Is Avery Dennison Corp (AVY) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 22.8% / 30% | 2.4% / 30% | 10.6% / 30% | 0.51% / 5% | ✓ HALAL |
| DJIM | 22.8% / 33% | 2.4% / 33% | 10.6% / 33% | 0.51% / 5% | ✓ HALAL |
| MSCI | 37.5% / 33% | 3.9% / 33% | 17.4% / 33% | 0.51% / 5% | ✗ NOT HALAL |
| S&P | 22.8% / 33% | 2.4% / 33% | 10.6% / 33% | 0.51% / 5% | ✓ HALAL |
| FTSE | 37.5% / 33% | 3.9% / 33% | 17.4% / 50% | 0.51% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 28.8% | |
| Operating Margin | 12.7% | |
| Net Margin | 7.8% | |
| Return on Equity (ROE) | 30.2% | |
| Return on Assets (ROA) | 8.2% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $881M |
| Free Cash Flow | $681M |
| Total Debt | $3.7B |
| Debt-to-Equity | 176.3 |
| Current Ratio | 1.1 |
| Total Assets | $8.8B |
Price & Trading
| Last Close | $168.52 |
| 50-Day MA | $183.90 |
| 200-Day MA | $176.24 |
| Avg Volume | 645K |
| Beta | 1.0 |
|
52-Week Range
$156.23
| |
About Avery Dennison Corp (AVY)
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 converted products under the Fasson, JAC, and Avery Dennison brands. The company provides graphics and reflective products that include films and other products for the architectural, commercial sign, digital printing, and other related market segments; durable cast and reflective films to the construction, automotive, and fleet transportation markets; sign shops, commercial printers, and designers for pressure-sensitive materials; reflective films for traffic and safety applications; and pressure-sensitive vinyl and specialty materials for digital imaging, screen printing, and sign cutting applications under the Avery Dennison and Mactac brand names. In addition, it offers branding solutions, which include brand embellishments, graphic tickets, tags, labels, and sustainable packaging; information solutions, such as item-level RFID, visibility and loss prevention, price ticketing and marking, productivity and media, and brand protection and security solutions; and shelf-edge productivity and media solutions under the Vestcom brand names, as well as care, content, and country of origin compliance solutions. It serves home and personal care, apparel, general retail, e-commerce, logistics, food and grocery, pharmaceuticals, and automotive industries. The company was formerly known as Avery International Corporation and changed its name to Avery Dennison Corporation in 1990. The company was founded in 1935 and is headquartered in Mentor, Ohio.
Purification Calculator
As a halal stock with 0.51% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Avery Dennison Corp (AVY) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Avery Dennison Corp is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Avery Dennison Corp's debt ratio?
Avery Dennison Corp's debt ratio is 22.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 37.5%.
Does Avery Dennison Corp require dividend purification?
Yes, Avery Dennison Corp has an impermissible income ratio of 0.51%, which means 0.51% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Avery Dennison Corp's key financial metrics?
Avery Dennison Corp has a market capitalization of $12.9B, trailing P/E ratio of 19.1, and revenue of $8.9B. The company maintains a gross margin of 28.8% and a net margin of 7.8%. Return on equity stands at 30.2%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.