Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 4 stocks made the list for top value stocks in the Electronic Equipment & Parts industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Electronic Equipment & Parts Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

Click the button below to learn more about A+ Investor and subscribe today.

4 Undervalued Electronic Equipment & Parts Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 4 undervalued stocks in the Electronic Equipment & Parts industry for Friday, March 22, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Electronic Equipment & Parts industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Avnet Inc’s Value Grade

Value Grade:

Avnet, Inc. is a global electronic component technology distributor and solutions provider. The Company markets, sells, and distributes electronic components from electronic component manufacturers, including semiconductors, interconnect, passive and electromechanical components, and other integrated and embedded components. Its primary operating groups include Electronic Components (EC) and Farnell. EC serves a variety of markets ranging from industrial to automotive to defense and aerospace. EC offers an array of customer support options throughout the entire product lifecycle, including turnkey and customized design, supply chain, new product introduction, programming, logistics and post-sales services. The Farnell operating group primarily supports lower-volume customers and distributes a portfolio of kits, tools, electronic components, industrial automation components, and test and measurement products to both engineers and entrepreneurs, primarily through an e-commerce channel.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Avnet Inc has a Value Score of 97, which is considered to be undervalued.

When you look at Avnet Inc’s price-to-sales ratio at 0.17 compared to the industry median at 1.45, this company has a lower price relative to revenue compared to its peers. This could make Avnet Inc’s stock more attractive for value investors.

Avnet Inc’s price-earnings ratio is 6.61 compared to the industry median at 20.85. This means it has a lower share price relative to earnings compared to its peers. This could make Avnet Inc more attractive for value investors.

Now, let’s assess Avnet Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 6.4, when compared to the industry median of 11.9, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Avnet Inc’s shareholder yield is higher than its industry median ratio of (1.20%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Avnet Inc’s price-to-book ratio is lower than its industry median ratio of 1.25. This could make Avnet Inc more attractive to investors looking for a new addition to their portfolio.

BIO-Key International Inc’s Value Grade

Value Grade:

BIO-key International, Inc. is an identity and access management (IAM) platform provider enabling work-from-anywhere for enterprise, education, and government customers. The Company's products include PortalGuard and PortalGuard identity-as-a-service (IDaaS) enterprise IAM, WEB-key biometric civil and large-scale ID infrastructure, MobileAuth mobile phone authentication application, and accessory fingerprint scanner and hardware to provide a solution. Its PortalGuard is a cloud-based identity platform that allows its customers to integrate with any cloud or on-premises SaaS application, service or cloud host, as well as Windows device authentication through a single IAM platform. It offers WEB-key, which is a biometric service management platform that incorporates various functions for regulatory compliance, enrollment, authentication or identification, and integrity in a multi-tenant private or public cloud delivery platform. It also offers biometric software integration APIs.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

BIO-Key International Inc has a Value Score of 84, which is considered to be undervalued.

BIO-Key International Inc’s price-to-book ratio is higher than its peers. This could make BIO-Key International Inc less attractive for value investors when compared to the industry median at 1.25.

You can read more about BIO-Key International Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Boxlight Corp’s Value Grade

Value Grade:

Boxlight Corporation is a provider of interactive technology solutions. The Company designs, produces and distributes interactive technologies, including its interactive and non-interactive flat-panel displays, light emitting diode (LED) video walls, media players, classroom audio and campus communication, cameras and other peripherals for the education market and non-interactive solutions, including flat-panels, LED video walls and digital signage for the Enterprise market. The Company also distributes science, technology, engineering, and math (STEM) products. The Company offers professional training services related to its technology in the United States. The Company’s product categories include Front-of-Class Display (Mimio and Clevertouch brands), FrontRow Classroom Audio and IP-based school-wide communication systems for bells, paging, intercom, and alerting, and educational software and content (Mimio Connect, LYNK Whiteboard, OKTOPUS, MimioStudio).

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Boxlight Corp has a Value Score of 92, which is considered to be undervalued.

Boxlight Corp’s price-to-book ratio is higher than its peers. This could make Boxlight Corp less attractive for value investors when compared to the industry median at 1.25.

You can read more about Boxlight Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Nano Dimension Ltd - ADR’s Value Grade

Value Grade:

Nano Dimension Ltd, former ZBI Ltd, is an Israel-based company active in the technology sector. The Company operates as a provider of intelligent machines for the fabrication of Additively Manufactured Electronics (AME). Its portfolio solutions ranging from Additively Manufactured Electronics (AME), Printed Electronics (PE), Micro Additive Manufacturing, Artificial Intelligence (AI) deep learning, Surface-Mount Technology SMT Pick-and-Place, and inkjet solutions. Products portfolio consists products such as, DragonFly IV advanced 3D printing, Admatec 3D printers, AME materials, Versatile High Speed Dispensing Solutions, Production SMD software, Full Convection Reflow Ovens, Global Inkjet Systems, DeepCube, Fabrica 2.0 and Fabrica Micro-AM Materials among others. The Company targets a range of industry sectors, such as smart electronic devices that rely on printed circuit boards, connected devices, Radio Frequency (RF) components and antennas, sensors, and smart products.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Nano Dimension Ltd - ADR has a Value Score of 86, which is considered to be undervalued.

Nano Dimension Ltd - ADR’s price-to-book ratio is higher than its peers. This could make Nano Dimension Ltd - ADR less attractive for value investors when compared to the industry median at 1.25.

You can read more about Nano Dimension Ltd - ADR’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Electronic Equipment & Parts Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Electronic Equipment & Parts stocks as well as other industrys.

Choosing Which of the 4 Best Electronic Equipment & Parts Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Avnet Inc stock has a Value Grade of A.
• BIO-Key International Inc stock has a Value Grade of A.
• Boxlight Corp stock has a Value Grade of A.
• Nano Dimension Ltd - ADR stock has a Value Grade of A.

Now that you have a bit more background about each of the 4 undervalued stocks in the Electronic Equipment & Parts industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Electronic Equipment & Parts Stocks

Want to learn more about Electronic Equipment & Parts stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 4 Undervalued Electronic Equipment & Parts Stocks for Friday, March 22
• 4 Undervalued Electronic Equipment & Parts Stocks for Thursday, March 21
• Why Celestica Inc’s (CLS) Stock Is Up 6.81%
• Why Coherent Corp’s (COHR) Stock Is Up 5.38%

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.