# Avnet (AVT.US)

Canonical: https://gigainvestors.com/s/AVT

Analysis as of: 2026-10-16T07:26:41.556Z. Financial observations: FY1997–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $92.94 per share; close as of 2026-10-15.

Estimated value: low $69.53 per share, central $86.60 per share, high $101.06 per share. Buy at or below the central value $86.60 per share. Valuation as of 2026-10-16T07:26:41.556Z; scenarios are not confidence intervals.

Expected annual return: 9.5% at the stated quote. About 9.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 2

- Operating margin variation: 0.53×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.03×

- FY2018: 0.01×

- FY2019: 0.02×

- FY2020: -0.00×

- FY2021: 0.01×

- FY2022: 0.04×

- FY2023: 0.04×

- FY2024: 0.04×

- FY2025: 0.03×

- FY2026: 0.03×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 8.1%

- ROIC, second-lowest year: 2.9%

- Typical minus recent gross margin: 1.4 pp

- Typical gross margin (annual median): 11.8%

- Recent gross margin (lower of latest and 3-year median): 10.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.6%

- ROIC including acquisitions, ten-year median: 4.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 8.0%

- FY2018: 2.9%

- FY2019: 6.1%

- FY2020: -0.1%

- FY2021: 6.2%

- FY2022: 15.2%

- FY2023: 13.3%

- FY2024: 9.5%

- FY2025: 8.7%

- FY2026: 8.2%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.02×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.6B

- Net income, five-year total: $2.5B

- Return on incremental invested capital: 6.2%

- Working capital / revenue, annual change: 0.4 pp

- Working capital / revenue, change between three-year averages: 3.1 pp

- Working capital / revenue, final three-year average: 26.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.15×

- FY2023: 1.00×

- FY2024: 0.83×

- FY2025: 0.91×

- FY2026: 1.18×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 6.1% vs 8.7%

- Per-share earnings: 3.80 to 4.01 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -4.6%

- Ordinary dilution, 5-year annual growth: -3.6%

- Market cap gain: $2.4B

- Cumulative retained earnings: -$286M

- Diluted shares, 10-year annual growth: -4.6%

- Diluted shares, 5-year annual growth: -3.6%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 0.7%

- Per-share value change: $0.21

- Per-share value, starting three-year median: $3.80

- Per-share value, ending three-year median: $4.01

- Buybacks concentrated in cheaper years (correlation): -0.42

- Average buyback yield: 5.3%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $159M

- Cumulative net income, 10 years: $3.2B

- ROIC, first three-year median: 6.1%

- ROIC, last three-year median: 8.7%

Chart: Earnings per share; fiscal year observations.

- FY2017: $4.08

- FY2018: -$1.30

- FY2019: $1.59

- FY2020: -$0.31

- FY2021: $1.93

- FY2022: $6.94

- FY2023: $8.26

- FY2024: $5.43

- FY2025: $2.75

- FY2026: $4.01

### accounting: fail

- earnings not backed by cash

- Sloan accruals: 4.0%

- Receivables to sales index (DSRI): 1.28×

- Restructuring years, last five: 2

- Earnings backed by cash: No

- Operating cash / earnings: -0.84×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.16×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 9.2%

- FY2018: -4.3%

- FY2019: -4.2%

- FY2020: -9.3%

- FY2021: 1.1%

- FY2022: 8.8%

- FY2023: 11.9%

- FY2024: -1.6%

- FY2025: -4.0%

- FY2026: 4.0%

## Holders

- [Edgar Wachenheim](https://gigainvestors.com/GA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 4% a year for ten years · sales +24.5%

Story as of 2026-10-16T09:58:20.933Z; price observation 2026-10-15.

Price needs cash profits to grow 4% a year for ten years

- 2025-08-06: Avnet Q4 2025 slides: Asia growth offsets EMEA weakness as margins contract ([investing.com](https://www.investing.com/news/company-news/avnet-q4-2025-slides-asia-growth-offsets-emea-weakness-as-margins-contract-93CH-4173424))

- 2025-10-30: Avnet Q1 Earnings Beat Estimates, Stock Falls on Dim Q2 EPS Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/avnet-q1-earnings-beat-estimates-121400705.html))

- 2026-01-29: Avnet Stock Rallies 14% as Q2 Earnings and Revenues Beat Estimates ([finance.yahoo.com](https://finance.yahoo.com/news/avnet-stock-rallies-14-q2-130600934.html))

- 2026-04-30: Avnet's Q3 Earnings Beat Estimates on Record Components Sales ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/avnets-q3-earnings-beat-estimates-123800824.html))

- 2026-05-13: Avnet 'Cycle' Trends Improve as Backlog Extends, Lead Times Lengthen, BofA Says ([finance.yahoo.com](https://finance.yahoo.com/news/avnet-apos-cycle-apos-trends-145913666.html))

- 2026-09-02: Avnet Gains From Global AI Infrastructure Demand: What's Ahead? ([finance.yahoo.com](https://finance.yahoo.com/technology/ai/articles/avnet-gains-global-ai-infrastructure-152200508.html))

### Sales · FY2025–2026

sales +24.5%; source https://www.sec.gov/Archives/edgar/data/8858/000110465926096346/avt-20260627x10k.htm; observed 2026-08-14.

- FY2017: $17B 

- FY2018: $19B 

- FY2019: $20B 

- FY2020: $18B 

- FY2021: $20B 

- FY2022: $24B 

- FY2023: $27B 

- FY2024: $24B 

- FY2025: $22B 

- FY2026: $28B 

### Gross margin · FY2026

gross margin 10.4%; source https://www.sec.gov/Archives/edgar/data/8858/000110465926096346/avt-20260627x10k.htm; observed 2026-08-14.

- FY2017: 13.6% 

- FY2018: 13.3% 

- FY2019: 12.7% 

- FY2020: 11.7% 

- FY2021: 11.5% 

- FY2022: 12.2% 

- FY2023: 12.0% 

- FY2024: 11.6% 

- FY2025: 10.7% 

- FY2026: 10.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in electronics & computer distribution; annual sales are USD 27.6 billion.

- Source: https://www.sec.gov/Archives/edgar/data/8858/000110465926096346/avt-20260627x10k.htm (filed 2026-08-14); FY2026: revenue 27632683000; grossProfit 2881896000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AVT.US: Avnet, Inc., engages in the distribution of electronic component technology in the Americas, Europe, the Middle East, Africa, and Asia/Pacific. The company operates through two segments, Electronic Components and Farnell. It markets, sells, and distributes semiconductors; interconnect, passive, and electromechanical components; and other integrated and embedded components from electronic component manufacturers. The company also offers design 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 which provides support, warehousing, and logistics services to original equipment manufacturers, electronic manufacturing service providers, and electronic component manufacturers. In addition, it 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 produces standard board and industrial subsystems, and application-specific devices that enable it to produce systems tailored to specific customer requirements. The company serves various markets, such as engineering, product prototyping, integration, and other value-added services in the medical, telecommunications, industrial, and digital editing. Further, it distributes kits, tools, and electronic and industrial automation components, as well as test and measurement products to engineers and entrepreneurs. The company was founded in 1921 and is headquartered in Phoenix, Arizona.

### Why customers stay

Margins ranged from 10.4% to 11.6% during 2024–26; it earns 8.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); FY2024: grossProfit / revenue = 11.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); FY2025: grossProfit / revenue = 10.7%.

- Source: https://www.sec.gov/Archives/edgar/data/8858/000110465926096346/avt-20260627x10k.htm (filed 2026-08-14); FY2026: grossProfit / revenue = 10.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); 10-year return on capital observations [[2017,0.08017287893341558],[2018,0.028704263244290512],[2019,0.06144894510828814],[2020,-0.0008689530600118836],[2021,0.06172610139243896],[2022,0.1516091561660306],[2023,0.1332720330643646],[2024,0.09494175277791382],[2025,0.08700748527345188],[2026,0.08162356706354978]]; median 0.08089822299848268. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 12% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/8858/000110465926096346/avt-20260627x10k.htm (filed 2026-08-14); Gross margin observations: [[2021,0.11470011869660106],[2022,0.12197880045287039],[2023,0.11991397934067685]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 138.3 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); FY2017: growth capex 0; upkeep 120397000; owner earnings 560241000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); FY2019: growth capex 0; upkeep 122690000; owner earnings 234489000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); FY2020: growth capex 0; upkeep 73516000; owner earnings 138298000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); FY2021: growth capex 0; upkeep 50363000; owner earnings 331450000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); FY2022: growth capex 0; upkeep 48900000; owner earnings 798686000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); FY2023: growth capex 51669000; upkeep 143005000; owner earnings 770828000. Growth capex / owner earnings = 0.06703051783277203.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); FY2024: growth capex 0; upkeep 226478000; owner earnings 412725000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); FY2025: growth capex 0; upkeep 147474000; owner earnings 217938000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/8858/000110465926096346/avt-20260627x10k.htm (filed 2026-08-14); FY2026: growth capex 0; upkeep 73572000; owner earnings 395564000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); Dividend observations: [[2017,88657000],[2018,88255000],[2019,87158000],[2020,83975000],[2021,84309000],[2022,98490000],[2023,106325000],[2024,111963000],[2025,113310000],[2026,114361000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/8858/000110465926096346/avt-20260627x10k.htm (filed 2026-08-14); FY2026: cash repurchases 138308000 USD.

### Are managers owners

Insiders own 1.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AVT.US SharesStats.PercentInsiders = 1.32 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 4% yearly over ten years; actual growth was 3.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); Ten-year compound average after fade. Initial solved rate 0.04412853484326995. Price 92.94; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 3.2932576423148836 → FY2026 4.742120721692741. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $41.95 per share

- 2016-11: $45.89 per share

- 2016-12: $47.61 per share

- 2017-01: $46.44 per share

- 2017-02: $46.08 per share

- 2017-03: $45.76 per share

- 2017-04: $38.69 per share

- 2017-05: $36.68 per share

- 2017-06: $38.88 per share

- 2017-07: $38.38 per share

- 2017-08: $38.57 per share

- 2017-09: $39.30 per share

- 2017-10: $39.80 per share

- 2017-11: $41.41 per share

- 2017-12: $39.62 per share

- 2018-01: $42.50 per share

- 2018-02: $42.70 per share

- 2018-03: $41.76 per share

- 2018-04: $39.23 per share

- 2018-05: $38.12 per share

- 2018-06: $42.89 per share

- 2018-07: $43.85 per share

- 2018-08: $48.40 per share

- 2018-09: $44.77 per share

- 2018-10: $40.07 per share

- 2018-11: $43.82 per share

- 2018-12: $36.10 per share

- 2019-01: $41.20 per share

- 2019-02: $43.49 per share

- 2019-03: $43.37 per share

- 2019-04: $48.61 per share

- 2019-05: $40.84 per share

- 2019-06: $45.27 per share

- 2019-07: $45.42 per share

- 2019-08: $41.89 per share

- 2019-09: $44.49 per share

- 2019-10: $39.56 per share

- 2019-11: $40.65 per share

- 2019-12: $42.44 per share

- 2020-01: $36.49 per share

- 2020-02: $30.68 per share

- 2020-03: $25.10 per share

- 2020-04: $30.02 per share

- 2020-05: $27.24 per share

- 2020-06: $27.89 per share

- 2020-07: $26.72 per share

- 2020-08: $27.51 per share

- 2020-09: $25.84 per share

- 2020-10: $24.67 per share

- 2020-11: $30.35 per share

- 2020-12: $35.11 per share

- 2021-01: $35.31 per share

- 2021-02: $38.07 per share

- 2021-03: $41.51 per share

- 2021-04: $43.92 per share

- 2021-05: $44.06 per share

- 2021-06: $40.08 per share

- 2021-07: $41.32 per share

- 2021-08: $40.46 per share

- 2021-09: $36.97 per share

- 2021-10: $38.11 per share

- 2021-11: $36.27 per share

- 2021-12: $41.23 per share

- 2022-01: $40.36 per share

- 2022-02: $42.07 per share

- 2022-03: $40.59 per share

- 2022-04: $43.66 per share

- 2022-05: $48.45 per share

- 2022-06: $42.88 per share

- 2022-07: $47.87 per share

- 2022-08: $43.89 per share

- 2022-09: $36.12 per share

- 2022-10: $40.19 per share

- 2022-11: $45.17 per share

- 2022-12: $41.58 per share

- 2023-01: $45.88 per share

- 2023-02: $44.71 per share

- 2023-03: $45.20 per share

- 2023-04: $41.26 per share

- 2023-05: $43.84 per share

- 2023-06: $50.45 per share

- 2023-07: $48.50 per share

- 2023-08: $50.75 per share

- 2023-09: $48.19 per share

- 2023-10: $46.33 per share

- 2023-11: $46.76 per share

- 2023-12: $50.40 per share

- 2024-01: $45.30 per share

- 2024-02: $46.59 per share

- 2024-03: $49.58 per share

- 2024-04: $48.87 per share

- 2024-05: $54.60 per share

- 2024-06: $51.49 per share

- 2024-07: $53.76 per share

- 2024-08: $55.18 per share

- 2024-09: $54.31 per share

- 2024-10: $54.21 per share

- 2024-11: $54.71 per share

- 2024-12: $52.32 per share

- 2025-01: $51.66 per share

- 2025-02: $50.54 per share

- 2025-03: $48.09 per share

- 2025-04: $46.99 per share

- 2025-05: $50.01 per share

- 2025-06: $53.08 per share

- 2025-07: $52.94 per share

- 2025-08: $54.57 per share

- 2025-09: $52.28 per share

- 2025-10: $48.45 per share

- 2025-11: $47.51 per share

- 2025-12: $48.08 per share

- 2026-01: $62.39 per share

- 2026-02: $65.84 per share

- 2026-03: $61.62 per share

- 2026-04: $82.51 per share

- 2026-05: $86.93 per share

- 2026-06: $88.82 per share

- 2026-07: $88.84 per share

- 2026-08: $89.56 per share

- 2026-09: $99.95 per share

- 2026-10: $92.94 per share

## Annual estimated value (USD per share)

- FY2017: low $44.79 per share, central $50.15 per share, high $57.27 per share

- FY2018: low $47.47 per share, central $53.73 per share, high $62.08 per share

- FY2019: low $56.50 per share, central $70.18 per share, high $81.67 per share

- FY2020: low $24.28 per share, central $27.46 per share, high $31.69 per share

- FY2021: low $25.61 per share, central $29.14 per share, high $33.84 per share

- FY2022: low $35.06 per share, central $43.93 per share, high $51.28 per share

- FY2023: low $59.44 per share, central $76.72 per share, high $89.69 per share

- FY2024: low $50.69 per share, central $59.62 per share, high $69.36 per share

- FY2025: low $48.23 per share, central $54.88 per share, high $63.73 per share

- FY2026: low $68.55 per share, central $85.37 per share, high $99.62 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/8858/000110465926096346/avt-20260627x10k.htm); period 2026-06-27, filed 2026-08-14.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.