The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 62 | 34.7x | 20.8x | Around median | |
Growth | 65 | 12.7% | 6.1% | Around median | |
Quality | 20 | 5.3% | 6.6% | Bottom tier | |
Safety | 48 | 3.5x | 0.7x | Around median | |
Capital Return | 58 | 1.52% | 2.02% | Around median | |
Momentum | 98 | 66.7% | 4.1% | Top tier | |
Sentiment | 32 | 3 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Avnet, Inc. is a value-added distributor in the technology supply chain, and its business focuses on electronic components through the Electronic Components segment and the Farnell platform. The company generates its revenue from supplying semiconductors and IP&E components such as connectors, capacitors, resistors, and sensors, in addition to supply chain services, and management emphasized on the April 29, 2026 call that inventory, field application engineer expertise, and digital tools are key elements in its business model. Farnell also benefits from e-commerce, customer experience, and expanding its inventory offering, while Avnet seeks to combine supplier and customer relationships with design and sourcing solutions to serve markets such as data centers, industrial, aerospace and defense, transportation, consumer, and networking.
In the third quarter of fiscal 2026, Avnet reported revenue of $7.1B, gross profit of $739.1M, net income of $94.3M, and GAAP EPS of 1.14 according to EDGAR data. Gross margin was 10.4%, while net margin was about 1.3% based on net income and revenue, and on an adjusted non-GAAP basis the company recorded operating income of $221M and an overall operating margin of 3.1%. Operationally, the Electronic Components segment achieved record sales and an operating margin of 3.5%, while Farnell recorded operating income of $24M and a margin of 5.2%, its highest level in 3 years according to management.
The quarter’s mix was driven by clear strength in Asia, where sales reached $3.5B and represented 49% of Avnet’s total sales compared with about 47% a year earlier. Sales rose year over year by 39% in Asia, 31% in Europe, and 27% in the Americas, while Electronic Components sales increased 35% year over year and 13% sequentially, and Farnell sales increased 24% year over year and 6% sequentially. On a last-12-months basis, Avnet recorded revenue of $24.7B, gross profit of $2.6B, net income of $295.7M, and EPS of 3.566.
The analyst consensus on AVT is Neutral, with an average price target of $79.33, a high target of $95, and a low target of $48, reflecting a wide range of expectations rather than unified bullish conviction. Based on the reported market capitalization and the diluted share count used in fourth-quarter guidance, the stock appears close to the average analyst target and inclined to trade slightly above it, without a clear upside margin versus the consensus. The P/E ratio is not available in the provided data, but last-12-months EPS was 3.566, while the operating trend is improving through fourth-quarter EPS guidance between 1.70 and 1.80.
Figures in the text are as of 2026-07-04; the live price is shown at the top of the page.
On April 29, 2026, Avnet reported quarterly revenue of $7.1B, above the high end of its guidance, with 34% year-over-year growth and 13% sequential growth. Gross profit according to EDGAR was about $739.1M, net income was $94.3M, and GAAP EPS was 1.14. On an adjusted non-GAAP basis, the company recorded diluted EPS of 1.48 and adjusted operating income of $221M with a 3.1% margin. The Electronic Components segment was at a record sales level, while its operating margin was 3.5% and Farnell’s operating margin was 5.2%.
The CEO said on the third-quarter call that direct data center exposure increased from a previous estimate of between 5% and 7% to about 10% to 15%. Management explained that this exposure is mainly tied to core products and supply chain services and not to carrying video products. It also indicated that data center strength is driving broad year-over-year improvement, and that the indirect impact also appears in industrial through energy, power management, cooling, and HVAC. In the same quarter, the company said demand was strong in data centers, industrial, and networking.
Management reported that memory price increases were an important factor in third-quarter growth. About half of sequential revenue growth and about a quarter of year-over-year growth came from higher memory prices, according to the CFO’s comment. The company also said that memory has become a low double-digit range as a percentage of core business revenue. However, management explained that passing through price increases raises gross profit dollars more than it raises gross margin, so gross margin remained at 10.4% and decreased 68 basis points year over year.
Automated analysis for informational purposes only — not investment advice.
Farnell achieved year-over-year sales growth of 24% in the third quarter and sequential growth of 6%, while constant-currency growth was 18% year over year. Its operating income reached $24M, and its operating margin was 5.2%, the highest level in 3 years and the sixth consecutive quarter of operating margin expansion. Farnell’s gross margin improved by 34 basis points year over year and 49 basis points sequentially, partly because of an improved mix of on-the-board components. Management is targeting a 50 to 100 basis point improvement in Farnell margins each quarter and a return to a double-digit operating margin by the second half of calendar 2027.
Avnet ended the third quarter with gross leverage of 3.6 times, down from 3.9 times in the second quarter, and said it is on track to reduce it to about 3 times by the end of the calendar year. The company used $54M of operating cash flow in the quarter to support sequential sales growth of $800M and spent $17M on capital expenditures. Working capital days decreased to 76 days, and inventory days decreased to 77 days, a level below its near-term target of less than 80 days. At the same time, Electronic Components inventory was about 70 days, while Farnell inventory remained much higher at slightly above 200 days.
The analyst consensus on AVT is Neutral, with an average price target of $79.33, a high target of $95, and a low target of $48. This wide range between the high and low target reflects a clear difference in estimating the impact of the cyclical recovery and margin improvement. On the insider side, the data points to net selling over 3 months of $-3.0M, with 0 purchases and 2 sales. The last recorded insider transaction was on May 22, 2026, and there is no notable news during the last 30 days in the provided data.