ARROW FINANCIAL CORP (AROW) Stock Fundamental Analysis
USA - NASDAQ:AROW - US0427441029 - Common Stock
27.13 USD
-0.43 (-1.56%)
27.13 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to AROW. AROW was compared to 390 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. Finally AROW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
AROW had positive earnings in the past year.
In the past year AROW had a positive cash flow from operations.
Each year in the past 5 years AROW has been profitable.
In the past 5 years AROW always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.69%, AROW is not doing good in the industry: 62.56% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 7.48%, AROW is in line with its industry, outperforming 41.28% of the companies in the same 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
AROW's Profit Margin of 20.40% is on the low side compared to the rest of the industry. AROW is outperformed by 62.56% 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) | 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.
Compared to 1 year ago, AROW has less shares outstanding
The number of shares outstanding for AROW has been reduced compared to 5 years ago.
The debt/assets ratio for AROW has been reduced compared to a year ago.
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 74.87% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that AROW is not too dependend on debt financing.
The Debt to Equity ratio of AROW (0.06) is better than 78.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.85 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC21.5%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
AROW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.08%.
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.
Looking at the last year, AROW shows a quite strong growth in Revenue. The Revenue has grown by 10.31% in the last year.
Measured over the past years, AROW shows a small growth in Revenue. The Revenue has been growing by 3.71% on average per year.
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.
AROW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.78% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 14.83, which 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 69.49% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.89. AROW is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 8.87, the valuation of AROW can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AROW indicates a somewhat cheap valuation: AROW is cheaper than 67.18% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.99. AROW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.83 | ||
| Fwd PE | 8.87 |
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 61.28% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.28 | ||
| 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.
AROW's earnings are expected to grow with 19.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y19.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
AROW has a Yearly Dividend Yield of 4.29%, which is a nice return.
AROW's Dividend Yield is rather good when compared to the industry average which is at 3.53. AROW pays more dividend than 80.77% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, AROW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.29% |
5.2 History
The dividend of AROW has a limited annual growth rate of 3.76%.
AROW has been paying a dividend for at least 10 years, so it has 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
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
27.13
-0.43 (-1.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners52.68%
Inst Owner Change-0.67%
Ins Owners2%
Ins Owner Change2.76%
Market Cap446.83M
Revenue(TTM)149.82M
Net Income(TTM)30.56M
Analysts43.33
Price Target29.07 (7.15%)
Short Float %0.9%
Short Ratio3.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.29% |
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)3.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)3.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.83 | ||
| Fwd PE | 8.87 | ||
| P/S | 2.98 | ||
| P/FCF | 15.28 | ||
| P/OCF | 12.63 | ||
| P/B | 1.09 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.83
EY6.75%
EPS(NY)3.06
Fwd EY11.28%
FCF(TTM)1.78
FCFY6.54%
OCF(TTM)2.15
OCFY7.92%
SpS9.1
BVpS24.8
TBVpS23.25
PEG (NY)0.83
PEG (5Y)N/A
Graham Number31.96
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
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-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
WACC21.5%
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%
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.
What is the valuation status for AROW stock?
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.
What are the PE and PB ratios of ARROW FINANCIAL CORP (AROW) stock?
The Price/Earnings (PE) ratio for ARROW FINANCIAL CORP (AROW) is 14.83 and the Price/Book (PB) ratio is 1.09.
Can you provide the expected EPS growth for AROW stock?
The Earnings per Share (EPS) of ARROW FINANCIAL CORP (AROW) is expected to grow by 17.9% in the next year.