AVNET INC (AVT) Stock Fundamental Analysis
NASDAQ:AVT - Nasdaq - US0538071038 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to AVT. AVT was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. Both the profitability and the financial health of AVT get a neutral evaluation. Nothing too spectacular is happening here. AVT has a valuation in line with the averages, but on the other hand it scores bad on growth. AVT also has an excellent dividend rating. These ratings could make AVT a good candidate for 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.
The reported operating cash flow has been mixed in the past 5 years: AVT reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of AVT (2.70%) is better than 64.80% of its industry peers.
With a decent Return On Equity value of 6.49%, AVT is doing good in the industry, outperforming 64.80% of the companies in the same industry.
AVT's Return On Invested Capital of 6.87% is fine compared to the rest of the industry. AVT outperforms 71.20% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AVT is in line with the industry average of 9.16%.
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
AVT has a Profit Margin of 1.43%. This is comparable to the rest of the industry: AVT outperforms 56.80% of its industry peers.
In the last couple of years the Profit Margin of AVT has grown nicely.
Looking at the Operating Margin, with a value of 3.04%, AVT is in line with its industry, outperforming 56.00% of the companies in the same industry.
AVT's Operating Margin has improved in the last couple of years.
The Gross Margin of AVT (10.99%) is worse than 76.00% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AVT is still creating some value.
AVT has less shares outstanding than it did 1 year ago.
AVT has less shares outstanding than it did 5 years ago.
AVT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.50 indicates that AVT is not in any danger for bankruptcy at the moment.
The Altman-Z score of AVT (3.50) is comparable to the rest of the industry.
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.
With a decent Debt to FCF ratio value of 3.54, AVT is doing good in the industry, outperforming 65.60% of the companies in the same industry.
AVT has a Debt/Equity ratio of 0.51. This is a neutral value indicating AVT is somewhat dependend on debt financing.
AVT has a worse Debt to Equity ratio (0.51) than 74.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.54 | ||
| Altman-Z | 3.5 |
ROIC/WACC0.63
WACC10.92%
2.3 Liquidity
A Current Ratio of 2.44 indicates that AVT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.44, AVT is in line with its industry, outperforming 51.20% of the companies in the same industry.
AVT has a Quick Ratio of 1.13. This is a normal value and indicates that AVT is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.13, AVT is not doing good in the industry: 74.40% 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 -37.60% in the last year.
The Earnings Per Share has been growing slightly by 5.34% on average over the past years.
The Revenue for AVT has decreased by -10.52% in the past year. This is quite bad
Measured over the past years, AVT shows a small growth in Revenue. The Revenue has been growing by 4.01% on average per year.
EPS 1Y (TTM)-37.6%
EPS 3Y25.45%
EPS 5Y5.34%
EPS Q2Q%-23.64%
Revenue 1Y (TTM)-10.52%
Revenue growth 3Y6.74%
Revenue growth 5Y4.01%
Sales Q2Q%-5.98%
3.2 Future
The Earnings Per Share is expected to grow by 7.14% on average over the next years.
The Revenue is expected to grow by 0.81% on average over the next years.
EPS Next Y-36.29%
EPS Next 2Y-2.27%
EPS Next 3Y7.14%
EPS Next 5YN/A
Revenue Next Year-6.85%
Revenue Next 2Y-1.6%
Revenue Next 3Y0.81%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.55, AVT is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of AVT indicates a rather cheap valuation: AVT is cheaper than 90.40% of the companies listed in the same industry.
AVT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.00 indicates a reasonable valuation of AVT.
Based on the Price/Forward Earnings ratio, AVT is valued cheaper than 93.60% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AVT to the average of the S&P500 Index (35.19), we can say AVT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.55 | ||
| Fwd PE | 11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVT indicates a rather cheap valuation: AVT is cheaper than 88.80% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, AVT is valued cheaply inside the industry as 96.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.3 | ||
| EV/EBITDA | 9.55 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.73
EPS Next 2Y-2.27%
EPS Next 3Y7.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.34%, 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 1.82. AVT pays more dividend than 96.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, AVT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
5.2 History
The dividend of AVT is nicely growing with an annual growth rate of 9.30%!
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 slower than its dividend. This means the dividend growth is not sustainable.
DP35.81%
EPS Next 2Y-2.27%
EPS Next 3Y7.14%
56.01
-0.29 (-0.52%)
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-0.04%
Ins Owners0.5%
Ins Owner Change-0.3%
Market Cap4.70B
Analysts50.77
Price Target52.28 (-6.66%)
Short Float %5.32%
Short Ratio5.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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)3.07%
EPS NQ rev (3m)-17.82%
EPS NY rev (1m)0.66%
EPS NY rev (3m)-1%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)-1.74%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.55 | ||
| Fwd PE | 11 | ||
| P/S | 0.21 | ||
| P/FCF | 6.3 | ||
| P/OCF | 5.47 | ||
| P/B | 0.96 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 9.55 |
EPS(TTM)3.85
EY6.87%
EPS(NY)5.09
Fwd EY9.09%
FCF(TTM)8.89
FCFY15.86%
OCF(TTM)10.25
OCFY18.29%
SpS264.08
BVpS58.25
TBVpS48.77
PEG (NY)N/A
PEG (5Y)2.73
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 | 3.5 |
F-Score5
WACC10.92%
ROIC/WACC0.63
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)-37.6%
EPS 3Y25.45%
EPS 5Y5.34%
EPS Q2Q%-23.64%
EPS Next Y-36.29%
EPS Next 2Y-2.27%
EPS Next 3Y7.14%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.52%
Revenue growth 3Y6.74%
Revenue growth 5Y4.01%
Sales Q2Q%-5.98%
Revenue Next Year-6.85%
Revenue Next 2Y-1.6%
Revenue Next 3Y0.81%
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%