(AVT) Avnet - Overview
Sector: Technology | Industry: Electronics & Computer Distribution | Exchange: NASDAQ (USA) | Market Cap: 6.841m USD | Total Return: 75.7% in 12m
Avg Turnover: 98.1M
EPS Trend: -91.9%
Qual. Beats: 2
Rev. Trend: -65.9%
Qual. Beats: 4
Warnings
High Debt/EBITDA (9.7) with thin interest coverage (1.2)
Tailwinds
Supp Ema20, Leader, Tailwind, Confidence
Avnet, Inc. is a global distributor of electronic components and embedded solutions, operating primarily through its Electronic Components and Farnell segments. The company bridges the gap between component manufacturers and diverse end markets, including automotive, aerospace, and medical sectors. Its business model integrates value-added services such as technical design support, supply chain logistics, and custom assembly to differentiate itself from high-volume, low-margin competitors.
The technology distribution sector acts as a critical intermediary in the global supply chain, managing inventory risks and providing localized engineering expertise for original equipment manufacturers (OEMs). Avnet’s extensive portfolio includes semiconductors, interconnect devices, and electromechanical components, supported by a global infrastructure spanning the Americas, EMEA, and Asia/Pacific. Analyzing historical valuation trends on ValueRay can provide further context on how the company performs throughout semiconductor market cycles. Founded in 1921, the firm utilizes its long-standing supplier relationships to offer comprehensive bill of materials (BOM) development and industrial automation tools.
- Global semiconductor demand cycles dictate core Electronic Components segment revenue growth
- Inventory management efficiency and working capital levels impact free cash flow
- Industrial and automotive sector capital expenditures drive high-margin design services
- Global supply chain disruptions and logistics costs influence operating margin stability
- Farnell segment performance relies on engineer-level prototyping and small-batch order volume
| Net Income: 213.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.00 > 0.02 and ΔFCF/TA -6.12 > 1.0 |
| NWC/Revenue: 22.93% < 20% (prev 26.10%; Δ -3.18% < -1%) |
| CFO/TA 0.01 > 3% & CFO 149.3m > Net Income 213.9m |
| Net Debt (3.20b) to EBITDA (331.3m): 9.66 < 3 |
| Current Ratio: 2.01 > 1.5 & < 3 |
| Outstanding Shares: last quarter (82.9m) vs 12m ago -4.54% < -2% |
| Gross Margin: 10.46% > 18% (prev 0.11%; Δ 1.04k% > 0.5%) |
| Asset Turnover: 198.0% > 50% (prev 189.1%; Δ 8.96% > 0%) |
| Interest Coverage Ratio: 1.22 > 6 (EBITDA TTM 331.3m / Interest Expense TTM 244.4m) |
| A: 0.42 (Total Current Assets 11.4b - Total Current Liabilities 5.66b) / Total Assets 13.5b |
| B: 0.25 (Retained Earnings 3.42b / Total Assets 13.5b) |
| C: 0.02 (EBIT TTM 299.4m / Avg Total Assets 12.6b) |
| D: 0.37 (Book Value of Equity 3.17b / Total Liabilities 8.54b) |
| Altman-Z'' = 4.16 = AA |
| DSRI: 1.19 (Receivables 5.50b/4.10b, Revenue 25.0b/22.1b) |
| GMI: 1.05 (GM 10.46% / 10.99%) |
| AQI: 0.93 (AQ_t 0.09 / AQ_t-1 0.10) |
| SGI: 1.13 (Revenue 25.0b / 22.1b) |
| TATA: 0.00 (NI 213.9m - CFO 149.3m) / TA 13.5b) |
| Beneish M = -2.77 (Cap -4..+1) = A |
As of May 24, 2026, the stock is trading at USD 85.91 with a total of 1,076,254 shares traded.
Over the past week, the price has changed by +2.20%,
over one month by +13.59%,
over three months by +28.41% and
over the past year by +75.72%.
Avnet has received a consensus analysts rating of 2.80. Therefore, it is recommended to hold AVT.
- StrongBuy: 1
- Buy: 0
- Hold: 2
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 89 | 3.6% |
P/E Forward = 7.0972
P/S = 0.2741
P/B = 1.4029
P/EG = 2.6486
Revenue TTM = 25.0b USD
EBIT TTM = 299.4m USD
EBITDA TTM = 331.3m USD
Long Term Debt = 2.47b USD (from longTermDebt, last quarter)
Short Term Debt = 520.9m USD (from shortTermDebt, last quarter)
Debt = 3.40b USD (from shortLongTermDebtTotal, last quarter) + Leases 229.6m
Net Debt = 3.20b USD (calculated: Debt 3.40b - CCE 202.4m)
Enterprise Value = 10.0b USD (6.84b + Debt 3.40b - CCE 202.4m)
Interest Coverage Ratio = 1.22 (Ebit TTM 299.4m / Interest Expense TTM 244.4m)
EV/FCF = 305.4x (Enterprise Value 10.0b / FCF TTM 32.9m)
FCF Yield = 0.33% (FCF TTM 32.9m / Enterprise Value 10.0b)
FCF Margin = 0.13% (FCF TTM 32.9m / Revenue TTM 25.0b)
Net Margin = 0.86% (Net Income TTM 213.9m / Revenue TTM 25.0b)
Gross Margin = 10.46% ((Revenue TTM 25.0b - Cost of Revenue TTM 22.3b) / Revenue TTM)
Gross Margin QoQ = 10.38% (prev 10.49%)
Tobins Q-Ratio = 0.74 (Enterprise Value 10.0b / Total Assets 13.5b)
Interest Expense / Debt = 7.19% (Interest Expense 244.4m / Debt 3.40b)
Taxrate = 32.89% (46.2m / 140.6m)
NOPAT = 200.9m (EBIT 299.4m * (1 - 32.89%))
Current Ratio = 2.01 (Total Current Assets 11.4b / Total Current Liabilities 5.66b)
Debt / Equity = 0.69 (Debt 3.40b / totalStockholderEquity, last quarter 4.95b)
Debt / EBITDA = 9.66 (Net Debt 3.20b / EBITDA 331.3m)
Debt / FCF = 97.31 (Net Debt 3.20b / FCF TTM 32.9m)
Total Stockholder Equity = 4.94b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.70% (Net Income 213.9m / Total Assets 13.5b)
RoE = 4.33% (Net Income TTM 213.9m / Total Stockholder Equity 4.94b)
RoCE = 4.04% (EBIT 299.4m / Capital Employed (Equity 4.94b + L.T.Debt 2.47b))
RoIC = 2.41% (NOPAT 200.9m / Invested Capital 8.35b)
WACC = 8.17% (E(6.84b)/V(10.2b) * Re(9.84%) + D(3.40b)/V(10.2b) * Rd(7.19%) * (1-Tc(0.33)))
Discount Rate = 9.84% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.56 | Cagr: -4.41%
[DCF] Terminal Value 73.10% ; FCFF base≈317.8m ; Y1≈278.7m ; Y5≈225.2m
[DCF] Fair Price = 5.05 (EV 3.61b - Net Debt 3.20b = Equity 414.4m / Shares 82.0m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: -91.94 | EPS CAGR: -27.92% | SUE: 1.81 | # QB: 2
Revenue Correlation: -65.95 | Revenue CAGR: -4.71% | SUE: 4.0 | # QB: 4
EPS next Quarter (2026-09-30): EPS=1.89 | Chg30d=+32.46% | Revisions=+50% | Analysts=4
EPS current Year (2026-06-30): EPS=5.13 | Chg30d=+16.24% | Revisions=+43% | GrowthEPS=+49.1% | GrowthRev=+21.0%
EPS next Year (2027-06-30): EPS=7.89 | Chg30d=+26.79% | Revisions=+50% | GrowthEPS=+53.8% | GrowthRev=+13.8%
[Analyst] Revisions Ratio: +50%