ARROW ELECTRONICS INC (ARW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARW - US0427351004 - Common Stock
114.03 USD
-4.17 (-3.53%)
Taking everything into account, ARW scores 4 out of 10 in our fundamental rating. ARW was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. Both the profitability and the financial health of ARW get a neutral evaluation. Nothing too spectacular is happening here. ARW is not valued too expensively and it also shows a decent growth rate.
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.
- ARW had positive earnings in each of the past 5 years.
- Of the past 5 years ARW 4 years had a positive operating cash flow.
1.2 Ratios
- ARW has a Return On Assets (1.94%) which is in line with its industry peers.
- ARW has a better Return On Equity (7.43%) than 65.32% of its industry peers.
- ARW's Return On Invested Capital of 6.43% is fine compared to the rest of the industry. ARW outperforms 66.94% of its industry peers.
- ARW had an Average Return On Invested Capital over the past 3 years of 12.62%. This is above the industry average of 8.82%.
- The last Return On Invested Capital (6.43%) for ARW is well below the 3 year average (12.62%), which needs to be investigated, but indicates that ARW had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 7.43% | ||
| ROIC | 6.43% |
ROA(3y)4.17%
ROA(5y)4.32%
ROE(3y)16.03%
ROE(5y)16.11%
ROIC(3y)12.62%
ROIC(5y)12.42%
1.3 Margins
- ARW has a Profit Margin (1.62%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of ARW has declined.
- ARW has a Operating Margin (2.79%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of ARW has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 11.10%, ARW is doing worse than 78.23% of the companies in the same industry.
- In the last couple of years the Gross Margin of ARW has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.79% | ||
| PM (TTM) | 1.62% | ||
| GM | 11.1% |
OM growth 3Y-10.54%
OM growth 5Y0.58%
PM growth 3Y-24.12%
PM growth 5YN/A
GM growth 3Y-1.1%
GM growth 5Y0.67%
2. Health
2.1 Basic Checks
- ARW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for ARW has been reduced compared to 1 year ago.
- Compared to 5 years ago, ARW has less shares outstanding
- ARW has a better debt/assets ratio than last year.
2.2 Solvency
- ARW has an Altman-Z score of 2.20. This is not the best score and indicates that ARW is in the grey zone with still only limited risk for bankruptcy at the moment.
- ARW has a Altman-Z score of 2.20. This is in the lower half of the industry: ARW underperforms 66.13% of its industry peers.
- The Debt to FCF ratio of ARW is 33.32, which is on the high side as it means it would take ARW, 33.32 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 33.32, ARW is in line with its industry, outperforming 50.00% 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 has a worse Debt to Equity ratio (0.49) than 68.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 33.32 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.55
WACC11.74%
2.3 Liquidity
- ARW has a Current Ratio of 1.46. This is a normal value and indicates that ARW is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.46, ARW is not doing good in the industry: 75.81% of the companies in the same industry are doing better.
- ARW has a Quick Ratio of 1.14. This is a normal value and indicates that ARW is financially healthy and should not expect problems in meeting its short term obligations.
- ARW has a worse Quick ratio (1.14) than 71.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
- ARW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.65%.
- The Earnings Per Share has been growing slightly by 6.45% on average over the past years.
- ARW shows a small growth in Revenue. In the last year, the Revenue has grown by 3.16%.
- Measured over the past years, ARW shows a decrease in Revenue. The Revenue has been decreasing by -0.70% on average per year.
EPS 1Y (TTM)-14.65%
EPS 3Y-13.05%
EPS 5Y6.45%
EPS Q2Q%1.26%
Revenue 1Y (TTM)3.16%
Revenue growth 3Y-6.79%
Revenue growth 5Y-0.7%
Sales Q2Q%13.03%
3.2 Future
- The Earnings Per Share is expected to grow by 11.01% on average over the next years. This is quite good.
- Based on estimates for the next years, ARW will show a small growth in Revenue. The Revenue will grow by 5.45% on average per year.
EPS Next Y0.61%
EPS Next 2Y7.91%
EPS Next 3Y10.88%
EPS Next 5Y11.01%
Revenue Next Year9.27%
Revenue Next 2Y6.75%
Revenue Next 3Y6.26%
Revenue Next 5Y5.45%
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
- ARW is valuated reasonably with a Price/Earnings ratio of 11.87.
- Based on the Price/Earnings ratio, ARW is valued cheaply inside the industry as 90.32% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, ARW is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 9.55, the valuation of ARW can be described as reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ARW indicates a rather cheap valuation: ARW is cheaper than 93.55% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, ARW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.87 | ||
| Fwd PE | 9.55 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ARW is valued cheaply inside the industry as 90.32% of the companies are valued more expensively.
- ARW's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.53 | ||
| EV/EBITDA | 9.34 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)19.59
PEG (5Y)1.84
EPS Next 2Y7.91%
EPS Next 3Y10.88%
5. Dividend
5.1 Amount
- No dividends for ARW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:ARW (1/20/2026, 2:35:21 PM)
114.03
-4.17 (-3.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)02-04 2026-02-04/amc
Inst Owners110.26%
Inst Owner Change0.05%
Ins Owners0.38%
Ins Owner Change2.98%
Market Cap5.87B
Revenue(TTM)29.39B
Net Income(TTM)475.87M
Analysts47.14
Price Target107.74 (-5.52%)
Short Float %6.19%
Short Ratio6.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
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)9.73%
Min EPS beat(2)3.46%
Max EPS beat(2)16%
EPS beat(4)4
Avg EPS beat(4)13.93%
Min EPS beat(4)3.46%
Max EPS beat(4)24.28%
EPS beat(8)8
Avg EPS beat(8)10.36%
EPS beat(12)10
Avg EPS beat(12)8.31%
EPS beat(16)14
Avg EPS beat(16)8.68%
Revenue beat(2)1
Avg Revenue beat(2)2.12%
Min Revenue beat(2)-0.56%
Max Revenue beat(2)4.8%
Revenue beat(4)3
Avg Revenue beat(4)3.28%
Min Revenue beat(4)-0.56%
Max Revenue beat(4)6.75%
Revenue beat(8)5
Avg Revenue beat(8)1.83%
Revenue beat(12)6
Avg Revenue beat(12)0.73%
Revenue beat(16)8
Avg Revenue beat(16)0.66%
PT rev (1m)0%
PT rev (3m)-6.81%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-6.01%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-1.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.87 | ||
| Fwd PE | 9.55 | ||
| P/S | 0.2 | ||
| P/FCF | 62.53 | ||
| P/OCF | 30.83 | ||
| P/B | 0.92 | ||
| P/tB | 1.4 | ||
| EV/EBITDA | 9.34 |
EPS(TTM)9.61
EY8.43%
EPS(NY)11.94
Fwd EY10.47%
FCF(TTM)1.82
FCFY1.6%
OCF(TTM)3.7
OCFY3.24%
SpS570.56
BVpS124.26
TBVpS81.58
PEG (NY)19.59
PEG (5Y)1.84
Graham Number163.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 7.43% | ||
| ROCE | 8.12% | ||
| ROIC | 6.43% | ||
| ROICexc | 6.57% | ||
| ROICexgc | 8.45% | ||
| OM | 2.79% | ||
| PM (TTM) | 1.62% | ||
| GM | 11.1% | ||
| FCFM | 0.32% |
ROA(3y)4.17%
ROA(5y)4.32%
ROE(3y)16.03%
ROE(5y)16.11%
ROIC(3y)12.62%
ROIC(5y)12.42%
ROICexc(3y)12.88%
ROICexc(5y)12.75%
ROICexgc(3y)16.8%
ROICexgc(5y)17.19%
ROCE(3y)16.81%
ROCE(5y)16.22%
ROICexgc growth 3Y-21.09%
ROICexgc growth 5Y-3.76%
ROICexc growth 3Y-19.55%
ROICexc growth 5Y-2.39%
OM growth 3Y-10.54%
OM growth 5Y0.58%
PM growth 3Y-24.12%
PM growth 5YN/A
GM growth 3Y-1.1%
GM growth 5Y0.67%
F-Score3
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 33.32 | ||
| Debt/EBITDA | 3.25 | ||
| Cap/Depr | 67.18% | ||
| Cap/Sales | 0.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 19.78% | ||
| Profit Quality | 19.74% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 2.2 |
F-Score3
WACC11.74%
ROIC/WACC0.55
Cap/Depr(3y)48.3%
Cap/Depr(5y)50.65%
Cap/Sales(3y)0.27%
Cap/Sales(5y)0.29%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-14.65%
EPS 3Y-13.05%
EPS 5Y6.45%
EPS Q2Q%1.26%
EPS Next Y0.61%
EPS Next 2Y7.91%
EPS Next 3Y10.88%
EPS Next 5Y11.01%
Revenue 1Y (TTM)3.16%
Revenue growth 3Y-6.79%
Revenue growth 5Y-0.7%
Sales Q2Q%13.03%
Revenue Next Year9.27%
Revenue Next 2Y6.75%
Revenue Next 3Y6.26%
Revenue Next 5Y5.45%
EBIT growth 1Y-22.06%
EBIT growth 3Y-16.61%
EBIT growth 5Y-0.12%
EBIT Next Year7.65%
EBIT Next 3Y10.65%
EBIT Next 5Y9.09%
FCF growth 1Y-78.92%
FCF growth 3Y45.64%
FCF growth 5Y7.97%
OCF growth 1Y-63.88%
OCF growth 3Y39.21%
OCF growth 5Y5.67%
ARROW ELECTRONICS INC / ARW FAQ
What is the fundamental rating for ARW stock?
ChartMill assigns a fundamental rating of 4 / 10 to ARW.
What is the valuation status for ARW stock?
ChartMill assigns a valuation rating of 5 / 10 to ARROW ELECTRONICS INC (ARW). This can be considered as Fairly Valued.
Can you provide the profitability details for ARROW ELECTRONICS INC?
ARROW ELECTRONICS INC (ARW) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for ARW stock?
The Price/Earnings (PE) ratio for ARROW ELECTRONICS INC (ARW) is 11.87 and the Price/Book (PB) ratio is 0.92.