Logo image of ARW

ARROW ELECTRONICS INC (ARW) Stock Fundamental Analysis

NYSE:ARW - New York Stock Exchange, Inc. - US0427351004 - Common Stock

119.375  +0.11 (+0.1%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to ARW. ARW was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. ARW has an average financial health and profitability rating. ARW is cheap, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

Quickly go to:

6

1. Profitability

1.1 Basic Checks

ARW had positive earnings in the past year.
In the past year ARW had a positive cash flow from operations.
Of the past 5 years ARW 4 years were profitable.
ARW had a positive operating cash flow in 4 of the past 5 years.
ARW Yearly Net Income VS EBIT VS OCF VS FCFARW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B

1.2 Ratios

Looking at the Return On Assets, with a value of 2.33%, ARW is in line with its industry, outperforming 57.50% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.17%, ARW is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.52%, ARW is doing good in the industry, outperforming 75.83% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ARW is significantly above the industry average of 9.03%.
The 3 year average ROIC (14.61%) for ARW is well above the current ROIC(8.52%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 2.33%
ROE 8.17%
ROIC 8.52%
ROA(3y)5.46%
ROA(5y)3.71%
ROE(3y)20.76%
ROE(5y)13.9%
ROIC(3y)14.61%
ROIC(5y)12.25%
ARW Yearly ROA, ROE, ROICARW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15 20 25

1.3 Margins

ARW has a Profit Margin (1.71%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ARW has grown nicely.
ARW has a Operating Margin (3.69%) which is in line with its industry peers.
ARW's Operating Margin has improved in the last couple of years.
ARW has a Gross Margin of 12.21%. This is in the lower half of the industry: ARW underperforms 75.00% of its industry peers.
In the last couple of years the Gross Margin of ARW has remained more or less at the same level.
Industry RankSector Rank
OM 3.69%
PM (TTM) 1.71%
GM 12.21%
OM growth 3Y13.75%
OM growth 5Y2.84%
PM growth 3Y10.24%
PM growth 5Y2.5%
GM growth 3Y4.04%
GM growth 5Y0.1%
ARW Yearly Profit, Operating, Gross MarginsARW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10

More info and screens

4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ARW is still creating some value.
The number of shares outstanding for ARW has been reduced compared to 1 year ago.
The number of shares outstanding for ARW has been reduced compared to 5 years ago.
The debt/assets ratio for ARW is higher compared to a year ago.
ARW Yearly Shares OutstandingARW Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M
ARW Yearly Total Debt VS Total AssetsARW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B

2.2 Solvency

An Altman-Z score of 2.50 indicates that ARW is not a great score, but indicates only limited risk for bankruptcy at the moment.
ARW's Altman-Z score of 2.50 is on the low side compared to the rest of the industry. ARW is outperformed by 64.17% of its industry peers.
The Debt to FCF ratio of ARW is 3.29, which is a good value as it means it would take ARW, 3.29 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.29, ARW is doing good in the industry, outperforming 65.00% of the companies in the same industry.
ARW has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
ARW's Debt to Equity ratio of 0.49 is on the low side compared to the rest of the industry. ARW is outperformed by 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 3.29
Altman-Z 2.5
ROIC/WACC0.82
WACC10.4%
ARW Yearly LT Debt VS Equity VS FCFARW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B 4B 5B

2.3 Liquidity

A Current Ratio of 1.46 indicates that ARW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.46, ARW is doing worse than 78.33% of the companies in the same industry.
A Quick Ratio of 1.09 indicates that ARW should not have too much problems paying its short term obligations.
ARW has a worse Quick ratio (1.09) than 74.17% of its industry peers.
Industry RankSector Rank
Current Ratio 1.46
Quick Ratio 1.09
ARW Yearly Current Assets VS Current LiabilitesARW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

More info and screens

2

3. Growth

3.1 Past

The earnings per share for ARW have decreased strongly by -40.11% in the last year.
Measured over the past years, ARW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.12% on average per year.
The Revenue for ARW has decreased by -17.61% in the past year. This is quite bad
ARW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.21% yearly.
EPS 1Y (TTM)-40.11%
EPS 3Y29.83%
EPS 5Y14.12%
EPS Q2Q%-42.51%
Revenue 1Y (TTM)-17.61%
Revenue growth 3Y4.91%
Revenue growth 5Y2.21%
Sales Q2Q%-14.78%

3.2 Future

Based on estimates for the next years, ARW will show a small growth in Earnings Per Share. The EPS will grow by 2.97% on average per year.
Based on estimates for the next years, ARW will show a decrease in Revenue. The Revenue will decrease by -2.54% on average per year.
EPS Next Y-39.61%
EPS Next 2Y-13.43%
EPS Next 3Y2.97%
EPS Next 5YN/A
Revenue Next Year-16.37%
Revenue Next 2Y-7.6%
Revenue Next 3Y-2.54%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
ARW Yearly Revenue VS EstimatesARW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10B 20B 30B
ARW Yearly EPS VS EstimatesARW Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 5 10 15 20

More info and screens

7

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 10.60 indicates a reasonable valuation of ARW.
96.67% of the companies in the same industry are more expensive than ARW, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.29. ARW is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.32, the valuation of ARW can be described as very reasonable.
95.83% of the companies in the same industry are more expensive than ARW, based on the Price/Forward Earnings ratio.
ARW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.44.
Industry RankSector Rank
PE 10.6
Fwd PE 9.32
ARW Price Earnings VS Forward Price EarningsARW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ARW is valued cheaper than 91.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ARW is valued cheaper than 96.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 6.31
EV/EBITDA 7.17
ARW Per share dataARW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300 400 500

4.3 Compensation for Growth

The decent profitability rating of ARW may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.75
EPS Next 2Y-13.43%
EPS Next 3Y2.97%

More info and screens

0

5. Dividend

5.1 Amount

ARW does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

ARROW ELECTRONICS INC

NYSE:ARW (1/22/2025, 2:49:08 PM)

119.375

+0.11 (+0.1%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)10-31 2024-10-31/bmo
Earnings (Next)02-06 2025-02-06/amc
Inst Owners104.72%
Inst Owner Change-0.05%
Ins Owners0.57%
Ins Owner Change-0.05%
Market Cap6.28B
Analysts52
Price Target129.71 (8.66%)
Short Float %5.66%
Short Ratio6.6
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.14%
Min EPS beat(2)6.15%
Max EPS beat(2)14.14%
EPS beat(4)4
Avg EPS beat(4)6.78%
Min EPS beat(4)0.8%
Max EPS beat(4)14.14%
EPS beat(8)6
Avg EPS beat(8)5.49%
EPS beat(12)10
Avg EPS beat(12)6.93%
EPS beat(16)14
Avg EPS beat(16)9.22%
Revenue beat(2)2
Avg Revenue beat(2)2.52%
Min Revenue beat(2)0.39%
Max Revenue beat(2)4.65%
Revenue beat(4)2
Avg Revenue beat(4)0.37%
Min Revenue beat(4)-2.69%
Max Revenue beat(4)4.65%
Revenue beat(8)3
Avg Revenue beat(8)-0.55%
Revenue beat(12)5
Avg Revenue beat(12)-0.21%
Revenue beat(16)7
Avg Revenue beat(16)0.37%
PT rev (1m)1.6%
PT rev (3m)-3.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-26.77%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.36%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.17%
Valuation
Industry RankSector Rank
PE 10.6
Fwd PE 9.32
P/S 0.22
P/FCF 6.31
P/OCF 5.76
P/B 1.05
P/tB 1.66
EV/EBITDA 7.17
EPS(TTM)11.26
EY9.43%
EPS(NY)12.81
Fwd EY10.73%
FCF(TTM)18.92
FCFY15.85%
OCF(TTM)20.74
OCFY17.37%
SpS541.73
BVpS113.39
TBVpS71.76
PEG (NY)N/A
PEG (5Y)0.75
Profitability
Industry RankSector Rank
ROA 2.33%
ROE 8.17%
ROCE 11.73%
ROIC 8.52%
ROICexc 8.74%
ROICexgc 11.45%
OM 3.69%
PM (TTM) 1.71%
GM 12.21%
FCFM 3.49%
ROA(3y)5.46%
ROA(5y)3.71%
ROE(3y)20.76%
ROE(5y)13.9%
ROIC(3y)14.61%
ROIC(5y)12.25%
ROICexc(3y)14.95%
ROICexc(5y)12.61%
ROICexgc(3y)19.93%
ROICexgc(5y)17.17%
ROCE(3y)19.86%
ROCE(5y)16.48%
ROICexcg growth 3Y6.78%
ROICexcg growth 5Y-0.7%
ROICexc growth 3Y10.77%
ROICexc growth 5Y2.83%
OM growth 3Y13.75%
OM growth 5Y2.84%
PM growth 3Y10.24%
PM growth 5Y2.5%
GM growth 3Y4.04%
GM growth 5Y0.1%
F-Score6
Asset Turnover1.36
Health
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 3.29
Debt/EBITDA 2.4
Cap/Depr 57.42%
Cap/Sales 0.34%
Interest Coverage 250
Cash Conversion 89.53%
Profit Quality 204.16%
Current Ratio 1.46
Quick Ratio 1.09
Altman-Z 2.5
F-Score6
WACC10.4%
ROIC/WACC0.82
Cap/Depr(3y)43.54%
Cap/Depr(5y)55.16%
Cap/Sales(3y)0.23%
Cap/Sales(5y)0.33%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-40.11%
EPS 3Y29.83%
EPS 5Y14.12%
EPS Q2Q%-42.51%
EPS Next Y-39.61%
EPS Next 2Y-13.43%
EPS Next 3Y2.97%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.61%
Revenue growth 3Y4.91%
Revenue growth 5Y2.21%
Sales Q2Q%-14.78%
Revenue Next Year-16.37%
Revenue Next 2Y-7.6%
Revenue Next 3Y-2.54%
Revenue Next 5YN/A
EBIT growth 1Y-39.01%
EBIT growth 3Y19.34%
EBIT growth 5Y5.11%
EBIT Next Year-28.19%
EBIT Next 3Y-0.21%
EBIT Next 5YN/A
FCF growth 1Y625.1%
FCF growth 3Y-20.44%
FCF growth 5Y39.59%
OCF growth 1Y1057.59%
OCF growth 3Y-19.65%
OCF growth 5Y20.94%