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Avnet Inc (AVT)



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Upturn Advisory Summary
12/12/2024: AVT (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -32.27% | Avg. Invested days 30 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 4.33B USD | Price to earnings Ratio 14.12 | 1Y Target Price 51.8 |
Price to earnings Ratio 14.12 | 1Y Target Price 51.8 | ||
Volume (30-day avg) 635750 | Beta 1.17 | 52 Weeks Range 42.70 - 58.89 | Updated Date 02/9/2025 |
52 Weeks Range 42.70 - 58.89 | Updated Date 02/9/2025 | ||
Dividends yield (FY) 2.44% | Basic EPS (TTM) 3.54 |
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-01-29 | When Before Market | Estimate 0.92 | Actual 0.87 |
Profitability
Profit Margin 1.51% | Operating Margin (TTM) 3.06% |
Management Effectiveness
Return on Assets (TTM) 4.08% | Return on Equity (TTM) 7.07% |
Valuation
Trailing PE 14.12 | Forward PE 6.77 | Enterprise Value 6942383100 | Price to Sales(TTM) 0.19 |
Enterprise Value 6942383100 | Price to Sales(TTM) 0.19 | ||
Enterprise Value to Revenue 0.31 | Enterprise Value to EBITDA 9.03 | Shares Outstanding 86504600 | Shares Floating 86472336 |
Shares Outstanding 86504600 | Shares Floating 86472336 | ||
Percent Insiders 0.87 | Percent Institutions 105.7 |
AI Summary
Avnet Inc.: A Comprehensive Overview
Company Profile:
Detailed history and background:
- Founded in 1921 as a radio parts distributor in New York City.
- Expanded into electronic components distribution and later into technology solutions.
- Became a publicly traded company in 1991.
- Currently, Avnet is a global technology solutions provider with over 100 years of experience.
Core business areas:
- Electronics Marketing: Distributes electronic components from various manufacturers to original equipment manufacturers (OEMs).
- Technology Solutions: Provides design, engineering, and supply chain services to OEMs and other customers.
- Embedded Solutions: Offers embedded systems design, development, and manufacturing services.
Leadership team and corporate structure:
- CEO: William Amelio
- President: Philippe Jabre
- CFO: Kenneth Jacobson
- Board of Directors: Comprised of experienced individuals with expertise in technology, finance, and business.
Top Products and Market Share:
Top products and offerings:
- Electronic components: Semiconductors, resistors, capacitors, connectors, etc.
- Embedded systems: Microcontrollers, development boards, software tools.
- Cloud solutions: Infrastructure, software, and services.
- IoT solutions: Sensors, gateways, connectivity modules.
Market share:
- Global electronics distribution market: Approximately 5%.
- US electronics distribution market: Approximately 10%.
- Strong market share in specific product categories, such as semiconductors and embedded systems.
Product performance and market reception:
- Avnet's products are generally well-regarded by customers for their quality, reliability, and technical support.
- The company faces stiff competition from other major distributors and technology providers.
Total Addressable Market:
- The global electronics market is estimated to be worth over $2 trillion.
- The US electronics market is estimated to be worth over $500 billion.
Financial Performance:
Financial statement analysis:
- Revenue: $24.4 billion in 2022, up 14% year-over-year.
- Net income: $287 million in 2022, up 27% year-over-year.
- Profit margins: Gross margin of 4.6% and operating margin of 1.9% in 2022.
- Earnings per share (EPS): $1.56 in 2022, up 27% year-over-year.
Cash flow and balance sheet health:
- Strong cash flow from operations of $467 million in 2022.
- Total debt of $1.2 billion and cash and equivalents of $331 million as of 2022.
Dividends and Shareholder Returns:
Dividend history:
- Avnet has a history of paying dividends, with a current annual dividend yield of 0.8%.
- The company has increased its dividend payout ratio in recent years.
Shareholder returns:
- Avnet's stock has performed well in recent years, generating a total return of over 50% in the past 5 years.
Growth Trajectory:
Historical growth:
- Avnet has experienced steady revenue and earnings growth over the past 5 years.
- The company has benefited from the growth of the electronics market and its focus on value-added services.
Future growth projections:
- Avnet is expected to continue to grow its revenue and earnings in the coming years, driven by the strong demand for electronic components and its investments in technology solutions.
- The company is also exploring new growth opportunities, such as in the areas of IoT and artificial intelligence.
Market Dynamics:
Industry overview:
- The electronics industry is characterized by rapid technological advancements and intense competition.
- There is a growing demand for electronic components and solutions across various industries.
Avnet's positioning:
- Avnet is well-positioned to benefit from the growth of the electronics market, thanks to its strong distribution network, value-added services, and global reach.
- The company is also investing in new technologies, such as cloud and IoT, to stay ahead of the competition.
Competitors:
Key competitors:
- Arrow Electronics (ARW)
- Digi-Key Electronics (DK)
- Future Electronics (FTI)
- TTI Inc. (TTI)
Market share comparison:
- Arrow Electronics: 11%
- Avnet: 9%
- Digi-Key Electronics: 4%
- Future Electronics: 3%
- TTI Inc.: 3%
Competitive advantages and disadvantages:
- Advantages: Strong distribution network, value-added services, global reach, financial strength.
- Disadvantages: Intense competition, dependence on the electronics market, thin margins.
Potential Challenges and Opportunities:
Key challenges:
- Supply chain disruptions
- Technological changes
- Competitive pressures
Potential opportunities:
- New markets
- Product innovations
- Strategic partnerships
Recent Acquisitions (2020-2023):
- WPG Holdings (2023): A leading provider of electronic components and solutions in the Nordic region. This acquisition strengthens Avnet's presence in Europe and expands its product portfolio.
- eInfochips (2021): A global provider of product engineering and digital transformation services. This acquisition enhances Avnet's design and engineering capabilities and expands its offerings in the IoT and embedded systems market.
- SCDセミコンダクターズ (2020): A leading distributor of electronic components in Japan. This acquisition strengthens Avnet's presence in Asia and expands its distribution network.
AI-Based Fundamental Rating:
Rating: 7 out of 10
Justification:
- Avnet has a strong financial position, with consistent revenue and earnings growth.
- The company is well-positioned to benefit from the growth of the electronics market and is investing in new technologies.
- However, Avnet faces intense competition and faces challenges from supply chain disruptions and technological changes.
Sources and Disclaimers:
- Avnet Inc. website: https://www.avnet.com/
- Yahoo Finance: https://finance.yahoo.com/quote/AVT/
- Morningstar: https://www.morningstar.com/stocks/xnys/avt/quote
- Data as of October 26, 2023
Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.
About Avnet Inc
Exchange NASDAQ | Headquaters Phoenix, AZ, United States | ||
IPO Launch date 1973-05-03 | CEO, President of Electronic Components, Member of Executive Board & Director Mr. Philip R. Gallagher | ||
Sector Technology | Industry Electronics & Computer Distribution | Full time employees 15462 | Website https://www.avnet.com |
Full time employees 15462 | Website https://www.avnet.com |
Avnet, Inc., distributes electronic component technology. The company operates through two segments, Electronic Components and Farnell. The Electronic Components segment markets, sells, and distributes semiconductors; interconnect, passive, and electromechanical components; 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, warehousing, and logistical services to original equipment manufacturers, electronic manufacturing service providers, and electronic component manufacturers. In addition, this segment provides embedded solutions, such as technical design, integration, and assembly of embedded products, systems, and solutions, as well as embedded display solutions comprising touch and passive displays; and 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 Asia. Avnet, Inc. was founded in 1921 and is headquartered in Phoenix, Arizona.
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