📊 AVT Key Takeaways
Is Avnet Inc. (AVT) a Good Investment?
Avnet exhibits concerning fundamental weaknesses including negative free cash flow of -$47M, extremely thin operating margins of 2.6%, and poor capital returns (ROE 4.2%, ROA 1.5%), indicating a capital-intensive distribution model with insufficient profitability. Weak interest coverage of 1.7x combined with minimal operating cash flow generation ($9.8M on $19.3B revenue) raises sustainability concerns despite moderate leverage ratios.
Avnet's fundamentals look pressured: profitability is thin across the board, free cash flow generation is minimal, and interest coverage of 1.0x leaves little room for earnings volatility. The balance sheet is not distressed given solid liquidity and moderate debt-to-equity, but the combination of weak margins, low returns on capital, and limited cash generation points to low-quality earnings and elevated downside risk if operating conditions soften further.
Avnet Inc. Key Strengths (AVT)
- Adequate current ratio of 2.01x provides near-term liquidity cushion
- Moderate leverage with debt-to-equity of 0.50x limits financial distress risk
- Large asset base of $13.5B provides operational stability for wholesale distributor
- Solid near-term liquidity with a 2.07x current ratio and 1.07x quick ratio
- Moderate leverage profile with debt-to-equity at 0.50x
- Large revenue base and positive operating income indicate the core business remains profitable
AVT Stock Risks: Avnet Inc. Investment Risks
- Negative free cash flow indicates business is not self-sustaining and consuming capital
- Extremely thin net margin of 1.1% leaves no buffer for revenue fluctuations or operational stress
- Weak interest coverage ratio of 1.7x creates debt service vulnerability to operational deterioration
- Operating cash flow of only $9.8M on $19.3B revenue (0.05% margin) indicates poor cash generation relative to scale
- Low return on equity and assets suggest capital is not deployed efficiently
- Very weak profitability with 10.5% gross margin, 2.4% operating margin, and 0.9% net margin
- Interest coverage of 1.0x suggests limited cushion to service debt from operating earnings
- Free cash flow is extremely thin at $23.72M, indicating weak cash conversion and limited financial flexibility
Key Metrics to Watch
- Free cash flow trend and return to positive territory
- Operating margin expansion and gross margin sustainability
- Operating cash flow generation relative to revenue
- Interest coverage improvement and debt reduction progress
- Return on invested capital trends
- Operating margin and interest coverage
- Free cash flow and operating cash flow conversion
Avnet Inc. (AVT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.01x current ratio provides a solid financial cushion.
AVT Profit Margin, ROE & Profitability Analysis
AVT vs Technology Sector: How Avnet Inc. Compares
How Avnet Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Avnet Inc. Stock Overvalued? AVT Valuation Analysis 2026
Based on fundamental analysis, Avnet Inc. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Avnet Inc. Balance Sheet: AVT Debt, Cash & Liquidity
AVT Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
AVT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $5.3B | $51.7M | $1.01 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Avnet Inc. Dividends, Buybacks & Capital Allocation
AVT SEC Filings: Latest 10-K & 10-Q Analysis
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 a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AVT's key strengths?
Claude: Adequate current ratio of 2.01x provides near-term liquidity cushion. Moderate leverage with debt-to-equity of 0.50x limits financial distress risk. ChatGPT: Solid near-term liquidity with a 2.07x current ratio and 1.07x quick ratio. Moderate leverage profile with debt-to-equity at 0.50x.
What are the risks of investing in AVT?
Claude: Negative free cash flow indicates business is not self-sustaining and consuming capital. Extremely thin net margin of 1.1% leaves no buffer for revenue fluctuations or operational stress. ChatGPT: Very weak profitability with 10.5% gross margin, 2.4% operating margin, and 0.9% net margin. Interest coverage of 1.0x suggests limited cushion to service debt from operating earnings.
What is AVT's revenue and growth?
Avnet Inc. reported revenue of $19.3B.
Does AVT pay dividends?
Avnet Inc. pays dividends, with $85.6M 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 $2.49.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is AVT's fundamental grade?
Based on our AI fundamental analysis in June 2026, Avnet Inc. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is AVT stock overvalued or undervalued?
Valuation metrics for AVT: ROE of 4.2% (sector avg: 22%), net margin of 1.1% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is AVT's AI grade for 2026?
Our dual AI analysis gives Avnet Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AVT's free cash flow?
Avnet Inc.'s operating cash flow is $9.8M, with capital expenditures of $56.8M. FCF margin is -0.2%.
How does AVT compare to other Technology stocks?
Vs Technology sector averages: Net margin 1.1% (avg: 18%), ROE 4.2% (avg: 22%), current ratio 2.01 (avg: 2.5).