Last Updated: 08 Nov 2024
Executive Summary
Avery Dennison Corp (AVY) is a leading manufacturer of pressure-sensitive adhesive materials, apparel branding labels and tags, RFID inlays, and specialty medical products. The company has a strong financial position with a market capitalization of $16.61 billion, EBITDA of $1.42 billion, and EPS of $8.23. AVY has a dividend yield of 0.017% and a trailing PE ratio of 24.8. The stock is currently trading at $205.45, which is below its 52-week high of $232.54.
Company Overview
Avery Dennison is a multinational company headquartered in Glendale, California. The company was founded in 1935 and has grown to become a global leader in the manufacture and distribution of pressure-sensitive adhesive materials. AVY's products are used in a wide range of applications, including packaging, labeling, and medical devices. The company has a strong customer base and a global distribution network.
Fundamental Analysis
Avery Dennison has a strong financial position. The company has a healthy balance sheet with low debt levels and a strong cash position. AVY's profitability metrics are also strong, with a gross profit margin of 0.0776 and an operating margin of 0.128. The company's return on assets and return on equity are also above average.
AVY's revenue growth has been modest in recent years, but the company has been able to maintain its profitability. The company's earnings per share have grown at a rate of 3.16% over the past five years. AVY's dividend yield is low, but the company has a history of increasing its dividend payments.
Technical Analysis
AVY's stock price has been in a downtrend since early 2023. The stock is currently trading below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is also below 50, which indicates that the stock is oversold.
Short Term Outlook
The short-term outlook for AVY is mixed. The stock is currently trading below its key moving averages and the RSI is oversold. This suggests that the stock could continue to decline in the short term. However, AVY's financial position is strong and the company has a history of increasing its dividend payments. This suggests that the stock could rebound in the long term.
Long Term Outlook
The long-term outlook for AVY is positive. The company has a strong market position, a global distribution network, and a history of innovation. AVY is also well-positioned to benefit from the growing demand for pressure-sensitive adhesive materials. The company's stock is currently trading at a discount to its fair value, which makes it an attractive long-term investment.
Analyst Recommendations
The majority of analysts have a buy rating on AVY. The average analyst target price is $236.09, which represents a potential upside of 15% from the current price.
