1.66%
-0.11%
-3.59%
-2.78%
15.38%
29.50%
43.23%

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.

Market Data

Last Price 52.27
Change Percentage 1.66%
Open 51.54
Previous Close 51.41
Market Cap ( Millions) 4544
Volume 117548
Year High 59.24
Year Low 43.62
M A 50 53.43
M A 200 52.88

Financial Ratios

FCF Yield 23.95%
Dividend Yield 2.45%
ROE 4.73%
Debt / Equity 23.36%
Net Debt / EBIDTA 577.67%
Price To Book 0.38
Price Earnings Ratio 14.39
Price To FCF 4.18
Price To sales 0.2
EV / EBITDA 15.81

News

Business Breakdown

Expected Mid-Term Growth

Segment n°1 -> Electronic Components

Expected Growth : 8.5 %

What the company do ?

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

Why we expect these perspectives ?

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.

Segment n°2 -> Farnell

Expected Growth : 9.27 %

What the company do ?

Farnell, an Avnet Company, is a leading distributor of electronic components, providing products, services, and solutions to engineers and procurement professionals.

Why we expect these perspectives ?

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.

Avnet, Inc. Products

Product Range What is it ?
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.

Avnet, Inc.'s Porter Forces

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

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

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.

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.

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

Capital Structure

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

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
IDCC InterDigital, Inc., together with its subsidiaries, designs and develops technologies that enable and enhance wireless communications in the United States, China, South Korea, Japan, Taiwan, and Europe. It provides technology …
NSIT IInsight Enterprises, Inc., together with its subsidiaries, provides information technology (IT) hardware, software, and services solutions in the United States, Canada, Europe, the Middle East, Africa, and the Asia-Pacific. The …
CNXN PC Connection, Inc., together with its subsidiaries, provides various information technology (IT) solutions. The company operates through three segments: Business Solutions, Enterprise Solutions, and Public Sector Solutions. It offers IT …
ARW Arrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions in the Americas, Europe, the Middle East, Africa, and the …
SNX TD SYNNEX Corporation provides business process services in the United States and internationally. The company distributes PC systems, mobile phones and accessories, printers, peripherals, supplies, endpoint technology software, consumer electronics, …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
52.26$
Current Price
52.27$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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