Avnet, headquartered in Phoenix, Arizona, employs 15,800 people and distributes electronic components, serving various markets through its Electronic Components and Farnell operating groups. It offers extensive customer support throughout the product lifecycle.
Based on our analysis, Avnet (AVT) has received an undervalued rating of 5 out of 5 stars from Cashu, supported by several key financial ratios that suggest it is trading at a significant discount compared to its sector peers.
The Price-to-Earnings (P/E) ratio for Avnet stands at 13.14, notably lower than the sector average of 22.55. This indicates that investors are paying less for each dollar of earnings compared to other companies in the industry, suggesting potential undervaluation. The Price-to-Book (P/B) ratio of 0.93 further reinforces this view, as it is substantially below the sector average of 3.24, indicating that the stock may be undervalued relative to its net asset value.
Avnet also showcases strong profitability metrics, with a net profit margin of 2.10, contrasting sharply with the sector's negative margin of -15.35. This reflects Avnet's ability to generate profit from its revenues, positioning it favorably in comparison to its peers. Additionally, the Return on Equity (ROE) of 10.12 exceeds the sector’s -24.75, indicating that Avnet is effectively using shareholder equity to generate profits.
Furthermore, the company offers a dividend yield of 2.71, significantly higher than the sector's 0.10, making it an attractive option for income-focused investors. The Return on Assets (ROA) ratio of 4.08 also outperforms the sector's -12.89, highlighting efficient asset utilization.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Information Technology
More Signals
Feature in Progress
This section is under development. Check back soon for updates!
Cashu is the #1 way to stay ahead of the markets, know why your favourite stocks are moving and access valuation signals that smash the market.