective cost management. However, revenue growth is a concern, with a TTM revenue decline of 0.9% compared to the sector's 6.6% growth. This suggests potential challenges in market share gains or pricing power.
The company's balance sheet reveals a relatively high level of debt. The debt-to-equity ratio of 143.00 is significantly higher than the sector average of 70.00. While the current ratio of 1.13 indicates sufficient liquidity to cover short-term obligations, the high debt level could constrain the company's financial flexibility and increase its vulnerability to economic downturns. The company's ability to manage its debt effectively will be crucial in maintaining its financial stability.
Free cash flow generation is also a point of concern. The TTM free cash flow of $83.39 million is relatively low compared to the company's market capitalization and revenue. This could limit the company's ability to invest in growth opportunities, return capital to shareholders, or reduce its debt burden. Monitoring the company's free cash flow generation will be important in assessing its long-term financial health.
Analyzing the quarterly financial history reveals some trends. Revenue has been relatively stable over the past few quarters, but net income has fluctuated. Gross margins have remained consistently around 28-29%, indicating stable cost management. Operating margins have also been relatively stable, suggesting consistent operational efficiency. However, the lack of significant revenue growth and the relatively low free cash flow remain key areas of concern. The company needs to demonstrate improved revenue growth and free cash flow generation to justify a more bullish outlook.
Valuation Assessment
Avery Dennison's valuation presents a mixed picture. The company's P/E ratio of 18.3x is lower than the industrials sector average of 27.7x, suggesting that the stock may be undervalued relative to its peers. Similarly, its EV/EBITDA ratio of 4.2x is also lower than the sector average of 5.7x, further supporting the argument that the stock may be undervalued. However, these valuation metrics need to be considered in the context of the company's growth prospects and financial health.
Given the company's negative revenue growth and relatively low free cash flow, the lower valuation multiples may be justified. Investors may be discounting the stock due to concerns about its ability to generate future growth and returns. The company needs to demonstrate improved revenue growth and free cash flow generation to command a higher valuation.
A discounted cash flow (DCF) analysis would provide a more comprehensive assessment of the company's intrinsic value. However, without detailed projections of future cash flows, it is difficult to determine whether the stock is truly undervalued. A DCF analysis would need to consider the company's growth rate, discount rate, and terminal value to arrive at a fair value estimate.
Overall, the current valuation appears fair, but not compelling. The stock may be slightly undervalued relative to its peers, but the lack of significant growth and the relatively low free cash flow limit the upside potential. Investors should await clearer signs of improved growth and capital allocation before considering a more bullish stance. The Hold rating reflects this balanced view of the company's valuation.
Risk & Uncertainty
Avery Dennison faces several risks that could impact its financial performance and valuation. One significant risk is the cyclical nature of the industries it serves. Demand for labeling and packaging materials is closely tied to economic growth, and a slowdown in the global economy could lead to a decline in revenue. The company's exposure to industries such as retail, automotive, and construction makes it vulnerable to economic downturns in these sectors.
Another risk is the increasing competition in the labeling and packaging market. The company faces competition from both large multinational corporations and smaller regional players. The commoditized nature of some of its products makes it difficult to differentiate itself from competitors and maintain pricing power. The company's ability to innovate and develop new products and services will be crucial in maintaining its competitive advantage.
The company's high debt level also poses a risk. The debt-to-equity ratio of 143.00 is significantly higher than the sector average, which could constrain the company's financial flexibility and increase its vulnerability to economic downturns. Rising interest rates could also increase the company's borrowing costs and reduce its profitability. The company needs to manage its debt effectively to mitigate this risk.
Raw material price volatility is another concern. The company's profitability is affected by fluctuations in the prices of raw materials such as paper, adhesives, and polymers. Rising raw material prices could squeeze the company's margins and reduce its earnings. The company's ability to pass on these cost increases to its customers will be important in maintaining its profitability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWAvery Dennison's strong profitability and returns, as evidenced by its high ROE and superior margins, demonstrate its operational efficiency and competitive advantage.
BULL VIEWThe company's focus on sustainability and innovation positions it well to capitalize on the growing demand for eco-friendly labeling and packaging solutions, driving future growth.
BULL VIEWAvery Dennison's diversified business model and global presence provide resilience against cyclical downturns in specific sectors and regions.
The Bear Case
BEAR VIEWAvery Dennison's negative revenue growth and relatively weak free cash flow generation raise concerns about its ability to sustain its current performance and invest in future growth opportunities.
BEAR VIEWThe company's high debt level could constrain its financial flexibility and increase its vulnerability to economic downturns, limiting its ability to pursue strategic initiatives.
BEAR VIEWThe commoditized nature of some of Avery Dennison's products and the increasing competition in the labeling and packaging market could erode its pricing power and profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score AVY and 4,400+ other equities.
Avery Dennison Corp exhibits a 138% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
8.0%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
28.8%
Sector: 35.8%
Operating Margin
Core business profitability
10.9%
Sector: 6.2%
Net Margin
Bottom-line profitability
8.0%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Even if they go mostly unnoticed, industrial businesses are the backbone of our country. They are also bound to benefit from a friendlier regulatory environment with the Trump administration, and this excitement has led to a six-month gain of 15.5% for the sector - higher than the S&P 500’s 3.5% return.
