Avnet Inc. (AVT) — RQD Stock Rating Cockpit

Per the Roarable RQD rating, AVT scores 48 out of 100, a D grade, with the verdict "Roarable Sell — Underperform / Distribution Warning." The five pillars are:

• Fundamental Cash Engine: 7 / 20. This pillar reflects ROIC of 8% and an FCF yield of -4.66%. For an investor, the weak score means the business is not currently converting capital into free cash flow for shareholders, a central concern when valuation depends on future cash generation.
• Whale 13F Flow: 12 / 20. This pillar captures institutional accumulation and options positioning. It is the strongest pillar, indicating some institutional support, though not enough to offset weaker fundamentals.
• Insider Conviction: 8 / 20. This pillar draws on SEC Form 4 and Congressional PTR cluster flow. A below-midpoint score suggests insider and Congressional activity is not providing a strong conviction signal.
• Macro Regime Fit: 7 / 20. With Beta of 1.23, the stock carries above-market sensitivity to broad moves, and the rating flags sector sensitivity as a headwind in the current regime.
• Forensic Balance Sheet: 14 / 20. Altman Z of 3.71, Piotroski F of 5/9, and Debt/Equity of 0.5 make this the second-strongest pillar, indicating the balance sheet is a relative source of stability.

Taken together, the valuation tradeoff is meaningful. The stock trades at a trailing P/E of 22.7 and forward P/E of 19.1, and an EV/EBITDA of 12.4, while the cash-flow pillar is weak. Upside drivers would need to come from margin or cash-conversion improvement; the balance sheet provides a floor that limits distress risk but does not by itself justify the multiple. The RQD verdict characterizes the current setup as a distribution warning rather than an accumulation signal.

Per the SEC financials, FY 2025 revenue rose to $27632.7M from $22200.8M in FY 2024, while net income was $334.4M against $240.2M. Free cash flow turned negative at $-354.5M in FY 2025 after $577.0M in FY 2024. Per the market data, gross margin is 10.4%, operating margin 2.6%, and net margin 1.2%, with ROIC of 8%. Per the forensic metrics in the RQD rating, Altman Z-Score is 3.71 and Piotroski F-Score is 5/9, with Debt/Equity of 0.5.

Per the recent news feed, the headlines are predominantly market-wire and commentary items. Catalyst-tagged items include a TradingView report (GREEN, CATALYST) describing an 88.5% one-year gain and a buy/sell/hold framing. A Yahoo Finance item (YELLOW) references an expanded credit line. Seeking Alpha items are tagged YELLOW (pre-Q1 earnings "compelling buy") and RED (risk/reward not favorable). A GuruFocus item (RED, RISK WATCH) reports shares falling 3.8% and a valuation view of still overvalued. A Stocktwits item (YELLOW) provides general market coverage. Per the Butterfly Supply-Chain Graph, supply chain is listed as NONE, with no butterfly links and no proprietary signals.

• What drove the negative FY 2025 free cash flow of $-354.5M, and is working capital or capital spending the primary cause?
• What is the reported EPS for each period, given EPS is listed as N/A across all three filings?
• What does the expanded credit line referenced in the news feed mean for the debt load of $2474.1M?
• What is the consensus analyst rating and price target, given the analyst data is unavailable?
• What are the company's specific products, customers, and end-markets, which the profile does not describe?