Avnet (AVT) AI Stock Analysis

• Market Cap: $4.24B
• Dividend Yield: 2.62%
• Average Volume (3M): 767.36K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.98
• Revenue Growth: -6.55%
• EPS Growth: -49.61%
• Country: US
• Employees: 15,462
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 0.81
• Shares Outstanding: 81,326,420
• 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: 1.69
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 3.00
• Enterprise Value/Ebitda: 11.46
• 1Y Price Target: $52.75
• Price Target Upside: 2.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 65 Neutral
• Price Target: $55.00 ▲(7.38% Upside)

Avnet's overall stock score reflects a stable but challenged financial performance, with solid earnings call results highlighting growth in Asia. However, technical indicators suggest bearish momentum, and profitability and cash flow generation need improvement.

Positive Factors

Strong Performance in Asia

Consistent growth in Asia highlights Avnet's effective market strategies and potential for continued expansion in a key growth region.

Positive Book-to-Bill Ratio

An improved book-to-bill ratio indicates strong demand and potential revenue growth, suggesting effective sales strategies and market positioning.

Cash Flow and Shareholder Returns

Strong cash flow generation and shareholder returns through dividends and buybacks reflect financial health and commitment to returning value.

Negative Factors

Decline in EMEA Sales

Significant sales decline in EMEA affects revenue diversification and pressures margins, indicating regional challenges that need addressing.

Gross Margin Pressure

Decreasing gross margins due to sales mix and currency impacts suggest cost management issues that could affect profitability.

Interest Expense and Operating Costs

High interest expenses and rising operating costs may strain financial resources, impacting future investment and growth opportunities.

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 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 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

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	22.20B	22.20B	23.76B	26.54B	24.31B	19.53B
Gross Profit	2.38B	2.38B	2.77B	3.18B	2.97B	2.24B
EBITDA	624.95M	622.17M	1.06B	1.38B	1.09B	451.10M
Net Income	240.22M	240.22M	498.70M	770.83M	692.38M	193.11M
Balance Sheet
Total Assets	12.12B	12.12B	12.21B	12.48B	10.39B	8.93B
Cash, Cash Equivalents and Short-Term Investments	192.43M	192.43M	310.94M	288.23M	153.69M	199.69M
Total Debt	2.88B	2.88B	3.13B	3.30B	1.87B	1.51B
Total Liabilities	7.11B	7.11B	7.28B	7.73B	6.20B	4.84B
Stockholders Equity	5.01B	5.01B	4.93B	4.75B	4.19B	4.08B
Cash Flow
Free Cash Flow	577.03M	577.03M	463.51M	-908.38M	-268.21M	40.59M
Operating Cash Flow	724.50M	724.50M	689.98M	-713.70M	-219.31M	90.95M
Investing Cash Flow	-137.13M	-137.13M	-225.48M	-211.55M	51.30M	-61.20M
Financing Cash Flow	-693.53M	-693.53M	-433.80M	1.05B	156.06M	-314.01M

Avnet Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 51.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 51.22 is below the 20-day moving average (MA) of 51.76, below the 50-day MA of 52.74, and above the 200-day MA of 50.89, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 45.05 is Neutral, neither overbought nor oversold. The STOCH value of 68.73 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	75 Outperform	$600.05M	27.00	23.39%	0.52%	56.45%	59.09%
ARW	70 Outperform	$6.46B	13.57	7.74%	―	-3.95%	-16.72%
SCSC	66 Neutral	$939.94M	14.07	7.82%	―	-6.72%	-1.14%
AVT	65 Neutral	$4.24B	18.98	4.83%	2.62%	-6.55%	-49.61%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NSIT	60 Neutral	$3.45B	26.12	8.67%	―	-7.61%	-50.01%
IZM	55 Neutral	$22.55M	―	―	―	-0.75%	-849.02%

Avnet Corporate Events

Avnet Issues $650M Convertible Notes to Manage Capital

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.

Avnet Amends Credit Agreements for Financial Flexibility

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.