AVY FCF Yield Analysis
Higher than 76% of Industrials sector peers
Updated 153h ago·SEC filings & market data
Key Takeaway
FCF Yield measures the annual free cash flow a company generates as a percentage of its market value, so a 5.1% yield means Avery Dennison produces roughly $5.10 of free cash flow for every $100 of equity value.
Sector Performance
76th percentileAVY
4.9%
Sector Median
1.6%
Sector Avg
-36.5%
Prior Period
5.1%(Aug 2026)
Deep Analysis
FCF Yield measures the annual free cash flow a company generates as a percentage of its market value, so a 5.1% yield means Avery Dennison produces roughly $5.10 of free cash flow for every $100 of equity value.
This sits well above the Industrials sector median of 1.6%, placing the stock in the 82nd percentile among peers. The metric has been declining over the last eight quarters, though the most recent quarter shows a +2.0% quarter-over-quarter improvement; no year-over-year change is available. The latest historical values are 5.1%, then 5.0%, and previously 5.6%, confirming a downward drift from the older reading despite the recent uptick. The combination of a high yield versus peers but a decreasing trend suggests the company still generates solid cash flow, yet the erosion of that yield could signal pressure on cash generation or rising valuation. This supports the NEUTRAL verdict, as the current strength is tempered by the negative longer-term trajectory.
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 4.9% compares to a Industrials sector median of 1.6%, placing it in the 76th percentile.
Who are AVY's closest peers by FCF Yield?
The closest Industrials peers by FCF Yield include: PWR (1.7%), MMM (1.5%), AXON (0.2%), BE (0.1%), LILM (0.0%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
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.
Master AVY's Valuation
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4.9%
Sector Median
1.6%
Sector Avg
-36.5%
How AVY's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.