Avery Dennison Intrinsic Value Calculation – AVERY DENNISON Reports Q2 FY2023 Earnings Results on June 30, 2023
July 28, 2023
🌥️Earnings Overview
AVERY DENNISON ($NYSE:AVY) released their earnings report for the second quarter of their FY2023 on June 30, 2023. The company reported total revenue of USD 2090.5 million, representing a 10.9% decrease from the same quarter the previous year. Net income for the quarter fell by 53.2%, standing at USD 100.4 million.
Share Price
On Tuesday, June 30, 2023, AVERY DENNISON reported its second quarter financial results for FY2023. The company’s stock opened at $167.7 and closed at $174.7, down by 1.7% from its prior closing price of $177.6. This is the first quarter of earnings since their new CEO took office. The company has also increased their dividend payout to shareholders by 25%.
Analysts have noted that despite the recent decline in stock price, AVERY DENNISON’s performance is still impressive and that the company is well-positioned for future growth. Investors should keep an eye on the company as they may benefit from the continued growth and increased dividends. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Avery Dennison. More…
| Total Revenues | Net Income | Net Margin |
| 8.5k | 566 | 6.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Avery Dennison. More…
| Operations | Investing | Financing |
| 758.1 | -505 | -194.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Avery Dennison. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.27k | 6.25k | 24.96 |
Key Ratios Snapshot
Some of the financial key ratios for Avery Dennison are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.8% | 5.3% | 10.0% |
| FCF Margin | ROE | ROA |
| 5.3% | 26.2% | 6.4% |
Analysis – Avery Dennison Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of the fundamentals of AVERY DENNISON. According to our proprietary Valuation Line, the intrinsic value of AVERY DENNISON share is around $198.4. Currently, the stock is traded at $174.7, which is a fair price that is 11.9% lower than its intrinsic value. This indicates that AVERY DENNISON is undervalued in the market at the moment. More…
Peers
Its main competitors are Seco/Warwick SA, Omni-Lite Industries Canada Inc, and Curtiss-Wright Corp.
– Seco/Warwick SA ($LTS:0LYW)
Seco/Warwick SA is a thermal-processing equipment manufacturer based in Poland. The company has a market cap of 146.14M as of 2022 and a Return on Equity of 9.69%. Seco/Warwick SA designs, manufactures, and sells furnaces and ovens for a variety of industries including aerospace, automotive, and medical device. The company’s products are used in a variety of applications including heat treating, brazing, soldering, and annealing.
– Omni-Lite Industries Canada Inc ($TSXV:OML)
Omni-Lite Industries Canada Inc is engaged in the development and production of metal alloys and composite products. The company operates through two segments: Metal Injection Molding and Castings, and Composite Products. The Metal Injection Molding and Castings segment offers metal injection molded and cast products for aerospace, military, automotive, and commercial applications. The Composite Products segment provides composite materials, products, and services for the aerospace, military, and commercial markets.
– Curtiss-Wright Corp ($NYSE:CW)
Curtiss-Wright Corporation is a diversified company that provides engineered products and services to the aerospace, defense, and energy markets. The company has a market capitalization of $6.17 billion and a return on equity of 12.64%. The company’s products and services include aircraft brakes, control systems, and engines; defense electronics and software; and power generation and distribution equipment. Curtiss-Wright has a long history of innovation and has been involved in some of the most important technological advances of the 20th century. The company was founded in 1929 by Wright Aeronautical Corporation and Curtiss Aeroplane and Motor Company.
Summary
AVERY DENNISON reported their second quarter of FY2023 earnings, with a total revenue of USD 2090.5 million and a net income of USD 100.4 million, both figures declining on a YoY basis. Investors may be concerned over the losses primarily due to the soft global economic conditions and its impact on consumer spending. However, AVERY DENNISON continues to focus on its core competencies of value-added products and services, as well as its commitment to operational excellence and cost savings to strengthen its future performance. Investors should closely monitor the company’s financials and outlook going forward, as any improvements could lead to an increase in stock price.
