AVNET INC (AVT) Stock Fundamental Analysis
NASDAQ:AVT - Nasdaq - US0538071038 - Common Stock - Currency: USD
AVT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 124 industry peers in the Electronic Equipment, Instruments & Components industry. AVT has an excellent financial health rating, but there are some minor concerns on its profitability. AVT is valued quite cheap, but it does not seem to be growing. Finally AVT also has an excellent dividend rating. With these ratings, AVT could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
AVT had positive earnings in the past year.
AVT had a positive operating cash flow in the past year.
AVT had positive earnings in 4 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's Return On Assets of 2.66% is fine compared to the rest of the industry. AVT outperforms 60.48% of its industry peers.
Looking at the Return On Equity, with a value of 6.56%, AVT is in the better half of the industry, outperforming 63.71% of the companies in the same industry.
AVT's Return On Invested Capital of 7.34% is fine compared to the rest of the industry. AVT outperforms 73.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AVT is in line with the industry average of 9.26%.
| 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's Profit Margin of 1.41% is in line compared to the rest of the industry. AVT outperforms 56.45% of its industry peers.
AVT's Profit Margin has improved in the last couple of years.
The Operating Margin of AVT (3.21%) is comparable to the rest of the industry.
AVT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 11.19%, AVT is not doing good in the industry: 75.81% 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 | 3.21% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AVT is creating some value.
The number of shares outstanding for AVT has been reduced compared to 1 year ago.
The number of shares outstanding for AVT has been reduced compared to 5 years ago.
Compared to 1 year ago, AVT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.43 indicates that AVT is not in any danger for bankruptcy at the moment.
AVT has a Altman-Z score of 3.43. This is in the better half of the industry: AVT outperforms 63.71% of its industry peers.
The Debt to FCF ratio of AVT is 2.36, which is a good value as it means it would take AVT, 2.36 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.36, AVT is doing good in the industry, outperforming 72.58% 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.
The Debt to Equity ratio of AVT (0.53) is worse than 75.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for AVT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 3.43 |
ROIC/WACC0.7
WACC10.48%
2.3 Liquidity
A Current Ratio of 2.39 indicates that AVT has no problem at all paying its short term obligations.
AVT has a Current ratio (2.39) which is comparable to the rest of the industry.
A Quick Ratio of 1.15 indicates that AVT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.15, AVT is not doing good in the industry: 71.77% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
AVT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.87%.
The Earnings Per Share has been growing slightly by 5.34% on average over the past years.
AVT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.20%.
The Revenue has been growing slightly by 4.01% on average over the past years.
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 5.86% on average per year.
The Revenue is expected to grow by 0.67% on average over the next years.
EPS Next Y-35.65%
EPS Next 2Y2.98%
EPS Next 3Y5.86%
EPS Next 5YN/A
Revenue Next Year-6.71%
Revenue Next 2Y-0.43%
Revenue Next 3Y0.67%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 reasonably with a Price/Earnings ratio of 11.48.
Based on the Price/Earnings ratio, AVT is valued cheaply inside the industry as 90.32% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AVT to the average of the S&P500 Index (28.29), we can say AVT is valued rather cheaply.
A Price/Forward Earnings ratio of 8.35 indicates a reasonable valuation of AVT.
AVT's Price/Forward Earnings ratio is rather cheap when compared to the industry. AVT is cheaper than 94.35% of the companies in the same industry.
AVT is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 8.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AVT is valued cheaply inside the industry as 83.87% of the companies are valued more expensively.
AVT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AVT is cheaper than 95.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.75 | ||
| EV/EBITDA | 8.07 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.15
EPS Next 2Y2.98%
EPS Next 3Y5.86%
5. Dividend
5.1 Amount
AVT has a Yearly Dividend Yield of 2.80%. 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 2.40. AVT pays more dividend than 95.16% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, AVT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
AVT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.64%
EPS Next 2Y2.98%
EPS Next 3Y5.86%
47.2
+0.69 (+1.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners107.49%
Inst Owner Change0.38%
Ins Owners0.49%
Ins Owner Change-1.78%
Market Cap4.08B
Analysts50.77
Price Target53.3 (12.92%)
Short Float %6.64%
Short Ratio7.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
Yearly Dividend1.24
Dividend Growth(5Y)9.3%
DP35.64%
Div Incr Years10
Div Non Decr Years10
Ex-Date
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%
PT rev (3m)-3.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 8.35 | ||
| P/S | 0.18 | ||
| P/FCF | 3.75 | ||
| P/OCF | 3.35 | ||
| P/B | 0.84 | ||
| P/tB | 1 | ||
| EV/EBITDA | 8.07 |
EPS(TTM)4.11
EY8.71%
EPS(NY)5.65
Fwd EY11.97%
FCF(TTM)12.58
FCFY26.65%
OCF(TTM)14.08
OCFY29.83%
SpS259.93
BVpS56
TBVpS47.05
PEG (NY)N/A
PEG (5Y)2.15
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 | 3.43 |
F-Score5
WACC10.48%
ROIC/WACC0.7
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-35.65%
EPS Next 2Y2.98%
EPS Next 3Y5.86%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.2%
Revenue growth 3Y6.74%
Revenue growth 5Y4.01%
Sales Q2Q%-8.73%
Revenue Next Year-6.71%
Revenue Next 2Y-0.43%
Revenue Next 3Y0.67%
Revenue Next 5YN/A
EBIT growth 1Y-35.95%
EBIT growth 3Y34.82%
EBIT growth 5Y7.94%
EBIT Next Year-19.2%
EBIT Next 3Y3.59%
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%