Avery Dennison Corporation AVY

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
75/100
Strong

About Avery Dennison Corporation

Avery Dennison Corporation operates as a materials science and digital identification solutions company in the North America, Europe, the Middle East, North Africa, Asia, and Latin America. It offers pressure-sensitive label materials, which consist of papers, plastic films, and metal foils; performance tapes products, including mechanical fasteners, which are precision-extruded and injection-molded plastic devices; and other pressure-sensitive adhesive-based materials and … Full AVY analysis →

Competitive advantage assessment

Key strengths

  • Margins Consistently Above Peers Gross margin at 28.8% (top 23%) and operating margin at 12.7% (top 14%) indicate strong pricing power.
  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.95), demonstrating pricing resilience across cycles.

Key risks

  • Liquidity Concerns Liquidity is concerning (score 0.27), raising questions about short-term obligations.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
88

Where AVY ranks in Packaging & Containers

Avery Dennison Corporation ranks #2 of 26 scored companies in Packaging & Containers by moat score — the top 8%. The widest moat in the group is Reynolds Consumer Products Inc. (REYN) at 83/100.

Moat scores for companies ranked near AVY in Packaging & Containers
# Company Moat score Rating
1 Reynolds Consumer Products Inc. REYN 83/100 Strong
2 Avery Dennison Corporation AVY 75/100 Strong
3 Sealed Air Corporation SEE 72/100 Moderate
4 Crown Holdings, Inc. CCK 72/100 Moderate
5 Karat Packaging Inc. KRT 71/100 Moderate
6 Packaging Corporation of Americ PKG 71/100 Moderate
7 Ball Corporation BALL 64/100 Moderate
8 Silgan Holdings Inc. SLGN 64/100 Moderate
9 Sonoco Products Company SON 61/100 Moderate

See every General Corporate company ranked by moat score →

How AVY scores on the Corporate Default defenses

Pricing Power

Score 88 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 64 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 70 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 83 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 64 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 73 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding AVY's moat

What is Avery Dennison Corporation's moat score?

Avery Dennison Corporation (AVY) scores 75 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #2 of 26 scored companies in Packaging & Containers, the top 8%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 25 companies in Packaging & Containers. Its strongest defense is Pricing Power (88/100) and its weakest is Cost Advantage (64/100).

How does Avery Dennison Corporation compare with other Packaging & Containers companies?

Avery Dennison Corporation ranks #2 of 26 scored companies in Packaging & Containers by moat score. The widest moat in Packaging & Containers is Reynolds Consumer Products Inc. (REYN) at 83/100. The companies ranked closest are Reynolds Consumer Products Inc. (REYN) at 83 just above it and Sealed Air Corporation (SEE) at 72 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 25 companies in Packaging & Containers. The defenses are then weighted to produce the overall score out of 100.

Why is Avery Dennison Corporation scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Avery Dennison Corporation?

The Corporate Default template measures 6 defenses, and AVY scores: Pricing Power (88), Cost Advantage (64), Customer Stickiness (70), Capital Efficiency (83), Resilience (64), Scale & Market Position (73). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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