32.69 USD
-1.17 (-3.46%)
32.69 USD
0 (0%)
Taking everything into account, AROW scores 4 out of 10 in our fundamental rating. 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 is not valued too expensively and it also shows a decent growth rate. 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.
- In the past 5 years AROW has always been profitable.
- AROW had a positive operating cash flow in each of the past 5 years.
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.
- Looking at the Return On Equity, with a value of 8.24%, AROW is in line with its industry, outperforming 43.60% of the companies in the same industry.
| 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's Profit Margin of 22.04% is on the low side compared to the rest of the industry. AROW is outperformed by 60.31% of its industry peers.
- 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) | 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
- Compared to 5 years ago, AROW has less shares outstanding
- 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 has a Debt to FCF ratio of 0.70. This is in the better half of the industry: AROW outperforms 75.20% of its industry peers.
- A Debt/Equity ratio of 0.06 indicates that AROW is not too dependend on debt financing.
- AROW has a better Debt to Equity ratio (0.06) than 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
- The Earnings Per Share has been growing slightly by 6.15% over the past year.
- 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.
- AROW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.71% yearly.
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
- The Earnings Per Share is expected to grow by 19.78% on average over the next years. This is quite good.
- The Revenue is expected to grow by 9.96% on average over the next years. This is quite good.
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 15.79, AROW is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of AROW indicates a slightly more expensive valuation: AROW is more expensive than 71.02% of the companies listed in the same industry.
- AROW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- AROW is valuated reasonably with a Price/Forward Earnings ratio of 9.43.
- Based on the Price/Forward Earnings ratio, AROW is valued a bit cheaper than the industry average as 70.50% of the companies are valued more expensively.
- AROW is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.79 | ||
| Fwd PE | 9.43 |
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 63.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.15 | ||
| 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.
- AROW's earnings are expected to grow with 19.78% in the coming years. This may justify a more expensive valuation.
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%.
- AROW's Dividend Yield is a higher than the industry average which is at 2.84.
- Compared to an average S&P500 Dividend Yield of 1.82, AROW pays a better dividend.
| 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 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
- 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 15.79 and the Price/Book (PB) ratio is 1.29.
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.