Avery Dennison Corporation AVY
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Full analysis: 29 Jul 2026
Latest news check: 31 Jul 2026
General analysis — not personal advice.
HOLD
7/10
Confidence
Existing position can be maintained at current valuation.
Stable profitability, RFID growth and margin expansion are balanced by near-term inventory unwind and modest organic growth, supporting the current HOLD stance.
Market sentiment
7/10
→
Trend: Stable
The market reacted positively to the earnings beat but has tempered expectations for Q3 due to temporary inventory effects.
Price context
The stock trades at 174.82 USD after the post-report rally and sits in the upper half of its 52-week range. The level reflects that the market is already pricing in operational strength despite the expected sequential decline in Q3.
Risk assessment
4/10
Dilution:
Low
Ongoing buybacks and stable share count
Jurisdiction:
Low
Global operations focused on developed markets
Execution:
Low
Strong track record and experienced management
Recent changes
- Report showed stronger than expected results driven by RFID growth and margin expansion.
About the company
Avery Dennison is a global leader in material science and digital identification solutions. The company produces pressure-sensitive labels, RFID tags and functional materials for retail, logistics, food and industrial applications. Operations are split between Materials Group and Solutions Group with strong growth in Intelligent Labels.
Sector:
Labels and RFID solutions
Type:
Industrial
Next report
28 Oct 2026
Q3
Catalysts
Q4 2026
RFID expansion
Medium
Horizon:
Bull case
RFID rollout in food and logistics together with margin gains provide structural growth in the second half.
Bear case
Inventory destocking after the Q2 pre-buy is expected to reduce earnings sequentially by roughly 0.50 USD per share in Q3.
Sensitivity analysis
| Factor | If it weakens | If it strengthens |
|---|---|---|
| RFID growth | Slower adoption than expected → lower margin expansion and weaker guidance. | Faster adoption → higher margins and stronger Solutions Group growth. |
| Raw material costs | Higher input costs → squeezed gross margins if price increases do not pass through. | Lower raw material prices → improved margins and stronger cash flow. |
We monitor these factors. Follow the company to get email when any of them hit.
Signal rationale (informational)
Stable profitability, RFID growth and margin expansion are balanced by near-term inventory unwind and modest organic growth, supporting the current HOLD stance.
Recent news
- Q2 report was released on 30 July with adjusted EPS of 2.89 USD and revenue of 2.46 billion USD, both beating expectations. The stock rose about 6 % on the release but management flagged inventory unwind that will weigh on Q3.
Key figures
Revenue
Q2 2026
USD 2.5B
Revenue TTM
TTM
USD 9.0B
EBITDA
Q1 2026
USD 363M
Net income
Q1 2026
USD 168M
Cash
Q1 2026
USD 255M
Total debt
Q1 2026
USD 3,790M
Gross margin
Q1 2026
28.9%
Shares outstanding
Q1 2026
76.6M
EPS
Q1 2026
USD 2.19
Price & valuation
Last close
USD 180
Market Cap
USD 13.8B
1 week
+2.4 %
3 months
+13.2 %
12 months
+2.9 %
From 52w high
-9.0 %
From 52w low
+17.5 %
Exchange
NYSE
Type
Industrials
Sector
Labels and RFID solutions
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Firelda provides general information and analysis, not personal investment advice. Content does not consider your financial situation or goals. Investments can rise and fall in value. Always do your own research.