AVNET INC (AVT) Stock Fundamental Analysis
NASDAQ:AVT - Nasdaq - US0538071038 - Common Stock - Currency: USD
Taking everything into account, AVT scores 5 out of 10 in our fundamental rating. AVT was compared to 125 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 valuation in line with the averages, but on the other hand it scores bad on growth. Finally AVT also has an excellent dividend rating. These ratings would make AVT suitable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year AVT was profitable.
In the past year AVT had a positive cash flow from operations.
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
AVT has a better Return On Assets (2.70%) than 64.80% of its industry peers.
Looking at the Return On Equity, with a value of 6.49%, AVT is in the better half of the industry, outperforming 64.80% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.87%, AVT is in the better half of the industry, outperforming 71.20% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AVT is in line with the industry average of 9.30%.
The last Return On Invested Capital (6.87%) for AVT is well below the 3 year average (11.06%), which needs to be investigated, but indicates that AVT had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.7% | ||
| ROE | 6.49% | ||
| ROIC | 6.87% |
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 (1.43%) 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 3.04%. This is comparable to the rest of the industry: AVT outperforms 56.00% of its industry peers.
AVT's Operating Margin has improved in the last couple of years.
AVT has a worse Gross Margin (10.99%) than 76.00% of its industry peers.
AVT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.04% | ||
| PM (TTM) | 1.43% | ||
| GM | 10.99% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, AVT has less shares outstanding
Compared to 5 years ago, AVT has less shares outstanding
Compared to 1 year ago, AVT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.51 indicates that AVT is not in any danger for bankruptcy at the moment.
AVT has a Altman-Z score of 3.51. This is comparable to the rest of the industry: AVT outperforms 59.20% of its industry peers.
AVT has a debt to FCF ratio of 3.54. This is a good value and a sign of high solvency as AVT would need 3.54 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.54, AVT is in the better half of the industry, outperforming 65.60% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that AVT is somewhat dependend on debt financing.
AVT has a Debt to Equity ratio of 0.51. This is in the lower half of the industry: AVT underperforms 74.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.54 | ||
| Altman-Z | 3.51 |
ROIC/WACC0.64
WACC10.75%
2.3 Liquidity
A Current Ratio of 2.44 indicates that AVT has no problem at all paying its short term obligations.
The Current ratio of AVT (2.44) is comparable to the rest of the industry.
A Quick Ratio of 1.13 indicates that AVT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.13, AVT is doing worse than 74.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The earnings per share for AVT have decreased strongly by -37.60% in the last year.
AVT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.34% yearly.
Looking at the last year, AVT shows a very negative growth in Revenue. The Revenue has decreased by -10.52% in the last year.
AVT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.01% yearly.
EPS 1Y (TTM)-37.6%
EPS 3Y25.45%
EPS 5Y5.34%
EPS Q2Q%-23.64%
Revenue 1Y (TTM)-10.52%
Revenue growth 3Y6.74%
Revenue growth 5Y4.01%
Sales Q2Q%-5.98%
3.2 Future
The Earnings Per Share is expected to grow by 7.14% on average over the next years.
The Revenue is expected to grow by 0.81% on average over the next years.
EPS Next Y-36.71%
EPS Next 2Y-2.23%
EPS Next 3Y7.14%
EPS Next 5YN/A
Revenue Next Year-6.91%
Revenue Next 2Y-1.86%
Revenue Next 3Y0.81%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.62, which indicates a correct valuation of AVT.
Based on the Price/Earnings ratio, AVT is valued cheaper than 90.40% of the companies in the same industry.
When comparing the Price/Earnings ratio of AVT to the average of the S&P500 Index (27.45), we can say AVT is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 11.05, the valuation of AVT can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AVT indicates a rather cheap valuation: AVT is cheaper than 95.20% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AVT to the average of the S&P500 Index (21.90), we can say AVT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.62 | ||
| Fwd PE | 11.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AVT is valued cheaply inside the industry as 88.80% of the companies are valued more expensively.
96.80% 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 | 6.33 | ||
| EV/EBITDA | 9.58 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.74
EPS Next 2Y-2.23%
EPS Next 3Y7.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.35%, AVT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.95, AVT pays a better dividend. On top of this AVT pays more dividend than 96.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, AVT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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 Years11
Div Non Decr Years11
5.3 Sustainability
35.81% of the earnings are spent on dividend by AVT. This is a low number and sustainable payout ratio.
The dividend of AVT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.81%
EPS Next 2Y-2.23%
EPS Next 3Y7.14%
56.27
+0.14 (+0.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners109.4%
Inst Owner Change-0.81%
Ins Owners0.5%
Ins Owner Change-2.29%
Market Cap4.72B
Analysts50.77
Price Target52.28 (-7.09%)
Short Float %5.32%
Short Ratio5.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
Yearly Dividend1.24
Dividend Growth(5Y)9.3%
DP35.81%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.65%
Min EPS beat(2)-3.18%
Max EPS beat(2)16.48%
EPS beat(4)3
Avg EPS beat(4)11.72%
Min EPS beat(4)-3.18%
Max EPS beat(4)27.49%
EPS beat(8)5
Avg EPS beat(8)9.04%
EPS beat(12)9
Avg EPS beat(12)8.09%
EPS beat(16)13
Avg EPS beat(16)12.34%
Revenue beat(2)2
Avg Revenue beat(2)0.32%
Min Revenue beat(2)0.22%
Max Revenue beat(2)0.43%
Revenue beat(4)4
Avg Revenue beat(4)1.36%
Min Revenue beat(4)0.22%
Max Revenue beat(4)2.62%
Revenue beat(8)5
Avg Revenue beat(8)0.68%
Revenue beat(12)9
Avg Revenue beat(12)1.27%
Revenue beat(16)13
Avg Revenue beat(16)2.43%
PT rev (1m)0%
PT rev (3m)-1.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.62 | ||
| Fwd PE | 11.05 | ||
| P/S | 0.21 | ||
| P/FCF | 6.33 | ||
| P/OCF | 5.49 | ||
| P/B | 0.97 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 9.58 |
EPS(TTM)3.85
EY6.84%
EPS(NY)5.09
Fwd EY9.05%
FCF(TTM)8.89
FCFY15.79%
OCF(TTM)10.25
OCFY18.21%
SpS264.08
BVpS58.25
TBVpS48.77
PEG (NY)N/A
PEG (5Y)2.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.7% | ||
| ROE | 6.49% | ||
| ROCE | 8.74% | ||
| ROIC | 6.87% | ||
| ROICexc | 7.05% | ||
| ROICexgc | 7.88% | ||
| OM | 3.04% | ||
| PM (TTM) | 1.43% | ||
| GM | 10.99% | ||
| FCFM | 3.36% |
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 Turnover1.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.54 | ||
| Debt/EBITDA | 3.33 | ||
| Cap/Depr | 150.46% | ||
| Cap/Sales | 0.52% | ||
| Interest Coverage | 2.22 | ||
| Cash Conversion | 114.8% | ||
| Profit Quality | 235.21% | ||
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 3.51 |
F-Score5
WACC10.75%
ROIC/WACC0.64
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)-37.6%
EPS 3Y25.45%
EPS 5Y5.34%
EPS Q2Q%-23.64%
EPS Next Y-36.71%
EPS Next 2Y-2.23%
EPS Next 3Y7.14%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.52%
Revenue growth 3Y6.74%
Revenue growth 5Y4.01%
Sales Q2Q%-5.98%
Revenue Next Year-6.91%
Revenue Next 2Y-1.86%
Revenue Next 3Y0.81%
Revenue Next 5YN/A
EBIT growth 1Y-33.8%
EBIT growth 3Y34.82%
EBIT growth 5Y7.94%
EBIT Next Year-21.15%
EBIT Next 3Y3.24%
EBIT Next 5YN/A
FCF growth 1Y157.27%
FCF growth 3Y125.36%
FCF growth 5Y2.38%
OCF growth 1Y174.84%
OCF growth 3Y96.53%
OCF growth 5Y5.23%