Avnet (AVT)
NASDAQ:AVT
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Avnet
(NASDAQ:AVT)
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Rating:71Outperform
Price Target:
$66.00
▼(-10.18% Downside)
Action:ReiteratedDate:01/29/26
The score is driven primarily by solid fundamentals (notably low leverage) and a positive earnings update with a beat and constructive guidance, while thin margins and weaker recent free-cash-flow growth cap the financial profile. Technically, the trend is strong, but overbought momentum signals increase near-term risk, and valuation looks only moderately attractive given the profitability profile.
Positive Factors
Low Financial Leverage
A low debt-to-equity ratio (0.26) and high equity financing provide durable financial flexibility. This conservatism supports investment in supply-chain capabilities, selective M&A, dividends, and the ability to withstand cyclical downturns without compromising operations or liquidity over the next 2–6 months.
Negative Factors
Thin Profitability Margins
Very low net and operating margins characterize the distribution model and limit earnings resilience. Thin margins reduce the firm's ability to absorb input cost, pricing pressure, or SG&A increases, constraining internal reinvestment and long-term return-on-capital unless structural margin improvements occur.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Financial Leverage
A low debt-to-equity ratio (0.26) and high equity financing provide durable financial flexibility. This conservatism supports investment in supply-chain capabilities, selective M&A, dividends, and the ability to withstand cyclical downturns without compromising operations or liquidity over the next 2–6 months.
Read all positive factors
Avnet (AVT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.49B
Dividend Yield2.77%
Average Volume (3M)767.36K
Price to Earnings (P/E)16.3
Beta (1Y)1.04
Revenue Growth-2.30%
EPS Growth-29.75%
CountryUS
Employees15,462
SectorTechnology
Sector Strength88
IndustryTechnology Distributors
Share Statistics
EPS (TTM)1.05
Shares Outstanding81,862,970
10 Day Avg. Volume762,036
30 Day Avg. Volume767,363
Financial Highlights & Ratios
PEG Ratio-0.38
Price to Book (P/B)0.91
Price to Sales (P/S)0.21
P/FCF Ratio7.94
Enterprise Value/Market Cap1.65
Enterprise Value/Revenue0.39
Enterprise Value/Gross Profit3.69
Enterprise Value/Ebitda14.68
Forecast
1Y Price Target
$61.00Price Target Upside-16.98% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)4.59
Revenue Forecast (FY)$25.15B
Avnet Business Overview & Revenue Model
Company Description
Avnet, Inc., a technology solutions company, markets, sells, and distributes electronic components. The company operates through two segments, Electronic Components and Farnell. The Electronic Components segment markets, sells, and distributes sem...
How the Company Makes Money
Avnet generates revenue primarily through the distribution of electronic components, which includes semiconductors, interconnects, passive components, and electromechanical devices. The company operates on a commission-based model where it earns m...
Avnet Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call conveyed solid operational and financial momentum: revenue and EPS beat expectations, strong cash flow, sequential and year-over-year growth across regions (notably record Asia revenues and robust Farnell growth), inventory and working capital improvements, and positive guidance for the next quarter. Challenges were acknowledged, including emerging spot pricing pressure in memory/storage and select components, higher SG&A versus prior year, regional mix pressure on gross margins, elevated Farnell inventory days, and ongoing supply-chain mismatches and limited customer long-term visibility. On balance, the positives (top-line beats, cash generation, margin improvement initiatives, and constructive guidance) outweigh the noted risks and execution items.Positive Updates
Revenue Above Guidance and Strong Top-Line Growth
Sales of $6.3 billion in the quarter, which exceeded the high end of guidance and represented +12% year-over-year and +7% sequential growth.
Negative Updates
Pricing Pressure Emerging in Key Categories
Spot price increases and potential upward pricing pressure noted across multiple technologies; specific areas called out include memory and storage (controllers), high-end networking parts, certain capacitors and antennas.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Above Guidance and Strong Top-Line Growth
Sales of $6.3 billion in the quarter, which exceeded the high end of guidance and represented +12% year-over-year and +7% sequential growth.
Read all positive updates
Company Guidance
Avnet's guidance for the upcoming period calls for sales of $6.2 billion to $6.5 billion and adjusted diluted EPS of $1.20 to $1.30, with the midpoint implying roughly a 1% sequential sales increase; the company expects growth in the Americas and EMEA, a smaller-than-normal seasonal decline in Asia due to Lunar New Year, assumes interest expense roughly in line with Q2 (~$61M), an effective tax rate of 21%–25%, and about 83 million diluted shares outstanding.Avnet Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
80
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.15B | 22.20B | 23.76B | 26.54B | 24.31B | 19.53B |
| Gross Profit | 2.46B | 2.38B | 2.77B | 3.18B | 2.97B | 2.24B |
| EBITDA | 618.04M | 622.17M | 1.06B | 1.38B | 1.09B | 451.10M |
| Net Income | 207.49M | 240.22M | 498.70M | 770.83M | 692.38M | 193.11M |
Balance Sheet | ||||||
| Total Assets | 13.15B | 12.12B | 12.21B | 12.48B | 10.39B | 8.93B |
| Cash, Cash Equivalents and Short-Term Investments | 286.55M | 192.43M | 310.94M | 288.23M | 153.69M | 199.69M |
| Total Debt | 3.34B | 2.88B | 3.18B | 3.30B | 1.87B | 1.51B |
| Total Liabilities | 8.22B | 7.11B | 7.28B | 7.73B | 6.20B | 4.84B |
| Stockholders Equity | 4.94B | 5.01B | 4.93B | 4.75B | 4.19B | 4.08B |
Cash Flow | ||||||
| Free Cash Flow | 217.73M | 577.03M | 463.51M | -908.38M | -268.21M | 40.59M |
| Operating Cash Flow | 344.01M | 724.50M | 689.98M | -713.70M | -219.31M | 90.95M |
| Investing Cash Flow | -115.86M | -137.13M | -225.48M | -211.55M | 51.30M | -61.20M |
| Financing Cash Flow | -109.66M | -693.53M | -433.80M | 1.05B | 156.06M | -314.01M |
Avnet Technical Analysis
Positive
73.48
Price Trends
63.12
Positive
55.94
Positive
53.82
Positive
Market Momentum
1.10
Negative
66.63
Neutral
96.23
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 73.48 is above the 20-day moving average (MA) of 61.61, above the 50-day MA of 63.12, and above the 200-day MA of 53.82, indicating a bullish trend. The MACD of 1.10 indicates Negative momentum. The RSI at 66.63 is Neutral, neither overbought nor oversold. The STOCH value of 96.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVT.
Avnet Risk Analysis
Avnet disclosed 20 risk factors in its most recent earnings report. Avnet reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Avnet Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $5.49B | 16.25 | 4.22% | 2.77% | -2.30% | -29.75% | |
67 Neutral | $818.19M | 12.95 | 8.14% | ― | -4.88% | 2.57% | |
63 Neutral | $394.17M | 21.80 | 20.00% | 0.63% | 51.09% | 25.86% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $8.08B | 9.99 | 9.05% | ― | 3.16% | 1.09% | |
59 Neutral | $2.13B | 16.31 | 9.79% | ― | -6.69% | -51.74% | |
55 Neutral | $5.10M | 26.31 | 7.72% | ― | 5.12% | ― |
* Technology Sector Average
AVT
Avnet
73.48
28.41
63.04%
ARW
Arrow Electronics
174.90
74.90
74.90%
NSIT
Insight Enterprises
73.87
-62.09
-45.67%
SCSC
ScanSource
39.16
8.05
25.88%
CLMB
Climb Global Solutions
22.84
-3.51
-13.33%
IZM
ICZOOM Group, Inc. Class A
0.43
-1.40
-76.61%
Avnet Corporate Events
Executive/Board ChangesShareholder Meetings
Avnet Shareholders Approve 2025 Executive Compensation Plan
Neutral
Nov 21, 2025
At Avnet‘s 2025 Annual Meeting of Shareholders, ten board nominees were elected to serve until the next annual meeting. Additionally, shareholders approved the executive compensation plan, the 2025 Stock Compensation and Incentive Plan, and ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.