NasdaqGS:AVT

Stock Analysis Report

Executive Summary

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


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-13.8%

AVT

-10.4%

US Electronic

-11.2%

US Market


1 Year Return

-30.2%

AVT

-4.7%

US Electronic

4.1%

US Market

Return vs Industry: AVT underperformed the US Electronic industry which returned -4.7% over the past year.

Return vs Market: AVT underperformed the US Market which returned 4.1% over the past year.


Shareholder returns

AVTIndustryMarket
7 Day-13.8%-10.4%-11.2%
30 Day-20.5%-11.5%-9.5%
90 Day-24.6%-11.1%-5.4%
1 Year-28.8%-30.2%-3.7%-4.7%6.2%4.1%
3 Year-30.1%-33.9%21.3%17.9%30.3%21.9%
5 Year-27.1%-32.9%51.1%43.6%55.0%38.0%

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?

29.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AVT ($30.67) is trading above our estimate of fair value ($15.01)

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


Price To Earnings Ratio

PE vs Industry: AVT is poor value based on its PE Ratio (30x) compared to the Electronic industry average (17.5x).

PE vs Market: AVT is poor value based on its PE Ratio (30x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: AVT is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: AVT is good value based on its PB Ratio (0.8x) compared to the US Electronic industry average (1.8x).


Next Steps

Future Growth

How is Avnet forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

60.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVT's forecast earnings growth (60.4% per year) is above the savings rate (1.7%).

Earnings vs Market: AVT's earnings (60.4% per year) are forecast to grow faster than the US market (12.9% per year).

High Growth Earnings: earnings are expected to grow significantly over 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: Insufficient data to determine if AVT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Avnet performed over the past 5 years?

-39.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVT has a large one-off loss of $200.9M impacting its December 28 2019 financial results.

Growing Profit Margin: AVT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AVT's earnings have declined by -39.9% per year over the past 5 years.

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

Earnings vs Industry: AVT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (7.4%).


Return on Equity

High ROE: AVT's Return on Equity (2.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Avnet's financial position?


Financial Position Analysis

Short Term Liabilities: AVT's short term assets ($6.5B) exceed its short term liabilities ($2.7B).

Long Term Liabilities: AVT's short term assets ($6.5B) exceed its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: AVT's debt to equity ratio (42.6%) is considered high.

Reducing Debt: AVT's debt to equity ratio has reduced from 44.7% to 42.6% over the past 5 years.

Debt Coverage: AVT's debt is well covered by operating cash flow (56.2%).

Interest Coverage: AVT's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: AVT's debt is covered by short term assets (assets are 3.9x debt).


Next Steps

Dividend

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

2.74%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Avnet before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.7%marketbottom25%1.6%markettop25%4.1%industryaverage1.8%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: AVT's dividend (2.74%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: AVT's dividend (2.74%) is low compared to the top 25% of dividend payers in the US market (4.13%).


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: At its current payout ratio (80.1%), AVT's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AVT's dividends in 3 years are forecast to be well covered by earnings (25% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Bill Amelio (61yo)

3.4yrs

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 ($USD8.44M) is above average for companies of similar size in the US market ($USD4.93M).

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


Leadership Team

NamePositionTenureCompensationOwnership
William Amelio
CEO, Member of Executive Board & Director3.4yrsUS$8.44m0.094% $2.9m
Thomas Liguori
CFO & Member of Executive Board2.1yrsUS$2.14m0.028% $875.0k
Philip Gallagher
Global President of Electronic Components & Member of Executive Board2.5yrsUS$2.38m0.12% $3.8m
MaryAnn Miller
Senior VP10.8yrsUS$2.32m0.042% $1.3m
Peter Bartolotta
President of Business Transformation & Member of Executive Board3.3yrsUS$2.17m0.011% $338.1k
Michael O'Neill
Senior VP3.3yrsUS$1.74m0.0098% $304.3k
Ken Arnold
Senior VP1yrsno data0.0039% $121.7k
Kenneth Jacobson
Corporate Controller & Principal Accounting Officer2yrsUS$1.11m0.019% $593.0k
Max Chan
Chief Information Officer0.6yrsno datano data
Vincent Keenan
Senior VP of Investor Relations & Chief of Staff15.8yrsno datano data

2.9yrs

Average Tenure

59.5yo

Average Age

Experienced Management: AVT's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Amelio
CEO, Member of Executive Board & Director3.4yrsUS$8.44m0.094% $2.9m
William Schumann
Independent Director10yrsUS$351.25kno data
Michael Bradley
Independent Director7.3yrsUS$285.00k0.029% $897.9k
Carlo Bozotti
Director0.3yrsno data0.0042% $131.0k
James Lawrence
Independent Director8.8yrsUS$270.00k0.21% $6.7m
Oleg Khaykin
Independent Director1.8yrsUS$267.50kno data
Rodney Adkins
Independent Chairman1.3yrsUS$358.75k0.016% $487.2k
Avid Modjtabai
Independent Director5.3yrsUS$270.00k0.022% $680.9k
Adalio Sanchez
Director0.3yrsno data0.0042% $131.0k
Jo Jenkins
Independent Director1.5yrsUS$301.15k0.0093% $288.1k

3.5yrs

Average Tenure

60.5yo

Average Age

Experienced Board: AVT's board of directors are considered experienced (3.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: AVT insiders have only sold shares 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$3.105b
  • Shares outstanding: 99.84m
  • 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
VNIBRSE (Berne Stock Exchange)YesCommon StockCHCHFJan 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 segment markets, sells, and distributes semiconductors, and interconnect, passive, and electromechanical devices; and other integrated components from electronic component manufacturers. It also 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. In addition, this segment provides integrated solutions, such as technical design, integration, and assembly of embedded products, and 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. This segment serves various markets, including automotive, medical, defense, aerospace, telecommunications, and digital editing. The Farnell segment distributes kits, tools, and electronic and industrial automation components, as well as test and measurement products to engineers and entrepreneurs. It has operations in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Avnet, Inc. was founded in 1921 and is headquartered in Phoenix, Arizona. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 23:41
End of Day Share Price2020/02/28 00:00
Earnings2019/12/28
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.