Paul Price submits:
Avery Dennison Corporation (AVY) manufactures pressure-sensitive materials, office products and a range of tickets, tags, labels and other converted products. AVY also makes and sells a range of office products and other converted products such as binders, organizing systems, markers, fasteners, business forms, tickets, tags, radio-frequency identification (RFID) inlays and imprinting equipment for retail and apparel manufacturers. They operate three segments: Pressure-sensitive Materials, Retail Information Services and Office and Consumer Products.
2009 was a year to forget for AVY. EPS dropped from $3.30 to $1.97 (excluding a $9.18 /share charge for discontinued operations) and the dividend was cut from $0.41 to $0.20 quarterly. Even so, 2010 looks to be a recovery year. Estimates for 2010 range from $2.50 – $2.65 and for 2011 the consensus is centered on $3.00 per share.
The (already reduced) current yield is a decent 2.6% and is likely to begin rising again as the earnings ramp up from last year’s depressed level. AVY had shown improved YOY results in 11 of the past 15 years. The low 2009 quarterly earnings will make for easy comparisons as 2010 unfolds.
Here are AVY’s per share numbers from continuing operations as reported by Value Line:
|
Year
|
Sales
|
C/F
|
EPS
|
Div.
|
Avg. P/E
|
52-week Range
|
|
2001
|
38.86
|
4.08
|
2.47
|
1.23
|
21.4x
|
43.30 – 60.50
|
|
2002
|
42.23
|
4.34
|
2.81
|
1.35
|
21.9x
|
52.10 – 69.70
|
|
2003
|
47.83
|
4.46
|
2.65
|
1.45
|
20.7x
|
46.30 – 63.80
|
|
2004
|
53.35
|
4.94
|
3.04
|
1.49
|
20.1x
|
53.50 – 66.60
|
|
2005
|
54.88
|
5.41
|
3.36
|
1.53
|
16.7x
|
49.60 – 63.60
|
|
2006
|
56.72
|
5.88
|
3.78
|
1.57
|
16.1x
|
54.90 – 69.30
|
|
2007
|
64.11
|
6.31
|
3.91
|
1.61
|
15.7x
|
49.70 – 71.40
|
|
2008
|
68.22
|
6.14
|
3.30
|
1.64
|
13.4x
|
24.30 – 55.00
|
|
2009
|
56.70
|
4.45
|
1.97
|
1.22
|
15.0x
|
17.02 – 40.23
|
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