AVNET INC (AVT) Stock Fundamental Analysis
NASDAQ:AVT - Nasdaq - US0538071038 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to AVT. 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 has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally AVT also has an excellent dividend rating. This makes AVT very considerable for 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.
AVT had positive earnings in 4 of the past 5 years.
In multiple years AVT reported negative operating cash flow during the last 5 years.
1.2 Ratios
AVT's Return On Assets of 2.66% is in line compared to the rest of the industry. AVT outperforms 59.17% of its industry peers.
AVT has a better Return On Equity (6.56%) than 62.50% of its industry peers.
AVT has a Return On Invested Capital of 7.34%. This is in the better half of the industry: AVT outperforms 71.67% of its industry peers.
AVT had an Average Return On Invested Capital over the past 3 years of 11.06%. This is above the industry average of 8.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 6.56% | ||
| ROIC | 7.34% |
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 (1.41%) which is comparable to the rest of the industry.
AVT's Profit Margin has improved in the last couple of years.
AVT has a Operating Margin (3.21%) which 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 11.19%, AVT is not doing good in the industry: 75.83% of the companies in the same industry are doing better.
AVT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.21% | ||
| PM (TTM) | 1.41% | ||
| GM | 11.19% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AVT is still creating some value.
Compared to 1 year ago, AVT has less shares outstanding
Compared to 5 years ago, AVT has less shares outstanding
The debt/assets ratio for AVT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.47 indicates that AVT is not in any danger for bankruptcy at the moment.
AVT has a Altman-Z score (3.47) which is comparable to the rest of the industry.
AVT has a debt to FCF ratio of 2.36. This is a good value and a sign of high solvency as AVT would need 2.36 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.36, AVT is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
AVT has a Debt/Equity ratio of 0.53. This is a neutral value indicating AVT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.53, AVT is not doing good in the industry: 75.83% of the companies in the same industry are doing better.
Although AVT does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 3.47 |
ROIC/WACC0.72
WACC10.14%
2.3 Liquidity
AVT has a Current Ratio of 2.39. This indicates that AVT is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.39, AVT perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
AVT has a Quick Ratio of 1.15. This is a normal value and indicates that AVT is financially healthy and should not expect problems in meeting its short term obligations.
AVT has a Quick ratio of 1.15. This is in the lower half of the industry: AVT underperforms 71.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The earnings per share for AVT have decreased strongly by -41.87% in the last year.
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 -12.20% in the past year. This is quite bad
AVT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.01% yearly.
EPS 1Y (TTM)-41.87%
EPS 3Y25.45%
EPS 5Y5.34%
EPS Q2Q%-37.86%
Revenue 1Y (TTM)-12.2%
Revenue growth 3Y6.74%
Revenue growth 5Y4.01%
Sales Q2Q%-8.73%
3.2 Future
Based on estimates for the next years, AVT will show a small growth in Earnings Per Share. The EPS will grow by 6.36% on average per year.
AVT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.61% yearly.
EPS Next Y-35.19%
EPS Next 2Y2.04%
EPS Next 3Y6.36%
EPS Next 5YN/A
Revenue Next Year-6.61%
Revenue Next 2Y-0.34%
Revenue Next 3Y1.61%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AVT is valuated correctly with a Price/Earnings ratio of 12.62.
Compared to the rest of the industry, the Price/Earnings ratio of AVT indicates a rather cheap valuation: AVT is cheaper than 93.33% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AVT to the average of the S&P500 Index (29.63), we can say AVT is valued rather cheaply.
The Price/Forward Earnings ratio is 9.34, 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.
The average S&P500 Price/Forward Earnings ratio is at 22.68. AVT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.62 | ||
| Fwd PE | 9.34 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AVT indicates a rather cheap valuation: AVT is cheaper than 95.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.12 | ||
| EV/EBITDA | 8.64 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.36
EPS Next 2Y2.04%
EPS Next 3Y6.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.51%, AVT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.92, AVT pays a better dividend. On top of this AVT pays more dividend than 96.67% of the companies listed in the same industry.
AVT's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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
AVT pays out 35.64% of its income as dividend. This is a sustainable payout ratio.
The dividend of AVT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.64%
EPS Next 2Y2.04%
EPS Next 3Y6.36%
51.85
-0.66 (-1.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners107.49%
Inst Owner Change4.96%
Ins Owners0.49%
Ins Owner Change-2.05%
Market Cap4.49B
Analysts50
Price Target53.3 (2.8%)
Short Float %5.84%
Short Ratio6.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
Yearly Dividend1.24
Dividend Growth(5Y)9.3%
DP35.64%
Div Incr Years10
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.46%
Min EPS beat(2)-3.18%
Max EPS beat(2)6.09%
EPS beat(4)2
Avg EPS beat(4)7.13%
Min EPS beat(4)-3.18%
Max EPS beat(4)27.49%
EPS beat(8)5
Avg EPS beat(8)8.3%
EPS beat(12)9
Avg EPS beat(12)10.03%
EPS beat(16)13
Avg EPS beat(16)13.2%
Revenue beat(2)2
Avg Revenue beat(2)1.3%
Min Revenue beat(2)0.43%
Max Revenue beat(2)2.17%
Revenue beat(4)3
Avg Revenue beat(4)0.83%
Min Revenue beat(4)-1.92%
Max Revenue beat(4)2.62%
Revenue beat(8)5
Avg Revenue beat(8)0.91%
Revenue beat(12)9
Avg Revenue beat(12)2.32%
Revenue beat(16)13
Avg Revenue beat(16)2.79%
PT rev (1m)-0.31%
PT rev (3m)1.89%
EPS NQ rev (1m)-29.41%
EPS NQ rev (3m)-46.34%
EPS NY rev (1m)-14.53%
EPS NY rev (3m)-14.53%
Revenue NQ rev (1m)-4.61%
Revenue NQ rev (3m)-6.56%
Revenue NY rev (1m)-1.98%
Revenue NY rev (3m)-1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.62 | ||
| Fwd PE | 9.34 | ||
| P/S | 0.2 | ||
| P/FCF | 4.12 | ||
| P/OCF | 3.68 | ||
| P/B | 0.93 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 8.64 |
EPS(TTM)4.11
EY7.93%
EPS(NY)5.55
Fwd EY10.7%
FCF(TTM)12.58
FCFY24.26%
OCF(TTM)14.08
OCFY27.15%
SpS259.93
BVpS56
TBVpS47.05
PEG (NY)N/A
PEG (5Y)2.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 6.56% | ||
| ROCE | 9.34% | ||
| ROIC | 7.34% | ||
| ROICexc | 7.51% | ||
| ROICexgc | 8.37% | ||
| OM | 3.21% | ||
| PM (TTM) | 1.41% | ||
| GM | 11.19% | ||
| FCFM | 4.84% |
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 Turnover1.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.36 | ||
| Debt/EBITDA | 3.2 | ||
| Cap/Depr | 160.12% | ||
| Cap/Sales | 0.58% | ||
| Interest Coverage | 2.2 | ||
| Cash Conversion | 151.61% | ||
| Profit Quality | 342.51% | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 3.47 |
F-Score5
WACC10.14%
ROIC/WACC0.72
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)-41.87%
EPS 3Y25.45%
EPS 5Y5.34%
EPS Q2Q%-37.86%
EPS Next Y-35.19%
EPS Next 2Y2.04%
EPS Next 3Y6.36%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.2%
Revenue growth 3Y6.74%
Revenue growth 5Y4.01%
Sales Q2Q%-8.73%
Revenue Next Year-6.61%
Revenue Next 2Y-0.34%
Revenue Next 3Y1.61%
Revenue Next 5YN/A
EBIT growth 1Y-35.95%
EBIT growth 3Y34.82%
EBIT growth 5Y7.94%
EBIT Next Year-18.73%
EBIT Next 3Y4.04%
EBIT Next 5YN/A
FCF growth 1Y202.58%
FCF growth 3Y125.36%
FCF growth 5Y2.38%
OCF growth 1Y231.99%
OCF growth 3Y96.53%
OCF growth 5Y5.23%