Avnet (AVT) AI Stock Analysis

• Market Cap: $4.47B
• Dividend Yield: 2.37%
• Average Volume (3M): 743.62K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.92
• Revenue Growth: -6.55%
• EPS Growth: -49.61%
• Country: US
• Employees: 15,462
• Sector: Technology
• Sector Strength: 83
• Industry: Technology Distributors
• EPS (TTM): 0.81
• Shares Outstanding: 83,462,746
• 10 Day Avg. Volume: 627,645
• 30 Day Avg. Volume: 743,617
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.60
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 3.00
• Enterprise Value/Ebitda: 11.48
• 1Y Price Target: $54.60
• Price Target Upside: -1.90% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 72 Outperform
• Price Target: $62.00 ▲(11.39% Upside)

Avnet's overall stock score of 72 reflects a stable financial performance with operational efficiency, supported by positive technical indicators and a strong earnings call. The company's valuation is fair, and future growth prospects are promising, particularly in Asia. However, challenges with profitability, cash flow, and regional sales declines in EMEA temper the outlook.

Positive Factors

Demand Recovery

Avnet continues to report signs of a demand recovery with book-to-bill again improving.

Financial Performance

Farnell's EBIT% improved for the third straight quarter, with expectations of a return to over 10% in future quarters.

Negative Factors

Regional Sales Mix

The mix of regions continues to negatively impact GM which came in at 10.6%, down about 100bps y/y on higher mix of Asia sales (lower margin).

Revenue and Earnings Guidance

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

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. While operational efficiency is evident, profitability and cash flow generation need improvement. The company should focus on enhancing revenue growth and managing costs to improve margins and cash flow.

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	624.20M	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: Positive
• Last Price: 55.66
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 55.66 is above the 20-day moving average (MA) of 53.11, above the 50-day MA of 53.55, and above the 200-day MA of 51.26, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 60.18 is Neutral, neither overbought nor oversold. The STOCH value of 64.68 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	$5.92B	24.72	11.58%	―	5.87%	20.66%
SNX	79 Outperform	$12.06B	17.09	8.83%	1.15%	6.60%	19.93%
AVT	72 Outperform	$4.47B	19.47	4.83%	2.37%	-6.55%	-49.61%
ARW	70 Outperform	$6.40B	14.70	7.74%	―	-3.95%	-16.72%
SCSC	69 Neutral	$901.79M	14.83	7.82%	―	-6.72%	-1.14%
NSIT	67 Neutral	$4.04B	31.94	8.67%	―	-7.61%	-50.01%
Sector *	61 Neutral	$34.98B	7.37	-10.82%	1.91%	8.82%	-8.66%

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.