ARROW FINANCIAL CORP (AROW) Stock Fundamental Analysis
USA - NASDAQ:AROW - US0427441029 - Common Stock
29.488 USD
+0.6 (+2.07%)
Overall AROW gets a fundamental rating of 4 out of 10. We evaluated AROW against 392 industry peers in the Banks industry. AROW scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. AROW has a decent growth rate and is not valued too expensively. Finally AROW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year AROW was profitable.
In the past year AROW had a positive cash flow from operations.
AROW had positive earnings in each of the past 5 years.
AROW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AROW has a worse Return On Assets (0.69%) than 61.99% of its industry peers.
AROW has a Return On Equity (7.48%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.69% | ||
| ROE | 7.48% | ||
| 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
With a Profit Margin value of 20.40%, AROW is not doing good in the industry: 61.99% of the companies in the same industry are doing better.
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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 20.4% | ||
| 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.
The number of shares outstanding for AROW has been reduced compared to 1 year ago.
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 0.85, which is an excellent value as it means it would take AROW, only 0.85 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.85, AROW is in the better half of the industry, outperforming 76.02% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that AROW is not too dependend on debt financing.
AROW has a Debt to Equity ratio of 0.06. This is in the better half of the industry: AROW outperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.85 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC20.98%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for AROW have decreased by -2.08% in the last year.
Measured over the past years, AROW shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.38% on average per year.
The Revenue has grown by 10.31% 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)-2.08%
EPS 3Y-15.3%
EPS 5Y-4.38%
EPS Q2Q%26.78%
Revenue 1Y (TTM)10.31%
Revenue growth 3Y-0.7%
Revenue growth 5Y3.71%
Sales Q2Q%14.67%
3.2 Future
The Earnings Per Share is expected to grow by 19.67% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.78% on average over the next years. This is quite good.
EPS Next Y17.9%
EPS Next 2Y19.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.72%
Revenue Next 2Y9.78%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.11 indicates a correct valuation of AROW.
69.39% of the companies in the same industry are cheaper than AROW, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.20. AROW is valued slightly cheaper when compared to this.
AROW is valuated reasonably with a Price/Forward Earnings ratio of 9.64.
AROW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AROW is cheaper than 66.07% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. AROW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.11 | ||
| Fwd PE | 9.64 |
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 60.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.61 | ||
| EV/EBITDA | N/A |
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 19.67% in the coming years.
PEG (NY)0.9
PEG (5Y)N/A
EPS Next 2Y19.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
AROW has a Yearly Dividend Yield of 3.95%.
Compared to an average industry Dividend Yield of 3.73, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.76%
Div Incr Years3
Div Non Decr Years31
5.3 Sustainability
60.77% of the earnings are spent on dividend by AROW. This is not a sustainable payout ratio.
AROW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP60.77%
EPS Next 2Y19.67%
EPS Next 3YN/A
NASDAQ:AROW (9/18/2025, 10:31:40 AM)
29.488
+0.6 (+2.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners53.26%
Inst Owner Change-3.18%
Ins Owners1.89%
Ins Owner Change2.61%
Market Cap485.67M
Analysts43.33
Price Target29.07 (-1.42%)
Short Float %0.84%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
Yearly Dividend1.09
Dividend Growth(5Y)3.76%
DP60.77%
Div Incr Years3
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.73%
Min EPS beat(2)-12.34%
Max EPS beat(2)13.8%
EPS beat(4)1
Avg EPS beat(4)-13.81%
Min EPS beat(4)-54.75%
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)0
Avg Revenue beat(2)-1.74%
Min Revenue beat(2)-2.12%
Max Revenue beat(2)-1.37%
Revenue beat(4)0
Avg Revenue beat(4)-4.07%
Min Revenue beat(4)-12.39%
Max Revenue beat(4)-0.41%
Revenue beat(8)2
Avg Revenue beat(8)-2.89%
Revenue beat(12)3
Avg Revenue beat(12)-3.18%
Revenue beat(16)5
Avg Revenue beat(16)-2.35%
PT rev (1m)0%
PT rev (3m)2.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.86%
EPS NY rev (1m)3.78%
EPS NY rev (3m)3.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.11 | ||
| Fwd PE | 9.64 | ||
| P/S | 3.24 | ||
| P/FCF | 16.61 | ||
| P/OCF | 13.72 | ||
| P/B | 1.19 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.83
EY6.21%
EPS(NY)3.06
Fwd EY10.38%
FCF(TTM)1.78
FCFY6.02%
OCF(TTM)2.15
OCFY7.29%
SpS9.1
BVpS24.8
TBVpS23.25
PEG (NY)0.9
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.69% | ||
| ROE | 7.48% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 20.4% | ||
| GM | N/A | ||
| FCFM | 19.51% |
ROA(3y)0.88%
ROA(5y)1%
ROE(3y)9.71%
ROE(5y)10.96%
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
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/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
F-Score7
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.85 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 115.33% | ||
| Cap/Sales | 4.11% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 95.66% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC20.98%
ROIC/WACCN/A
Cap/Depr(3y)132.85%
Cap/Depr(5y)112.88%
Cap/Sales(3y)6.27%
Cap/Sales(5y)5.54%
Profit Quality(3y)78.41%
Profit Quality(5y)89.75%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.08%
EPS 3Y-15.3%
EPS 5Y-4.38%
EPS Q2Q%26.78%
EPS Next Y17.9%
EPS Next 2Y19.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.31%
Revenue growth 3Y-0.7%
Revenue growth 5Y3.71%
Sales Q2Q%14.67%
Revenue Next Year12.72%
Revenue Next 2Y9.78%
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 1Y-29.55%
FCF growth 3Y-22.1%
FCF growth 5Y-4.4%
OCF growth 1Y-35.34%
OCF growth 3Y-20.35%
OCF growth 5Y-4.74%