AVNET INC (AVT) Stock Fundamental Analysis
USA - NASDAQ:AVT - US0538071038 - Common Stock
52.41 USD
-0.08 (-0.15%)
52.41 USD
0 (0%)
AVT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 124 industry peers in the Electronic Equipment, Instruments & Components industry. AVT has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on AVT. AVT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year AVT was profitable.
AVT had a positive operating cash flow in the past year.
AVT had positive earnings in each of the past 5 years.
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 Return On Assets (1.98%) which is comparable to the rest of the industry.
The Return On Equity of AVT (4.79%) is comparable to the rest of the industry.
AVT's Return On Invested Capital of 6.81% is fine compared to the rest of the industry. AVT outperforms 69.35% of its industry peers.
AVT had an Average Return On Invested Capital over the past 3 years of 9.94%. This is in line with the industry average of 9.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | 4.79% | ||
| ROIC | 6.81% |
ROA(3y)4.08%
ROA(5y)4.21%
ROE(3y)10.38%
ROE(5y)10.47%
ROIC(3y)9.94%
ROIC(5y)9.82%
1.3 Margins
AVT has a Profit Margin (1.08%) which is in line with its industry peers.
AVT's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 2.80%, AVT perfoms like the industry average, outperforming 54.84% of the companies in the same industry.
AVT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 10.74%, AVT is not doing good in the industry: 79.03% 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 | 2.8% | ||
| PM (TTM) | 1.08% | ||
| GM | 10.74% |
OM growth 3Y-11.12%
OM growth 5Y17.48%
PM growth 3Y-27.56%
PM growth 5YN/A
GM growth 3Y-4.14%
GM growth 5Y-1.69%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVT is destroying value.
Compared to 1 year ago, AVT has less shares outstanding
The number of shares outstanding for AVT has been reduced compared to 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 3.35. This indicates that AVT is financially healthy and has little risk of bankruptcy at the moment.
AVT has a Altman-Z score (3.35) which is in line with its industry peers.
AVT has a debt to FCF ratio of 4.61. This is a neutral value as AVT would need 4.61 years to pay back of all of its debts.
The Debt to FCF ratio of AVT (4.61) is better than 63.71% of its industry peers.
AVT has a Debt/Equity ratio of 0.51. This is a neutral value indicating AVT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.51, AVT is not doing good in the industry: 71.77% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 3.35 |
ROIC/WACC0.63
WACC10.81%
2.3 Liquidity
AVT has a Current Ratio of 2.43. This indicates that AVT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of AVT (2.43) is comparable to the rest of the industry.
AVT has a Quick Ratio of 1.16. 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 (1.16) is worse than 70.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The earnings per share for AVT have decreased strongly by -35.46% in the last year.
The Earnings Per Share has been growing by 11.23% on average over the past years. This is quite good.
Looking at the last year, AVT shows a decrease in Revenue. The Revenue has decreased by -6.55% in the last year.
Measured over the past years, AVT shows a small growth in Revenue. The Revenue has been growing by 4.71% on average per year.
EPS 1Y (TTM)-35.46%
EPS 3Y-20.9%
EPS 5Y11.23%
EPS Q2Q%-33.61%
Revenue 1Y (TTM)-6.55%
Revenue growth 3Y-2.98%
Revenue growth 5Y4.71%
Sales Q2Q%0.99%
3.2 Future
Based on estimates for the next years, AVT will show a very strong growth in Earnings Per Share. The EPS will grow by 34.24% on average per year.
Based on estimates for the next years, AVT will show a small growth in Revenue. The Revenue will grow by 5.85% on average per year.
EPS Next Y30.28%
EPS Next 2Y34.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.7%
Revenue Next 2Y5.85%
Revenue Next 3YN/A
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.24 indicates a correct valuation of AVT.
90.32% of the companies in the same industry are more expensive than AVT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.31. AVT is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 11.69 indicates a reasonable valuation of AVT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AVT indicates a rather cheap valuation: AVT is cheaper than 92.74% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.85. AVT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 11.69 |
4.2 Price Multiples
87.10% of the companies in the same industry are more expensive than AVT, based on the Enterprise Value to EBITDA ratio.
95.97% 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 | 7.58 | ||
| EV/EBITDA | 9.87 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as AVT's earnings are expected to grow with 34.24% in the coming years.
PEG (NY)0.5
PEG (5Y)1.36
EPS Next 2Y34.24%
EPS Next 3YN/A
5. Dividend
5.1 Amount
AVT has a Yearly Dividend Yield of 2.75%.
AVT's Dividend Yield is rather good when compared to the industry average which is at 2.11. AVT pays more dividend than 96.77% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, AVT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
5.2 History
The dividend of AVT is nicely growing with an annual growth rate of 9.63%!
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)9.63%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
47.17% of the earnings are spent on dividend by AVT. This is a bit on the high side, but may be sustainable.
The dividend of AVT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP47.17%
EPS Next 2Y34.24%
EPS Next 3YN/A
52.41
-0.08 (-0.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners107.07%
Inst Owner Change-0.06%
Ins Owners0.57%
Ins Owner Change3.2%
Market Cap4.37B
Analysts49.23
Price Target53.81 (2.67%)
Short Float %8.37%
Short Ratio7.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
Yearly Dividend1.31
Dividend Growth(5Y)9.63%
DP47.17%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.85%
Min EPS beat(2)7.22%
Max EPS beat(2)16.48%
EPS beat(4)3
Avg EPS beat(4)6.65%
Min EPS beat(4)-3.18%
Max EPS beat(4)16.48%
EPS beat(8)5
Avg EPS beat(8)7%
EPS beat(12)9
Avg EPS beat(12)8.38%
EPS beat(16)13
Avg EPS beat(16)10.86%
Revenue beat(2)2
Avg Revenue beat(2)1.84%
Min Revenue beat(2)0.22%
Max Revenue beat(2)3.46%
Revenue beat(4)4
Avg Revenue beat(4)1.57%
Min Revenue beat(4)0.22%
Max Revenue beat(4)3.46%
Revenue beat(8)5
Avg Revenue beat(8)0.68%
Revenue beat(12)9
Avg Revenue beat(12)1.49%
Revenue beat(16)13
Avg Revenue beat(16)2.51%
PT rev (1m)0%
PT rev (3m)2.93%
EPS NQ rev (1m)0.93%
EPS NQ rev (3m)-11.6%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.96%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)2.97%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 11.69 | ||
| P/S | 0.2 | ||
| P/FCF | 7.58 | ||
| P/OCF | 6.04 | ||
| P/B | 0.87 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 9.87 |
EPS(TTM)3.44
EY6.56%
EPS(NY)4.48
Fwd EY8.55%
FCF(TTM)6.91
FCFY13.19%
OCF(TTM)8.68
OCFY16.56%
SpS266
BVpS60.05
TBVpS50.02
PEG (NY)0.5
PEG (5Y)1.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | 4.79% | ||
| ROCE | 7.79% | ||
| ROIC | 6.81% | ||
| ROICexc | 6.98% | ||
| ROICexgc | 7.81% | ||
| OM | 2.8% | ||
| PM (TTM) | 1.08% | ||
| GM | 10.74% | ||
| FCFM | 2.6% |
ROA(3y)4.08%
ROA(5y)4.21%
ROE(3y)10.38%
ROE(5y)10.47%
ROIC(3y)9.94%
ROIC(5y)9.82%
ROICexc(3y)10.3%
ROICexc(5y)10.14%
ROICexgc(3y)11.47%
ROICexgc(5y)11.47%
ROCE(3y)11.38%
ROCE(5y)11.24%
ROICexcg growth 3Y-21.7%
ROICexcg growth 5Y12.78%
ROICexc growth 3Y-21.06%
ROICexc growth 5Y14.08%
OM growth 3Y-11.12%
OM growth 5Y17.48%
PM growth 3Y-27.56%
PM growth 5YN/A
GM growth 3Y-4.14%
GM growth 5Y-1.69%
F-Score5
Asset Turnover1.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 4.61 | ||
| Debt/EBITDA | 3.71 | ||
| Cap/Depr | 205.92% | ||
| Cap/Sales | 0.66% | ||
| Interest Coverage | 2.16 | ||
| Cash Conversion | 104.37% | ||
| Profit Quality | 240.21% | ||
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 3.35 |
F-Score5
WACC10.81%
ROIC/WACC0.63
Cap/Depr(3y)228.96%
Cap/Depr(5y)154.57%
Cap/Sales(3y)0.78%
Cap/Sales(5y)0.56%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-35.46%
EPS 3Y-20.9%
EPS 5Y11.23%
EPS Q2Q%-33.61%
EPS Next Y30.28%
EPS Next 2Y34.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-6.55%
Revenue growth 3Y-2.98%
Revenue growth 5Y4.71%
Sales Q2Q%0.99%
Revenue Next Year5.7%
Revenue Next 2Y5.85%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-30.59%
EBIT growth 3Y-13.77%
EBIT growth 5Y23.02%
EBIT Next Year32.2%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y24.49%
FCF growth 3YN/A
FCF growth 5Y-2.55%
OCF growth 1Y5%
OCF growth 3YN/A
OCF growth 5Y-0.16%