NasdaqGS:AVT

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


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

Stable Share Price: AVT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.1%

AVT

0.8%

US Electronic

-1.5%

US Market


1 Year Return

-38.8%

AVT

5.6%

US Electronic

12.9%

US Market

Return vs Industry: AVT underperformed the US Electronic industry which returned 5.4% over the past year.

Return vs Market: AVT underperformed the US Market which returned 12.8% over the past year.


Shareholder returns

AVTIndustryMarket
7 Day-3.1%0.8%-1.5%
30 Day1.5%0.2%-1.8%
90 Day-4.2%5.6%6.6%
1 Year-37.1%-38.8%6.7%5.6%15.4%12.9%
3 Year-26.9%-31.4%19.1%15.7%39.6%30.2%
5 Year-26.5%-33.3%88.9%80.2%93.4%71.7%

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

Valuation

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

0.72x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: AVT ($27.06) is trading above our estimate of fair value ($10.66)

Significantly Below Fair Value: AVT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AVT is unprofitable, so we can't compare its PE Ratio to the US Electronic industry average.

PE vs Market: AVT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AVT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AVT is good value based on its PB Ratio (0.7x) compared to the US 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?

123.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: AVT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AVT's is expected to become profitable in the next 3 years.

Revenue vs Market: AVT's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: AVT's revenue is forecast to decline over the next 3 years (-0.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AVT's Return on Equity is forecast to be low in 3 years time (5.3%).


Next Steps

Past Performance

How has Avnet performed over the past 5 years?

-44.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVT is currently unprofitable.

Growing Profit Margin: AVT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AVT is unprofitable, and losses have increased over the past 5 years at a rate of 44.7% per year.

Accelerating Growth: Unable to compare AVT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AVT is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-18%).


Return on Equity

High ROE: AVT has a negative Return on Equity (-0.79%), as it is currently unprofitable.


Next Steps

Financial Health

How is Avnet's financial position?


Financial Position Analysis

Short Term Liabilities: AVT's short term assets ($6.3B) exceed its short term liabilities ($2.3B).

Long Term Liabilities: AVT's short term assets ($6.3B) exceed its long term liabilities ($2.1B).


Debt to Equity History and Analysis

Debt Level: AVT's debt to equity ratio (38.2%) is considered satisfactory.

Reducing Debt: AVT's debt to equity ratio has reduced from 42.3% to 38.2% over the past 5 years.

Debt Coverage: AVT's debt is well covered by operating cash flow (51.2%).

Interest Coverage: AVT is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

3.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AVT's dividend (3.1%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: AVT's dividend (3.1%) is low compared to the top 25% of dividend payers in the US market (4.7%).


Stability and Growth of Payments

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

Growing Dividend: AVT's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: AVT is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: AVT's dividends in 3 years are forecast to be well covered by earnings (31.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Phil Gallagher (59 yo)

0.083

Tenure

US$2,380,170

Compensation

Mr. Philip R. Gallagher, also known as Phil, serves as Member of Executive Board at at Avnet, Inc. since August 28, 2017 and has been its Global President of Electronic Components Business since 2019 and h ...


CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD2.38M) is below average for companies of similar size in the US market ($USD5.65M).

Compensation vs Earnings: Phil's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Philip Gallagher
Interim CEO0.083yrUS$2.38m0.057%
$ 1.5m
Thomas Liguori
CFO & Member of Executive Board2.67yrsUS$2.14m0.034%
$ 896.0k
MaryAnn Miller
Senior VP11.42yrsUS$2.32m0.046%
$ 1.2m
Peter Bartolotta
President of Business Transformation & Member of Executive Board3.92yrsUS$2.17m0.014%
$ 368.1k
Michael McCoy
General Counsel0.67yrno data0.0024%
$ 63.9k
Ken Arnold
Senior VP1.58yrsno data0.0040%
$ 106.1k
Kenneth Jacobson
Corporate Controller & Principal Accounting Officer2.58yrsUS$1.11m0.0054%
$ 145.1k
Max Chan
Chief Information Officer1.17yrsno datano data
Vincent Keenan
Senior VP of Investor Relations & Chief of Staff16.42yrsno datano data
Heather Vana
Senior Director of Communicationsno datano datano data
Jessica Daughetee
Chief Marketing Officer1.25yrsno datano data
William Crowell
Senior VP & Group Financial Officer12.5yrsno datano data

2.6yrs

Average Tenure

60yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
William Schumann
Independent Director10.58yrsUS$351.25kno data
Michael Bradley
Independent Director7.83yrsUS$285.00k0.029%
$ 781.3k
Carlo Bozotti
Director0.83yrno data0.0043%
$ 113.9k
James Lawrence
Independent Director9.33yrsUS$270.00k0.22%
$ 5.8m
Oleg Khaykin
Independent Director2.33yrsUS$267.50kno data
Rodney Adkins
Independent Chairman1.83yrsUS$358.75k0.016%
$ 423.9k
Avid Modjtabai
Independent Director5.83yrsUS$270.00k0.022%
$ 592.3k
Brenda Freeman
Director1.83yrsUS$244.77kno data
Adalio Sanchez
Director0.83yrno data0.0043%
$ 113.9k
Jo Jenkins
Independent Director2.08yrsUS$301.15k0.0094%
$ 250.7k

2.2yrs

Average Tenure

61.5yo

Average Age

Experienced Board: AVT's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Avnet, Inc.
  • Ticker: AVT
  • Exchange: NasdaqGS
  • Founded: 1921
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: US$2.673b
  • Shares outstanding: 98.78m
  • 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 Analysis2020/09/21 05:57
End of Day Share Price2020/09/18 00:00
Earnings2020/06/27
Annual Earnings2020/06/27


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.