FCF Yield
Higher than 86% of Industrials sector peers
Updated 153h ago
Sector Performance
86th percentileAVY
5.5%
Sector Median
1.6%
Sector Avg
-29.6%
Deep Analysis
Avery Dennison's current free cash flow yield of 5.5% means the company generates $5.50 in free cash flow for every $100 of its stock price, a measure of the cash return an investor gets after accounting for capital spending.
This yield is more than double the sector median of 2.3% and places the company in the 83rd percentile among its Industrials peers, indicating a relatively high cash-generation efficiency. The metric has been stable over the last eight quarters, with the year-over-year change not available but the quarter-over-quarter change showing a plus 3.8% increase from the prior period. The combination of a high yield (well above the median) and a stable, slightly rising trend suggests limited downside risk from a cash-flow perspective, though it does not signal a strong catalyst for outperformance. This metric supports the overall NEUTRAL verdict because while the free cash flow yield is attractive, it is not improving dramatically enough to warrant a more bullish stance.
Frequently Asked Questions
What does the FCF Yield tell investors about AVY?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
How does AVY's FCF Yield compare to its sector?
AVY's FCF Yield of 5.5% compares to a Industrials sector median of 1.6%, placing it in the 86th percentile.
Who are AVY's closest peers by FCF Yield?
The closest Industrials peers by FCF Yield include: PWR (1.6%), MMM (1.7%), SAIA (0.2%), AXON (0.2%), BE (0.1%).
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
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5.5%
Sector Median
1.6%
Sector Avg
-29.6%
How AVY's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.