Avery DennisonMEX:AVY 85 Gross Margin % is 28.92% as of Mar. 2026, which is 5% above its 10-year median of 27.46. GuruFocus rates MEX:AVY with a GF Score™ of 85/100 and a GF Value™ of MXN5,442.88. The stock has 2 warning signs investors should review. Among 379 Packaging & Containers companies, Avery Dennison ranks better than 69.66% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Avery Dennison had a gross margin of 28.92% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Avery Dennison Gross Margin % Related Terms
Avery Dennison Gross Margin % Historical Data
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The historical data trend for Avery Dennison's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:AVY vs CCK, BALL, REYN: Gross Margin % Comparison
For the Packaging & Containers subindustry, Avery Dennison's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Avery Dennison Gross Margin % vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Avery Dennison's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Avery Dennison's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Avery Dennison (MEX:AVY) has a Gross Margin % of 28.92% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Avery Dennison and its competitors. This is near median its historical median of 27.46. Over the past decade, Avery Dennison's Gross Margin % has ranged from 26.60 to 28.90. According to the industry distribution chart, Avery Dennison ranks #115 out of 379 companies in the Packaging & Containers industry, placing it in the top 30.3%.
Is Avery Dennison's Gross Margin % too high?
Avery Dennison's current Gross Margin % of 28.92% is near median its 10-year median of 27.46. Over the past 10 years, this metric has ranged from a low of 26.60 to a high of 28.90. The Packaging & Containers industry median Gross Margin % is 21.28. Avery Dennison's value of 28.92% is 35.9% above this industry median. Based on the distribution chart, Avery Dennison ranks #115 out of 379 companies in the Packaging & Containers industry, which is above the industry midpoint. Overall, Avery Dennison has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Avery Dennison's Gross Margin % compare to CCK and BALL?
According to the Packaging & Containers industry distribution chart, Avery Dennison ranks #115 out of 379 companies for Gross Margin %. This puts Avery Dennison in the upper half of its industry. The industry median Gross Margin % is 21.28. Avery Dennison's value of 28.92% is 35.9% above this benchmark. Historically, Avery Dennison's own Gross Margin % has ranged from 26.60 to 28.90 over the past decade. While the company's 10-year median is 27.46 vs. the industry median of 21.28, Avery Dennison has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Packaging & Containers company?
The median Gross Margin % among Packaging & Containers companies is 21.28, based on 379 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Avery Dennison's current Gross Margin % of 28.92% is 35.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Avery Dennison and its competitors. For the Packaging & Containers industry, the median Gross Margin % is 21.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avery Dennison's current Gross Margin % is 28.92%, which is near median its own 10-year median of 27.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avery Dennison stock overvalued right now?
Avery Dennison (MEX:AVY) has a current Gross Margin % of 28.92%. The stock's GF Value™ is MXN5,442.88, compared to a current price of MXN4,390.00 — trading 19.3% below its estimated fair value. The current Gross Margin % is 28.92%, which is near median its 10-year median of 27.46 and 35.9% above the Packaging & Containers industry median of 21.28. Avery Dennison's overall GF Score™ is 85/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Avery Dennison (MEX:AVY), the current Gross Margin % is 28.92% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Avery Dennison (MEX:AVY) Overvalued in 2026?
Based on GuruFocus' analysis, Avery Dennison stock appears to be undervalued.
The current stock price of MXN4,390.00 is trading 19.3% below its estimated GF Value™ of MXN5,442.88.
Key valuation signals for MEX:AVY:
Gross Margin %: 28.92% (near median its 10-year median of 27.46)
GF Value™: MXN5,442.88 vs. price of MXN4,390.00 (19.3% below fair value)
Industry Position: 35.9% above the Packaging & Containers median (#115 of 379)
No single metric tells the full story. See the MEX:AVY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avery Dennison Corp provides materials science and digital identification solutions, offering labeling and functional materials, RFID inlays and tags, software connecting physical and digital, and products that enhance packaging and customer experience. Serving industries including retail, apparel, e-commerce, logistics, food, pharmaceuticals, and automotive it operates through two reportable segments: Materials Group, which manufactures and sells pressure-sensitive label materials, graphics, reflective products, performance tapes, and other adhesive solutions, and earns the majority of revenue; and Solutions Group, which provides brand and price tickets, tags, labels with RFID inlays, and related services, supplies, and equipment.
85GF Score
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