Morningstar Rating

Stock Research and Analysis

by Peter Wahlstrom, CFA

Bulls Say

Avnet has proven to be adept at acquiring companies and integrating them into its business, which has fueled significant sales and profitability growth during recent years.
The small and medium-sized business market offers growth opportunities for IT distributors, and Avnet's recent acquisition of Access Distribution will help the company expand its share of this lucrative market.
The IT distribution model generates very strong cash flow throughout the entire industry cycle. Read more 

Bears Say

Arrow continues to expand and is contesting Avnet in every major market. Increasing competition could weigh on profitability.
Margins could be under constant pressure because of the strong bargaining power of the company's suppliers.
Roughly half of Avnet's sales come from semiconductors, which is a highly cyclical business that will experience dramatic volatility amid a computer chip downturn. Read more 

Management

Avnet's stewardship of shareholder value has been standard. The firm's management is a veteran group led by CEO Rick Hamada. He previously held the title of president and COO and assumed the role of CEO in July 2011 after 28 years with Avnet. Hamada's   Read more 

Profile

Avnet is a global distributor of semiconductors, embedded systems, computer products, software, and electrical connectors. Avnet connects suppliers and OEMs to thousands   Read more 

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