AVNET INC (AVT) Stock Fundamental Analysis
NASDAQ:AVT - Nasdaq - US0538071038 - Common Stock
Taking everything into account, AVT scores 5 out of 10 in our fundamental rating. AVT was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. AVT has only an average score on both its financial health and profitability. AVT is valued quite cheap, but it does not seem to be growing. AVT also has an excellent dividend rating. These ratings could make AVT a good candidate 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 Return On Assets of 2.77%. This is comparable to the rest of the industry: AVT outperforms 58.33% of its industry peers.
The Return On Equity of AVT (6.92%) is better than 63.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.06%, AVT is in the better half of the industry, outperforming 74.17% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AVT is above the industry average of 9.03%.
| 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
The Profit Margin of AVT (1.51%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of AVT has grown nicely.
AVT has a Operating Margin of 3.49%. This is comparable to the rest of the industry: AVT outperforms 56.67% of its industry peers.
AVT's Operating Margin has improved in the last couple of years.
AVT has a worse Gross Margin (11.40%) than 75.83% of its industry peers.
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.
Compared to 1 year ago, AVT has less shares outstanding
AVT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AVT has been reduced compared to a year ago.
2.2 Solvency
AVT has an Altman-Z score of 3.37. This indicates that AVT is financially healthy and has little risk of bankruptcy at the moment.
AVT has a Altman-Z score of 3.37. This is comparable to the rest of the industry: AVT outperforms 55.00% of its industry peers.
The Debt to FCF ratio of AVT is 4.51, which is a neutral value as it means it would take AVT, 4.51 years of fcf income to pay off all of its debts.
AVT has a Debt to FCF ratio (4.51) which is comparable to the rest of the industry.
AVT has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.48, AVT is doing worse than 71.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 4.51 | ||
| Altman-Z | 3.37 |
ROIC/WACC0.68
WACC11.86%
2.3 Liquidity
A Current Ratio of 2.25 indicates that AVT has no problem at all paying its short term obligations.
AVT has a Current ratio (2.25) which 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 75.83% 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%.
The Earnings Per Share has been growing slightly by 5.34% on average over the past years.
Looking at the last year, AVT shows a very negative growth in Revenue. The Revenue has decreased by -11.85% in the last year.
The Revenue has been growing slightly by 4.01% on average over the past years.
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
The Earnings Per Share is expected to grow by 7.58% on average over the next years.
AVT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.25% yearly.
EPS Next Y-24.18%
EPS Next 2Y5.24%
EPS Next 3Y7.58%
EPS Next 5YN/A
Revenue Next Year-4.71%
Revenue Next 2Y1.3%
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
A Price/Earnings ratio of 11.78 indicates a reasonable valuation of AVT.
Based on the Price/Earnings ratio, AVT is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.29. AVT is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.26, which indicates a very decent valuation of AVT.
Based on the Price/Forward Earnings ratio, AVT is valued cheaper than 96.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AVT to the average of the S&P500 Index (24.44), we can say AVT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 9.26 |
4.2 Price Multiples
AVT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AVT is cheaper than 89.17% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AVT is valued cheaply inside the industry as 94.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.25 | ||
| EV/EBITDA | 8.36 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.21
EPS Next 2Y5.24%
EPS Next 3Y7.58%
5. Dividend
5.1 Amount
AVT has a Yearly Dividend Yield of 2.50%.
AVT's Dividend Yield is rather good when compared to the industry average which is at 1.87. AVT pays more dividend than 96.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, AVT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
5.2 History
The dividend of AVT is nicely growing with an annual growth rate of 9.30%!
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 2Y5.24%
EPS Next 3Y7.58%
AVNET INC
NASDAQ:AVT (1/21/2025, 8:00:00 PM)
After market: 54.65 0 (0%)54.65
+1.09 (+2.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners104.67%
Inst Owner Change-0.05%
Ins Owners0.48%
Ins Owner Change9.84%
Market Cap4.75B
Analysts52
Price Target55.25 (1.1%)
Short Float %5.11%
Short Ratio5.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
Yearly Dividend1.24
Dividend Growth(5Y)9.3%
DP32.3%
Div Incr Years10
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.79%
Min EPS beat(2)6.09%
Max EPS beat(2)27.49%
EPS beat(4)2
Avg EPS beat(4)7.7%
Min EPS beat(4)-1.88%
Max EPS beat(4)27.49%
EPS beat(8)6
Avg EPS beat(8)9.56%
EPS beat(12)10
Avg EPS beat(12)11.76%
EPS beat(16)14
Avg EPS beat(16)14.75%
Revenue beat(2)2
Avg Revenue beat(2)2.4%
Min Revenue beat(2)2.17%
Max Revenue beat(2)2.62%
Revenue beat(4)2
Avg Revenue beat(4)0.63%
Min Revenue beat(4)-1.92%
Max Revenue beat(4)2.62%
Revenue beat(8)5
Avg Revenue beat(8)1.08%
Revenue beat(12)9
Avg Revenue beat(12)2.62%
Revenue beat(16)13
Avg Revenue beat(16)3.28%
PT rev (1m)-1.22%
PT rev (3m)2.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-21.78%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 9.26 | ||
| P/S | 0.21 | ||
| P/FCF | 7.25 | ||
| P/OCF | 5.67 | ||
| P/B | 0.94 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 8.36 |
EPS(TTM)4.64
EY8.49%
EPS(NY)5.9
Fwd EY10.8%
FCF(TTM)7.54
FCFY13.8%
OCF(TTM)9.63
OCFY17.63%
SpS264.85
BVpS57.94
TBVpS48.53
PEG (NY)N/A
PEG (5Y)2.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 6.92% | ||
| ROCE | 10.25% | ||
| ROIC | 8.06% | ||
| ROICexc | 8.35% | ||
| ROICexgc | 9.36% | ||
| OM | 3.49% | ||
| PM (TTM) | 1.51% | ||
| GM | 11.4% | ||
| FCFM | 2.85% |
ROA(3y)5.64%
ROA(5y)3.74%
ROE(3y)14.28%
ROE(5y)9.35%
ROIC(3y)11.06%
ROIC(5y)8.21%
ROICexc(3y)11.43%
ROICexc(5y)8.52%
ROICexgc(3y)12.87%
ROICexgc(5y)9.69%
ROCE(3y)14.06%
ROCE(5y)10.44%
ROICexcg growth 3Y20.95%
ROICexcg growth 5Y-0.53%
ROICexc growth 3Y23.19%
ROICexc growth 5Y1.41%
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%
F-Score5
Asset Turnover1.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 4.51 | ||
| Debt/EBITDA | 2.73 | ||
| Cap/Depr | 214.07% | ||
| Cap/Sales | 0.79% | ||
| Interest Coverage | 2.35 | ||
| Cash Conversion | 94.14% | ||
| Profit Quality | 188.14% | ||
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 3.37 |
F-Score5
WACC11.86%
ROIC/WACC0.68
Cap/Depr(3y)176.23%
Cap/Depr(5y)121.45%
Cap/Sales(3y)0.63%
Cap/Sales(5y)0.51%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-39.5%
EPS 3Y25.45%
EPS 5Y5.34%
EPS Q2Q%-42.86%
EPS Next Y-24.18%
EPS Next 2Y5.24%
EPS Next 3Y7.58%
EPS Next 5YN/A
Revenue 1Y (TTM)-11.85%
Revenue growth 3Y6.74%
Revenue growth 5Y4.01%
Sales Q2Q%-11.55%
Revenue Next Year-4.71%
Revenue Next 2Y1.3%
Revenue Next 3Y3.25%
Revenue Next 5YN/A
EBIT growth 1Y-32.11%
EBIT growth 3Y34.82%
EBIT growth 5Y7.94%
EBIT Next Year-9.36%
EBIT Next 3Y4.31%
EBIT Next 5YN/A
FCF growth 1Y172.95%
FCF growth 3Y125.36%
FCF growth 5Y2.38%
OCF growth 1Y200.51%
OCF growth 3Y96.53%
OCF growth 5Y5.23%