Upside case
Bull case
$255+60.5%
AVY would need investors to value it at roughly 25x earnings — about 10x more generous than today's 16x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated Jun 18, 2026
Avery Dennison Corporation (AVY) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
18
analysts
13 bullish · 0 bearish · 18 covering AVY
Strong Buy
0
Buy
13
Hold
5
Sell
0
Strong Sell
0
Consensus Target
$207
+30.3% vs today
Scenario Range
$122 – $255
Model bear to bull value window
Coverage
18
Published analyst ratings
Valuation Context
15.8x
Forward P/E · Market cap $12.2B
AVY price targets
Three scenarios for where AVY stock could go
Current
~$159
Confidence
50 / 100
Updated
Jun 18, 2026
Where we are now
Current · $159
Bear
$122
Base
$193
Bull
$255
Market caseClosest to today
Base case
$193+21.8%
At 19x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$122-23.3%
If investor confidence fades or macro conditions deteriorate, a 4x multiple contraction could push AVY down roughly 23% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Avery Dennison Corporation
AVY · NYSEIndustrialsBusiness Equipment & SuppliesDecember year-end
Avery Dennison is a global materials science company specializing in pressure-sensitive labeling and functional materials. It generates revenue primarily through its Label and Graphic Materials segment (~70% of sales) and Retail Branding & Information Solutions segment (~30%), selling adhesive materials, tags, labels, and RFID solutions to consumer goods, retail, and industrial markets. The company's competitive advantage lies in its extensive global manufacturing footprint, deep customer relationships across diverse industries, and proprietary adhesive and materials science technology.
Market Cap
$12.2B
Revenue TTM
$9.0B
Net Income TTM
$690M
Net Margin
7.7%
AVY Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
58%Exceptional
12 quarters tracked
Revenue Beat Rate
33%Exceptional
vs consensus estimates
Avg EPS Surprise
+1.3%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$2.42/$2.39
Revenue
$2.2B/$2.2B
Q4 2025
EPS
$2.37/$2.33
Revenue
$2.2B/$2.2B
Q1 2026
EPS
$2.45/$2.40
Revenue
$2.3B/$2.3B
Q2 2026
EPS
$2.47/$2.41
Revenue
$2.3B/$2.3B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $2.42/$2.39 | +1.3% | $2.2B/$2.2B | -1.0% |
| Q4 2025 | $2.37/$2.33 | +1.7% | $2.2B/$2.2B | -0.1% |
| Q1 2026 | $2.45/$2.40 | +2.1% | $2.3B/$2.3B | -0.5% |
| Q2 2026 | $2.47/$2.41 | +2.5% | $2.3B/$2.3B | +1.7% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$9.2B
+2.3% YoY
FY2
$9.4B
+2.3% YoY
EPS Outlook
FY1
$9.82
+9.6% YoY
FY2
$10.66
+8.5% YoY
Trailing FCF (TTM)$873M
FCF Margin: 9.7%
Next Earnings
July 28, 2026
Expected EPS
$2.51
Expected Revenue
$2.3B
AVY beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
AVY Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue -$229M
Product Mix
Latest annual revenue by segment or product family
Retail Branding And Information Solutions Segment
—
-102.0% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
UNITED STATES
31.1%
+5.3% YoY
Tap, hover, or focus a slice to inspect segment detail.
Retail Branding And Information Solutions Segment is the largest disclosed segment at — of FY 2025 revenue, down 102.0% YoY.
UNITED STATES is the largest reported region at 31.1%, up 5.3% YoY.
AVY Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Expensive versus peers
Fair value est. $120 — implies -24.7% from today's price.
Premium to Fair Value
24.7%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
AVY
18.1x
vs
S&P 500
24.4x
26% discount
vs Industrials Trailing P/E
AVY
18.1x
vs
Industrials
25.6x
29% discount
vs AVY 5Y Avg P/E
Today
18.1x
vs
5Y Average
23.8x
24% discount
Forward PE
15.8x
S&P 500
18.8x
-16%
Industrials
21.2x
-25%
5Y Avg
—
—
Trailing PE
18.1x
S&P 500
24.4x
-26%
Industrials
25.6x
-29%
5Y Avg
23.8x
-24%
PEG Ratio
3.09x
S&P 500
1.66x
+86%
Industrials
1.65x
+88%
5Y Avg
—
—
EV/EBITDA
11.7x
S&P 500
15.2x
-23%
Industrials
13.9x
-16%
5Y Avg
14.1x
-17%
Price/FCF
17.1x
S&P 500
20.7x
-17%
Industrials
20.0x
-15%
5Y Avg
23.4x
-27%
Price/Sales
1.4x
S&P 500
3.1x
-55%
Industrials
1.6x
-12%
5Y Avg
1.8x
-24%
Dividend Yield
2.35%
S&P 500
1.91%
+23%
Industrials
1.21%
+93%
5Y Avg
1.65%
+42%
| Metric | AVY | S&P 500 | Industrials | 5Y Avg AVY |
|---|---|---|---|---|
| Forward PE | 15.8x | 18.8x-16% | 21.2x-25% | — |
| Trailing PE | 18.1x | 24.4x-26% | 25.6x-29% | 23.8x-24% |
| PEG Ratio | 3.09x | 1.66x+86% | 1.65x+88% | — |
| EV/EBITDA | 11.7x | 15.2x-23% | 13.9x-16% | 14.1x-17% |
| Price/FCF | 17.1x | 20.7x-17% | 20.0x-15% | 23.4x-27% |
| Price/Sales | 1.4x | 3.1x-55% | 1.6x-12% | 1.8x-24% |
| Dividend Yield | 2.35% | 1.91% | 1.21% | 1.65% |
AVY trades above S&P 500 benchmarks on 1 of 6 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolAVY Financial Health
Verdict
Strong
AVY generates $873M in free cash flow at a 9.7% margin — 15.2% ROIC signals a durable competitive advantage · returns 7.0% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$9.0B
Revenue Growth
TTM vs prior year
+2.9%
Gross Margin
Gross profit as a share of revenue
28.8%
Operating Margin
Operating income divided by revenue
12.4%
Net Margin
Net income divided by revenue
7.7%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$8.96
Free Cash Flow (TTM)
Cash generation after capex
$873M
FCF Margin
FCF as share of revenue — the primary cash quality signal
9.7%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
15.2%
ROA
Return on assets, trailing twelve months
7.8%
Cash & Equivalents
Liquid assets on the balance sheet
$203M
Net Debt
Total debt minus cash
$3.5B
Debt Serviceability
Net debt as a multiple of annual free cash flow
4.0× FCF
~4.0 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
30.8%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
7.0%
Dividend
2.3%
Buyback
4.7%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$572M
Dividend / Share
Annualized trailing dividend per share
$3.73
Payout Ratio
Share of earnings distributed as dividends
41.9%
Shares Outstanding
Declining as buybacks retire shares
77M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageAVY Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 18, 2026
High Risk
Revenue Decline
Avery Dennison reported net sales of $2.1 billion in Q1 2025, down 8% year-over-year, indicating significant revenue contraction.
High Risk
EPS Drop
Adjusted EPS fell 39% year-over-year to $0.57 in Q1 2025, reflecting deteriorating profitability.
Medium
Market Competition
The company operates in a competitive sector with pressure-sensitive materials and labeling solutions, facing challenges in maintaining market share.
Lower
Operational Efficiency
Despite declines, Avery Dennison continues to focus on optimizing labor and supply chain efficiency, which may mitigate some risks.
Medium
Guidance Uncertainty
Earnings guidance for Q2 2026 suggests potential volatility in financial performance, raising investor concerns.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why AVY Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 18, 2026
Strong financial performance
Avery Dennison reported solid first-quarter 2026 results with sales of US$2,298.5 million and net income of US$168.1 million, alongside positive earnings guidance for the second quarter.
Innovation and cash flow strength
The company's innovation capabilities and robust cash flow generation continue to support its growth and stock price appreciation.
Operational efficiency
Avery Dennison has demonstrated operational efficiency, contributing to its consistent dividend increases and growth in high-value categories.
Digital identification solutions
The company's focus on digital identification and materials science solutions enhances branding, supply chain efficiency, and sustainability.
Customizable product offerings
Avery Dennison provides a wide range of customizable labels, stickers, and tags, supported by user-friendly design tools like Avery Design & Print.
Sustainability and circularity
The company's solutions advance sustainability, reduce waste, and promote circularity, aligning with growing industry and consumer demands.
Market leadership in packaging
As a leader in the Packaging & Containers sector, Avery Dennison benefits from its global reach and expertise in high-value categories.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
AVY Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$158.68
52W Range Position
13%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$152.42
+4.1% from the low
52-Week High
$199.54
-20.5% from the high
1 Month
+1.17%
3 Month
-3.64%
YTD
-13.0%
1 Year
-8.8%
3Y CAGR
-1.9%
5Y CAGR
-5.0%
10Y CAGR
+7.6%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
AVY vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
15.8x
vs 12.4x median
+28% above peer median
Revenue Growth
+2.3%
vs +4.7% median
-51% below peer median
Net Margin
7.7%
vs 6.0% median
+29% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
AVY AVY Avery Dennison Corporation | $12.2B | 15.8x | +2.3% | 7.7% | Buy | +30.3% |
CCK CCK Crown Holdings, Inc. | $11.4B | 12.5x | +4.7% | 6.0% | Buy | +18.7% |
SEE SEE Sealed Air Corporation | $6.2B | 12.4x | +0.2% | 9.4% | Buy | +18.4% |
SON SON Sonoco Products Company | $5.0B | 8.7x | +6.9% | 13.8% | Buy | +16.4% |
SLG SLGN Silgan Holdings Inc. | $4.4B | 10.9x | +5.8% | 4.3% | Buy | +21.2% |
GPK GPK Graphic Packaging Holding Company | $3.2B | 12.6x | +1.8% | 3.2% | Buy | +13.9% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
AVY Dividend and Capital Return
AVY returns capital mainly through $572M/year in buybacks (4.7% buyback yield), with a modest 2.35% dividend — combining for 7.0% total shareholder yield. The dividend has grown for 15 consecutive years.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
7.0%
Dividend + buyback return per year
Buyback Yield
4.7%
Dividend Yield
2.35%
Payout Ratio
41.9%
How AVY Splits Its Return
Div 2.35%
Buyback 4.7%
Dividend 2.35%Buybacks 4.7%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$3.73
Growth Streak
Consecutive years of dividend increases
15Y
3Y Div CAGR
8.1%
5Y Div CAGR
9.4%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$572M
Estimated Shares Retired
4M
Approx. Share Reduction
4.7%
Shares Outstanding
Current diluted share count from the screening snapshot
77M
At 4.7%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $1.94 | — | — | — |
| 2025 | $3.70 | +7.2% | 4.1% | 6.1% |
| 2024 | $3.45 | +8.5% | 1.7% | 3.5% |
| 2023 | $3.18 | +8.5% | 0.8% | 2.4% |
| 2022 | $2.93 | +10.2% | 2.6% | 4.2% |
FAQ
7 questionsAVY Investor Questions
Common questions answered from live analyst data and company financials.
01Is Avery Dennison Corporation (AVY) stock a buy or sell in 2026?
Avery Dennison Corporation (AVY) is rated Buy by Wall Street analysts as of 2026. Of 18 analysts covering the stock, 13 rate it Buy or Strong Buy, 5 rate it Hold, and 0 rate it Sell or Strong Sell. The consensus 12-month price target is $207, implying +30.3% from the current price of $159. The bear case scenario is $122 and the bull case is $255.
02What is the AVY stock price target for 2026?
The Wall Street consensus price target for AVY is $207 based on 18 analyst estimates. The high-end target is $224 (+41.2% from today), and the low-end target is $175 (+10.3%). The base case model target is $193.
03Is Avery Dennison Corporation (AVY) stock overvalued in 2026?
AVY trades at 15.8x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals expensive versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Avery Dennison Corporation (AVY) stock in 2026?
The primary risks for AVY in 2026 are: (1) Revenue Decline — Avery Dennison reported net sales of $2. (2) EPS Drop — Adjusted EPS fell 39% year-over-year to $0. (3) Market Competition — The company operates in a competitive sector with pressure-sensitive materials and labeling solutions, facing challenges in maintaining market share. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Avery Dennison Corporation's revenue and earnings forecast?
Analyst consensus estimates AVY will report consensus revenue of $9.2B (+2.3% year-over-year) and EPS of $9.82 (+9.6% year-over-year) for the upcoming fiscal year. The following year, analysts project $9.4B in revenue.
06When does Avery Dennison Corporation (AVY) report its next earnings?
Avery Dennison Corporation is expected to report its next earnings on approximately 2026-07-28. Consensus expects EPS of $2.51 and revenue of $2.3B. Over recent quarters, AVY has beaten EPS estimates 58% of the time.
07How much free cash flow does Avery Dennison Corporation generate?
Avery Dennison Corporation (AVY) generated $873M in free cash flow over the trailing twelve months — a free cash flow margin of 9.7%. AVY returns capital to shareholders through dividends (2.3% yield) and share repurchases ($572M TTM).