Avery Dennison Corporation (AVY): A Bull Case Theory 

We came across a bullish thesis on Avery Dennison Corporation on MaxDividends’s Substack. In this article, we will summarize the bulls’ thesis on AVY. Avery Dennison Corporation’s share was trading at $185.38 as of January 29th. AVY’s trailing and forward P/E were 20.98 and 17.51 respectively according to Yahoo Finance.

Avery Dennison Corporation operates as a materials science and digital identification solutions company in the United States, Europe, the Middle East, North Africa, Asia, Latin America, and internationally. AVY sits at the center of global supply chains, powering the labels, films, packaging, and traceability technologies behind everyday consumer interactions—from barcodes on boxes to tagless apparel and intelligent digital labels. Despite its low public profile, the company’s products are embedded in food, logistics, apparel, and e-commerce workflows worldwide.

With a Financial Score of 96/99, Avery Dennison demonstrates exceptional financial strength, reflected in Q3 2025 results that delivered $2.22 billion in sales (up 1.5% year-over-year), adjusted EPS of $2.37, and a 17.5% adjusted EBITDA margin fueled by productivity gains. Its Materials Group serves consumer and logistics customers, while the higher-value Solutions Group continues to scale specialty and digital products, contributing outsized margin expansion. Strong free cash flow supports a growing dividend—now $3.76 annually with a 2.15% yield—extending a 15-year streak of increases and a 53% five-year growth rate, underscoring consistent pricing power and disciplined capital allocation.

Intelligent labels remain a standout growth engine, expected to expand more than 15% in 2025 as adoption accelerates across e-commerce, anti-counterfeiting, and digital engagement. Alongside restructuring initiatives that free up capital, the company is investing in circular packaging, sustainability-driven materials, and next-generation tagless technologies to meet evolving environmental and digital standards.

Q3 performance reinforced this balanced strategy, with nearly $270 million in adjusted free cash flow backing both dividends and reinvestment, while Q4 guidance of $2.35–$2.45 EPS suggests continued operational stability. Founded on the breakthrough invention of the self-adhesive label, Avery Dennison today blends dependable income with structural growth, offering investors a resilient, innovation-led business positioned for long-term expansion.

Previously we covered a bullish thesis on Avery Dennison Corporation (AVY) by Serhio MaxDividends in May 2025, which highlighted the company’s operational efficiency, growth in high-value categories, and consistent dividend increases. The company’s stock price has appreciated approximately by 0.76% since our coverage. The thesis still stands as AVY’s innovation and cash flow strength remain solid. MaxDividends shares a similar view but emphasizes accelerating intelligent-label growth.

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Disclosure: None.