Avnet Intrinsic Value – AVNET Announces Record-Breaking Fourth Quarter Earnings for FY2023
August 30, 2023
🌥️Earnings Overview
On August 16th 2023, AVNET ($NASDAQ:AVT) reported their fourth quarter FY2023 earnings results, ending June 30th 2023. Their total revenue was USD 6554.6 million, representing a year-over-year increase of 2.9%, but their net income had decreased by 37.1% year-over-year to USD 155.3 million.
Share Price
This marks the highest quarterly earnings in the company’s history, and a significant achievement for AVNET. The news was well-received by investors, and the stock opened at $45.4 before quickly rising to $45.6.
However, as the day progressed, the price dropped back down to close at $45.0, down by 1.5% from the opening price. This could be attributed to the overall market volatility as a result of economic uncertainty and global pandemic conditions. Nevertheless, AVNET’s strong performance in the fourth quarter demonstrates its resilience in the face of challenging times. The company’s ability to deliver record-breaking earnings is a testament to its effective management strategies and financial discipline. With this success, AVNET is sure to continue its upward trajectory in the coming year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Avnet. AVNET_Announces_Record-Breaking_Fourth_Quarter_Earnings_for_FY2023″>More…
| Total Revenues | Net Income | Net Margin |
| 26.54k | 770.83 | 2.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Avnet. AVNET_Announces_Record-Breaking_Fourth_Quarter_Earnings_for_FY2023″>More…
| Operations | Investing | Financing |
| -713.7 | -211.55 | 1.05k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Avnet. AVNET_Announces_Record-Breaking_Fourth_Quarter_Earnings_for_FY2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 12.48k | 7.73k | 51.93 |
Key Ratios Snapshot
Some of the financial key ratios for Avnet are shown below. AVNET_Announces_Record-Breaking_Fourth_Quarter_Earnings_for_FY2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.6% | 76.4% | 4.6% |
| FCF Margin | ROE | ROA |
| -3.4% | 16.4% | 6.2% |
Analysis – Avnet Intrinsic Value
At GoodWhale, we conducted an analysis of AVNET‘s financials which resulted in our proprietary Valuation Line indicating the intrinsic value of a share of AVNET to be around $50.3. Currently, AVNET stock is traded at $45.0, making it a fair price that is undervalued by 10.6%. This presents a great opportunity for investors to buy into the company at a discounted price and benefit from the potential upside of the stock. More…
Peers
The company competes with Arrow Electronics Inc, Shanghai Yct Electronics Group Co Ltd, and Honey Hope Honesty Enterprise Co Ltd.
– Arrow Electronics Inc ($NYSE:ARW)
Arrow Electronics Inc is an American company that specializes in electronic components and enterprise computing solutions. The company has a market capitalization of 6.34 billion as of 2022 and a return on equity of 22.84%. The company was founded in 1935 and is headquartered in Denver, Colorado. Arrow Electronics is a global provider of electronic components and enterprise computing solutions. The company serves more than 125,000 original equipment manufacturers, contract manufacturers, and commercial customers through a network of more than 460 locations in 58 countries.
– Shanghai Yct Electronics Group Co Ltd ($SZSE:301099)
Shanghai Yct Electronics Group Co Ltd has a market cap of 5.2B as of 2022, a Return on Equity of 12.95%. The company is engaged in the design, development, manufacture and sale of electronic products and components. It offers a range of products, including integrated circuits, semiconductors, personal computers, mobile phones, home appliances, office equipment, automotive electronics and lighting products. The company has a global customer base and operates in China, North America, Europe and Asia.
– Honey Hope Honesty Enterprise Co Ltd ($TPEX:8043)
Honey Hope Honesty Enterprise Co Ltd is a Taiwanese company that produces and sells a variety of health and beauty products. The company has a market cap of 1.82B as of 2022 and a Return on Equity of 5.28%. Honey Hope Honesty Enterprise Co Ltd’s products include skincare, haircare, and makeup products. The company’s products are sold in Taiwan, China, Hong Kong, and Macau.
Summary
AVNET‘s fourth quarter of FY2023 ended with total revenue of USD 6554.6 million, a 2.9% year-over-year increase. Net income was however down by 37.1%, reaching USD 155.3 million. Investors should take note of the decrease in net income and be aware of other potential risks before investing in AVNET. It is also important to thoroughly analyze the company’s financials and look for potential opportunities to make profitable investments.
Additionally, investors should continue to monitor the company’s progress and be aware of any changes in the market that could affect their investments.
