Avnet (AVT) AI Stock Analysis

• Market Cap: $4.72B
• Dividend Yield: 2.35%
• Average Volume (3M): 650.45K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.93
• Revenue Growth: -10.52%
• EPS Growth: -42.40%
• Country: US
• Employees: 15,462
• Sector: Technology
• Sector Strength: 89
• Industry: Technology Distributors
• EPS (TTM): 0.84
• Shares Outstanding: 83,857,315
• 10 Day Avg. Volume: 794,783
• 30 Day Avg. Volume: 650,453
• PEG Ratio: 0.31
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.11
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 3.15
• Enterprise Value/Ebitda: 2.25
• 1Y Price Target: $51.67
• Price Target Upside: -7.93% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: $61.00 ▲(8.70%Upside)

Avnet's overall stock score reflects a balance of strengths and challenges. Strong cash flow and a solid equity position are significant positives. However, declining revenue and margin pressures, combined with overbought technical indicators, present risks. The company's fair valuation and mixed earnings call results further contribute to the moderate score.

Positive Factors

Recent Performance

AVT recently reported F3Q results at or slightly above Street/BofA estimates on better than expected results in Asia and Farnell.

Negative Factors

Financial Guidance

For the upcoming quarter, revenue and earnings per share guidance are both below Street and BofA estimates.

Inventory and Demand

The overall backlog decreased as customers are working through elevated inventory and are in a de-stocking mode.

Leadership Commentary

The CEO described the current period as one of the most challenging and uncertain times in his 40-plus years in distribution.

Avnet Business Overview & Revenue Model

Company Description

Avnet, Inc. (AVT) is a leading global technology distributor and solutions provider, catering to a diverse range of industries. The company specializes in the distribution and value-added services of electronic components, including semiconductors, interconnect, passive and electromechanical devices. Avnet serves a wide array of sectors such as automotive, industrial, aerospace, and communication, providing comprehensive design, product, marketing, and supply chain solutions.

How the Company Makes Money

Avnet generates revenue primarily through the distribution of electronic components and embedded solutions. The company procures products from a vast network of suppliers and manufacturers, which are then sold to a diverse customer base including original equipment manufacturers (OEMs), electronic manufacturing services (EMS) providers, and small to medium-sized businesses. Avnet's revenue streams are augmented by value-added services such as supply chain management, logistics, and technical support, which help differentiate its offerings. Key partnerships with leading technology companies and component manufacturers bolster Avnet's extensive product portfolio, enhancing its ability to meet customer needs and maintain a steady stream of income.

Avnet Financial Statement Overview

Summary

Avnet's financial performance is mixed. The income statement shows declining revenue and margins, which are concerning. However, the balance sheet is strong with a solid equity position, and the cash flow statement indicates robust cash generation, highlighting efficient cash management. The company needs to address revenue decline to ensure long-term stability.

Income Statement

Avnet's income statement shows a declining trend in revenue over recent periods, with TTM revenue at $22.1B compared to $26.5B in 2023. Gross profit margin for TTM is 11.0%, and net profit margin is 1.4%. The EBIT margin is 2.9%, indicating modest operational efficiency. Despite the declining revenue trend, the company maintains some profitability, although at reduced levels.

Balance Sheet

The balance sheet reflects a strong equity position with stockholders' equity at $11.7B in TTM, resulting in a favorable equity ratio of 100%. However, the debt-to-equity ratio has increased to 0.24, reflecting moderate leverage. While the company has improved its equity base, the increase in debt could pose long-term risks if not managed carefully.

Cash Flow

Avnet's cash flow statement shows healthy cash flow generation with operating cash flow at $859M and free cash flow at $745M for TTM. The operating cash flow to net income ratio is a strong 2.71, highlighting efficient cash conversion. The free cash flow has grown significantly from previous periods, indicating robust cash management capabilities.

Breakdown	TTM	Jun 2024	Sep 2023	Sep 2022	Sep 2021	Jun 2020
Income Statement
Total Revenue	22.15B	23.76B	26.54B	24.31B	19.53B	17.63B
Gross Profit	2.43B	2.77B	3.18B	2.97B	2.24B	2.06B
EBITDA	727.72M	1.06B	1.38B	1.09B	451.10M	237.53M
Net Income	316.79M	498.70M	770.83M	692.38M	193.11M	-29.53M
Balance Sheet
Total Assets	11.71B	12.21B	12.48B	10.39B	8.93B	8.11B
Cash, Cash Equivalents and Short-Term Investments	188.91M	310.94M	288.23M	153.69M	199.69M	477.04M
Total Debt	2.83B	3.13B	3.30B	1.87B	1.51B	1.73B
Total Liabilities	6.83B	7.28B	7.73B	6.20B	4.84B	4.38B
Stockholders Equity	4.88B	4.93B	4.75B	4.19B	4.08B	3.73B
Cash Flow
Free Cash Flow	745.14M	463.51M	-908.38M	-268.21M	40.59M	656.67M
Operating Cash Flow	859.28M	689.98M	-713.70M	-219.31M	90.95M	730.18M
Investing Cash Flow	-103.42M	-225.48M	-211.55M	51.30M	-61.20M	-135.02M
Financing Cash Flow	-763.00M	-433.80M	1.05B	156.06M	-314.01M	-644.55M

Avnet Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 56.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVT, the sentiment is Positive. The current price of 56.12 is above the 20-day moving average (MA) of 52.94, above the 50-day MA of 51.34, and above the 200-day MA of 51.16, indicating a bullish trend. The MACD of 1.44 indicates Negative momentum. The RSI at 69.47 is Neutral, neither overbought nor oversold. The STOCH value of 81.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVT.

Avnet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNX	78 Outperform	$11.64B	16.49	8.83%	1.25%	6.60%	19.93%
SANM	77 Outperform	$5.42B	23.65	11.03%	―	-1.50%	1.84%
ARW	74 Outperform	$6.85B	18.25	6.68%	―	-11.13%	-43.00%
NSIT	71 Outperform	$4.63B	29.10	11.37%	―	-8.73%	-35.37%
AVT	68 Neutral	$4.72B	15.77	6.42%	2.35%	-10.52%	-42.40%
SCSC	67 Neutral	$951.95M	15.34	7.32%	―	-14.07%	-9.65%
Sector *	63 Neutral	$33.87B	5.80	-11.87%	1.82%	5.31%	-18.50%

Avnet Corporate Events

Avnet Secures $150M and €100M Loan Agreement

On July 1, 2025, Avnet Europe, a subsidiary of Avnet, Inc., entered into a Credit Agreement with Bank of America and other lenders, securing $150 million in U.S. Dollar loans and €100 million in Euro loans. These loans, divided into tranches, will mature between 2026 and 2028, with interest rates tied to various benchmarks. Avnet, Inc. guarantees these loans, and the agreement includes covenants that, if breached, could accelerate repayment obligations.

The most recent analyst rating on (AVT) stock is a Sell with a $45.00 price target. To see the full list of analyst forecasts on Avnet stock, see the AVT Stock Forecast page.