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.
-6.27%
-0.76
25.17%
S&P 500
13.68%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.90%
EBIT Growth (5y)
4.20%
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
30
Industry P/E
Price to Book Value
9.06
EV to EBIT
22.50
EV to EBITDA
18.41
EV to Capital Employed
4.13
EV to Sales
2.69
PEG Ratio
NA
Dividend Yield
1.46%
ROCE (Latest)
18.36%
ROE (Latest)
30.72%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 5.95
RAW MATERIAL COST(Y)
Fallen by -2.9% (YoY
CASH AND EQV(HY)
Highest at USD 784.5 MM
NET SALES(Q)
Highest at USD 2,271.2 MM
NET PROFIT(Q)
Highest at USD 193.07 MM
-8What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 756.72
DEBT-EQUITY RATIO
(HY)
Highest at 157.45 %
INTEREST(Q)
Highest at USD 37.2 MM
OPERATING PROFIT(Q)
Lowest at USD 281.5 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 12.39 %
Here's what is working for Avery Dennison Corp.
Dividend per share
Highest at USD 5.95 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 2,271.2 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Net Profit
Highest at USD 193.07 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Cash and Eqv
Highest at USD 784.5 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -2.9% (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.
Interest
At USD 37.2 MM has Grown at 11.71%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 756.72
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at USD 37.2 MM
in the last five periods and Increased by 11.71% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Profit
Lowest at USD 281.5 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at 12.39 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Debt-Equity Ratio
Highest at 157.45 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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