One-glance verdict
Within fair range
$98.51 our estimate vs market $88.20
Wall Street consensus: $106.25 (7.9% higher than our fair-value estimate)
10% below our estimate
Fundamentals snapshot
Avnet, Inc.
AVT · NMS · Technology · Electronics & Computer Distribution
Current price
$88.20
52-week range
$44.25 - $108.63
Market cap
$7.25B
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 114.2% above its 5-year average P/E.
- Risk Net debt grew 10.2% over 3 years.
What this company does
Avnet, Inc.
Avnet helps engineers and manufacturers get the electronic parts they need, making money mainly by selling these components and offering services to help with design and getting those parts where they need to go. This matters because Avnet is a crucial link in the supply chain (the process of making and delivering products) for many industries, ensuring that everything from your phone to medical equipment can be built and kept running. They make money on the difference between what they pay for parts and what they sell them for, which is related to their profit margins (how much money they keep after paying for the parts and their operations).
How the company got here
Avnet was founded in 1921 by Charles Avnet, starting as a small business selling surplus radio parts on New York City's "Radio Row." Over the decades, the company evolved significantly, moving from retail to wholesale distribution and expanding its product offerings. A key turning point was its role in manufacturing antennas for the U.S. armed forces during World War II. The company went public in the mid-1950s and began a series of acquisitions in the 1960s, diversifying into areas like audio equipment and electrical components. A major strategic shift occurred in 2017 when Avnet sold its Technology Solutions business to focus more intently on electronic components and related solutions. More recently, in 2021, Avnet acquired Softweb Solutions to bolster its capabilities in software, IoT, and digital solutions.
What it actually does
Avnet acts as a crucial link between the companies that make electronic parts and the businesses that design and build electronic products. Think of them as a massive, global storehouse and service center for electronic components. They don't typically make the final gadgets you buy, but they supply the essential building blocks – like tiny computer chips (semiconductors), wires, and connectors – that go into everything from smartphones and cars to medical equipment and industrial machinery. Avnet also provides services to help engineers design new products and helps companies manage their inventory and get parts where they need them, when they need them.
Electronic Components
This is Avnet's largest business segment, focusing on distributing a wide variety of electronic parts to customers who need them in medium to high volumes. This includes semiconductors (the brains of electronic devices), as well as interconnect, passive, and electromechanical (IP&E) components, which are essential for connecting and powering electronic systems. These customers are typically original equipment manufacturers (OEMs) and electronics manufacturing service (EMS) providers who are producing products in larger quantities. This segment is the core of Avnet's business, representing the vast majority of its revenue.
Farnell
The Farnell segment, which includes brands like Newark and element14, caters to customers who need electronic components in smaller quantities, often for development, prototyping, and testing purposes. This business is heavily focused on an online, e-commerce model, providing engineers and entrepreneurs with a broad catalog of products, kits, and tools. Farnell is a smaller but important part of Avnet's overall business, serving a different set of customer needs by offering quick access to a wide range of components for innovation and early-stage product development.
What management is betting on now
Avnet's leadership is focused on moving beyond simply distributing parts to becoming a more integrated partner for its customers. They are investing in services that help engineers earlier in the design process, aiming to influence which components get chosen for new products. This strategy involves enhancing technical support, providing better digital design tools, and offering more comprehensive supply chain solutions. The goal is to capture more value by being involved from the initial idea stage through to full-scale production, making Avnet indispensable to its customers' success.
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 $98.51 vs current price $88.20
Wall Street consensus is the average analyst price target: $106.25 (7.9% higher than our fair-value estimate).
Our most-likely fair value is $98.51 a share — about 11.7% away from today's price of $88.20, 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 $6.03B 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 $296.00K 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 114.2% above its 5-year average P/E.
-
Net debt grew 10.2% over 3 years.
-
Insider ownership is only 1.3% (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)
22.00x
Forward P/E
7.08x
P/B
1.44x
P/S
0.26x
EV/EBITDA
11.18x
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
4.01
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
1.7%
Payout ratio
34.9%
Last ex-div date
2026-09-09