Avnet (AVT) AI Stock Analysis

• Market Cap: $3.94B
• Dividend Yield: 2.77%
• Average Volume (3M): 767.36K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.99
• Revenue Growth: -2.30%
• EPS Growth: -29.75%
• Country: US
• Employees: 15,462
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 0.84
• Shares Outstanding: 81,326,420
• 10 Day Avg. Volume: 762,036
• 30 Day Avg. Volume: 767,363
• PEG Ratio: -0.38
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 7.94
• Enterprise Value/Market Cap: 1.82
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 2.99
• Enterprise Value/Ebitda: 11.62
• 1Y Price Target: $53.00
• Price Target Upside: 9.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 67 Neutral
• Price Target: $53.00 ▲(9.39% Upside)

Avnet's overall stock score reflects stable financial performance with strong revenue growth and a solid balance sheet. However, modest profitability and declining cash flow generation are concerns. The technical indicators suggest a bearish trend, and while the earnings call provided some positive insights, challenges in certain regions and increased expenses weigh on the outlook. The valuation is reasonable but not particularly compelling.

Positive Factors

Strong Revenue Growth in Asia

The consistent revenue growth in Asia indicates a robust market position and potential for continued expansion in a key region.

Improved Book-to-Bill Ratio

An improved book-to-bill ratio suggests strong demand and effective inventory management, supporting future revenue stability.

Farnell Segment Growth

Significant growth in the Farnell segment highlights successful product offerings and strong customer demand, enhancing overall business performance.

Negative Factors

Declining Cash Flow

Negative cash flow can constrain operational flexibility and investment capacity, potentially impacting long-term growth.

Increased SG&A Expenses

Rising SG&A expenses may pressure profit margins, necessitating efficiency improvements to maintain profitability.

Flat Sales in EMEA

Stagnant sales in EMEA indicate regional challenges that could hinder overall growth if not addressed.

Avnet Business Overview & Revenue Model

Company Description

Avnet, Inc. (AVT) is a global technology solutions company that specializes in the distribution of electronic components and embedded solutions. Headquartered in Phoenix, Arizona, Avnet operates across various sectors including automotive, industrial, aerospace, and medical, providing a wide range of products and services such as semiconductors, interconnect devices, and supply chain management solutions. The company serves a diverse customer base, from small startups to large enterprises, by enabling them to accelerate their product development and reduce time to market.

How the Company Makes Money

Avnet generates revenue primarily through the distribution of electronic components and value-added services. Key revenue streams include the sale of semiconductors, passive components, interconnect products, and embedded systems. The company also earns income from services such as supply chain management, logistics, and technical support. Avnet has developed significant partnerships with leading manufacturers in the electronics industry, which allows it to offer a wide range of products and leverage economies of scale. Additionally, the company's focus on providing tailored solutions and fostering long-term relationships with customers contributes to its earnings by enhancing customer loyalty and repeat business.

Avnet Financial Statement Overview

Summary

Avnet shows stable revenue growth and a strong balance sheet with low leverage. However, profitability margins are modest, and cash flow generation has declined, indicating potential areas for improvement. The company is well-positioned in terms of capital structure, but enhancing operational efficiency and cash flow generation could further strengthen its financial standing.

Income Statement

Avnet's income statement shows a stable revenue growth rate of 1.33% TTM, indicating a positive trajectory. The gross profit margin of 10.63% and net profit margin of 1.04% reflect moderate profitability, typical for the industry. However, the EBIT and EBITDA margins are relatively low at 2.01% and 2.64% respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.26 TTM, indicating prudent financial leverage. The return on equity is modest at 3.43%, suggesting moderate profitability. The equity ratio is high, reflecting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 42.24% TTM, which is a concern. The operating cash flow to net income ratio of 0.11 indicates limited cash generation relative to net income. However, the free cash flow to net income ratio of 0.70 suggests that a reasonable portion of earnings is converted into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2020	Dec 2019	Dec 2018	Dec 2017
Income Statement
Total Revenue	22.50B	22.20B	17.63B	19.52B	19.04B	17.44B
Gross Profit	2.39B	2.38B	2.06B	2.49B	2.53B	2.37B
EBITDA	616.51M	622.17M	237.53M	557.98M	472.70M	572.46M
Net Income	233.01M	240.22M	-29.53M	176.34M	-156.42M	525.28M
Balance Sheet
Total Assets	12.41B	12.12B	8.11B	8.56B	9.60B	9.70B
Cash, Cash Equivalents and Short-Term Investments	175.47M	192.43M	477.04M	546.11M	621.13M	1.12B
Total Debt	3.20B	2.88B	1.73B	1.72B	1.65B	1.78B
Total Liabilities	7.57B	7.11B	4.38B	4.42B	4.91B	4.52B
Stockholders Equity	4.85B	5.01B	3.73B	4.14B	4.69B	5.18B
Cash Flow
Free Cash Flow	333.31M	577.03M	656.67M	412.08M	97.61M	-489.09M
Operating Cash Flow	473.60M	724.50M	730.18M	534.77M	253.49M	-368.69M
Investing Cash Flow	-130.19M	-137.13M	-135.02M	-25.21M	71.73M	1.34B
Financing Cash Flow	-429.02M	-693.53M	-644.55M	-582.68M	-541.89M	-1.19B

Avnet Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 48.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVT, the sentiment is Negative. The current price of 48.45 is below the 20-day moving average (MA) of 51.11, below the 50-day MA of 52.29, and below the 200-day MA of 50.86, indicating a bearish trend. The MACD of -0.84 indicates Positive momentum. The RSI at 34.79 is Neutral, neither overbought nor oversold. The STOCH value of 25.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AVT.

Avnet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLMB	―	$512.46M	23.91	21.27%	0.61%	51.09%	25.86%
SCSC	―	$938.95M	14.25	7.82%	―	-6.72%	-1.14%
AVT	―	$3.94B	18.07	4.71%	2.77%	-2.30%	-29.75%
ARW	―	$5.75B	12.31	7.70%	―	3.16%	1.09%
NSIT	―	$3.10B	23.32	8.51%	―	-6.69%	-51.74%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IZM	―	$22.55M	―	7.76%	―	5.12%	―

Avnet Corporate Events

Avnet Reports Strong Q1 2026 Financial Performance

Avnet, Inc. is a leading global technology distributor and solutions provider, specializing in supporting customers and suppliers at every stage of the product lifecycle, primarily in the electronic components industry. The company has a unique position in the technology value chain, helping businesses accelerate design and supply stages of product development.

Avnet’s Earnings Call: Mixed Results with Strong Growth

Avnet’s recent earnings call painted a mixed picture, highlighting strong sales growth in Asia and the Americas, but also challenges in the EMEA region and declining gross margins. While the company reported positive trends in the book-to-bill ratio and Farnell segment, concerns were raised over flat EMEA sales, increased expenses, and negative cash flow.

Avnet Issues $650M Convertible Notes to Manage Capital

On September 5, 2025, Avnet issued $650 million in 1.75% Convertible Senior Notes due 2030, with net proceeds of approximately $632.8 million. The company used $100 million to repurchase shares and plans to use the remainder to repay its revolving credit facility. This move is part of Avnet’s strategy to manage its capital structure and enhance shareholder value, potentially impacting its financial flexibility and market positioning.

The most recent analyst rating on (AVT) stock is a Hold with a $56.00 price target. To see the full list of analyst forecasts on Avnet stock, see the AVT Stock Forecast page.

Avnet Amends Credit Agreements for Financial Flexibility

On August 28, 2025, Avnet, Inc. and Avnet Holding Europe BV entered into amendments to their existing credit agreements with Bank of America, N.A. These amendments temporarily increase the maximum consolidated leverage ratio to provide financial flexibility until September 30, 2026. During this relief period, Avnet is restricted from making certain payments, but can continue paying dividends and repurchasing up to $100 million of its common stock, potentially impacting its financial operations and shareholder returns.

The most recent analyst rating on (AVT) stock is a Buy with a $62.00 price target. To see the full list of analyst forecasts on Avnet stock, see the AVT Stock Forecast page.

Avnet Reports Steady Growth Amid Market Challenges

Avnet, Inc. is a leading global technology distributor and solutions provider, serving the evolving needs of customers across the technology value chain. The company focuses on supporting customers and suppliers at every stage of the product lifecycle, helping them adapt to change and accelerate product development.

Avnet’s Earnings Call: Growth Amid Challenges

Avnet’s Earnings Call Reflects Balanced Sentiment Amid Growth and Challenges