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Avnet, Inc. and its consolidated subsidiaries (collectively, the Company or Avnet ), is a leading global electronic component technology distributor and solutions provider that has served customers evolving needs for more than a century. Founded in 1921, the Company works with electronic component manufacturers (suppliers) in every major electronic component segment to serve customers in more t…
Operating margin is thin at 2.32%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 6.5% YoY. The question is whether this is cyclical or a structural shift.
ROIC dropped from 8.83% to 6.32%, capital efficiency is deteriorating. Net debt of $2.69B represents 4.7x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (FY)
$22.20B
▼ -6.5% YoY
Net Income (TTM)
$214M
▼ -51.8% YoY
Op. Margin
2.32%
▼ -1.2pp YoY
ROIC
6.32%
▼ -2.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$33M
▲ +24.5% YoY
Op. Cash Flow (TTM)
$149M
▲ +5.0% YoY
Net Debt
$2.97B
Cash & Equiv.
$202M
5Y CAGR: +4.7%
5Y CAGR: -2.6%
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