Avery Dennison Corporation (AVY) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Avery Dennison Corporation

Updated on October 31, 2026 · accounts published on October 29, 2026

A consistently profitable business with high returns on capital

Avery Dennison trades at a P/E of 19.7, 17 % below its ten-year median, though 10 % above its sector median over the last 12 months.

• Is Avery Dennison expensive or cheap? Its P/E has been lower only 21 % of the past decade, 17 % below its ten-year median, yet 10 % above the sector median.
• How is the business doing? Revenue grew just 1.1 % over the last 12 months, but the 12.2 % operating margin beats its 2014-2025 average of 11.3 %.
• How strong is the balance sheet, and could it handle a recession? Net debt is 2.7× EBITDA in fiscal 2025, just under the 3.0× sector ceiling, while the dividend has risen 11 years in a row.
• What to expect from the next earnings? Analysts expect EPS of $2.44 when Avery Dennison reports on February 3, 2027; 13 of 18 rate the stock a buy.

Is Avery Dennison expensive or cheap?

Avery Dennison trades at a P/E of 19.7 over the last 12 months, 17 % below its ten-year median of 23.9, and it has traded cheaper only 21 % of the time in the past decade. Against its sector the comparison is less flattering: the median P/E across 209 consumer cyclical companies is 17.9, so the stock carries a 10 % premium. EV/sales of 2.0 in fiscal 2025 sits close to its ten-year average of 1.9, and the free cash flow yield over the last 12 months is 5.7 %. Peter Lynch warned that cyclicals look cheapest near peak earnings, so the decade comparison tells more than a single year.

How is the business doing?

Growth has stalled: revenue rose 1.1 % and EPS 0.6 % over the last 12 months. Profitability holds up better. The operating margin of 12.2 % over the last 12 months sits above the 11.3 % average of fiscal 2014-2025, though slightly below the 12.5 % of fiscal 2025. ROIC of 12.4 % is 3.0 points above the sector median of 9.4 %, and it has stayed above 10 % in each of the last ten fiscal years. In consumer cyclicals, where demand swings with the economy, that consistency is the signal to watch; the five-year average ROIC of 13.0 % clears the 12 % healthy bar only narrowly.

How strong is the balance sheet, and could it handle a recession?

In a cyclical sector the key question is whether a company survives a downturn, so leverage, liquidity and solvency come first. Avery Dennison passes on solvency: its Altman Z of 3.6 over the last 12 months is inside the safe zone above 2.99. Net debt of $47.36 per share equals 26 % of the current price, and at 2.7× EBITDA in fiscal 2025 it sits close to the 3.0× healthy limit. Liquidity is the weak spot, with a current ratio of 1.16 against the 1.5 the sector prefers. The dividend per share has grown for 11 consecutive fiscal years, with a 42 % payout in fiscal 2025 and a 2.1 % yield.

What to expect from the next earnings?

On October 29, 2026, Avery Dennison reported EPS of $2.42, 4.3 % above the $2.32 analysts expected, and it has beaten EPS estimates in 6 of the last 8 quarters. The next report is due on February 3, 2027, with a consensus of $2.44 per share. Estimates are stable: the 2026 EPS consensus barely moved in the last 30 days, from $10.19 to $10.18 across 7 analysts, and the revenue forecast held steady too. Of 18 analysts, 13 recommend buying, 5 holding and none selling. The figure to watch is whether margins hold while revenue grows only about 1 %.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.