AVTAvnet, Inc.
Is the business good?
More warning than reassurance: profits without cash flow and margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Reports an operating profit but operating cash flow is negative, a red flag. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 5% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is AVT?
Avnet, Inc. earns 7.1% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 1.9 points below what the capital costs: growth destroys value
- Operating margin
- 2.6%
Operating margin · Electronics & Computer Distribution median 3.4% · 12 months to Q4 2026
- Cash conversion
- −0.54×
Cash conversion · 1.47× a year ago · the operating profit has not turned into cash yet
- Gross margin
- 10%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 1.4% |
| FY2022 | 3.9% |
| FY2023 | 4.5% |
| FY2024 | 3.5% |
| FY2025 | 2.3% |
| FY2026 | 2.6% |
Details›
- Gross margin12 months to Q4 2026
- 10%
- Operating margin12 months to Q4 2026
- 2.6%
- Net margin12 months to Q4 2026
- 1.2%
- Free cash flow margin
- −1.3%
- Revenue, trailing twelve months
- $27.6B
- Free cash flow, trailing twelve months
- −$354M
- Net income, trailing twelve months
- $334M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Electronics & Computer Distribution
Ranks #7 of 7 by RyuScore