Avery Dennison CorporationAVY
NYSE•Consumer Cyclical•Packaging & Containers
Avery Dennison Corporation operates as a materials science and digital identification solutions company in the North America, Europe, the Middle East, North Africa, Asia, and Latin America. It offers pressure-sensitive label materials, which consist of papers, plastic films, and metal foils; performance tapes products, including mechanical fasteners, which are precision-extruded and injection-molded plastic devices; and other pressure-sensitive adhesive-based materials and converted products under the Fasson, JAC, and Avery Dennison brands. The company provides graphics and reflective products that include films and other products for the architectural, commercial sign, digital printing, and other related market segments; durable cast and reflective films to the construction, automotive, and fleet transportation markets; sign shops, commercial printers, and designers for pressure-sensitive materials; reflective films for traffic and safety applications; and pressure-sensitive vinyl and specialty materials for digital imaging, screen printing, and sign cutting applications under the Avery Dennison and Mactac brand names. In addition, it offers branding solutions, which include brand embellishments, graphic tickets, tags, labels, and sustainable packaging; information solutions, such as item-level RFID, visibility and loss prevention, price ticketing and marking, productivity and media, and brand protection and security solutions; and shelf-edge productivity and media solutions under the Vestcom brand names, as well as care, content, and country of origin compliance solutions. It serves home and personal care, apparel, general retail, e-commerce, logistics, food and grocery, pharmaceuticals, and automotive industries. The company was formerly known as Avery International Corporation and changed its name to Avery Dennison Corporation in 1990. The company was founded in 1935 and is headquartered in Mentor, Ohio.
Avery Dennison Corporation (AVY) reported trailing twelve months revenue of $9.01B as of March 2026, a 2.9% increase year-over-year. Quarterly revenue reached $2.30B, reflecting continued top-line momentum.
Avery Dennison Corporation generated $689.80M in TTM net income, with quarterly EBITDA of $323.10M. The operating margin contracted from 10.4% to 10.3%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (10.3%) and net margin (7.3%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 7.7% a year ago, reflecting increased costs or interest expense.
AVY trades at a P/E of 18.7x (in line with broad market averages) and a P/S of 1.4x. The price-to-book ratio of 5.6x indicates a significant premium over book value.
The company generated $108.20M in free cash flow over the trailing twelve months, a 306.9% increase year-over-year, indicating cash generation ability. The balance sheet shows $8.98B in total assets with $3.19B in long-term debt against $2.30B in stockholders equity for a debt-to-equity ratio of 1.4. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~10.4% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 30.4% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
Revenue shows resilience with 5 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~10.3% — no sign of cost or pricing stress.
FCF covers net income by 1.1x on average — earnings are well-supported by cash generation.
D/E ratio is 1.4 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 4.7% — net buybacks are reducing shares outstanding and boosting per-share value.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation