Avnet Inc (AVT) stock analysis

P/E above its 5-year median

Avnet's P/E of 13.0 is above its own 5-year median of 9.8.

P/E below the industry

Avnet's P/E of 13.0 is below the Wholesale Trade-durable Goods median of 20.3.

EV/EBITDA above its 5-year median

Avnet's EV/EBITDA of 9.7 is above its 5-year median of 8.6.

P/B below the industry

Avnet's price-to-book of 1.35 is below the Wholesale Trade-durable Goods median of 2.15.

Trading below fair value

The share price of $86.82 is below our fair value estimate of $91.03.

Margin of safety under 20%

The price is 4.6% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 1.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -21.4% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 142% over the last twelve months, against a 5-year average of 11.6% a year.

Growing faster than the industry

Revenue grew 44.3% over the last twelve months; the Wholesale Trade-durable Goods median is 13.5%.

Guidance issued

The latest outlook (first quarter adjusted effective tax rate, Aug 5, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin slipping

Gross margin was 10.3% over the last twelve months, against 10.6% a year earlier.

Return on equity under 15%

Return on equity was 11.1% over the last twelve months and averaged 11.2% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 9.3%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Avnet's return on equity of 11.1% is below the Wholesale Trade-durable Goods median of 11.1%.

Earnings grew over 5 years

Net income grew 11.6% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 1.7% over the last twelve months, against a 5-year average of 2.0%.

Net margin below the industry

Avnet's net margin of 1.7% is below the Wholesale Trade-durable Goods median of 2.7%.

High debt

Debt is 78.9% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 29.7% five years ago to 78.9%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals -23.5% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 3.7 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.73 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.01; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Avnet paid dividends worth 1.6% of the share price over the last twelve months.

Yield below Treasuries

The 1.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Avnet yields 1.6%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 20.6% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.