ARROW FINANCIAL CORP (AROW) Fundamental Analysis & Valuation

NASDAQ:AROW • US0427441029

Current stock price

36.22 USD
-0.95 (-2.56%)
Last:

This AROW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. AROW Profitability Analysis

1.1 Basic Checks

  • AROW had positive earnings in the past year.
  • AROW had a positive operating cash flow in the past year.
  • AROW had positive earnings in each of the past 5 years.
  • In the past 5 years AROW always reported a positive cash flow from operatings.
AROW Yearly Net Income VS EBIT VS OCF VS FCFAROW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 0.99%, AROW is in line with its industry, outperforming 52.66% of the companies in the same industry.
  • AROW's Return On Equity of 10.14% is fine compared to the rest of the industry. AROW outperforms 60.64% of its industry peers.
Industry RankSector Rank
ROA 0.99%
ROE 10.14%
ROIC N/A
ROA(3y)0.8%
ROA(5y)0.97%
ROE(3y)8.49%
ROE(5y)10.54%
ROIC(3y)N/A
ROIC(5y)N/A
AROW Yearly ROA, ROE, ROICAROW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • With a Profit Margin value of 26.46%, AROW perfoms like the industry average, outperforming 57.45% of the companies in the same industry.
  • In the last couple of years the Profit Margin of AROW has declined.
  • The Operating Margin and Gross Margin are not available for AROW so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) 26.46%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-6.82%
PM growth 5Y-3.09%
GM growth 3YN/A
GM growth 5YN/A
AROW Yearly Profit, Operating, Gross MarginsAROW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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4

2. AROW Health Analysis

2.1 Basic Checks

  • AROW does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • The number of shares outstanding for AROW has been reduced compared to 1 year ago.
  • The number of shares outstanding for AROW has been reduced compared to 5 years ago.
  • Compared to 1 year ago, AROW has an improved debt to assets ratio.
AROW Yearly Shares OutstandingAROW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M
AROW Yearly Total Debt VS Total AssetsAROW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.2 Solvency

  • AROW has a debt to FCF ratio of 0.69. This is a very positive value and a sign of high solvency as it would only need 0.69 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 0.69, AROW is in the better half of the industry, outperforming 75.80% of the companies in the same industry.
  • AROW has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
  • AROW's Debt to Equity ratio of 0.06 is fine compared to the rest of the industry. AROW outperforms 79.26% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.69
Altman-Z N/A
ROIC/WACCN/A
WACC17.97%
AROW Yearly LT Debt VS Equity VS FCFAROW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
AROW Yearly Current Assets VS Current LiabilitesAROW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M

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8

3. AROW Growth Analysis

3.1 Past

  • AROW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.06%, which is quite impressive.
  • AROW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.29% yearly.
  • AROW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.45%.
  • Measured over the past years, AROW shows a small growth in Revenue. The Revenue has been growing by 4.67% on average per year.
EPS 1Y (TTM)50.06%
EPS 3Y-2.62%
EPS 5Y1.29%
EPS Q2Q%214.81%
Revenue 1Y (TTM)18.45%
Revenue growth 3Y3.54%
Revenue growth 5Y4.67%
Sales Q2Q%28%

3.2 Future

  • The Earnings Per Share is expected to grow by 29.10% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, AROW will show a very strong growth in Revenue. The Revenue will grow by 21.73% on average per year.
EPS Next Y32.79%
EPS Next 2Y29.1%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year25.31%
Revenue Next 2Y21.73%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
AROW Yearly Revenue VS EstimatesAROW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 50M 100M 150M 200M
AROW Yearly EPS VS EstimatesAROW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4

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4

4. AROW Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 13.67 indicates a correct valuation of AROW.
  • Compared to the rest of the industry, the Price/Earnings ratio of AROW indicates a slightly more expensive valuation: AROW is more expensive than 63.30% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of AROW to the average of the S&P500 Index (27.95), we can say AROW is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 10.29, the valuation of AROW can be described as reasonable.
  • The rest of the industry has a similar Price/Forward Earnings ratio as AROW.
  • The average S&P500 Price/Forward Earnings ratio is at 38.68. AROW is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 13.67
Fwd PE 10.29
AROW Price Earnings VS Forward Price EarningsAROW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of AROW indicates a slightly more expensive valuation: AROW is more expensive than 69.15% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 16.52
EV/EBITDA N/A
AROW Per share dataAROW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • A more expensive valuation may be justified as AROW's earnings are expected to grow with 29.10% in the coming years.
PEG (NY)0.42
PEG (5Y)10.57
EPS Next 2Y29.1%
EPS Next 3YN/A

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7

5. AROW Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.30%, AROW has a reasonable but not impressive dividend return.
  • AROW's Dividend Yield is a higher than the industry average which is at 2.57.
  • AROW's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 3.3%

5.2 History

  • The dividend of AROW has a limited annual growth rate of 4.17%.
  • AROW has been paying a dividend for at least 10 years, so it has a reliable track record.
  • AROW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.17%
Div Incr Years4
Div Non Decr Years32
AROW Yearly Dividends per shareAROW Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • AROW pays out 43.13% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • The dividend of AROW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP43.13%
EPS Next 2Y29.1%
EPS Next 3YN/A
AROW Yearly Income VS Free CF VS DividendAROW Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
AROW Dividend Payout.AROW Dividend Payout, showing the Payout Ratio.AROW Dividend Payout.PayoutRetained Earnings

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AROW Fundamentals: All Metrics, Ratios and Statistics

ARROW FINANCIAL CORP

NASDAQ:AROW (4/21/2026, 3:47:32 PM)

36.22

-0.95 (-2.56%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)01-29
Earnings (Next)04-28
Inst Owners58.75%
Inst Owner Change-0.17%
Ins Owners2.17%
Ins Owner Change5.98%
Market Cap597.99M
Revenue(TTM)165.60M
Net Income(TTM)43.81M
Analysts43.33
Price Target36.21 (-0.03%)
Short Float %1.34%
Short Ratio2.19
Dividend
Industry RankSector Rank
Dividend Yield 3.3%
Yearly Dividend1.14
Dividend Growth(5Y)4.17%
DP43.13%
Div Incr Years4
Div Non Decr Years32
Ex-Date02-11
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.86%
Min EPS beat(2)2.88%
Max EPS beat(2)4.85%
EPS beat(4)3
Avg EPS beat(4)2.3%
Min EPS beat(4)-12.34%
Max EPS beat(4)13.8%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.26%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)2.46%
Revenue beat(4)1
Avg Revenue beat(4)-0.74%
Min Revenue beat(4)-2.12%
Max Revenue beat(4)2.46%
Revenue beat(8)2
Avg Revenue beat(8)-1.97%
Revenue beat(12)3
Avg Revenue beat(12)-2.96%
Revenue beat(16)6
Avg Revenue beat(16)-2.13%
PT rev (1m)2.9%
PT rev (3m)5.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.28%
EPS NY rev (1m)0%
EPS NY rev (3m)1.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)13.93%
Valuation
Industry RankSector Rank
PE 13.67
Fwd PE 10.29
P/S 3.61
P/FCF 16.52
P/OCF 14.49
P/B 1.38
P/tB 1.47
EV/EBITDA N/A
EPS(TTM)2.65
EY7.32%
EPS(NY)3.52
Fwd EY9.72%
FCF(TTM)2.19
FCFY6.05%
OCF(TTM)2.5
OCFY6.9%
SpS10.03
BVpS26.16
TBVpS24.61
PEG (NY)0.42
PEG (5Y)10.57
Graham Number39.4919 (9.03%)
Profitability
Industry RankSector Rank
ROA 0.99%
ROE 10.14%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 26.46%
GM N/A
FCFM 21.86%
ROA(3y)0.8%
ROA(5y)0.97%
ROE(3y)8.49%
ROE(5y)10.54%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-6.82%
PM growth 5Y-3.09%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.04
Health
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.69
Debt/EBITDA N/A
Cap/Depr 93.93%
Cap/Sales 3.07%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 82.61%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score8
WACC17.97%
ROIC/WACCN/A
Cap/Depr(3y)101.24%
Cap/Depr(5y)116.73%
Cap/Sales(3y)4.11%
Cap/Sales(5y)5.38%
Profit Quality(3y)74.89%
Profit Quality(5y)88.04%
High Growth Momentum
Growth
EPS 1Y (TTM)50.06%
EPS 3Y-2.62%
EPS 5Y1.29%
EPS Q2Q%214.81%
EPS Next Y32.79%
EPS Next 2Y29.1%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)18.45%
Revenue growth 3Y3.54%
Revenue growth 5Y4.67%
Sales Q2Q%28%
Revenue Next Year25.31%
Revenue Next 2Y21.73%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y25.35%
FCF growth 3Y-7.32%
FCF growth 5Y-0.54%
OCF growth 1Y19.76%
OCF growth 3Y-11.58%
OCF growth 5Y-0.49%

ARROW FINANCIAL CORP / AROW Fundamental Analysis FAQ

What is the ChartMill fundamental rating of ARROW FINANCIAL CORP (AROW) stock?

ChartMill assigns a fundamental rating of 5 / 10 to AROW.


What is the valuation status of ARROW FINANCIAL CORP (AROW) stock?

ChartMill assigns a valuation rating of 4 / 10 to ARROW FINANCIAL CORP (AROW). This can be considered as Fairly Valued.


What is the profitability of AROW stock?

ARROW FINANCIAL CORP (AROW) has a profitability rating of 3 / 10.


What is the valuation of ARROW FINANCIAL CORP based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ARROW FINANCIAL CORP (AROW) is 13.67 and the Price/Book (PB) ratio is 1.38.


Is the dividend of ARROW FINANCIAL CORP sustainable?

The dividend rating of ARROW FINANCIAL CORP (AROW) is 7 / 10 and the dividend payout ratio is 43.13%.