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AVY

NEUTRAL
$187.43 Live
Avery Dennison Corporation · NYSE
Target $206.8 (+10.3%)
$156.23 52W Range $196.41

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AI Analysis

AI-powered fundamental assessment

Confidence
72%
The Advanced Deterministic Scorecard shows a Piotroski F-Score of 4/9, indicating stable but not strong financial health, while the absence of an Altman Z-Score prevents a definitive bankruptcy risk assessment. Despite solid profitability metrics like a 30.21% ROE and manageable 41.32% payout ratio, weak earnings growth and a bearish technical trend weigh on momentum. Valuation appears stretched relative to Graham’s defensive benchmark of $75.48, though forward P/E of 17.99 suggests some optimism. Analysts recommend a buy with a $206.80 target, implying 10.3% upside, but recent price performance has been flat over the past year.

Key Strengths

High ROE of 30.21% indicates strong return on shareholder equity
Dividend payout ratio of 41.32% is sustainable with room for future increases
Forward P/E of 17.99 is below sector average of 50.08, suggesting relative value
Operating margin of 12.69% exceeds sector average profit margin of -0.16%
Analyst consensus supports a buy rating with a 10.3% upside to target price

Key Risks

Piotroski F-Score of 4/9 reflects marginal financial health with recent earnings declines
Earnings growth YoY at -5.30% and Q/Q EPS down 2.1% signal weakening profitability
Technical trend score of 10/100 indicates strong bearish momentum near-term
Price-to-book of 6.57 is high, suggesting potential overvaluation relative to book value
Insider sentiment score of 40/100 implies limited confidence from company insiders
AI Fair Value Estimate
Based on comprehensive analysis
$75.48
-59.7% below current price

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