AVNET INC (AVT)
US0538071038 - Common Stock
Overall AVT gets a fundamental rating of 5 out of 10. We evaluated AVT against 124 industry peers in the Electronic Equipment, Instruments & Components industry. Both the profitability and the financial health of AVT get a neutral evaluation. Nothing too spectacular is happening here. AVT has a bad growth rate and is valued cheaply. Finally AVT also has an excellent dividend rating. This makes AVT very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
AVT had positive earnings in the past year.
In the past year AVT had a positive cash flow from operations.
Of the past 5 years AVT 4 years were profitable.
In multiple years AVT reported negative operating cash flow during the last 5 years.
1.2 Ratios
AVT has a better Return On Assets (2.77%) than 61.79% of its industry peers.
The Return On Equity of AVT (6.92%) is better than 65.85% of its industry peers.
AVT has a better Return On Invested Capital (8.06%) than 75.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AVT is above the industry average of 8.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 6.92% | ||
| ROIC | 8.06% |
ROA(3y)5.64%
ROA(5y)3.74%
ROE(3y)14.28%
ROE(5y)9.35%
ROIC(3y)11.06%
ROIC(5y)8.21%
1.3 Margins
AVT has a Profit Margin of 1.51%. This is comparable to the rest of the industry: AVT outperforms 56.91% of its industry peers.
AVT's Profit Margin has improved in the last couple of years.
The Operating Margin of AVT (3.49%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of AVT has grown nicely.
With a Gross Margin value of 11.40%, AVT is not doing good in the industry: 78.05% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of AVT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.49% | ||
| PM (TTM) | 1.51% | ||
| GM | 11.4% |
OM growth 3Y26.31%
OM growth 5Y3.78%
PM growth 3Y28.56%
PM growth 5Y18.41%
GM growth 3Y0.5%
GM growth 5Y-1.78%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVT is destroying value.
The number of shares outstanding for AVT has been reduced compared to 1 year ago.
The number of shares outstanding for AVT has been reduced compared to 5 years ago.
AVT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.36 indicates that AVT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.36, AVT is in line with its industry, outperforming 57.72% of the companies in the same industry.
AVT has a debt to FCF ratio of 4.51. This is a neutral value as AVT would need 4.51 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.51, AVT is in line with its industry, outperforming 59.35% of the companies in the same industry.
AVT has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
AVT has a worse Debt to Equity ratio (0.48) than 73.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 4.51 | ||
| Altman-Z | 3.36 |
ROIC/WACC0.7
WACC11.46%
2.3 Liquidity
AVT has a Current Ratio of 2.25. This indicates that AVT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of AVT (2.25) is comparable to the rest of the industry.
AVT has a Quick Ratio of 1.07. This is a normal value and indicates that AVT is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of AVT (1.07) is worse than 78.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
AVT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -39.50%.
Measured over the past 5 years, AVT shows a small growth in Earnings Per Share. The EPS has been growing by 5.34% on average per year.
The Revenue for AVT has decreased by -11.85% in the past year. This is quite bad
Measured over the past years, AVT shows a small growth in Revenue. The Revenue has been growing by 4.01% on average per year.
EPS 1Y (TTM)-39.5%
EPS 3Y25.45%
EPS 5Y5.34%
EPS Q2Q%-42.86%
Revenue 1Y (TTM)-11.85%
Revenue growth 3Y6.74%
Revenue growth 5Y4.01%
Sales Q2Q%-11.55%
3.2 Future
AVT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.58% yearly.
The Revenue is expected to grow by 3.25% on average over the next years.
EPS Next Y-24.18%
EPS Next 2Y5.03%
EPS Next 3Y7.58%
EPS Next 5YN/A
Revenue Next Year-4.81%
Revenue Next 2Y1.39%
Revenue Next 3Y3.25%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.41, the valuation of AVT can be described as very reasonable.
Based on the Price/Earnings ratio, AVT is valued cheaply inside the industry as 93.50% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.68. AVT is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.00, the valuation of AVT can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AVT indicates a rather cheap valuation: AVT is cheaper than 93.50% of the companies listed in the same industry.
AVT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AVT is valued cheaper than 87.80% of the companies in the same industry.
94.31% of the companies in the same industry are more expensive than AVT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.02 | ||
| EV/EBITDA | 8.19 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.14
EPS Next 2Y5.03%
EPS Next 3Y7.58%
5. Dividend
5.1 Amount
AVT has a Yearly Dividend Yield of 2.49%.
AVT's Dividend Yield is rather good when compared to the industry average which is at 1.94. AVT pays more dividend than 95.94% of the companies in the same industry.
AVT's Dividend Yield is comparable with the S&P500 average which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
5.2 History
On average, the dividend of AVT grows each year by 9.30%, which is quite nice.
AVT has been paying a dividend for at least 10 years, so it has a reliable track record.
AVT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.3%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
32.30% of the earnings are spent on dividend by AVT. This is a low number and sustainable payout ratio.
AVT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.3%
EPS Next 2Y5.03%
EPS Next 3Y7.58%
AVNET INC
NASDAQ:AVT (11/20/2024, 8:08:10 PM)
After market: 52.92 0 (0%)52.92
+0.66 (+1.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.60B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 9 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 6.92% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.49% | ||
| PM (TTM) | 1.51% | ||
| GM | 11.4% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-39.5%
EPS 3Y25.45%
EPS 5Y
EPS Q2Q%
EPS Next Y-24.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.85%
Revenue growth 3Y6.74%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y