tiprankstipranks
Trending News
More News >
Avnet (AVT)
:AVT
Advertisement

Avnet (AVT) AI Stock Analysis

Compare
248 Followers

Top Page

AVT

Avnet

(NASDAQ:AVT)

Select Model
Select Model
Select Model
Neutral 66 (OpenAI - 4o)
Rating:66Neutral
Price Target:
$57.00
▲(9.17% Upside)
Avnet's overall stock score is driven by stable financial performance and a strong earnings call, highlighting growth in Asia and operational improvements. However, technical indicators and cash flow concerns temper the outlook, resulting in a moderate score.
Positive Factors
Strong Performance in Asia
The consistent growth in Asia highlights Avnet's ability to capitalize on emerging markets, providing a durable revenue stream and supporting long-term expansion.
Operational Efficiency
Sustained operational efficiency indicates strong management practices and cost control, which are crucial for long-term profitability and competitiveness.
Cash Flow and Shareholder Returns
Robust cash generation and shareholder returns through dividends and buybacks demonstrate financial health and commitment to enhancing shareholder value.
Negative Factors
Decline in EMEA Sales
The significant decline in EMEA sales impacts overall revenue and margin, posing a challenge to Avnet's geographic diversification and market stability.
Gross Margin Pressure
Decreasing gross margins indicate cost pressures and pricing challenges, which could affect profitability if not managed effectively over the long term.
Interest Expense and Operating Costs
High interest expenses and rising operating costs can strain financial resources, limiting Avnet's ability to invest in growth and innovation.

Avnet (AVT) vs. SPDR S&P 500 ETF (SPY)

Avnet Business Overview & Revenue Model

Company DescriptionAvnet, 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 MoneyAvnet generates revenue primarily through the distribution of electronic components and value-added services. Key revenue streams include the sale of semiconductors, passive components, interconnect products, and embedded systems. The company also earns income from services such as supply chain management, logistics, and technical support. Avnet has developed significant partnerships with leading manufacturers in the electronics industry, which allows it to offer a wide range of products and leverage economies of scale. Additionally, the company's focus on providing tailored solutions and fostering long-term relationships with customers contributes to its earnings by enhancing customer loyalty and repeat business.

Avnet Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflects solid performance with strong revenue and earnings growth, particularly in the Asia region, and improvements in the Farnell segment. However, the decline in EMEA sales and gross margin pressure due to regional sales mix shifts remain challenges. The company is optimistic about future growth opportunities and has shown resilience in managing costs and returning value to shareholders.
Q4-2025 Updates
Positive Updates
Revenue and Earnings Performance
Avnet delivered $22.2 billion in revenues for fiscal year 2025 with adjusted diluted earnings per share of $3.44. Q4 sales reached $5.6 billion, exceeding guidance, with an adjusted operating margin of 2.5%.
Strong Performance in Asia
Asia reported an 18% year-over-year increase in sales for the fourth quarter, marking the fourth consecutive quarter of year-over-year growth in the region.
Positive Book-to-Bill Ratio
The book-to-bill ratio improved across all regions and Farnell, with Europe and Asia above parity, indicating a positive trend in order intake.
Farnell's Margin Improvement
Farnell achieved a 4.3% operating margin in Q4, marking the first year-on-year improvement since Q1 of FY '23.
Cash Flow and Shareholder Returns
Generated $139 million in cash flow from operations in Q4, and $725 million for the fiscal year. Returned $415 million to shareholders via dividends and share repurchases in fiscal 2025.
Negative Updates
Decline in EMEA Sales
EMEA sales declined 17% year-over-year in Q4, and 21% in constant currency, impacting overall gross margins.
Gross Margin Pressure
Overall gross margin decreased by 99 basis points year-over-year in Q4 due to a higher mix of lower-margin Asia sales and adverse foreign currency impacts.
Interest Expense and Operating Costs
Interest expense was $58 million in Q4, with an expectation of maintaining similar levels in Q1 FY 2026. Operating expenses increased due to foreign currency impacts and merit pay increases.
Company Guidance
In the Avnet Fourth Quarter Fiscal Year 2025 Earnings Call, the company reported a fiscal year revenue of $22.2 billion and an adjusted diluted earnings per share of $3.44. For the fourth quarter, Avnet achieved sales of $5.6 billion, surpassing their sales and EPS guidance, with an adjusted operating margin of 2.5%. The Farnell business highlighted a 4.3% operating margin. Geographically, Asia led with an 18% year-over-year growth, while EMEA and the Americas saw declines of 17% and 2%, respectively. The company generated $139 million in cash flow from operations during the quarter, contributing to an annual total of $725 million. Inventory levels were reduced by $35 million sequentially, though foreign currency fluctuations impacted reported figures. Avnet also repurchased nearly 7% of its outstanding shares over the fiscal year, achieving a 5% reduction target. Looking ahead, Avnet anticipates first-quarter fiscal 2026 sales to range between $5.55 billion and $5.85 billion, with diluted EPS guidance of $0.75 to $0.85. The company remains optimistic about fiscal 2026, particularly due to strong performance in Asia and stabilization efforts at Farnell.

Avnet Financial Statement Overview

Summary
Avnet's financial performance is stable but challenged. The income statement shows operational efficiency, but profitability and cash flow generation need improvement. The balance sheet is moderately strong with improved leverage management, but cash flow concerns persist.
Income Statement
65
Positive
Avnet's income statement shows a mixed performance. The gross profit margin has slightly decreased over the years, indicating some pressure on cost management. The net profit margin is relatively low, reflecting challenges in converting revenue into profit. Revenue growth has been inconsistent, with a notable decline in the most recent year. However, the company has maintained positive EBIT and EBITDA margins, suggesting operational efficiency.
Balance Sheet
70
Positive
The balance sheet indicates a moderate financial position. The debt-to-equity ratio has improved slightly, showing better leverage management. However, the return on equity has declined, pointing to reduced profitability from shareholders' investments. The equity ratio remains stable, indicating a balanced capital structure.
Cash Flow
60
Neutral
Cash flow analysis reveals some concerns. Free cash flow growth has been negative, and the operating cash flow to net income ratio is low, indicating potential liquidity issues. However, the free cash flow to net income ratio is relatively healthy, suggesting that the company can generate cash relative to its net income.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue22.20B22.20B23.76B26.54B24.31B19.53B
Gross Profit2.38B2.38B2.77B3.18B2.97B2.24B
EBITDA624.95M622.17M1.06B1.38B1.09B451.10M
Net Income240.22M240.22M498.70M770.83M692.38M193.11M
Balance Sheet
Total Assets12.12B12.12B12.21B12.48B10.39B8.93B
Cash, Cash Equivalents and Short-Term Investments192.43M192.43M310.94M288.23M153.69M199.69M
Total Debt2.88B2.88B3.13B3.30B1.87B1.51B
Total Liabilities7.11B7.11B7.28B7.73B6.20B4.84B
Stockholders Equity5.01B5.01B4.93B4.75B4.19B4.08B
Cash Flow
Free Cash Flow577.03M577.03M463.51M-908.38M-268.21M40.59M
Operating Cash Flow724.50M724.50M689.98M-713.70M-219.31M90.95M
Investing Cash Flow-137.13M-137.13M-225.48M-211.55M51.30M-61.20M
Financing Cash Flow-693.53M-693.53M-433.80M1.05B156.06M-314.01M

Avnet Technical Analysis

Technical Analysis Sentiment
Negative
Last Price52.21
Price Trends
50DMA
52.99
Negative
100DMA
52.53
Negative
200DMA
50.92
Positive
Market Momentum
MACD
-0.31
Positive
RSI
45.78
Neutral
STOCH
29.81
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 52.21 is below the 20-day moving average (MA) of 52.85, below the 50-day MA of 52.99, and above the 200-day MA of 50.92, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 45.78 is Neutral, neither overbought nor oversold. The STOCH value of 29.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AVT.

Avnet Risk Analysis

Avnet disclosed 19 risk factors in its most recent earnings report. Avnet reported the most risks in the "Finance & Corporate" 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$634.27M28.0121.01%0.49%56.45%59.09%
71
Outperform
$958.98M14.567.89%-6.72%-1.14%
69
Neutral
$6.27B13.767.38%-3.95%-16.72%
66
Neutral
$4.36B19.024.83%2.56%-6.55%-49.61%
61
Neutral
$3.54B26.829.32%-7.61%-50.01%
55
Neutral
$26.29M-31.28-0.75%-849.02%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AVT
Avnet
52.21
0.29
0.56%
ARW
Arrow Electronics
121.69
-7.65
-5.91%
NSIT
Insight Enterprises
112.41
-101.73
-47.51%
SCSC
ScanSource
43.82
-1.87
-4.09%
CLMB
Climb Global Solutions
137.37
45.79
50.00%
IZM
ICZOOM Group, Inc. Class A
2.39
-0.48
-16.72%

Avnet Corporate Events

Business Operations and StrategyStock BuybackPrivate Placements and Financing
Avnet Issues $650M Convertible Notes to Manage Capital
Neutral
Sep 5, 2025

On September 5, 2025, Avnet issued $650 million in 1.75% Convertible Senior Notes due 2030, with net proceeds of approximately $632.8 million. The company used $100 million to repurchase shares and plans to use the remainder to repay its revolving credit facility. This move is part of Avnet’s strategy to manage its capital structure and enhance shareholder value, potentially impacting its financial flexibility and market positioning.

The most recent analyst rating on (AVT) stock is a Hold with a $56.00 price target. To see the full list of analyst forecasts on Avnet stock, see the AVT Stock Forecast page.

Business Operations and StrategyStock BuybackPrivate Placements and Financing
Avnet Amends Credit Agreements for Financial Flexibility
Neutral
Aug 28, 2025

On August 28, 2025, Avnet, Inc. and Avnet Holding Europe BV entered into amendments to their existing credit agreements with Bank of America, N.A. These amendments temporarily increase the maximum consolidated leverage ratio to provide financial flexibility until September 30, 2026. During this relief period, Avnet is restricted from making certain payments, but can continue paying dividends and repurchasing up to $100 million of its common stock, potentially impacting its financial operations and shareholder returns.

The most recent analyst rating on (AVT) stock is a Buy with a $62.00 price target. To see the full list of analyst forecasts on Avnet stock, see the AVT Stock Forecast page.

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.Date of analysis: Sep 25, 2025