AVNET INC (AVT) Stock Fundamental Analysis
NASDAQ:AVT - Nasdaq - US0538071038 - Common Stock - Currency: USD
Taking everything into account, AVT scores 5 out of 10 in our fundamental rating. AVT was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. AVT has an average financial health and profitability rating. AVT is valued quite cheap, but it does not seem to be growing. AVT also has an excellent dividend rating. With these ratings, AVT could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
AVT had positive earnings in the past year.
In the past year AVT had a positive cash flow from operations.
Of the past 5 years AVT 4 years were profitable.
In multiple years AVT reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of AVT (2.70%) is better than 62.90% of its industry peers.
The Return On Equity of AVT (6.49%) is better than 62.90% of its industry peers.
The Return On Invested Capital of AVT (6.87%) is better than 70.97% of its industry peers.
AVT had an Average Return On Invested Capital over the past 3 years of 11.06%. This is in line with the industry average of 9.55%.
The 3 year average ROIC (11.06%) for AVT is well above the current ROIC(6.87%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.7% | ||
| ROE | 6.49% | ||
| ROIC | 6.87% |
ROA(3y)5.64%
ROA(5y)3.74%
ROE(3y)14.28%
ROE(5y)9.35%
ROIC(3y)11.06%
ROIC(5y)8.21%
1.3 Margins
With a Profit Margin value of 1.43%, AVT perfoms like the industry average, outperforming 54.03% of the companies in the same industry.
AVT's Profit Margin has improved in the last couple of years.
The Operating Margin of AVT (3.04%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of AVT has grown nicely.
With a Gross Margin value of 10.99%, AVT is not doing good in the industry: 78.23% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of AVT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.04% | ||
| PM (TTM) | 1.43% | ||
| GM | 10.99% |
OM growth 3Y26.31%
OM growth 5Y3.78%
PM growth 3Y28.56%
PM growth 5Y18.41%
GM growth 3Y0.5%
GM growth 5Y-1.78%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AVT is creating some value.
AVT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
AVT has an Altman-Z score of 3.47. This indicates that AVT is financially healthy and has little risk of bankruptcy at the moment.
AVT's Altman-Z score of 3.47 is in line compared to the rest of the industry. AVT outperforms 59.68% of its industry peers.
The Debt to FCF ratio of AVT is 3.54, which is a good value as it means it would take AVT, 3.54 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AVT (3.54) is better than 66.13% of its industry peers.
AVT has a Debt/Equity ratio of 0.51. This is a neutral value indicating AVT is somewhat dependend on debt financing.
AVT's Debt to Equity ratio of 0.51 is on the low side compared to the rest of the industry. AVT is outperformed by 73.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.54 | ||
| Altman-Z | 3.47 |
ROIC/WACC0.62
WACC11.02%
2.3 Liquidity
AVT has a Current Ratio of 2.44. This indicates that AVT is financially healthy and has no problem in meeting its short term obligations.
AVT's Current ratio of 2.44 is in line compared to the rest of the industry. AVT outperforms 51.61% of its industry peers.
A Quick Ratio of 1.13 indicates that AVT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.13, AVT is not doing good in the industry: 72.58% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The earnings per share for AVT have decreased strongly by -35.46% in the last year.
The Earnings Per Share has been growing by 11.23% on average over the past years. This is quite good.
EPS 1Y (TTM)-35.46%
EPS 3Y-20.9%
EPS 5Y11.23%
EPS Q2Q%-33.61%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.99%
3.2 Future
Based on estimates for the next years, AVT will show a very strong growth in Earnings Per Share. The EPS will grow by 38.04% on average per year.
Based on estimates for the next years, AVT will show a small growth in Revenue. The Revenue will grow by 4.88% on average per year.
EPS Next Y47.98%
EPS Next 2Y38.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.94%
Revenue Next 2Y4.88%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.11 indicates a correct valuation of AVT.
Based on the Price/Earnings ratio, AVT is valued cheaply inside the industry as 88.71% of the companies are valued more expensively.
AVT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.54.
Based on the Price/Forward Earnings ratio of 10.21, the valuation of AVT can be described as reasonable.
AVT's Price/Forward Earnings ratio is rather cheap when compared to the industry. AVT is cheaper than 95.97% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.28, AVT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 10.21 |
4.2 Price Multiples
87.90% of the companies in the same industry are more expensive than AVT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AVT is valued cheaply inside the industry as 96.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.85 | ||
| EV/EBITDA | 9.01 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AVT's earnings are expected to grow with 38.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.31
PEG (5Y)1.34
EPS Next 2Y38.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.67%, AVT has a reasonable but not impressive dividend return.
AVT's Dividend Yield is rather good when compared to the industry average which is at 1.79. AVT pays more dividend than 95.97% of the companies in the same industry.
AVT's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
5.2 History
On average, the dividend of AVT grows each year by 9.30%, which is quite nice.
AVT has paid a dividend for at least 10 years, which is a reliable track record.
AVT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.3%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
35.81% of the earnings are spent on dividend by AVT. This is a low number and sustainable payout ratio.
AVT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP35.81%
EPS Next 2Y38.04%
EPS Next 3YN/A
51.97
+0.74 (+1.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners109.4%
Inst Owner Change-0.01%
Ins Owners0.5%
Ins Owner Change-0.3%
Market Cap4.36B
Analysts50.77
Price Target52.28 (0.6%)
Short Float %5.42%
Short Ratio7.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
Yearly Dividend1.24
Dividend Growth(5Y)9.3%
DP35.81%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.65%
Min EPS beat(2)-3.18%
Max EPS beat(2)16.48%
EPS beat(4)3
Avg EPS beat(4)11.72%
Min EPS beat(4)-3.18%
Max EPS beat(4)27.49%
EPS beat(8)5
Avg EPS beat(8)9.04%
EPS beat(12)9
Avg EPS beat(12)8.09%
EPS beat(16)13
Avg EPS beat(16)12.34%
Revenue beat(2)2
Avg Revenue beat(2)0.32%
Min Revenue beat(2)0.22%
Max Revenue beat(2)0.43%
Revenue beat(4)4
Avg Revenue beat(4)1.36%
Min Revenue beat(4)0.22%
Max Revenue beat(4)2.62%
Revenue beat(8)5
Avg Revenue beat(8)0.68%
Revenue beat(12)9
Avg Revenue beat(12)1.27%
Revenue beat(16)13
Avg Revenue beat(16)2.43%
PT rev (1m)0%
PT rev (3m)-1.91%
EPS NQ rev (1m)1.36%
EPS NQ rev (3m)-13.02%
EPS NY rev (1m)0.66%
EPS NY rev (3m)-1%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)-1.54%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 10.21 | ||
| P/S | 0.2 | ||
| P/FCF | 5.85 | ||
| P/OCF | 5.07 | ||
| P/B | 0.89 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 9.01 |
EPS(TTM)3.44
EY6.62%
EPS(NY)5.09
Fwd EY9.79%
FCF(TTM)8.89
FCFY17.1%
OCF(TTM)10.25
OCFY19.72%
SpS264.08
BVpS58.25
TBVpS48.77
PEG (NY)0.31
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.7% | ||
| ROE | 6.49% | ||
| ROCE | 8.74% | ||
| ROIC | 6.87% | ||
| ROICexc | 7.05% | ||
| ROICexgc | 7.88% | ||
| OM | 3.04% | ||
| PM (TTM) | 1.43% | ||
| GM | 10.99% | ||
| FCFM | 3.36% |
ROA(3y)5.64%
ROA(5y)3.74%
ROE(3y)14.28%
ROE(5y)9.35%
ROIC(3y)11.06%
ROIC(5y)8.21%
ROICexc(3y)11.43%
ROICexc(5y)8.52%
ROICexgc(3y)12.87%
ROICexgc(5y)9.69%
ROCE(3y)14.06%
ROCE(5y)10.44%
ROICexcg growth 3Y20.95%
ROICexcg growth 5Y-0.53%
ROICexc growth 3Y23.19%
ROICexc growth 5Y1.41%
OM growth 3Y26.31%
OM growth 5Y3.78%
PM growth 3Y28.56%
PM growth 5Y18.41%
GM growth 3Y0.5%
GM growth 5Y-1.78%
F-Score5
Asset Turnover1.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.54 | ||
| Debt/EBITDA | 3.33 | ||
| Cap/Depr | 150.46% | ||
| Cap/Sales | 0.52% | ||
| Interest Coverage | 2.22 | ||
| Cash Conversion | 114.8% | ||
| Profit Quality | 235.21% | ||
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 3.47 |
F-Score5
WACC11.02%
ROIC/WACC0.62
Cap/Depr(3y)176.23%
Cap/Depr(5y)121.45%
Cap/Sales(3y)0.63%
Cap/Sales(5y)0.51%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-35.46%
EPS 3Y-20.9%
EPS 5Y11.23%
EPS Q2Q%-33.61%
EPS Next Y47.98%
EPS Next 2Y38.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.99%
Revenue Next Year3.94%
Revenue Next 2Y4.88%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-33.8%
EBIT growth 3Y34.82%
EBIT growth 5Y7.94%
EBIT Next Year-21.15%
EBIT Next 3Y3.24%
EBIT Next 5YN/A
FCF growth 1Y157.27%
FCF growth 3Y125.36%
FCF growth 5Y2.38%
OCF growth 1Y174.84%
OCF growth 3Y96.53%
OCF growth 5Y5.23%