1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Narrow-moat-rated Avery Dennison reported strong second-quarter results that were driven by robust end-market demand and higher selling prices. Organic sales rose 11% year over year with all three segments reporting organic growth. Adjusted operating margins rose 50 basis points to 13.2% as selling price increases offset higher raw material and energy costs.
Avery Dennison manufactures pressure-sensitive materials, merchandise tags, and labels. The company also runs a specialty converting business that produces radio-frequency identification inlays and labels. Avery Dennison draws a significant amount of revenue from outside the United States, with international operations accounting for the majority of total sales.
