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1. Company Snapshot

1.a. Company Description

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 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.

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1.b. Last Insights on AVT

Avnet's recent performance was positively driven by its Q4 earnings beat, with quarterly earnings of $0.81 per share exceeding the Zacks Consensus Estimate of $0.72 per share. The company's revenue rose 1% to $5,617.8 million. Additionally, Avnet's international revenue trends are being closely watched by financial analysts, and the company's stable margins and strong cash flow are notable. A 6% increase in quarterly dividend also underscores the company's commitment to shareholder value. (Source: Zacks)

1.c. Company Highlights

2. Avnet Accelerates Growth, Surpasses Guidance in Q3 FY26

Avnet reported a robust third‑quarter performance, generating $7.1 billion in sales—a 34% year‑over‑year jump—while operating margin climbed to 3.1% and adjusted diluted EPS hit $1.48, comfortably above the high end of analyst forecasts. The company’s valuation reflects this momentum, trading at a P/E of 30.88 and an EV/EBITDA of 12.25, indicating that investors have priced in strong future earnings growth.

Publication Date: May -04

📋 Highlights

Regional Momentum Fuels Revenue Surge

Asia led the charge with a 39% sales rise, reaching a record $3.5 billion, followed by Europe (+31%) and the Americas (+27%). This geographic diversification underscores Avnet’s resilience amid global supply chain challenges and positions the firm to capture expanding demand across high‑growth markets.

Electronic Components Drives Core Growth

Electronic Components sales grew across all regions, with operating margin at 3.5%. The business benefited from high demand in data center, industrial, and networking segments, reinforcing Avnet’s core distribution strength and providing a solid foundation for sustained revenue expansion.

Memory Pricing Boosts Sequential Sales

Early signals of component price hikes, particularly in memory, accounted for roughly half of sequential sales growth and a quarter of year‑over‑year growth. While memory represents a low double‑digit revenue share, the price lift has contributed materially to margin improvement and earnings momentum.

Inventory Turnover Improves Sharply

Avnet cut inventory days by 77%, ending the quarter with just 77 days—below its near‑term target of 80. This efficient inventory management, coupled with a 300‑basis‑point sequential boost in return on working capital, enhances free cash flow and supports the company’s dividend and share‑repurchase commitments.

Farnell Outlook Signals Margin Upswing

Farnell is on track to hit double‑digit operating margins by H2 '27, with quarterly improvements of 50–100 bps. The UK‑based arm’s expanding SKU base, especially in IP&E, is expected to drive incremental profitability, translating into an estimated $150–300 million margin lift by year‑end.

Guidance Signals Continued Upside

For fiscal Q4, Avnet projects $7.3–$7.6 billion in sales and diluted EPS of $1.70–$1.80, reflecting confidence in above‑seasonal growth and a stable operating environment. With $226 million of share‑repurchase authority remaining and a $29 million quarterly dividend, the firm remains committed to delivering shareholder value while maintaining a healthy leverage profile.

3. NewsRoom

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5 Broker Friendly Stocks to Keep An Eye On as Inflation Fears Persist

May -07

Source: zacks.com

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4 Value Stocks to Buy Now as Earnings Fuel Market Rally

May -06

Source: zacks.com

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Earnings Estimates Moving Higher for Avnet (AVT): Time to Buy?

May -05

Source: zacks.com

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Best Momentum Stock to Buy for May 5th

May -05

Source: zacks.com

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Are Computer and Technology Stocks Lagging Avnet (AVT) This Year?

May -01

Source: zacks.com

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Avnet's Q3 Earnings Beat Estimates on Record Components Sales

Apr -30

Source: zacks.com

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Avnet, Inc. (AVT) Q3 2026 Earnings Call Transcript

Apr -29

Source: seekingalpha.com

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Compared to Estimates, Avnet (AVT) Q3 Earnings: A Look at Key Metrics

Apr -29

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.55%)

6. Segments

Electronic Components

Expected Growth: 8.5%

Avnet's Electronic Components segment growth of 8.5% is driven by increasing demand for IoT and AI-enabled devices, rising adoption of 5G technology, and growing need for autonomous vehicles. Additionally, the company's strategic acquisitions and partnerships have expanded its customer base and enhanced its product offerings, contributing to the segment's growth.

Farnell

Expected Growth: 9.27%

Farnell's 9.27% growth is driven by increasing demand for electronic components in IoT, AI, and 5G applications. Strong online presence, expanded product offerings, and strategic partnerships also contribute to growth. Additionally, Farnell's focus on digital transformation, improved customer experience, and operational efficiency further support its growth momentum.

7. Detailed Products

Electronic Components

Avnet offers a wide range of electronic components from leading manufacturers, including semiconductors, interconnects, passive and electromechanical components, and embedded systems.

Embedded Systems

Avnet provides embedded systems solutions, including single-board computers, system-on-modules, and development kits, for industrial, medical, and consumer applications.

Internet of Things (IoT) Solutions

Avnet offers IoT solutions, including hardware, software, and services, to connect and manage devices, sensors, and data analytics.

Cybersecurity Solutions

Avnet provides cybersecurity solutions, including threat detection, incident response, and security consulting services, to protect against cyber threats.

Data Center and Cloud Solutions

Avnet offers data center and cloud solutions, including servers, storage, and networking solutions, for enterprise and cloud service providers.

Supply Chain Services

Avnet provides supply chain services, including inventory management, logistics, and procurement, to optimize the supply chain for OEMs and EMS providers.

Design and Engineering Services

Avnet offers design and engineering services, including hardware and software design, prototyping, and testing, for product development.

8. Avnet, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Avnet's customers have some alternatives for their products and services, but the switching costs are relatively high, which reduces the threat of substitutes.

Bargaining Power Of Customers

Avnet's customers have significant bargaining power due to their large size and purchasing power, which allows them to negotiate better prices and terms.

Bargaining Power Of Suppliers

Avnet has a diverse supplier base, which reduces the bargaining power of individual suppliers, and the company's large size and purchasing power also give it an upper hand in negotiations.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the electronics distribution industry, including the need for significant capital investment and established relationships with suppliers and customers.

Intensity Of Rivalry

The electronics distribution industry is highly competitive, with several large players competing for market share, which leads to intense rivalry and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.99%
Debt Cost 9.69%
Equity Weight 59.01%
Equity Cost 10.07%
WACC 9.92%
Leverage 69.47%

11. Quality Control: Avnet, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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InterDigital

A-Score: 6.6/10

Value: 3.7

Growth: 8.8

Quality: 9.0

Yield: 3.0

Momentum: 9.5

Volatility: 5.7

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TD Synnex

A-Score: 5.7/10

Value: 6.1

Growth: 5.6

Quality: 4.4

Yield: 2.0

Momentum: 8.0

Volatility: 8.3

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Avnet

A-Score: 5.5/10

Value: 7.3

Growth: 5.4

Quality: 3.2

Yield: 6.0

Momentum: 3.0

Volatility: 8.0

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PC Connection

A-Score: 5.1/10

Value: 5.6

Growth: 5.7

Quality: 6.0

Yield: 2.0

Momentum: 2.5

Volatility: 8.7

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Arrow Electronics

A-Score: 4.8/10

Value: 6.7

Growth: 6.6

Quality: 3.9

Yield: 0.0

Momentum: 4.0

Volatility: 7.7

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Insight Enterprises

A-Score: 4.3/10

Value: 7.0

Growth: 6.9

Quality: 4.3

Yield: 0.0

Momentum: 1.0

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

82.29$

Current Price

82.29$

Potential

-0.00%

Expected Cash-Flows