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. AVT has only an average score on both its financial health and profitability. AVT has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally AVT also has an excellent dividend rating. This makes AVT very considerable 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.
AVT had positive earnings in 4 of the past 5 years.
In multiple years AVT reported negative operating cash flow during the last 5 years.
1.2 Ratios
AVT has a Return On Assets of 2.70%. This is in the better half of the industry: AVT outperforms 64.00% of its industry peers.
AVT has a better Return On Equity (6.49%) than 64.80% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.87%, AVT is in the better half of the industry, outperforming 70.40% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AVT is in line with the industry average of 9.28%.
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
Looking at the Profit Margin, with a value of 1.43%, AVT is in line with its industry, outperforming 57.60% of the companies in the same industry.
AVT's Profit Margin has improved in the last couple of years.
AVT has a Operating Margin (3.04%) which is in line with its industry peers.
AVT's Operating Margin has improved in the last couple of years.
AVT has a worse Gross Margin (10.99%) than 75.20% 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
AVT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for AVT has been reduced compared to 1 year ago.
AVT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AVT has an improved debt to assets ratio.
2.2 Solvency
AVT has an Altman-Z score of 3.46. This indicates that AVT is financially healthy and has little risk of bankruptcy at the moment.
AVT has a Altman-Z score (3.46) which is in line with its industry peers.
AVT has a debt to FCF ratio of 3.54. This is a good value and a sign of high solvency as AVT would need 3.54 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.54, AVT is in the better half of 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.
With a Debt to Equity ratio value of 0.51, AVT is not doing good in the industry: 74.40% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.54 | ||
| Altman-Z | 3.46 |
ROIC/WACC0.63
WACC10.9%
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 54.40% of its industry peers.
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.
AVT has a worse Quick ratio (1.13) than 72.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
AVT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.60%.
AVT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.34% yearly.
AVT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.52%.
AVT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.01% yearly.
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-36.71%
EPS Next 2Y-2.23%
EPS Next 3Y7.14%
EPS Next 5YN/A
Revenue Next Year-6.91%
Revenue Next 2Y-1.86%
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
AVT is valuated correctly with a Price/Earnings ratio of 12.91.
Compared to the rest of the industry, the Price/Earnings ratio of AVT indicates a rather cheap valuation: AVT is cheaper than 89.60% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.82. AVT is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 9.76, the valuation of AVT can be described as reasonable.
Based on the Price/Forward Earnings ratio, AVT is valued cheaper than 95.20% of the companies in the same industry.
AVT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.91 | ||
| Fwd PE | 9.76 |
4.2 Price Multiples
88.00% of the companies in the same industry are more expensive than AVT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AVT indicates a rather cheap valuation: AVT is cheaper than 96.80% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.6 | ||
| EV/EBITDA | 8.84 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.42
EPS Next 2Y-2.23%
EPS Next 3Y7.14%
5. Dividend
5.1 Amount
AVT has a Yearly Dividend Yield of 2.64%.
AVT's Dividend Yield is rather good when compared to the industry average which is at 2.10. AVT pays more dividend than 96.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, AVT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.3%
Div Incr Years10
Div Non Decr Years10
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-2.23%
EPS Next 3Y7.14%
49.72
-0.45 (-0.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners107.49%
Inst Owner Change-0.83%
Ins Owners0.49%
Ins Owner Change-2.29%
Market Cap4.17B
Analysts50.77
Price Target52.28 (5.15%)
Short Float %6.79%
Short Ratio5.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
Yearly Dividend1.24
Dividend Growth(5Y)9.3%
DP35.81%
Div Incr Years10
Div Non Decr Years10
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)-1.91%
PT rev (3m)-1.91%
EPS NQ rev (1m)-20.27%
EPS NQ rev (3m)-21.89%
EPS NY rev (1m)-1.65%
EPS NY rev (3m)-1.65%
Revenue NQ rev (1m)-2.03%
Revenue NQ rev (3m)-2.26%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.91 | ||
| Fwd PE | 9.76 | ||
| P/S | 0.19 | ||
| P/FCF | 5.6 | ||
| P/OCF | 4.85 | ||
| P/B | 0.85 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 8.84 |
EPS(TTM)3.85
EY7.74%
EPS(NY)5.09
Fwd EY10.25%
FCF(TTM)8.89
FCFY17.87%
OCF(TTM)10.25
OCFY20.61%
SpS264.08
BVpS58.25
TBVpS48.77
PEG (NY)N/A
PEG (5Y)2.42
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 | 3.46 |
F-Score5
WACC10.9%
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-36.71%
EPS Next 2Y-2.23%
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-6.91%
Revenue Next 2Y-1.86%
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%