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Avnet

Nasdaq:AVT
Snowflake Description

Excellent balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AVT
Nasdaq
$5B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Avnet, Inc., together with its subsidiaries, distributes electronic components worldwide. The last earnings update was 81 days ago. More info.


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AVT Share Price and Events
Price Volatility
AVT
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Avnet undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Avnet to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Avnet.

NasdaqGS:AVT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:AVT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Electronic Unlevered Beta Simply Wall St/ S&P Global 0.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.864 (1 + (1- 21%) (31.75%))
1.081
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.08
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.081 * 7.05%)
10.57%

Discounted Cash Flow Calculation for NasdaqGS:AVT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Avnet is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:AVT DCF 1st Stage: Next 5 year cash flow forecast
2018 2019 2020 2021 2022
Levered FCF (USD, Millions) 292.83 466.96 282.00 248.34 218.70
Source Analyst x2 Analyst x4 Analyst x1 Extrapolated @ (-11.94%) Extrapolated @ (-11.94%)
Present Value
Discounted (@ 10.57%)
264.84 381.95 208.62 166.16 132.34
Present value of next 5 years cash flows $1,154
NasdaqGS:AVT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
= $219 × (1 + 2.95%) ÷ (10.57% – 2.95%)
$2,955
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $2,955 ÷ (1 + 10.57%)5
$1,788
NasdaqGS:AVT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $1,154 + $1,788
$2,942
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,942 / 118
$24.94
NasdaqGS:AVT Discount to Share Price
Calculation Result
Value per share (USD) From above. $24.94
Current discount Discount to share price of $42.46
= -1 x ($42.46 - $24.94) / $24.94
-70.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Avnet is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Avnet's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Avnet's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:AVT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings () in USD $-1.05
NasdaqGS:AVT Share Price ** NasdaqGS (2018-06-19) in USD $42.46
United States of America Electronic Industry PE Ratio Median Figure of 167 Publicly-Listed Electronic Companies 22.2x
United States of America Market PE Ratio Median Figure of 7,865 Publicly-Listed Companies 18.38x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Avnet.

NasdaqGS:AVT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:AVT Share Price ÷ EPS (both in USD)

= 42.46 ÷ -1.05

-40.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Avnet is loss making, we can't compare its value to the US Electronic industry average.
  • Avnet is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Avnet's expected growth come at a high price?
Raw Data
NasdaqGS:AVT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -40.58x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
123.7%per year
United States of America Electronic Industry PEG Ratio Median Figure of 131 Publicly-Listed Electronic Companies 1.46x
United States of America Market PEG Ratio Median Figure of 5,963 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

NasdaqGS:AVT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= -40.58x ÷ 123.7%

-0.33x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Avnet is loss making, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Avnet's assets?
Raw Data
NasdaqGS:AVT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings () in USD $41.77
NasdaqGS:AVT Share Price * NasdaqGS (2018-06-19) in USD $42.46
United States of America Electronic Industry PB Ratio Median Figure of 278 Publicly-Listed Electronic Companies 2.05x
United States of America Market PB Ratio Median Figure of 13,233 Publicly-Listed Companies 1.75x
NasdaqGS:AVT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:AVT Share Price ÷ Book Value per Share (both in USD)

= 42.46 ÷ 41.77

1.02x

* Primary Listing of Avnet.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Avnet is good value based on assets compared to the US Electronic industry average.
X
Value checks
We assess Avnet's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. Avnet has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Avnet expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
123.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Avnet expected to grow at an attractive rate?
  • Avnet's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Avnet's earnings growth is expected to exceed the United States of America market average.
  • Avnet's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:AVT Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:AVT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 123.7%
NasdaqGS:AVT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 2.3%
United States of America Electronic Industry Earnings Growth Rate Market Cap Weighted Average 20.6%
United States of America Electronic Industry Revenue Growth Rate Market Cap Weighted Average 7.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 11.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 6.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:AVT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:AVT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-06-30 19,247 382 424 2
2019-06-30 19,517 534 386 10
2018-06-30 18,813 306 -121 10
NasdaqGS:AVT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-03-31 18,584 -166 -127
2017-12-30 18,231 -668 278
2017-09-30 17,983 -497 254
2017-07-01 17,440 -369 263
2017-04-01 16,803 -257 262
2016-12-31 16,443 380 280
2016-10-01 16,330 258 350
2016-07-02 16,741 224 391
2016-04-02 19,568 596 478
2016-01-02 22,223 444 491
2015-10-03 25,614 591 553
2015-06-27 17,655 584 485

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Avnet's earnings are expected to grow significantly at over 20% yearly.
  • Avnet's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:AVT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Avnet Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:AVT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-06-30 3.57 3.57 3.57 1.00
2019-06-30 3.27 3.68 2.85 6.00
2018-06-30 -1.01 -0.91 -1.13 6.00
NasdaqGS:AVT Past Financials Data
Date (Data in USD Millions) EPS *
2018-03-31 -1.05
2017-12-30 2.24
2017-09-30 2.02
2017-07-01 2.07
2017-04-01 2.05
2016-12-31 2.18
2016-10-01 2.70
2016-07-02 2.99
2016-04-02 3.60
2016-01-02 3.66
2015-10-03 4.08
2015-06-27 3.55

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Avnet is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Avnet's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Avnet has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Avnet performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Avnet's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Avnet does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Avnet's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Avnet's 1-year growth to the US Electronic industry average as it is not currently profitable.
Earnings and Revenue History
Avnet's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Avnet Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:AVT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-31 18,584.08 -127.35 1,971.47
2017-12-30 18,230.88 278.17 1,950.29
2017-09-30 17,982.80 253.85 1,903.16
2017-07-01 17,439.96 263.35 1,770.63
2017-04-01 16,802.53 262.13 1,641.71
2016-12-31 16,442.59 280.00 1,523.58
2016-10-01 16,330.12 349.67 1,446.89
2016-07-02 16,740.60 390.91 1,460.27
2016-04-02 19,567.96 477.59 1,655.57
2016-01-02 22,222.86 491.33 1,848.65
2015-10-03 25,613.66 552.89 2,067.76
2015-06-27 17,655.32 485.38 1,515.14
2015-03-28 28,177.04 599.45 2,317.54
2014-12-27 28,123.79 591.77 2,356.37
2014-09-27 27,993.77 552.93 2,381.03
2014-06-28 27,499.65 545.60 2,341.17
2014-03-29 27,041.65 485.43 2,284.96
2013-12-28 26,656.73 457.78 2,252.04
2013-09-28 25,934.34 470.39 2,201.41
2013-06-29 25,458.92 450.07 2,204.32
2013-03-30 25,175.61 457.39 2,181.17
2012-12-29 25,157.47 518.75 2,138.51
2012-09-29 25,151.57 528.29 2,109.27
2012-06-30 25,707.52 567.02 2,092.81
2012-03-31 26,312.26 672.45 2,121.64
2011-12-31 26,704.11 675.91 2,132.83
2011-10-01 26,778.03 669.93 2,130.57
2011-07-02 26,534.41 669.07 2,100.65

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Avnet has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Avnet has efficiently used its assets last year compared to the US Electronic industry average (Return on Assets) as it is loss-making.
  • Avnet's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Avnet's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Avnet has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Avnet's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Avnet's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Avnet is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Avnet's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Avnet's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 4.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Avnet Company Filings, last reported 2 months ago.

NasdaqGS:AVT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 4,954.82 1,590.69 505.12
2017-12-30 5,248.54 1,731.42 725.96
2017-09-30 5,244.10 1,690.64 737.63
2017-07-01 5,182.07 1,779.33 1,117.71
2017-04-01 5,099.57 1,756.81 1,390.78
2016-12-31 4,711.86 3,629.16 1,270.14
2016-10-01 4,789.03 2,707.63 1,196.55
2016-07-02 4,691.29 2,491.80 1,031.48
2016-04-02 4,760.20 2,317.28 1,036.49
2016-01-02 4,674.00 2,208.41 916.09
2015-10-03 4,631.27 2,112.17 824.70
2015-06-27 4,685.02 1,977.62 932.55
2015-03-28 4,501.51 2,075.52 803.47
2014-12-27 4,704.93 2,101.49 903.33
2014-09-27 4,794.16 2,089.01 814.37
2014-06-28 4,890.19 2,074.04 928.97
2014-03-29 4,735.87 2,070.37 960.15
2013-12-28 4,628.42 2,196.33 779.33
2013-09-28 4,495.47 2,079.25 865.61
2013-06-29 4,289.13 2,045.18 1,009.34
2013-03-30 4,083.70 2,079.60 820.92
2012-12-29 4,105.90 1,998.47 815.28
2012-09-29 3,979.78 2,348.43 1,043.03
2012-06-30 3,905.73 2,144.39 1,006.86
2012-03-31 4,051.78 2,118.24 940.10
2011-12-31 3,855.08 1,985.25 968.52
2011-10-01 3,931.02 1,907.72 622.43
2011-07-02 4,056.07 1,516.59 675.33
  • Avnet's level of debt (32.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (50.9% vs 32.1% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 5.2x coverage).
X
Financial health checks
We assess Avnet's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Avnet has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.79%
Current annual income from Avnet dividends. Estimated to be 1.78% next year.
If you bought $2,000 of Avnet shares you are expected to receive $36 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Avnet's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.5%).
  • Avnet's dividend is below the markets top 25% of dividend payers in United States of America (4.11%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:AVT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
United States of America Electronic Industry Average Dividend Yield Market Cap Weighted Average of 113 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 5932 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 4.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:AVT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-06-30 0.76 3.00
2019-06-30 0.77 7.00
2018-06-30 0.74 7.00
NasdaqGS:AVT Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-05-23 0.760 1.918
2018-02-06 0.760 1.838
2017-11-10 0.720 1.769
2017-08-11 0.720 1.852
2017-05-11 0.720 1.884
2017-02-28 0.720 1.663
2016-11-11 0.680 1.454
2016-08-12 0.680 1.638
2016-05-13 0.680 1.670
2016-02-12 0.680 1.603
2015-11-13 0.680 1.621
2015-08-14 0.680 1.564
2015-05-15 0.640 1.507
2015-02-13 0.640 1.423
2014-11-07 0.640 1.483
2014-08-08 0.640 1.518
2014-05-12 0.600 1.379
2014-02-14 0.600 1.363
2013-11-07 0.600 1.440
2013-08-12 0.600 1.480

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Avnet has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Avnet only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Avnet's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by net profit (5.5x coverage).
X
Income/ dividend checks
We assess Avnet's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Avnet afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Avnet has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bill Amelio, image provided by Google.
Bill Amelio
COMPENSATION $11,309,350
AGE 59
TENURE AS CEO 1.8 years
CEO Bio

Mr. William Joseph Amelio, also known as Bill, has been the Chief Executive Officer at Avnet, Inc. since September 6, 2016 and has been its Member of Executive Board since July 11, 2016. Mr. Amelio served as Chief Executive Officer and President of Heli-One Canada Inc. He served as the Chief Executive Officer of CHC Helikopter Service AS since 2010. He served as Interim Chief Executive Officer of Avnet, Inc. from July 11, 2016 until September 6, 2016. He served as Chief Executive Officer, President, and Director of CHC Group Ltd. since August 2010 until February 2015. He is a Partner at Daylight Partners. He has extensive international experience with several major corporations. He served as President of CHC Helikopter Service AS since 2010. He served as the President and Chief Executive Officer of Lenovo India Pvt. Ltd., a subsidiary of Lenovo Group Limited, where he managed the integration of the IBM personal computer business, implemented a business transformation program and globalized the Lenovo computer brand. He served as Advisor of Lenovo Group Limited from February 5, 2009 to September 2009. He served as the Chief Executive Officer of Lenovo Group Ltd. from December 20, 2005 to February 5, 2009 and served as its President since December 20, 2005. Mr. Amelio served as President of Asia Pacific and Japan Operations at Dell Inc. until December 2005. He served as Senior Vice President for Asia Pacific-Japan at Dell Inc. since May 2001 and was responsible for its operations in all markets in the Asia Pacific-Japan region, including manufacturing and customer service centers in that region. He joined Dell in March 2001 as Senior Vice President of Relationship Group. From 2000 to 2001, Mr. Amelio was employed by NCR Corp. and served as its Executive Vice President and Chief Operating Officer of Retail and Financial Group. Prior to joining NCR, he served as the President and Chief Executive Officer for Transportation and Power Systems Divisions at Honeywell International Inc. from 1997 to 2000. He served as Head of the Turbocharging Systems Business at AlliedSignal Inc. His career also includes from 1979 to 1997 with IBM Corp. in a variety of senior-management positions, including General Manager of Operations for its personal computer company. He has been a Director at Avnet, Inc. since May 12, 2014. Mr. Amelio serves as a Director of 6922767 Holding S.à r.l. He served as a Member of Advisory Board at Vietnam Venture Group. Mr. Amelio served as a Director of Singapore Infocomm Development Authority. He served as an Executive Director of Lenovo Group Ltd., from December 20, 2005 to February 5, 2009. He served as a Director of Aventura HQ, Inc. He served as a Director of National Semiconductor Corporation from April 16, 2010 to September 23, 2011. He founded a charity in Cambodia called Caring for Cambodia. Mr. Amelio holds an M.S. in Management from Stanford University and is a Sloan Fellow from the Stanford Graduate School of Business. He has an Honorary Doctorate degree in Engineering and a Bachelor's Degree in Chemical Engineering from Lehigh University. He has a Master's Degree in Management from Stanford Graduate School of Business.

CEO Compensation
  • Bill's compensation has increased whilst company is loss making.
  • Bill's compensation is higher than average for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the Avnet management team in years:

1.7
Average Tenure
57
Average Age
  • The average tenure for the Avnet management team is less than 2 years, this suggests a new team.
Management Team

Bill Amelio

TITLE
CEO, Member of Executive Board & Director
COMPENSATION
$11M
AGE
59
TENURE
1.8 yrs

MaryAnn Miller

TITLE
Senior VP
COMPENSATION
$3M
AGE
60
TENURE
9.2 yrs

Mike O'Neill

TITLE
Senior VP
COMPENSATION
$2M
AGE
61
TENURE
1.7 yrs

Pete Bartolotta

TITLE
Senior VP
COMPENSATION
$2M
AGE
57
TENURE
1.7 yrs

Tom Liguori

TITLE
CFO & Member of Executive Board
AGE
58
TENURE
0.4 yrs

Phil Gallagher

TITLE
Member of Executive Board & President of Core Distribution
COMPENSATION
$2M
AGE
56
TENURE
0.8 yrs

Terry Bassett

TITLE
Senior VP
AGE
54
TENURE
1.7 yrs

Kevin Summers

TITLE
Senior VP
AGE
47
TENURE
1.5 yrs

Ken Jacobson

TITLE
Controller
AGE
39
TENURE
0.3 yrs

Vince Keenan

TITLE
Senior VP of Investor Relations & Chief of Staff
TENURE
14.2 yrs
Board of Directors Tenure

Average tenure and age of the Avnet board of directors in years:

5.6
Average Tenure
64
Average Age
  • The tenure for the Avnet board of directors is about average.
Board of Directors

Bill Schumann

TITLE
Chairman
COMPENSATION
$420K
AGE
67
TENURE
5.6 yrs

Bill Amelio

TITLE
CEO, Member of Executive Board & Director
COMPENSATION
$11M
AGE
59
TENURE
4.1 yrs

Jim Lawrence

TITLE
Independent Director
COMPENSATION
$270K
AGE
65
TENURE
7.1 yrs

J. Biggins

TITLE
Independent Director
COMPENSATION
$264K
AGE
70
TENURE
21.4 yrs

Ronal Clark

TITLE
Independent Director
COMPENSATION
$265K
AGE
64
TENURE
6.3 yrs

Mike Bradley

TITLE
Independent Director
COMPENSATION
$245K
AGE
68
TENURE
5.6 yrs

Avid Modjtabai

TITLE
Independent Director
COMPENSATION
$253K
AGE
55
TENURE
3.6 yrs

Rod Adkins

TITLE
Independent Director
COMPENSATION
$253K
AGE
58
TENURE
3 yrs

Oleg Khaykin

TITLE
Director
AGE
52
TENURE
0.1 yrs
Recent Insider Trading
  • No 3 month insider trading information.
Who owns this company?
X
Management checks
We assess Avnet's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Avnet has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

Only 3 Days Left To Avnet Inc (NASDAQ:AVT)’s Ex-Dividend Date, Is It Worth Buying?

Check out our latest analysis for Avnet 5 questions to ask before buying a dividend stock If you are a dividend investor, you should always assess these five key metrics: Is their annual yield among the top 25% of dividend payers? … Relative to peers, Avnet generates a yield of 1.93%, which is high for Electronic stocks but still below the market's top dividend payers. … Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you.

Simply Wall St -

Is Avnet Inc (NASDAQ:AVT) As Strong As Its Balance Sheet Indicates?

View our latest analysis for Avnet How does AVT’s operating cash flow stack up against its debt? … AVT's risk around capital structure is low, and the company has the headroom and ability to raise debt should it need to in the future. … Next Steps: Although AVT’s debt level is relatively low, its cash flow levels still could not copiously cover its borrowings.

Simply Wall St -

Avnet Inc (NASDAQ:AVT): Should The Recent Earnings Drop Worry You?

Today I will assess AVT's recent performance announced on 31 March 2018 and weigh these figures against its long-term trend and industry movements. … View our latest analysis for Avnet Was AVT's recent earnings decline indicative of a tough track record? … For the purpose of this commentary, I like to use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data.

Simply Wall St -

Company Info

Map
Description

Avnet, Inc., together with its subsidiaries, distributes electronic components worldwide. The company operates through two segments, Electronic Components and Premier Farnell. The Electronic Components segment markets and sells semiconductors; electronic components, including interconnect, passive and electromechanical devices; and other integrated components from electronic component manufacturers. This segment also offers customer support services, which facilitate customers to evaluate, design-in, and procure electronic components throughout the lifecycle of their technology products and systems. In addition, it provides integrated solutions, such as technical design, integration, and assembly of embedded products, systems, and solutions primarily for industrial applications, as well as for intelligent embedded and innovative display solutions comprising touch and passive displays. Further, it develops and manufactures standard board and industrial subsystems, and application-specific devices that enable it to produce systems tailored to specific customer requirements. Additionally, this segment offers design chain support that provides engineers with technical design solutions; engineering and technical resources to support product design, bill of materials development, and technical education and training; and supply chain solutions that provide support and logistical services to original equipment manufacturers, electronic manufacturing service providers, and electronic component manufacturers. It serves various markets, including automotive, communications, computer hardware and peripherals, industrial and manufacturing, medical equipment, and defense and aerospace. The Premier Farnell segment distributes electronic components primarily to support design engineers, maintenance and test engineers, makers, and entrepreneurs. Avnet, Inc. was founded in 1921 and is headquartered in Phoenix, Arizona.

Details
Name: Avnet, Inc.
AVT
Exchange: NasdaqGS
Founded: 1921
$5,009,498,438
117,981,593
Website: http://www.avnet.com
Address: Avnet, Inc.
2211 South 47th Street,
Phoenix,
Arizona, 85034,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS AVT Common Stock Nasdaq Global Select US USD 02. Jan 1968
DB VNI Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
Number of employees
Current staff
Staff numbers
15,700
Avnet employees.
Industry
Technology Distributors
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/06/20 21:18
End of day share price update: 2018/06/19 00:00
Last estimates confirmation: 2018/06/18
Last earnings update: 2018/03/31
Last annual earnings update: 2017/07/01


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.