32.63 USD
-0.01 (-0.03%)
32.63 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to AROW. AROW was compared to 383 industry peers in the Banks industry. While AROW seems to be doing ok healthwise, there are quite some concerns on its profitability. AROW has a decent growth rate and is not valued too expensively. AROW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year AROW was profitable.
- AROW had a positive operating cash flow in the past year.
- Each year in the past 5 years AROW has been profitable.
- Each year in the past 5 years AROW had a positive operating cash flow.
1.2 Ratios
- AROW's Return On Assets of 0.75% is on the low side compared to the rest of the industry. AROW is outperformed by 62.40% of its industry peers.
- AROW's Return On Equity of 8.24% is in line compared to the rest of the industry. AROW outperforms 44.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 8.24% | ||
| ROIC | N/A |
ROA(3y)0.88%
ROA(5y)1%
ROE(3y)9.71%
ROE(5y)10.96%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- AROW has a Profit Margin of 22.04%. This is in the lower half of the industry: AROW underperforms 60.31% of its industry peers.
- AROW's Profit Margin has declined in the last couple of years.
- The Operating Margin and Gross Margin are not available for AROW so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 22.04% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-15.28%
PM growth 5Y-7.97%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- AROW does not have a ROIC to compare to the WACC, probably because it is not profitable.
- Compared to 1 year ago, AROW has less shares outstanding
- AROW has less shares outstanding than it did 5 years ago.
- AROW has a better debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of AROW is 0.70, which is an excellent value as it means it would take AROW, only 0.70 years of fcf income to pay off all of its debts.
- AROW's Debt to FCF ratio of 0.70 is fine compared to the rest of the industry. AROW outperforms 75.20% of its industry peers.
- AROW has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
- AROW has a Debt to Equity ratio of 0.06. This is in the better half of the industry: AROW outperforms 78.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.7 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC19.86%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- AROW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.15%.
- The Earnings Per Share has been decreasing by -4.38% on average over the past years.
- The Revenue has grown by 12.31% in the past year. This is quite good.
- The Revenue has been growing slightly by 3.71% on average over the past years.
EPS 1Y (TTM)6.15%
EPS 3Y-15.3%
EPS 5Y-4.38%
EPS Q2Q%45.28%
Revenue 1Y (TTM)12.31%
Revenue growth 3Y-0.7%
Revenue growth 5Y3.71%
Sales Q2Q%17.16%
3.2 Future
- Based on estimates for the next years, AROW will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.78% on average per year.
- AROW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.96% yearly.
EPS Next Y24.58%
EPS Next 2Y27.39%
EPS Next 3Y19.78%
EPS Next 5YN/A
Revenue Next Year14.95%
Revenue Next 2Y12.44%
Revenue Next 3Y9.96%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 15.76, AROW is valued correctly.
- AROW's Price/Earnings ratio is a bit more expensive when compared to the industry. AROW is more expensive than 71.80% of the companies in the same industry.
- When comparing the Price/Earnings ratio of AROW to the average of the S&P500 Index (28.87), we can say AROW is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 9.41, the valuation of AROW can be described as reasonable.
- AROW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AROW is cheaper than 71.54% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. AROW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.76 | ||
| Fwd PE | 9.41 |
4.2 Price Multiples
- AROW's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. AROW is more expensive than 63.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.12 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- AROW's 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 19.78% in the coming years.
PEG (NY)0.64
PEG (5Y)N/A
EPS Next 2Y27.39%
EPS Next 3Y19.78%
5. Dividend
5.1 Amount
- AROW has a Yearly Dividend Yield of 3.43%.
- Compared to an average industry Dividend Yield of 2.62, AROW pays a bit more dividend than its industry peers.
- AROW's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
5.2 History
- The dividend of AROW has a limited annual growth rate of 3.76%.
- AROW has paid a dividend for at least 10 years, which is a reliable track record.
- AROW has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.76%
Div Incr Years3
Div Non Decr Years31
5.3 Sustainability
- 54.67% of the earnings are spent on dividend by AROW. 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.
DP54.67%
EPS Next 2Y27.39%
EPS Next 3Y19.78%
ARROW FINANCIAL CORP / AROW FAQ
What is the ChartMill fundamental rating of ARROW FINANCIAL CORP (AROW) stock?
ChartMill assigns a fundamental rating of 4 / 10 to AROW.
Can you provide the valuation status for ARROW FINANCIAL CORP?
ChartMill assigns a valuation rating of 4 / 10 to ARROW FINANCIAL CORP (AROW). This can be considered as Fairly Valued.
Can you provide the profitability details for ARROW FINANCIAL CORP?
ARROW FINANCIAL CORP (AROW) has a profitability rating of 2 / 10.
Can you provide the PE and PB ratios for AROW stock?
The Price/Earnings (PE) ratio for ARROW FINANCIAL CORP (AROW) is 15.76 and the Price/Book (PB) ratio is 1.28.
What is the earnings growth outlook for ARROW FINANCIAL CORP?
The Earnings per Share (EPS) of ARROW FINANCIAL CORP (AROW) is expected to grow by 24.58% in the next year.