AVNET INC (AVT)
US0538071038 - Common Stock
We assign a fundamental rating of 5 out of 10 to AVT. AVT was compared to 126 industry peers in the Electronic Equipment, Instruments & Components industry. AVT has only an average score on both its financial health and profitability. AVT is cheap, but on the other hand it scores bad on growth. AVT also has an excellent dividend rating. This makes AVT very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
In the past year AVT was profitable.
AVT had a positive operating cash flow in the past year.
Of the past 5 years AVT 4 years were profitable.
The reported operating cash flow has been mixed in the past 5 years: AVT reported negative operating cash flow in multiple years.
1.2 Ratios
With a decent Return On Assets value of 2.77%, AVT is doing good in the industry, outperforming 60.80% of the companies in the same industry.
The Return On Equity of AVT (6.92%) is better than 64.80% of its industry peers.
With a decent Return On Invested Capital value of 8.06%, AVT is doing good in the industry, outperforming 76.00% 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 8.74%.
| 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
Looking at the Profit Margin, with a value of 1.51%, AVT is in line with its industry, outperforming 56.00% of the companies in the same 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 59.20% of its industry peers.
AVT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 11.40%, AVT is not doing good in the industry: 76.00% 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
AVT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AVT has less shares outstanding than it did 1 year ago.
AVT has less shares outstanding than it did 5 years ago.
AVT has a better debt/assets ratio than last year.
2.2 Solvency
AVT has an Altman-Z score of 3.36. This indicates that AVT is financially healthy and has little risk of bankruptcy at the moment.
AVT's Altman-Z score of 3.36 is in line compared to the rest of the industry. AVT outperforms 56.00% 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.
With a decent Debt to FCF ratio value of 4.51, AVT is doing good in the industry, outperforming 60.80% of the companies in the same industry.
A Debt/Equity ratio of 0.48 indicates that AVT is not too dependend on debt financing.
AVT has a worse Debt to Equity ratio (0.48) than 72.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 4.51 | ||
| Altman-Z | 3.36 |
ROIC/WACC0.68
WACC11.83%
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.
With a Current ratio value of 2.25, AVT perfoms like the industry average, outperforming 46.40% of the companies in the same 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.
Looking at the Quick ratio, with a value of 1.07, AVT is doing worse than 76.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The earnings per share for AVT have decreased strongly by -39.50% 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 -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
Based on estimates for the next years, AVT will show a small growth in Earnings Per Share. The EPS will grow by 7.58% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.44, the valuation of AVT can be described as very reasonable.
Based on the Price/Earnings ratio, AVT is valued cheaper than 94.40% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. AVT is valued rather cheaply when compared to this.
AVT is valuated reasonably with a Price/Forward Earnings ratio of 9.03.
96.00% of the companies in the same industry are more expensive than AVT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.83. AVT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.44 | ||
| Fwd PE | 9.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AVT is valued cheaply inside the industry as 87.20% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AVT indicates a rather cheap valuation: AVT is cheaper than 94.40% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.04 | ||
| 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 2.43%. Purely for dividend investing, there may be better candidates out there.
AVT's Dividend Yield is rather good when compared to the industry average which is at 1.81. AVT pays more dividend than 96.80% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, AVT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
5.2 History
On average, the dividend of AVT grows each year by 9.30%, which is quite nice.
AVT has paid a dividend for at least 10 years, which is 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 (12/20/2024, 8:00:01 PM)
After market: 52.92 -0.15 (-0.28%)53.07
+0.16 (+0.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners98.95%
Inst Owner Change-2.55%
Ins Owners1.58%
Ins Owner Change11.62%
Market Cap4.61B
Analysts52
Price Target55.93 (5.39%)
Short Float %4.8%
Short Ratio6.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
Dividend Growth(5Y)9.3%
DP32.3%
Div Incr Years10
Div Non Decr Years10
Ex-Date
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)3.46%
PT rev (3m)3.46%
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%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.44 | ||
| Fwd PE | 9.03 | ||
| P/S | 0.2 | ||
| P/FCF | 7.04 | ||
| P/OCF | 5.51 | ||
| P/B | 0.92 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 8.19 |
EPS(TTM)4.64
EY8.74%
EPS(NY)5.88
Fwd EY11.08%
FCF(TTM)7.54
FCFY14.21%
OCF(TTM)9.63
OCFY18.15%
SpS264.85
BVpS57.94
TBVpS48.53
PEG (NY)N/A
PEG (5Y)2.14
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 | 3.36 |
F-Score5
WACC11.83%
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 2Y5.03%
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-4.81%
Revenue Next 2Y1.39%
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%