Avery Dennison Corporation (AVY)

Over the past six months, Avery Dennison's stock price has fallen by 4.97%. The company was removed from the Russell 3000E Growth Index due to weakening fundamentals. In Q1 2025, net sales were $2.1 billion, down 0.1% year-over-year, with adjusted EPS of $2.30, up 0.4%. In Q4 2024, adjusted EPS was $2.38, and net sales were $2.2 billion, up 3.6%. The Board of Directors increased the quarterly dividend to $0.94 per share. JP Morgan downgraded Avery Dennison's outlook from Overweight to Neutral, and Jefferies initiated coverage with a Hold recommendation. Avery Dennison opened its first RFID production facility in Pune, India, launched the new Encore automotive window films portfolio, and entered a ten-year virtual power purchase agreement for a solar plant in Spain.

Demand seasonality varies by segment. The Retail Branding and Information Solutions (RBIS) segment experiences significant seasonal demand during the back-to-school period and in advance of spring and holiday shipping periods. Traditional seasonality, including the impact of calendar and lunar new years, can affect its Q1 earnings. Demand for non-durable consumer goods remains strong, while the apparel market has seen imports below demand. Approximately 15% of the company's revenues are tied to logistics and shipping, which are sustained by growth in e-commerce activities.

Avery Dennison Corp. is a global materials science and digital identification solutions company specializing in labeling and functional materials. Its core business involves the design and manufacture of pressure-sensitive materials, labels, merchandise tags, and specialty converting solutions. Major product categories include pressure-sensitive materials and labels, graphic products, performance tapes and other adhesive products, Retail Branding and Information Solutions (RBIS), intelligent labels (RFID), specialty converting solutions, and automotive window films. Avery Dennison's products are integral to branding, packaging, and operational efficiency across diverse markets.

Avery Dennison has a robust global presence, operating in over 50 countries with approximately 35,000 employees worldwide. Approximately 70% of its net sales in 2024 were generated from international operations, with significant contributions from Asia Pacific, North America, and Europe. The company has over 200 manufacturing and distribution facilities across multiple continents.

Avery Dennison has a strong brand reputation, ranking #3 in the Label Materials Market with over 90 years of industry presence. The removal from the Russell 3000E Growth Index could negatively impact its image, while its focus on innovation and sustainability initiatives, such as the Digital Product Passport as a Service (DPPaaS) and the opening of a new RFID production facility in India, positively contributes to its brand image.

Avery Dennison's stock ownership is primarily institutional, with approximately 92.46% of the company's shares held by institutional shareholders, 2.11% by insiders, and 5.43% by retail investors. Major institutional owners include Vanguard Group Inc, BlackRock, Inc., T. Rowe Price Investment Management, Inc., and State Street Corp.