Avnet (AVT) AI Stock Analysis

• Market Cap: $3.99B
• Dividend Yield: 2.77%
• Average Volume (3M): 767.36K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 1.02
• Revenue Growth: -2.30%
• EPS Growth: -29.75%
• Country: US
• Employees: 15,462
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 0.84
• Shares Outstanding: 81,329,470
• 10 Day Avg. Volume: 762,036
• 30 Day Avg. Volume: 767,363
• PEG Ratio: -0.38
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 7.94
• Enterprise Value/Market Cap: 1.79
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 2.99
• Enterprise Value/Ebitda: 11.62
• 1Y Price Target: $49.33
• Price Target Upside: 0.47% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $53.00 ▲(7.94% Upside)

Avnet's overall stock score reflects stable financial performance with strong revenue growth and a solid balance sheet. However, modest profitability and declining cash flow generation are concerns. The technical indicators suggest a bearish trend, and while the earnings call provided some positive insights, challenges in certain regions and increased expenses weigh on the outlook. The valuation is reasonable but not particularly compelling.

Positive Factors

Strong Revenue Growth in Asia

The consistent revenue growth in Asia indicates a robust market position and potential for continued expansion in a key region.

Improved Book-to-Bill Ratio

An improved book-to-bill ratio suggests strong demand and effective inventory management, supporting future revenue stability.

Farnell Segment Growth

Significant growth in the Farnell segment highlights successful product offerings and strong customer demand, enhancing overall business performance.

Negative Factors

Declining Cash Flow

Negative cash flow can constrain operational flexibility and investment capacity, potentially impacting long-term growth.

Increased SG&A Expenses

Rising SG&A expenses may pressure profit margins, necessitating efficiency improvements to maintain profitability.

Flat Sales in EMEA

Stagnant sales in EMEA indicate regional challenges that could hinder overall growth if not addressed.

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 semiconductors; interconnect, passive, and electromechanical devices; and other integrated components from electronic component manufacturers. It also offers design chain support that provides engineers with technical design solutions; engineering and technical resources to support product design, bill of materials development, and technical education and training; and supply chain solutions that provide support and logistical services to original equipment manufacturers, electronic manufacturing service providers, and electronic component manufacturers. In addition, this segment provides integrated solutions, such as technical design, integration, and assembly of embedded products, and systems and solutions primarily for industrial applications, as well as for intelligent and innovative embedded display solutions comprising touch and passive displays. Further, it develops and manufactures standard board and industrial subsystems, and application-specific devices that enable it to produce systems tailored to specific customer requirements. This segment serves various markets, such as automotive, medical, defense, aerospace, telecommunications, industrial, and digital editing. The Farnell segment distributes kits, tools, and electronic and industrial automation components, as well as test and measurement products to engineers and entrepreneurs. It has operations in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Avnet, Inc. was founded in 1921 and is headquartered in Phoenix, Arizona.

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 margins on the products it sells to manufacturers and integrators. Additionally, Avnet provides value-added services, such as design support and supply chain management, which contribute to its revenue. Key partnerships with major technology manufacturers enable Avnet to offer a wide range of products and solutions, further enhancing its earning potential. The company also benefits from economies of scale, allowing it to negotiate better pricing and terms with suppliers, thereby increasing its profitability.

Avnet Financial Statement Overview

Summary

Avnet shows stable revenue growth and a strong balance sheet with low leverage. However, profitability margins are modest, and cash flow generation has declined, indicating potential areas for improvement. The company is well-positioned in terms of capital structure, but enhancing operational efficiency and cash flow generation could further strengthen its financial standing.

Income Statement

Avnet's income statement shows a stable revenue growth rate of 1.33% TTM, indicating a positive trajectory. The gross profit margin of 10.63% and net profit margin of 1.04% reflect moderate profitability, typical for the industry. However, the EBIT and EBITDA margins are relatively low at 2.01% and 2.64% respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.26 TTM, indicating prudent financial leverage. The return on equity is modest at 3.43%, suggesting moderate profitability. The equity ratio is high, reflecting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 42.24% TTM, which is a concern. The operating cash flow to net income ratio of 0.11 indicates limited cash generation relative to net income. However, the free cash flow to net income ratio of 0.70 suggests that a reasonable portion of earnings is converted into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	22.50B	22.20B	23.76B	26.54B	24.31B	19.53B
Gross Profit	2.39B	2.38B	2.77B	3.18B	2.97B	2.24B
EBITDA	616.51M	622.17M	1.06B	1.38B	1.09B	451.10M
Net Income	233.01M	240.22M	498.70M	770.83M	692.38M	193.11M
Balance Sheet
Total Assets	12.41B	12.12B	12.21B	12.48B	10.39B	8.93B
Cash, Cash Equivalents and Short-Term Investments	175.47M	192.43M	310.94M	288.23M	153.69M	199.69M
Total Debt	3.20B	2.88B	3.18B	3.30B	1.87B	1.51B
Total Liabilities	7.57B	7.11B	7.28B	7.73B	6.20B	4.84B
Stockholders Equity	4.85B	5.01B	4.93B	4.75B	4.19B	4.08B
Cash Flow
Free Cash Flow	333.31M	577.03M	463.51M	-908.38M	-268.21M	40.59M
Operating Cash Flow	473.60M	724.50M	689.98M	-713.70M	-219.31M	90.95M
Investing Cash Flow	-130.19M	-137.13M	-225.48M	-211.55M	51.30M	-61.20M
Financing Cash Flow	-429.02M	-693.53M	-433.80M	1.05B	156.06M	-314.01M

Avnet Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 49.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVT, the sentiment is Negative. The current price of 49.1 is above the 20-day moving average (MA) of 48.85, above the 50-day MA of 48.52, and below the 200-day MA of 50.07, indicating a neutral trend. The MACD of 0.39 indicates Negative momentum. The RSI at 53.04 is Neutral, neither overbought nor oversold. The STOCH value of 47.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AVT.

Avnet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLMB	73 Outperform	$498.48M	23.26	21.27%	0.63%	51.09%	25.86%
AVT	67 Neutral	$3.99B	18.29	4.71%	2.77%	-2.30%	-29.75%
ARW	64 Neutral	$5.79B	12.41	7.70%	―	3.16%	1.09%
SCSC	64 Neutral	$867.39M	12.32	8.11%	―	-4.88%	2.57%
NSIT	62 Neutral	$2.49B	18.77	8.51%	―	-6.69%	-51.74%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IZM	58 Neutral	$21.63M	16.89	7.76%	―	5.12%	―

Avnet Corporate Events

Avnet Shareholders Approve 2025 Executive Compensation Plan

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 ratified PricewaterhouseCoopers LLP as the independent public accounting firm for the fiscal year ending June 27, 2026.