Avnet (AVT)
NASDAQ:AVT
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Avnet
(NASDAQ:AVT)
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Rating:59Neutral
Price Target:
$82.00
▲(11.04% Upside)
Action:ReiteratedDate:04/29/26
The score is held back primarily by weakened profitability and sharply deteriorated free cash flow, despite improving revenue trends and manageable balance-sheet leverage. Technicals are supportive (strong uptrend) but look overbought, while valuation is moderate. The latest earnings call was constructive with a beat and upbeat Q4 guidance, tempered by margin pressure, pass-through-driven growth, and ongoing cash/leverage constraints.
Positive Factors
Diversified model: distribution plus value‑added solutions
Avnet's dual model—large-scale component distribution plus engineering, design and supply‑chain services—creates recurring transaction flow while enabling higher‑margin attachments. That mix supports more stable revenue through cycles, deeper customer ties and better margin leverage over the medium term.
Negative Factors
Weak cash generation and compressed profitability
Profitability has materially compressed versus prior years and free cash flow has collapsed, signaling weaker cash conversion. Persistently thin margins and minimal FCF constrain capital allocation, reduce cushion for cyclical downturns and limit the company's ability to invest or accelerate leverage reduction reliably.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified model: distribution plus value‑added solutions
Avnet's dual model—large-scale component distribution plus engineering, design and supply‑chain services—creates recurring transaction flow while enabling higher‑margin attachments. That mix supports more stable revenue through cycles, deeper customer ties and better margin leverage over the medium term.
Read all positive factors
Avnet (AVT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.59B
Dividend Yield2.77%
Average Volume (3M)900.42K
Price to Earnings (P/E)13.0
Beta (1Y)1.08
Revenue Growth12.68%
EPS Growth-27.94%
CountryUS
Employees15,462
SectorTechnology
Sector Strength88
IndustryTechnology Distributors
Share Statistics
EPS (TTM)2.60
Shares Outstanding81,862,970
10 Day Avg. Volume1,111,362
30 Day Avg. Volume900,425
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 Cap1.45
Enterprise Value/Revenue0.38
Enterprise Value/Gross Profit3.66
Enterprise Value/Ebitda12.24
Forecast
1Y Price Target
$81.67Price Target Upside10.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)4.98
Revenue Forecast (FY)$26.48B
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 makes money primarily by selling electronic components and related supply-chain services to business customers. The company purchases semiconductors, interconnect/passive/electromechanical components, and other electronics parts from compone...
Avnet Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call presents a decidedly positive operational and financial momentum: record and double‑digit year-over-year revenue growth, sequential margin expansion, a record quarter for Electronic Components, recovery progress at Farnell, improved working capital metrics and a beat to guidance. Key challenges include year-over-year gross margin compression, a significant portion of near-term revenue growth driven by memory price increases (largely pass-through), widening lead-time tightness across many product categories, elevated Farnell inventory days and continued use of cash to fund rapid sales growth. On balance, the breadth and magnitude of the positive operating and top-line trends, guidance above seasonal, and margin recovery trajectory outweigh the lowlights, though continued vigilance on pricing, supply-chain dynamics and leverage is required.Positive Updates
Strong Revenue Growth and Beat
Total sales of $7.1 billion, up 34% year-over-year and 13% sequentially, above the high end of guidance; adjusted diluted EPS of $1.48 beat the high end of guidance.
Negative Updates
Gross Margin Compression Year-over-Year
Reported gross profit margin was 10.4%, down 68 basis points year-over-year and slightly lower sequentially, driven in part by mix shifts toward Asia and product/customer mix differences in Western regions.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Revenue Growth and Beat
Total sales of $7.1 billion, up 34% year-over-year and 13% sequentially, above the high end of guidance; adjusted diluted EPS of $1.48 beat the high end of guidance.
Read all positive updates
Company Guidance
Avnet guided fourth‑quarter fiscal 2026 sales of $7.3 billion to $7.6 billion and adjusted diluted EPS of $1.70 to $1.80 (assuming current market conditions), which at the midpoint implies roughly a 5% sequential sales increase; the guidance assumes interest expense similar to Q3, an effective tax rate of 21%–25% and about 83 million diluted shares outstanding, and management said sales growth is expected across all electronic‑components regions. In addition, management reiterated near‑term financial targets and assumptions: SG&A run‑rate in the mid‑60s percent of gross profit over the next year, a goal for Electronic Components operating margin to reach ~4% within the next fiscal year, continued Farnell margin recovery toward double‑digit operating margins over the coming quarters, a return‑on‑working‑capital target of 16% by the second half of fiscal 2027, and a plan to reduce gross leverage to roughly 3.0x by the end of the calendar year.Avnet Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
58
Neutral
Cash Flow
41
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.96B | 22.20B | 23.76B | 26.54B | 24.31B | 19.53B |
| Gross Profit | 2.61B | 2.38B | 2.77B | 3.18B | 2.97B | 2.24B |
| EBITDA | 780.57M | 747.76M | 1.06B | 1.38B | 1.09B | 451.10M |
| Net Income | 213.90M | 240.22M | 498.70M | 770.83M | 692.38M | 193.11M |
Balance Sheet | ||||||
| Total Assets | 13.49B | 12.12B | 12.21B | 12.48B | 10.39B | 8.93B |
| Cash, Cash Equivalents and Short-Term Investments | 202.44M | 192.43M | 310.94M | 288.23M | 153.69M | 199.69M |
| Total Debt | 3.17B | 2.88B | 3.18B | 3.30B | 1.87B | 1.51B |
| Total Liabilities | 8.54B | 7.11B | 7.28B | 7.73B | 6.20B | 4.84B |
| Stockholders Equity | 4.95B | 5.01B | 4.93B | 4.75B | 4.19B | 4.08B |
Cash Flow | ||||||
| Free Cash Flow | 32.88M | 577.03M | 463.51M | -908.38M | -268.21M | 40.59M |
| Operating Cash Flow | 149.29M | 724.50M | 689.98M | -713.70M | -219.31M | 90.95M |
| Investing Cash Flow | -115.42M | -137.13M | -225.48M | -211.55M | 51.30M | -61.20M |
| Financing Cash Flow | -21.61M | -693.53M | -433.80M | 1.05B | 156.06M | -314.01M |
Avnet Technical Analysis
Positive
73.85
Price Trends
64.08
Positive
57.32
Positive
54.33
Positive
Market Momentum
2.94
Negative
71.13
Negative
84.49
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 73.85 is above the 20-day moving average (MA) of 64.70, above the 50-day MA of 64.08, and above the 200-day MA of 54.33, indicating a bullish trend. The MACD of 2.94 indicates Negative momentum. The RSI at 71.13 is Negative, neither overbought nor oversold. The STOCH value of 84.49 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $348.59M | 27.07 | 19.67% | 0.63% | 36.31% | 7.03% | |
67 Neutral | $883.92M | 12.95 | 8.14% | ― | 0.07% | 27.46% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $9.43B | 9.99 | 9.05% | ― | 10.49% | 50.30% | |
59 Neutral | $6.59B | 12.98 | 3.02% | 2.77% | 12.68% | -27.94% | |
59 Neutral | $2.19B | 16.31 | 9.79% | ― | -5.22% | -35.00% | |
52 Neutral | $4.57M | 26.31 | 7.72% | ― | 5.12% | ― |
* Technology Sector Average
AVT
Avnet
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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.