| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 68 | 18.6x | 17.8x | Top tier | |
Growth | 46 | 5.8% | 7.1% | Around median | |
Quality | 82 | 14.6% | 4.5% | Top tier | |
Safety | 62 | 2.9x | 2.6x | Around median | |
Capital Return | 60 | 2.26% | 2.12% | Around median | |
Momentum | 41 | -1.4% | 2.9% | Around median | |
Sentiment | 50 | 8 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Avery Dennison operates through a portfolio combining Materials Group and Solutions Group, generating revenue from basic, specialty, and durable label materials, industrial tapes, graphics and reflective solutions, alongside high-value platforms such as Intelligent Labels, Embelex, and Vestcom. Growth depends on higher volumes and price mix, passing raw material inflation on to customers, gaining market share, and expanding the use of smart labels in apparel, general retail, food, and logistics.
In Q2 fiscal 2026, revenue reached $2.5 billion, gross profit was $729.4 million with a gross margin of approximately 29.2%, net income was $204.1 million, and reported earnings per share were $2.67. On an adjusted basis, earnings per share were $2.89, up 19% year over year, while reported sales rose 11% and organic sales increased 8%, with the adjusted earnings before interest, taxes, depreciation, and amortization margin reaching 17.1% after improving by 50 basis points.
Growth varied between the two segments in Q2 fiscal 2026; Materials Group delivered organic growth of approximately 10% and a 17% increase in adjusted earnings before interest, taxes, depreciation, and amortization, compared with 3% organic growth in Solutions Group. The latter segment's margin reached 18.6%, up 150 basis points year over year, supported by productivity, a recovery in apparel volumes, and Embelex growth, while adjusted free cash flow reached $365 million and the ratio of net debt to adjusted earnings before interest, taxes, depreciation, and amortization declined to 2.3 times.
The analyst consensus is "Buy," with an average price target of $200.25, slightly above the 52-week range high of $199.54, while targets range from $175 to $225. The breadth of the targets compared with the 52-week range of $152.42–$199.54 reveals meaningful differences in assessing the impact of Intelligent Labels growth and margin improvement versus the risks of inventory reductions and raw material inflation, and the available data do not provide a valid price-to-earnings ratio to add another valuation anchor.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Revenue reached $2.5 billion versus consensus of $2.3 billion, and adjusted earnings per share reached $2.89 versus expectations of $2.47. Organic sales rose 8% and adjusted earnings per share increased 19%, with the adjusted earnings before interest, taxes, depreciation, and amortization margin improving to 17.1%. Higher volumes, productivity, and pricing contributed to the results, but customers purchasing inventory in advance also added approximately $0.25 to earnings per share.
The company expects organic growth of between 3% and 4% and reported growth of between 5% and 6% in fiscal 2026. Adjusted earnings per share guidance ranges from $10.00 to $10.30, equivalent to approximately 7% growth at the midpoint. The company also targets converting approximately 100% of earnings into free cash flow, with fixed and technology capital expenditures of approximately $260 million.
Management estimated that customers purchasing inventory in advance represented approximately half of the 8% organic growth in Q2 fiscal 2026. This behavior added about $0.25 to earnings per share in that quarter, following a benefit of approximately $0.05 in Q1 fiscal 2026. Management expects approximately $0.25 of the impact to unwind in Q3 fiscal 2026, with a smaller portion remaining for Q4 fiscal 2026.
Automated analysis for informational purposes only — not investment advice.
Platform sales across the company rose by a low-single-digit percentage in Q2 fiscal 2026, while apparel and general retail grew approximately 10%. Management expects to begin commercial deployment in food with the largest U.S. grocer in the second half of fiscal 2026, alongside protein testing at Kroger and expansion with other customers. In contrast, logistics declined by more than 10% due to a difficult comparison with fiscal 2025 share gains and weak demand.
The company experienced mid-single-digit year-over-year raw material inflation during Q2 fiscal 2026 and high-single-digit inflation compared with the previous quarter. It uses strategic pricing, procurement, material reengineering, and productivity to mitigate the impact, which helped Materials Group expand its margin by 20 basis points. However, management expects high-single-digit year-over-year inflation in the second half of fiscal 2026, keeping the balance between price and cost a critical factor.
