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Relative to Consumer Staples Sector Median (N=180)
Metric
AVT
Benchmark
P/E Ratio
17.7x
-46%
EV/EBITDA
7.8x
+13%
Price / Book
1.0x
Implied Value Audit
UNDERVALUED
Implied Fair Value (vs Sector)
+34.2%
$89.97Spot: $67.03
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Consumer Staples sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
5.9%
Sector: 7.7%
Dividend Analysis audit
INCOME
2.76%
Trailing Yield
$2.76
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
49%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, AVNET INC (AVT) receives a "Hold" rating with a composite score of 47.8/100, ranked #637 out of 4446 stocks. Key factor scores: Quality 50/100, Value 50/100, Momentum 62/100. This is quantitative analysis only — not investment advice.
AVNET INC (AVT) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does AVNET INC Do?
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; 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 embedded 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, such as automotive, medical, defense, aerospace, telecommunications, industrial, 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. AVNET INC (AVT) is classified as a mid-cap stock in the Consumer Staples sector, specifically within the Wholesale industry. The company is led by CEO Philip R. Gallagher and employs approximately 15,300 people, headquartered in Phoenix, Arizona. With a market capitalization of $5.1B, AVT is one of the notable companies in the Consumer Staples sector.
AVNET INC (AVT) Stock Rating — Hold (April 2026)
As of April 2026, AVNET INC receives a Hold rating with a composite score of 47.8/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.AVT ranks #637 out of 4,446 stocks in our coverage universe. Within the Consumer Staples sector, AVNET INC ranks #24 of 180 stocks, placing it in the top quartile of its Consumer Staples peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
AVT Stock Price and 52-Week Range
AVNET INC (AVT) currently trades at $67.03. The stock gained $0.09 (0.1%) in the most recent trading session. The 52-week high for AVT is $68.29, which means the stock is currently trading -1.8% from its annual peak. The 52-week low is $39.22, putting the stock 70.9% above its annual trough. Recent trading volume was 476K shares, suggesting relatively thin trading activity.
Is AVT Overvalued or Undervalued? — Valuation Analysis
AVNET INC (AVT) carries a value factor score of 50/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 17.73x, compared to the Consumer Staples sector average of 33.11x — a discount of 46%. The price-to-book ratio stands at 1.04x, versus the sector average of 1.74x. The price-to-sales ratio is 0.22x, compared to 0.35x for the average Consumer Staples stock. On an enterprise value basis, AVT trades at 7.81x EV/EBITDA, versus 6.93x for the sector.
Overall, AVT's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
AVNET INC Profitability — ROE, Margins, and Quality Score
AVNET INC (AVT) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 5.9%, compared to the Consumer Staples sector average of 7.7%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 2.2% versus the sector average of 3.1%.
On a margin basis, AVNET INC reports gross margins of 10.6%, compared to 26.2% for the sector. The operating margin is 2.5% (sector: 2.9%). Net profit margin stands at 1.3%, versus 1.6% for the average Consumer Staples stock. Revenue growth is running at 12.8% on a trailing basis, compared to 3.1% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
AVT Debt, Balance Sheet, and Financial Health
AVNET INC has a debt-to-equity ratio of 166.0%, compared to the Consumer Staples sector average of 72.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 2.07x, indicating strong short-term liquidity.
AVT has a beta of 1.16, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for AVNET INC is 66/100, reflecting average volatility within the normal range for its sector.
AVNET INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, AVNET INC reported revenue of $23.20B and earnings per share (EPS) of $0.76. Net income for the quarter was $289M. Gross margin was 10.6%. Operating income came in at $587M.
In Q2 2026, AVNET INC reported revenue of $6.32B and earnings per share (EPS) of $0.76. Net income for the quarter was $62M. Gross margin was 10.5%. Revenue grew 11.6% year-over-year compared to Q2 2025. Operating income came in at $146M.
In Q1 2026, AVNET INC reported revenue of $5.90B and earnings per share (EPS) of $0.62. Net income for the quarter was $52M. Gross margin was 10.4%. Revenue grew 5.3% year-over-year compared to Q1 2025. Operating income came in at $142M.
In FY 2025, AVNET INC reported revenue of $22.20B and earnings per share (EPS) of $2.78. Net income for the quarter was $240M. Gross margin was 10.7%. Revenue grew -6.6% year-over-year compared to FY 2024. Operating income came in at $514M.
Over the past 8 quarters, AVNET INC has experienced revenue contraction from $23.76B to $23.20B. Investors analyzing AVT stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
AVT Dividend Yield and Income Analysis
AVNET INC (AVT) currently pays a dividend yield of 2.8%. At this yield, a $10,000 investment in AVT stock would generate approximately $$276.00 in annual dividend income. This compares to the Consumer Staples sector average dividend yield of 0.4%, meaning AVT offers above-average income for its sector.
AVT Momentum and Technical Analysis Profile
AVNET INC (AVT) has a momentum factor score of 62/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 28/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 5/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
AVT vs Competitors — Consumer Staples Sector Ranking and Peer Comparison
Comparing AVT against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full AVT vs S&P 500 (SPY) comparison to assess how AVNET INC stacks up against the broader market across all factor dimensions.
AVT Next Earnings Date
No upcoming earnings date has been announced for AVNET INC (AVT) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy AVT? — Investment Thesis Summary
AVNET INC presents a balanced picture with arguments on both sides. Price momentum is positive at 62/100, suggesting the trend favors buyers. Low volatility (stability score 66/100) reduces downside risk.
In summary, AVNET INC (AVT) earns a Hold rating with a composite score of 47.8/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on AVT stock.
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Institutional Research Dossier
AVNET INC (AVT) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Avnet (AVT), driven by a mixed outlook. While the company demonstrates strength in revenue growth and stability, concerns arise from its relatively high valuation compared to the sector and lower profitability metrics. The company's strategic focus on technology solutions and electronic components distribution positions it well in a growing market, but its ability to translate revenue into substantial earnings remains a key challenge.
Avnet's current valuation, particularly its P/E ratio, suggests that the market has already priced in future growth expectations. The company's ability to improve its margins and profitability will be crucial in justifying its valuation and potentially upgrading our rating. Investors should closely monitor Avnet's execution on its strategic initiatives and its ability to navigate the competitive landscape.
Business Strategy & Overview
Avnet operates as a technology solutions company, primarily focused on the distribution of electronic components and providing related services. The company's business model centers around connecting electronic component manufacturers with original equipment manufacturers (OEMs) and electronic manufacturing service providers (EMS). Avnet's two main segments, Electronic Components and Farnell, cater to different customer needs. The Electronic Components segment focuses on larger OEMs and EMS providers, offering a broad range of semiconductors, interconnect, passive, and electromechanical devices, along with design chain and supply chain solutions. The Farnell segment targets smaller customers, including engineers and entrepreneurs, providing kits, tools, and electronic and industrial automation components.
Avnet's strategic positioning involves providing value-added services such as technical design support, engineering resources, and supply chain management. This helps to differentiate it from pure-play distributors and strengthens its relationships with both suppliers and customers. The company also focuses on integrated solutions, including the design, integration, and assembly of embedded products and systems, particularly for industrial applications. This allows Avnet to capture a larger share of the value chain and address the evolving needs of its customers.
The company's industry context is characterized by rapid technological advancements, increasing complexity of electronic components, and growing demand for customized solutions. Avnet's ability to adapt to these trends and provide innovative solutions is crucial for its long-term success. The company faces competition from other large distributors, as well as direct sales from component manufacturers. To maintain its competitive edge, Avnet must continue to invest in its technical capabilities, expand its product offerings, and enhance its supply chain management expertise.
Avnet's recent financial performance reflects the dynamics of the electronic components market. The company has demonstrated strong revenue growth, driven by increased demand for electronic components across various industries. However, its profitability has been relatively lower compared to the sector average, indicating challenges in managing costs and improving margins. The company's strategic initiatives to focus on higher-value solutions and optimize its operations are aimed at addressing these challenges and improving its financial performance.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
12.8%
Sector: 3.1%
+305% VS SCTR
Economic Moat Analysis
Avnet's economic moat can be characterized as Narrow. The company benefits from some degree of switching costs and intangible assets, but these advantages are not strong enough to create a wide moat. The distribution of electronic components is a competitive industry, and while Avnet is a large player, it faces competition from other distributors and direct sales from manufacturers.
Switching costs arise from the relationships that Avnet builds with its customers and suppliers. OEMs and EMS providers often rely on Avnet for technical support, supply chain management, and other value-added services. Switching to a different distributor could involve costs associated with establishing new relationships, learning new processes, and potentially disrupting the supply chain. However, these switching costs are not prohibitive, as customers can and do switch distributors based on price, availability, and other factors.
Intangible assets include Avnet's brand reputation and its technical expertise. The company has a long history in the industry and has built a reputation for reliability and quality. Its technical expertise, particularly in design chain support and integrated solutions, is also a valuable asset. However, these intangible assets are not unique to Avnet, as other distributors also have strong reputations and technical capabilities.
Avnet does not possess significant cost advantages or benefit from efficient scale. The distribution of electronic components is a relatively low-margin business, and Avnet's gross margin is lower than the sector average. While the company benefits from economies of scale due to its size, these advantages are not substantial enough to create a significant cost advantage over its competitors.
The absence of a wide moat is reflected in Avnet's relatively low profitability metrics, such as ROE and net margin, compared to the sector average. The company's ability to generate sustainable excess returns is limited by the competitive nature of the industry and the lack of strong competitive advantages. While Avnet's strategic initiatives to focus on higher-value solutions and optimize its operations could potentially strengthen its moat over time, it currently remains narrow.
Financial Health & Profitability
Avnet's financial health presents a mixed picture. The company has demonstrated strong revenue growth, with a TTM revenue of $6.32 billion and a revenue growth rate of 12.8%, significantly higher than the sector average of 4.3%. This indicates that Avnet is successfully capturing market share and benefiting from increased demand for electronic components. However, its profitability metrics are relatively weak compared to the sector. The company's net income is $61.73 million, resulting in a net margin of 1.3%, lower than the sector average of 1.7%. Similarly, its ROE of 5.9% is below the sector average of 7.8%.
Analyzing the quarterly financial history reveals some trends. Revenue has fluctuated over the past few years, with a peak in FY2023 followed by a decline in FY2024 and a subsequent recovery in the recent quarters. Net income and EPS have also shown significant volatility, reflecting the cyclical nature of the electronic components market and the impact of various factors on Avnet's profitability. Gross margin has remained relatively stable, ranging from 10.4% to 12.5%, while operating margin has fluctuated between 2.3% and 4.8%.
Avnet's balance sheet leverage is relatively high, with a debt-to-equity ratio of 166.00, significantly higher than the sector average of 70.50. This indicates that the company relies heavily on debt financing, which could increase its financial risk. However, its current ratio of 2.07 suggests that it has sufficient liquidity to meet its short-term obligations. The absence of data on free cash flow, total cash, and total debt limits a more comprehensive assessment of Avnet's financial health.
Overall, Avnet's financial health is characterized by strong revenue growth but relatively weak profitability and high leverage. The company's ability to improve its margins, reduce its debt, and generate consistent free cash flow will be crucial for its long-term financial stability and success. Investors should closely monitor Avnet's financial performance and its progress in addressing these challenges.
Valuation Assessment
Avnet's valuation presents a mixed picture. The company's P/E ratio of 76.9x is significantly higher than the sector average of 34.2x, suggesting that the stock is relatively expensive compared to its peers. This could indicate that the market has already priced in future growth expectations or that investors are overvaluing Avnet's earnings potential. However, its EV/EBITDA ratio of 7.3x is in line with the sector average of 7.3x, suggesting that the company's enterprise value is fairly valued relative to its earnings before interest, taxes, depreciation, and amortization.
The high P/E ratio raises concerns about Avnet's valuation, particularly given its relatively low profitability metrics. The company's net margin of 1.3% is lower than the sector average of 1.7%, and its ROE of 5.9% is below the sector average of 7.8%. This suggests that Avnet is not generating sufficient earnings relative to its equity, which could make its high P/E ratio unsustainable in the long run.
The absence of free cash flow data limits a more comprehensive valuation assessment. Free cash flow is a key metric for valuing companies, as it represents the cash flow available to investors after all operating expenses and capital expenditures have been paid. Without this data, it is difficult to determine whether Avnet is generating sufficient cash flow to support its valuation.
Considering the available data, Avnet's valuation appears to be relatively high, particularly based on its P/E ratio. The company's ability to improve its profitability and generate consistent free cash flow will be crucial in justifying its valuation and potentially upgrading our rating. Investors should closely monitor Avnet's financial performance and its progress in addressing these challenges before making investment decisions.
Risk & Uncertainty
Avnet faces several specific, idiosyncratic risks that could negatively impact its business and financial performance. One key risk is the cyclical nature of the electronic components market. Demand for electronic components can fluctuate significantly based on economic conditions, technological advancements, and industry trends. A downturn in the market could lead to lower revenue, reduced profitability, and increased inventory risk for Avnet.
Another risk is the intense competition in the electronic components distribution industry. Avnet faces competition from other large distributors, as well as direct sales from component manufacturers. Increased competition could lead to price pressures, reduced margins, and loss of market share. Avnet must continuously innovate and differentiate itself to maintain its competitive edge.
Supply chain disruptions also pose a significant risk to Avnet's business. The company relies on a global network of suppliers to source electronic components. Disruptions to the supply chain, such as natural disasters, geopolitical events, or supplier bankruptcies, could lead to delays in product delivery, increased costs, and loss of customer orders.
Customer concentration is another potential risk. While the specific concentration figures are unavailable, a significant portion of Avnet's revenue may be derived from a small number of large customers. Loss of one or more of these key customers could have a material adverse impact on Avnet's financial performance.
Finally, Avnet's high debt-to-equity ratio increases its financial risk. The company's reliance on debt financing could make it more vulnerable to interest rate increases and economic downturns. Avnet must carefully manage its debt levels and ensure that it has sufficient cash flow to meet its debt obligations.
Bulls Say / Bears Say
The Bull Case
BULL VIEWAvnet's strong revenue growth demonstrates its ability to capture market share in a growing electronic components market.
BULL VIEWThe company's strategic focus on value-added services and integrated solutions positions it well to benefit from the increasing complexity of electronic components and the demand for customized solutions.
The Bear Case
BEAR VIEWAvnet's high P/E ratio and relatively low profitability metrics suggest that the stock is overvalued.
BEAR VIEWThe company's high debt-to-equity ratio increases its financial risk and vulnerability to economic downturns.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score AVT and 4,400+ other equities.
AVNET INC exhibits a 28% valuation discount relative to institutional benchmarks. This represents a constructive entry window based on current multiples.
Return on Assets
Efficiency of asset utilization
2.2%
Sector: 3.1%
Gross Margin
Pricing power and cost efficiency
10.6%
Sector: 26.2%
Operating Margin
Core business profitability
2.5%
Sector: 2.9%
Net Margin
Bottom-line profitability
1.3%
Sector: 1.6%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.38%
Yield Delta+626%
Income Projection audit
A $10,000 investment would generate approximately $276 annually in dividends at the current trailing rate.
