📊 AVT Key Takeaways
Investment Thesis
Avnet exhibits concerning fundamental weakness with extremely thin profit margins (0.9% net, 2.4% operating) and deteriorating cash generation despite substantial revenue base. Critical warning signs include dangerously low interest coverage (1.0x) and minimal free cash flow conversion (0.2% FCF margin), creating vulnerability to operational disruptions or debt servicing challenges.
AVT Strengths
- Solid liquidity position with 2.07x current ratio and $286.5M cash providing short-term financial flexibility
- Moderate leverage with 0.50x debt-to-equity ratio, maintaining reasonable balance sheet structure
- Substantial revenue base of $12.2B demonstrating scale in electronic parts distribution
AVT Risks
- Critically low interest coverage ratio of 1.0x indicates minimal cushion for debt service with operating income barely covering interest expense
- Extremely thin net margin of 0.9% with poor FCF conversion (0.2% margin) suggests operational inefficiency and limited cash generation capacity
- Weak profitability metrics (ROE 2.3%, ROA 0.9%) indicate poor capital efficiency and value destruction for shareholders relative to asset base
Key Metrics to Watch
- Interest coverage ratio - critical to monitor debt sustainability
- Operating margin trends - assess whether thin margins are deteriorating further
- Free cash flow generation - determine if company can service debt and fund operations independently
AVT Financial Metrics
💡 AI Analyst Insight
The relatively thin 0.2% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.07x current ratio provides a solid financial cushion.
AVT Profitability Ratios
AVT vs Technology Sector
How AVNET INC compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
AVT Balance Sheet & Liquidity
AVT 5-Year Financial Trend
5-Year Trend Summary: AVNET INC's revenue has grown significantly by 36% over the 5-year period, indicating strong business expansion. The most recent EPS of $8.26 reflects profitable operations.
AVT Growth Metrics (YoY)
AVT Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $5.7B | $51.7M | $0.75 |
| Q1 2026 | $5.6B | $51.7M | $0.61 |
| Q3 2025 | $5.3B | $59.0M | $0.97 |
| Q2 2025 | $5.7B | $59.0M | $0.99 |
| Q1 2025 | $5.6B | $59.0M | $0.66 |
| Q3 2024 | $5.7B | $88.8M | $0.97 |
| Q2 2024 | $6.2B | $117.9M | $1.28 |
| Q1 2024 | $6.3B | $184.3M | $1.93 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AVT Capital Allocation
AVT SEC Filings
Access official SEC EDGAR filings for AVNET INC (CIK: 0000008858)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AVT
What is the AI rating for AVT?
AVNET INC (AVT) has an AI rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are AVT's key strengths?
Solid liquidity position with 2.07x current ratio and $286.5M cash providing short-term financial flexibility. Moderate leverage with 0.50x debt-to-equity ratio, maintaining reasonable balance sheet structure.
What are the risks of investing in AVT?
Critically low interest coverage ratio of 1.0x indicates minimal cushion for debt service with operating income barely covering interest expense. Extremely thin net margin of 0.9% with poor FCF conversion (0.2% margin) suggests operational inefficiency and limited cash generation capacity.
What is AVT's revenue and growth?
AVNET INC reported revenue of $12.2B.
Does AVT pay dividends?
AVNET INC pays dividends, with $56.9M distributed to shareholders in the trailing twelve months.
Where can I find AVT SEC filings?
Official SEC filings for AVNET INC (CIK: 0000008858) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AVT's EPS?
AVNET INC has a diluted EPS of $1.36.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.