Fact based stock research
Avery Dennison (NYSE:AVY)
US0536111091
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
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Avery Dennison stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 38 (worse than 62% compared with investment alternatives), Avery Dennison (Paper Packaging, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Avery Dennison are low in value (priced high) with a consolidated Value Rank of 15 (worse than 85% of alternatives), and are riskily financed (Safety Rank of 30, which means above-average debt burdens) but show above-average growth (Growth Rank of 91). ...read more
RECOMMENDATION: A Combined Rank of 38, is a hold recommendation based on Avery Dennison's financial characteristics. As the company Avery Dennison shows low value with an Obermatt Value Rank of 15 (85% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 91% of comparable companies (Obermatt Growth Rank is 91). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 30 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Avery Dennison, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | USA |
| Industry | Paper Packaging |
| Index | Employee Focus US, S&P 500 |
| Size class | X-Large |
This stock has achievements: Top 10 Stock.
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Avery Dennison
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 21 |
|
7 |
|
8 |
|
15 |
|
| GROWTH | ||||||||
| GROWTH | 58 |
|
51 |
|
85 |
|
91 |
|
| SAFETY | ||||||||
| SAFETY | 3 |
|
23 |
|
29 |
|
30 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
57 |
|
92 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
23 |
|
60 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 38 (worse than 62% compared with investment alternatives), Avery Dennison (Paper Packaging, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Avery Dennison are low in value (priced high) with a consolidated Value Rank of 15 (worse than 85% of alternatives), and are riskily financed (Safety Rank of 30, which means above-average debt burdens) but show above-average growth (Growth Rank of 91). ...read more
RECOMMENDATION: A Combined Rank of 38, is a hold recommendation based on Avery Dennison's financial characteristics. As the company Avery Dennison shows low value with an Obermatt Value Rank of 15 (85% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 91% of comparable companies (Obermatt Growth Rank is 91). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 30 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Avery Dennison, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 21 |
|
7 |
|
8 |
|
15 |
|
| GROWTH | ||||||||
| GROWTH | 58 |
|
51 |
|
85 |
|
91 |
|
| SAFETY | ||||||||
| SAFETY | 3 |
|
23 |
|
29 |
|
30 |
|
| COMBINED | ||||||||
| COMBINED | 8 |
|
9 |
|
33 |
|
38 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 15 (worse than 85% compared with alternatives), Avery Dennison shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Avery Dennison. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 61% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 31 which means that the stock price compared with what market professionals expect for future profits is higher than 69% of comparable companies, indicating a low value concerning Avery Dennison's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 28 which means that the stock price compared with what market professionals expect for future profit levels is higher than 72% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 16 is also low. Compared with invested capital, the stock price is higher than for 84% of comparable investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 15, is a sell recommendation based on Avery Dennison's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Avery Dennison? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Avery Dennison only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 36 |
|
21 |
|
24 |
|
31 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 38 |
|
14 |
|
14 |
|
28 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 2 |
|
11 |
|
15 |
|
16 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 62 |
|
51 |
|
45 |
|
61 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 21 |
|
7 |
|
8 |
|
15 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 91 (better than 91% compared with alternatives) for 2024, Avery Dennison shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Avery Dennison. Sales Growth has a value of 60 which means that currently professionals expect the company to grow more than 60% of its competitors. Profit Growth with a value of 76 and Capital Growth with a rank of 91 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 47, which means that stock returns have recently been below 53% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 91, is a buy recommendation for growth and momentum investors. Avery Dennison has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for Avery Dennison, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 36 |
|
54 |
|
81 |
|
60 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 14 |
|
57 |
|
40 |
|
76 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
20 |
|
74 |
|
91 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 68 |
|
73 |
|
59 |
|
47 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 58 |
|
51 |
|
85 |
|
91 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 30 (better than 30% compared with alternatives), the company Avery Dennison has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Avery Dennison is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Avery Dennison. Liquidity is at 76, meaning the company generates more profit to service its debt than 76% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 6, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 94% of its competitors. Leverage is also high at a rank of 33, which means that the company has an above-average debt-to-equity ratio. It has more debt than 67% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 30 (worse than 70% compared with alternatives), Avery Dennison has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 40 |
|
34 |
|
34 |
|
33 |
|
| REFINANCING | ||||||||
| REFINANCING | 8 |
|
7 |
|
5 |
|
6 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 39 |
|
76 |
|
74 |
|
76 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 3 |
|
23 |
|
29 |
|
30 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
62 |
|
100 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
18 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
25 |
|
77 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
88 |
|
47 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
57 |
|
92 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Avery Dennison from November 14, 2024.
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