Avery Dennison Corporation

ticker: AVY step: 01 generated: 2026-05-13 source: quick-research

Avery Dennison Corporation (AVY) — Business Overview

Business Description

Avery Dennison is a global materials science and digital identification solutions company that manufactures pressure-sensitive labeling materials, RFID/intelligent labels, and specialty packaging. Operating in 50+ countries with ~35,000 employees, the company generated ~$8.8B in revenue in FY2024. AVY is the world leader in pressure-sensitive materials and is expanding rapidly into intelligent labels powered by RFID and IoT technology.

Revenue Model

Revenue is split between two segments: the Materials Group (~69% of sales) — which sells pressure-sensitive materials (paper, film, adhesive combinations) used by converters to produce labels — and the Solutions Group (~31%) — which includes high-margin intelligent labels (RFID), brand and embellishment solutions, and graphics/reflectives. Materials is largely consumable and recurring; Solutions is growing faster with software-like economics in RFID deployment. High-value categories (intelligent labels, Embelex, specialty materials) now represent ~50% of the portfolio.

Products & Services

• Pressure-sensitive label materials — rolls of paper and film with adhesive backing, sold to label converters
• Intelligent Labels (RFID) — embedded RFID inlays for apparel, retail, logistics, food, and pharmaceuticals
• Embelex — premium brand embellishment (hot-stamp foil, holography, digital print)
• Graphics & Reflectives — vehicle wraps, traffic/safety signage materials
• Printer solutions — label printers and consumables for enterprise customers

Customer Base & Go-to-Market

Customers include consumer goods companies (apparel, food, beverage), retailers (for RFID-enabled inventory management), logistics companies, and automotive OEMs. The Materials Group sells largely through converters (B2B2B model); Solutions Group sells direct to brand owners and retailers. Key wins include Kroger deploying RFID-embedded labels across baked goods lines (2024).

Competitive Position

Avery Dennison is the #1 global pressure-sensitive materials manufacturer, with CCL Industries and UPM Raflatac as the closest competitors. In intelligent labels, AVY competes with Checkpoint Systems and Zebra Technologies. The moat in Materials comes from manufacturing scale, adhesive chemistry R&D, and global customer relationships; in intelligent labels the moat is RFID inlay manufacturing expertise and software integration capabilities.

Key Facts

• Founded: 1935 (Kum-Kleen Products, later Avery)
• Headquarters: Glendale, California
• Employees: ~35,000
• Exchange: NYSE
• Sector / Industry: Materials / Containers & Packaging
• Market Cap: ~$14B (at ~$175/share, ~80M shares)

ticker: AVY step: 04 generated: 2026-05-13 source: quick-research

Avery Dennison Corporation (AVY) — Financial Snapshot

Income Statement Summary

FY2025 adj. EPS guidance: $9.80–$10.20 (+5–9% YoY)

Cash Flow & Balance Sheet (FY2024)

Key Ratios (approximate)

• P/E: ~19x (adj.) | EV/EBITDA: ~14x | FCF Yield: ~5%
• Revenue Growth (FY2024): +4.7% | FCF Margin: ~8%

Growth Profile

Avery Dennison has returned to solid growth after a FY2023 dip caused by downstream inventory destocking across apparel, food, and consumer goods. FY2024 saw 4.7% top-line growth and ~27% net income growth, driven by Materials Group recovery and accelerating Intelligent Labels. The Solutions Group's RFID business grew 15%+ in 2025, now representing ~10% of total revenue. The company has raised its dividend for 15 consecutive years with a 53% five-year dividend growth rate.

Forward Estimates

• FY2025 adj. EPS: $9.80–$10.20
• Intelligent Labels: targeting 15%+ growth in 2025
• High-value categories approaching 50% of portfolio mix
• Analyst avg. price target: ~$208 (vs. ~$175 current)