AVYNEUTRAL

AVY Return on Equity (ROE) Analysis

31.2%

Higher than 78% of Industrials sector peers

Updated 153h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how efficiently a company generates profit from shareholders' money; Avery Dennison's 31.2% means it earns $31.20 of profit for every $100 of equity.

Sector Performance

78th percentile

AVY

31.2%

Sector Median

13.9%

Sector Avg

-44.1%

Prior Period

30.9%(Jul 2026)

→ Stable

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Deep Analysis

Return on equity (ROE) measures how efficiently a company generates profit from shareholders' money; Avery Dennison's 31.2% means it earns $31.20 of profit for every $100 of equity.

This is well above the Industrials sector median of 15.3%, placing Avery in the 75th percentile of sector peers. The year-over-year change is not available, but quarter-over-quarter ROE rose by 1.0 percentage point from 30.9% to 31.2% based on the two most recent historical values. The combination of an ROE nearly double the sector median and a positive quarterly uptick signals strong earnings efficiency and limited downside risk from profitability deterioration. That strength leans toward opportunity, which directly contradicts the overall NEUTRAL verdict — a firm at this profitability level would typically warrant a more favorable outlook unless offset by other factors.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about AVY?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does AVY's Return on Equity (ROE) compare to its sector?

AVY's Return on Equity (ROE) of 31.2% compares to a Industrials sector median of 13.9%, placing it in the 78th percentile.

Who are AVY's closest peers by Return on Equity (ROE)?

The closest Industrials peers by Return on Equity (ROE) include: AME (13.9%), ROP (13.1%), PWR (15.3%), XPO (19.9%), BLDR (2.5%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.