One-glance verdict
Within fair range
$87.67 our estimate vs market $92.73
Wall Street consensus: $106.25 (21.2% higher than our fair-value estimate)
6% above our estimate
Fundamentals snapshot
Avnet, Inc.
AVT · NMS · Technology · Electronics & Computer Distribution
Current price
$92.73
52-week range
$44.25 - $100.00
Market cap
$7.61B
Balance sheet
Stretched
3.43x Stretched
Net debt $3.32B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 24.5% last year.
- Reward Returns 6.7% on equity, ahead of 16% of its peers.
- Risk Stock trades 124.7% above its 5-year average P/E.
- Risk Net debt grew 10.2% over 3 years.
What this company does
Avnet, Inc.
Avnet acts as a crucial middleman in the electronics world, buying essential components like computer chips in huge volumes from the companies that make them. It then sells these parts to businesses that build larger products, from cars and medical devices to factory robots. This matters because Avnet is a key player in the global supply chain (the complex journey of a product from raw material to consumer), making sure manufacturers have the critical parts they need to build the technology we use every day.
How the company got here
Avnet was started in 1921 by Charles Avnet, a Russian immigrant who began by buying and selling surplus radio parts on New York's 'Radio Row'. The company grew by supplying electronic components, especially for the military during World War II and later for the aircraft industry. A key moment was becoming the first distributor for Intel in 1973, which placed Avnet at the center of the growing computer business. Over the years, it has expanded through numerous acquisitions, transforming from a small parts seller into a major global technology distributor.
What it actually does
Think of Avnet as a giant, essential middleman in the world of electronics. It buys a vast range of electronic parts—like semiconductors (the 'brains' of devices), connectors, and other tiny components—from the manufacturers who make them. It then sells and distributes these parts to the companies that design and build the electronic products we use every day, from coffee makers to cars and complex industrial systems. Avnet also provides crucial support services, like helping engineers choose the right parts for a new product and managing the complex supply chain (the process of getting parts from the factory to the assembly line).
Electronic Components
This is Avnet's largest business, making up the vast majority of its sales. This segment focuses on selling electronic parts in large volumes to big manufacturers. These customers are typically building thousands or millions of products and need a reliable source for huge quantities of components like semiconductors and connectors. Beyond just selling parts, this division helps these large companies with design, engineering support, and managing their inventory and logistics (the detailed coordination of a complex operation).
Farnell
The Farnell segment is Avnet's high-service, lower-volume business, operating mostly through e-commerce websites like Newark and element14. This part of the company caters to engineers, entrepreneurs, and smaller businesses that need parts quickly for prototyping, testing, or repairs. Instead of buying millions of a single component, a Farnell customer might buy just a few items from a huge catalog of parts, tools, and testing equipment. This business is less about massive volume and more about providing a wide selection and fast delivery to customers in the early stages of product development or maintenance.
What management is betting on now
Avnet's main strategy is to be more than just a parts supplier; it aims to get involved with its customers much earlier in the product creation process. The company is focused on providing engineering and design support to help customers choose the right components from the very beginning. By becoming a critical partner during the design phase, Avnet hopes to secure the business for the entire lifecycle of a product, from the initial idea all the way to large-scale production. This strategy also involves strengthening its supply chain services, helping customers navigate the complexities of sourcing and logistics in a changing global market.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$74.55M
FY2025 Q2
$308.47M
FY2025 Q3
$114.14M
FY2025 Q4
$79.88M
FY2026 Q1
$-169.17M
FY2026 Q2
$192.89M
FY2026 Q3
$-70.71M
FY2026 Q4
$-307.50M
Revenue
$8.30B
Net income
$126.58M
Diluted EPS
1.51
Operating cash flow
$-290.74M
Free cash flow
$-307.50M
Fetching…
Sources
Revenue
$7.12B
Net income
$94.33M
Diluted EPS
1.14
Operating cash flow
$-53.84M
Free cash flow
$-70.71M
Fetching…
Sources
Revenue
$6.32B
Net income
$61.73M
Diluted EPS
0.75
Operating cash flow
$208.24M
Free cash flow
$192.89M
Fetching…
Sources
Revenue
$5.90B
Net income
$51.74M
Diluted EPS
0.61
Operating cash flow
$-144.58M
Free cash flow
$-169.17M
Fetching…
Sources
Revenue
$5.62B
Net income
$6.09M
Diluted EPS
0.09
Operating cash flow
$139.48M
Free cash flow
$79.88M
Fetching…
Sources
Revenue
$5.32B
Net income
$87.92M
Diluted EPS
1.01
Operating cash flow
$140.88M
Free cash flow
$114.14M
Fetching…
Sources
Revenue
$5.66B
Net income
$87.25M
Diluted EPS
0.99
Operating cash flow
$337.83M
Free cash flow
$308.47M
Fetching…
Sources
Revenue
$5.60B
Net income
$58.96M
Diluted EPS
0.66
Operating cash flow
$106.33M
Free cash flow
$74.55M
Fetching…
Sources
Is it cheap or expensive?
Fair value $87.67 vs current price $92.73
Wall Street consensus is the average analyst price target: $106.25 (21.2% higher than our fair-value estimate).
Our most-likely fair value is $87.67 a share — about 5.5% away from today's price of $92.73, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $3.3B. Interest coverage 3.4x.
Net debt
$3.32B
Interest coverage
3.43x
Avnet, Inc.'s profit covers its interest bill about 3.4 times over.
Stretched
Worse cushion
Baseline
Better cushion
AVT
BASELINE
Avnet, Inc.
Total debt $3.48B Interest coverage 3.43x This is the baseline the peer rows are being compared against.
Total debt $2.17B Interest coverage 4.36x +27% vs AVT Carries about 1.3x more debt cushion than AVT.
Total debt $4.72B Interest coverage 3.99x +16% vs AVT Carries about 1.2x more debt cushion than AVT.
Total debt $3.79B Interest coverage 2.09x -39% vs AVT Carries about 1.6x less debt cushion than AVT.
Total debt $1.74B Interest coverage 4.43x +29% vs AVT Carries about 1.3x more debt cushion than AVT.
Total debt $307.00K Interest coverage 8.75x +155% vs AVT Carries about 2.6x more debt cushion than AVT.
What you should know
The case for and against AVT
3 Rewards
3 Risks
Rewards
-
Revenue grew 24.5% last year.
-
Returns 6.7% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 6/10 years.
Risks
-
Stock trades 124.7% above its 5-year average P/E.
-
Net debt grew 10.2% over 3 years.
-
Insider ownership is only 1.4% (peer median: 2.6%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
23.07x
Forward P/E
8.39x
P/B
1.52x
P/S
0.28x
EV/EBITDA
11.58x
PEG ratio
2.65x
Profitability
How much profit each dollar creates
Gross margin
10.4%
Operating margin
3.9%
Net margin
1.2%
ROE
6.7%
ROA
3.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.69x
Current ratio
1.78x
Quick ratio
0.94x
Total debt
$3.48B
Total cash
$155.40M
Growth
How the business has been compounding
Revenue TTM
$27.63B
Revenue 5Y CAGR
3.3%
EPS TTM
4.02
EPS 5Y CAGR
-26.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$-280.93M
Free CF TTM
$-354.50M
FCF margin
-1.3%
Dividend
Shareholder payout
Yield
1.6%
Payout ratio
34.9%
Last ex-div date
2026-09-09