ScoreWhy is Avery Dennison Corp. ?
1
High Management Efficiency with a high ROCE of 21.65%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 11.41
3
Poor long term growth as Operating profit has grown by an annual rate 6.12% of over the last 5 years
4
Flat results in Jun 25
- INTEREST COVERAGE RATIO(Q) Lowest at 923.24
- OPERATING PROFIT MARGIN(Q) Lowest at 14.14 %
- DEBTORS TURNOVER RATIO(HY) Lowest at 5.52 times
5
With ROCE of 20.45%, it has a fair valuation with a 4.58 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -8.05%, its profits have risen by 10.3% ; the PEG ratio of the company is 2.4
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -8.05% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Avery Dennison Corp. should be less than 10%
- Overall Portfolio exposure to Packaging should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Packaging)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Avery Dennison Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Avery Dennison Corp.
4.22%
-0.76
25.17%
S&P 500
22.36%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.90%
EBIT Growth (5y)
5.39%
EBIT to Interest (avg)
11.41
Debt to EBITDA (avg)
2.18
Net Debt to Equity (avg)
1.48
Sales to Capital Employed (avg)
1.54
Tax Ratio
26.14%
Dividend Payout Ratio
42.11%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
21.65%
ROE (avg)
35.72%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
27
Industry P/E
Price to Book Value
8.84
EV to EBIT
20.81
EV to EBITDA
16.18
EV to Capital Employed
4.05
EV to Sales
2.64
PEG Ratio
7.08
Dividend Yield
1.50%
ROCE (Latest)
19.45%
ROE (Latest)
32.89%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 1,233.6 MM
DIVIDEND PER SHARE(HY)
Highest at USD 5.38
INTEREST COVERAGE RATIO(Q)
Highest at 1,171.59
RAW MATERIAL COST(Y)
Fallen by -3.02% (YoY
NET SALES(Q)
Highest at USD 2,462.9 MM
PRE-TAX PROFIT(Q)
Highest at USD 309.3 MM
EPS(Q)
Highest at USD 2.67
-1What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.38 times
Here's what is working for Avery Dennison Corp.
Interest Coverage Ratio
Highest at 1,171.59
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Dividend per share
Highest at USD 5.38 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Operating Cash Flow
Highest at USD 1,233.6 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 2,462.9 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Pre-Tax Profit
Highest at USD 309.3 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
EPS
Highest at USD 2.67
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Raw Material Cost
Fallen by -3.02% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Avery Dennison Corp.
Debtors Turnover Ratio
Lowest at 5.38 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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