Avery Dennison Corporation [NYSE:AVY]: Analyst Rating and Earnings
Equities traders often pay a significant amount of attention to what top market analysts have to say about a potential stock investment. In regards to Avery Dennison Corporation [AVY], the most recent average analyst recommendation we can read comes from the fiscal quarter ending in December. On average, stock market experts give AVY an Outperform rating. Its stock price has been found in the range of 47.71 to 161.48. This is compared to its latest closing price of $93.62.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Avery Dennison Corporation [AVY] is sitting at 1.82. This is compared to 1 month ago, when its average rating was 1.82.
For the quarter ending in Sep-18 Avery Dennison Corporation [AVY] generated $1.76 billion in sales. That’s 0.59% higher than the average estimate of $1.75 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes on this company’s next financial results, which are scheduled to be made public on Wed 30 Jan (In 16 Days).
Fundamental Analysis of Avery Dennison Corporation [AVY]
Now let’s turn to look at profitability: with a current Operating Margin for Avery Dennison Corporation [AVY] sitting at +11.08 and its Gross Margin at +27.41, this company’s Net Margin is now 4.40%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 30.24, and its Return on Invested Capital has reached 17.30%. Its Return on Equity is 28.58, and its Return on Assets is 5.91. These metrics all suggest that Avery Dennison Corporation is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Avery Dennison Corporation [AVY] has generated a Total Debt to Total Equity ratio of 151.19. Similarly, its Total Debt to Total Capital is 60.19, while its Total Debt to Total Assets stands at 30.79. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 125.82, and its Long-Term Debt to Total Capital is 50.09. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 10.07 and its Total Debt to EBITDA Value is 1.74. The Enterprise Value to Sales for this firm is now 1.29, and its Total Debt to Enterprise Value stands at 0.14. Avery Dennison Corporation [AVY] has a Price to Book Ratio of 9.66, a Price to Cash Flow Ratio of 15.92 and P/E Ratio of 27.16. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Avery Dennison Corporation [AVY] earns $220,460 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.90 and its Total Asset Turnover is 1.39. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.83 and its Current Ratio is 1.13. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Let’s now turn our attention to trading performance: Avery Dennison Corporation [AVY] has 87.30M shares outstanding, amounting to a total market cap of $8.26B. Its stock price has been found in the range of 82.89 to 123.67. At its current price, it has moved by -23.50% from its 52-week high, and it has moved 14.14% from its 52-week low.
This stock’s Beta value is currently 1.32, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 62.16. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Avery Dennison Corporation [AVY] a Reliable Buy?
Shares of Avery Dennison Corporation [AVY], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.