Avnet (AVT) AI Stock Analysis

• Market Cap: $4.61B
• Dividend Yield: 2.39%
• Average Volume (3M): 696.46K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.93
• Revenue Growth: -10.52%
• EPS Growth: -42.40%
• Country: US
• Employees: 15,462
• Sector: Technology
• Sector Strength: 98
• Industry: Technology Distributors
• EPS (TTM): 0.84
• Shares Outstanding: 83,857,315
• 10 Day Avg. Volume: 664,813
• 30 Day Avg. Volume: 696,464
• PEG Ratio: 13.44
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.24
• Enterprise Value/Market Cap: 1.58
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 2.98
• Enterprise Value/Ebitda: 2.13
• 1Y Price Target: $48.00
• Price Target Upside: -9.33% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: $61.00 ▲(15.22%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

Financial Performance

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

Negative Factors

Guidance

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

Market Conditions

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., 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 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 is concerning. However, the balance sheet reflects a strong equity position despite increased leverage, and the cash flow statement highlights robust cash generation, indicating efficient cash management.

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

Avnet Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 52.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 52.94 is below the 20-day moving average (MA) of 55.22, above the 50-day MA of 52.76, and above the 200-day MA of 51.34, indicating a neutral trend. The MACD of 0.44 indicates Positive momentum. The RSI at 57.79 is Neutral, neither overbought nor oversold. The STOCH value of 63.32 is Neutral, 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
SANM	80 Outperform	$6.43B	24.81	11.58%	―	5.87%	20.66%
SNX	78 Outperform	$12.26B	17.37	8.83%	1.19%	6.60%	19.93%
SCSC	69 Neutral	$923.71M	14.43	7.32%	―	-14.07%	-9.65%
NSIT	69 Neutral	$4.68B	28.93	8.67%	―	-7.61%	-50.01%
Sector *	69 Neutral	¥233.55B	14.96	7.55%	2.59%	9.31%	6.17%
AVT	68 Neutral	$4.61B	15.41	6.42%	2.39%	-10.52%	-42.40%
ARW	65 Neutral	$6.75B	17.86	7.74%	―	-3.95%	-16.72%

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.