Avnet Inc. Common Stock (AVT)

FairStock Score: 38/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am a value investor who wants a margin of safety, a durable business, and a balance sheet that does not depend on optimistic forecasts. Avnet distributes electronic components, a necessary but low-margin middleman business. In fiscal 2026, the year ended 2026-06-27, it reported revenue of $27.6B, net income of $334.4M, and diluted EPS of $4.01. That compares with fiscal 2025, ended 2025-06-28, revenue $22.2B, net income $240.2M, EPS $2.75, and fiscal 2024, ended 2024-06-29, revenue $23.8B, net income $498.7M, EPS $5.43. So sales grew, but profit remains below fiscal 2024. Net margin in fiscal 2026 is about 1.2%, which tells me there is little cushion and no obvious wide moat. FairStock's calculations at the 2026-10-13 close of $99.60 show a P/E of 24.84, P/B of 1.63, ROE 6.67%, ROCE 3.94%, and a negative FCF yield of -4.3%. The Graham Number is $74.30, so the price is about 34% above that conservative value estimate. The Lynch category is STALWART, based on 11.6% five-year profit growth and 7.2% revenue growth, but the current FairStock Score is 38/100 and Piotroski is 5/9. Debt/equity is 0.69, and Altman Z is 1.85, so I would call the financial position acceptable but not fortress-like. Growth is recovering, but the cash flow is negative and the valuation already reflects a lot of improvement. I see a fair business, not a bargain.

In plain English: Avnet sells electronic parts and related services to companies that make electronics. Its sales are large, but profit margins are very thin, and it has been using cash rather than generating it lately. At the recent price, the stock looks expensive compared with its profits and accounting value, so the numbers do not point to an obvious bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-28) · fiscal Q2 2026 10-Q (period ended 2025-12-27) · fiscal Q1 2026 10-Q (period ended 2025-09-27) · fiscal Q3 2025 10-Q (period ended 2025-03-29) · FY2026 10-K (period ended 2026-06-27) · FY2025 10-K (period ended 2025-06-28) · FY2024 10-K (period ended 2024-06-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer