Avnet (AVT) AI Stock Analysis

• Market Cap: $5.24B
• Dividend Yield: 2.77%
• Average Volume (3M): 767.36K
• Price to Earnings (P/E): 25.8
• Beta (1Y): 0.99
• Revenue Growth: -2.30%
• EPS Growth: -29.75%
• Country: US
• Employees: 15,462
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 1.05
• Shares Outstanding: 81,862,970
• 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: 1.55
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 3.30
• Enterprise Value/Ebitda: 13.14
• 1Y Price Target: $56.00
• Price Target Upside: -11.10% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $66.00 ▲(4.78% Upside)

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.

Regional Revenue Diversification — Asia Strength

Sustained, record Asia growth (now >50% of sales) reflects structural exposure to high-growth end markets and strengthens global revenue diversification. Persistent demand in Asia supports longer-term top-line resilience and expands customer pipelines across compute, industrial, and telecom segments.

Improving Cash Conversion and Inventory Control

Material operating cash generation (> $200M) and sequential working-capital reductions signal improving cash conversion. Better inventory days and tighter working-capital management enhance free cash flow potential and provide capacity for dividends, deleveraging, or strategic reinvestment over coming quarters.

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.

Free Cash Flow Weakness

A steep drop in free cash flow growth (-42% TTM) weakens durable cash-generation capacity. Even with operating cash flow positives, declining FCF growth limits sustained dividend increases, buybacks, or accelerated deleveraging and raises sensitivity to cyclical revenue swings over the medium term.

Supply-Chain & Inventory Profile Risks

High inventory days at Farnell and broader supply-chain mismatch reduce working-capital efficiency and tie up cash. Combined with emerging pricing pressure in memory/storage and regional mix shifts, this structural mismatch can depress gross margins and slow margin recovery absent improved supply visibility or inventory normalization.

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

Stable revenue growth (1.33% TTM) and a strong balance sheet with low leverage (debt-to-equity 0.26) support the score, but profitability is thin (net margin 1.04%; EBIT/EBITDA margins 2.01%/2.64%) and free cash flow growth declined sharply (-42.24% TTM), limiting upside.

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

Avnet Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 62.99 is above the 20-day moving average (MA) of 54.10, above the 50-day MA of 50.85, and above the 200-day MA of 51.02, indicating a bullish trend. The MACD of 3.68 indicates Negative momentum. The RSI at 83.43 is Negative, neither overbought nor oversold. The STOCH value of 94.08 is Negative, 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
CLMB	73 Outperform	$553.01M	25.86	21.27%	0.63%	51.09%	25.86%
AVT	71 Outperform	$5.24B	25.80	4.71%	2.77%	-2.30%	-29.75%
ARW	64 Neutral	$7.11B	15.23	7.70%	―	3.16%	1.09%
SCSC	64 Neutral	$972.71M	13.82	8.11%	―	-4.88%	2.57%
NSIT	62 Neutral	$2.53B	19.04	8.51%	―	-6.69%	-51.74%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IZM	58 Neutral	$12.62M	9.85	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.

The most recent analyst rating on (AVT) stock is a Hold with a $55.00 price target. To see the full list of analyst forecasts on Avnet stock, see the AVT Stock Forecast page.