Avery Dennison Corporation (AVY)

FairStock Score: 56/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Avery Dennison as a materials-science and identification business: pressure-sensitive labels, tapes, fasteners, and digital ID products. Its returns are impressive—FairStock calculates ROE of 31.16% and a Piotroski F-score of 8/9—and trailing free cash flow was $1.0B, an 8.0% FCF yield. That cash generation is the mark of a decent industrial franchise, and the 2.39% dividend is a modest plus. But the growth record is less exciting: the Lynch classification is a slow grower, with profit rising 4.4% a year and revenue 4.9% over five years. In fiscal FY2025, the year ended 2025-12-31, revenue was $8.9B and net income was $688.0M, down from $704.9M in fiscal FY2024, the year ended 2024-12-28, even though revenue rose. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $2.5B and net income $204.1M, or $2.67 per diluted share; that was better than fiscal Q2 2025, the quarter ended 2025-06-28, when revenue was $2.2B, net income $189.0M, and EPS $2.41. Still, leverage is meaningful: FairStock's debt-to-equity of 1.59, ROCE of 8.39%, and Altman Z-score of 2.45 leave less room for error. Valuation is the rub. At $170.72, FairStock's P/E is 18.68, P/B 5.58, PEG 2.34, and the Graham Number is $79.33—a negative 115.20% margin of safety. This is not a Graham bargain. It may be a fine business priced for more consistent progress than it has delivered.

In plain English: Avery Dennison makes labels, adhesive materials, tapes, and identification products used in packaging and manufacturing. The business is profitable, generates cash, and has a solid recent record, but growth has been slow and it uses a fair amount of debt. At the recent price, the shares look expensive compared with the company's profits and asset value.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-27) · fiscal Q2 2025 10-Q (period ended 2025-06-28) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-28) · FY2023 10-K (period ended 2023-12-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer