DB:VNI

Stock Analysis Report

Executive Summary

Avnet, Inc., a technology solutions company, markets, sells, and distributes electronic components.

Snowflake

Fundamentals

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has Avnet's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.9%

VNI

3.9%

DE Electronic

3.9%

DE Market


1 Year Return

3.1%

VNI

-9.2%

DE Electronic

3.4%

DE Market

Return vs Industry: VNI exceeded the German Electronic industry which returned -9.2% over the past year.

Return vs Market: VNI matched the German Market which returned 3.4% over the past year.


Shareholder returns

VNIIndustryMarket
7 Day3.9%3.9%3.9%
30 Day-7.3%2.9%2.1%
90 Day-2.8%1.5%3.7%
1 Year5.1%3.1%-8.3%-9.2%6.7%3.4%
3 Year4.2%-1.3%45.8%42.4%18.9%8.6%
5 Year23.9%13.7%133.4%121.2%41.8%22.5%

Price Volatility Vs. Market

How volatile is Avnet's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Avnet undervalued compared to its fair value and its price relative to the market?

14.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: VNI (€37.2) is trading below our estimate of fair value (€43.66)

Significantly Undervalued: VNI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VNI is poor value based on its PE Ratio (25.2x) compared to the Electronic industry average (19.6x).

PE vs Market: VNI is poor value based on its PE Ratio (25.2x) compared to the German market (19.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: VNI is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: VNI is good value based on its PB Ratio (1x) compared to the DE Electronic industry average (2x).


Next Steps

Future Growth

How is Avnet forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

32.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VNI's forecast earnings growth (32% per year) is above the savings rate (0.2%).

Earnings vs Market: VNI's earnings (32% per year) are forecast to grow faster than the German market (12.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VNI's revenue is expected to decline over the next 3 years (-1.3% per year).

High Growth Revenue: VNI's revenue is forecast to decline over the next 3 years (-1.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: VNI's Return on Equity is forecast to be low in 3 years time (8.7%).


Next Steps

Past Performance

How has Avnet performed over the past 5 years?

-38.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VNI's earnings have declined by -38.6% per year over the past 5 years.

Accelerating Growth: VNI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: VNI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (9.9%).


Return on Equity

High ROE: VNI's Return on Equity (4.4%) is considered low.


Return on Assets

ROA vs Industry: VNI's Return on Assets is below or equal to the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: VNI has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Avnet's financial position?


Financial Position Analysis

Short Term Liabilities: VNI's short term assets ($6.9B) exceeds its short term liabilities ($2.6B)

Long Term Liabilities: VNI's short term assets (6.9B) exceeds its long term liabilities (1.8B)


Debt to Equity History and Analysis

Debt Level: VNI's debt to equity ratio (41.6%) is considered high

Reducing Debt: VNI's debt to equity ratio has reduced from 42.4% to 41.6% over the past 5 years.

Debt Coverage: VNI's debt is well covered by operating cash flow (31.1%).

Interest Coverage: VNI's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet

Inventory Level: VNI has a high level of physical assets or inventory.

Debt Coverage by Assets: VNI's debt is covered by short term assets (assets are 3.996800x debt).


Next Steps

Dividend

What is Avnet's current dividend yield, its reliability and sustainability?

2.03%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.5%markettop25%3.8%industryaverage1.4%forecastin3Years2.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: VNI's dividend (2.03%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: VNI's dividend (2.03%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: Whilst dividend payments have been stable, VNI has been paying a dividend for less than 10 years.

Growing Dividend: VNI's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.8%), VNI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VNI's dividends in 3 years are forecast to be well covered by earnings (17.7% payout ratio).


Next Steps

Management

What is the CEO of Avnet's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Bill Amelio (61yo)

3.1yrs

Tenure

US$8,438,078

Compensation

Mr. William Joseph Amelio, also known as Bill, serves as Director of S&P Global Inc. since March 15, 2019. He serves as Partner at Daylight Partners. He has been the Chief Executive Officer at Avnet, Inc.  ...


CEO Compensation Analysis

Compensation vs. Market: Bill's total compensation ($USD8.44M) is about average for companies of similar size in the German market ($USD2.75M).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.6yrs

Average Tenure

59.5yo

Average Age

Experienced Management: VNI's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

5.2yrs

Average Tenure

61yo

Average Age

Experienced Board: VNI's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

Insider Buying: VNI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$541,12612 Sep 19
William Schumann
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares13,288
Max PriceUS$40.72
SellUS$829,94810 May 19
James Lawrence
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,620
Max PriceUS$40.25
SellUS$7,962,38402 May 19
James Lawrence
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares187,495
Max PriceUS$43.01
SellUS$334,15002 May 19
Kenneth Jacobson
EntityIndividual
Role
Chief Accounting Officer
Corporate Controller & Principal Accounting Officer
Shares7,796
Max PriceUS$42.93

Ownership Breakdown


Management Team

  • MaryAnn Miller (62yo)

    Senior VP

    • Tenure: 10.5yrs
    • Compensation: US$2.32m
  • Tom Liguori (60yo)

    CFO & Member of Executive Board

    • Tenure: 1.8yrs
    • Compensation: US$2.14m
  • Bill Amelio (61yo)

    CEO, Member of Executive Board & Director

    • Tenure: 3.1yrs
    • Compensation: US$8.44m
  • Phil Gallagher (58yo)

    Global President of Electronic Components & Member of Executive Board

    • Tenure: 2.2yrs
    • Compensation: US$2.38m
  • Mike O'Neill (63yo)

    Senior VP

    • Tenure: 3yrs
    • Compensation: US$1.74m
  • Vince Keenan

    Senior VP of Investor Relations & Chief of Staff

    • Tenure: 15.5yrs
  • Pete Bartolotta (59yo)

    President of Business Transformation & Member of Executive Board

    • Tenure: 3yrs
    • Compensation: US$2.17m
  • Max Chan

    Chief Information Officer

    • Tenure: 0.3yrs
  • Ken Jacobson (41yo)

    Corporate Controller & Principal Accounting Officer

    • Tenure: 1.7yrs
    • Compensation: US$1.11m
  • Ken Arnold (55yo)

    Senior VP

    • Tenure: 0.7yrs

Board Members

  • Bill Schumann (69yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$351.25k
  • Mike Bradley (70yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$285.00k
  • Jim Lawrence (67yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$270.00k
  • Bill Amelio (61yo)

    CEO, Member of Executive Board & Director

    • Tenure: 3.1yrs
    • Compensation: US$8.44m
  • Oleg Khaykin (54yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$267.50k
  • Rod Adkins (60yo)

    Independent Chairman

    • Tenure: 0.9yrs
    • Compensation: US$358.75k
  • Avid Modjtabai (57yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$270.00k
  • Brenda Freeman (50yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$244.77k
  • Ronal Clark (66yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$270.00k
  • Jo Jenkins (61yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$301.15k

Company Information

Avnet, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Avnet, Inc.
  • Ticker: VNI
  • Exchange: DB
  • Founded: 1921
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: US$4.208b
  • Listing Market Cap: US$3.783b
  • Shares outstanding: 101.93m
  • Website: https://www.avnet.com

Number of Employees


Location

  • Avnet, Inc.
  • 2211 South 47th Street
  • Phoenix
  • Arizona
  • 85034
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1968
VNIDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

Biography

Avnet, Inc., a technology solutions company, markets, sells, and distributes electronic components. The company operates through two segments, Electronic Components and Farnell. The Electronic Components s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 20:41
End of Day Share Price2019/10/17 00:00
Earnings2019/06/29
Annual Earnings2019/06/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.