ARROW FINANCIAL CORP (AROW) Stock Fundamental Analysis
NASDAQ:AROW - Nasdaq - US0427441029 - Common Stock - Currency: USD
Overall AROW gets a fundamental rating of 4 out of 10. We evaluated AROW against 402 industry peers in the Banks industry. AROW may be in some trouble as it scores bad on both profitability and health. AROW has a correct valuation and a medium growth rate. AROW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
AROW had positive earnings in the past year.
AROW had a positive operating cash flow in the past year.
In the past 5 years AROW has always been profitable.
AROW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
AROW has a Return On Assets (0.75%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 8.38%, AROW is in line with its industry, outperforming 50.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 8.38% | ||
| 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 23.72% is in line compared to the rest of the industry. AROW outperforms 54.46% of its industry peers.
AROW's Profit Margin has declined in the last couple of years.
AROW does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 23.72% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-15.24%
PM growth 5Y-7.94%
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
The debt/assets ratio for AROW has been reduced compared to a year ago.
2.2 Solvency
AROW has a debt to FCF ratio of 3.20. This is a good value and a sign of high solvency as AROW would need 3.20 years to pay back of all of its debts.
AROW's Debt to FCF ratio of 3.20 is in line compared to the rest of the industry. AROW outperforms 44.31% 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.
Looking at the Debt to Equity ratio, with a value of 0.06, AROW belongs to the top of the industry, outperforming 80.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.85%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
AROW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.16%.
The Earnings Per Share has been decreasing by -4.97% on average over the past years.
The Revenue has been growing slightly by 4.37% in the past year.
The Revenue has been growing slightly by 3.47% on average over the past years.
EPS 1Y (TTM)-38.16%
EPS 3Y-11.5%
EPS 5Y-4.97%
EPS Q2Q%-41.3%
Revenue 1Y (TTM)4.37%
Revenue growth 3Y0.54%
Revenue growth 5Y3.47%
Sales Q2Q%2.47%
3.2 Future
The Earnings Per Share is expected to grow by 18.37% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.63% on average over the next years. This is quite good.
EPS Next Y20.43%
EPS Next 2Y21.67%
EPS Next 3Y18.37%
EPS Next 5YN/A
Revenue Next Year5.62%
Revenue Next 2Y9.3%
Revenue Next 3Y8.63%
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 14.92, AROW is valued correctly.
Based on the Price/Earnings ratio, AROW is valued a bit more expensive than the industry average as 66.58% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 29.35. AROW is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 10.05, which indicates a very decent valuation of AROW.
Based on the Price/Forward Earnings ratio, AROW is valued a bit cheaper than 63.86% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AROW to the average of the S&P500 Index (22.10), we can say AROW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 10.05 |
4.2 Price Multiples
AROW's Price/Free Cash Flow ratio is rather expensive when compared to the industry. AROW is more expensive than 80.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.45 | ||
| 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 18.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.73
PEG (5Y)N/A
EPS Next 2Y21.67%
EPS Next 3Y18.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.26%, AROW is a good candidate for dividend investing.
AROW's Dividend Yield is a higher than the industry average which is at 3.37.
AROW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
5.2 History
The dividend of AROW has a limited annual growth rate of 4.22%.
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)4.22%
Div Incr Years3
Div Non Decr Years31
5.3 Sustainability
AROW pays out 55.14% of its income as dividend. This is a bit on the high side, but may be sustainable.
AROW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP55.14%
EPS Next 2Y21.67%
EPS Next 3Y18.37%
26.4
+0.13 (+0.49%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners52.21%
Inst Owner Change3.42%
Ins Owners2.15%
Ins Owner Change3.71%
Market Cap441.94M
Analysts45.71
Price Target30.86 (16.89%)
Short Float %0.51%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
Yearly Dividend1.06
Dividend Growth(5Y)4.22%
DP55.14%
Div Incr Years3
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)-0.72%
Min Revenue beat(2)-1.03%
Max Revenue beat(2)-0.41%
Revenue beat(4)1
Avg Revenue beat(4)-1.93%
Min Revenue beat(4)-7.32%
Max Revenue beat(4)1.02%
Revenue beat(8)2
Avg Revenue beat(8)-3.18%
Revenue beat(12)5
Avg Revenue beat(12)-1.79%
Revenue beat(16)8
Avg Revenue beat(16)-0.84%
PT rev (1m)-5.47%
PT rev (3m)-12.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.63%
EPS NY rev (1m)-2.83%
EPS NY rev (3m)-0.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 10.05 | ||
| P/S | 3.18 | ||
| P/FCF | 56.45 | ||
| P/OCF | 35.29 | ||
| P/B | 1.12 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.77
EY6.7%
EPS(NY)2.63
Fwd EY9.95%
FCF(TTM)0.47
FCFY1.77%
OCF(TTM)0.75
OCFY2.83%
SpS8.3
BVpS23.5
TBVpS21.94
PEG (NY)0.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 8.38% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 23.72% | ||
| GM | N/A | ||
| FCFM | 5.63% |
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-15.24%
PM growth 5Y-7.94%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 3.2 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 81.43% | ||
| Cap/Sales | 3.38% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 23.75% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score4
WACC15.85%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-38.16%
EPS 3Y-11.5%
EPS 5Y-4.97%
EPS Q2Q%-41.3%
EPS Next Y20.43%
EPS Next 2Y21.67%
EPS Next 3Y18.37%
EPS Next 5YN/A
Revenue 1Y (TTM)4.37%
Revenue growth 3Y0.54%
Revenue growth 5Y3.47%
Sales Q2Q%2.47%
Revenue Next Year5.62%
Revenue Next 2Y9.3%
Revenue Next 3Y8.63%
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-79.71%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-74.12%
OCF growth 3YN/A
OCF growth 5YN/A