ARROW ELECTRONICS INC (ARW) Fundamental Analysis & Valuation

NYSE:ARW • US0427351004

Current stock price

140.12 USD
-0.77 (-0.55%)
At close:
140.12 USD
0 (0%)
After Hours:

This ARW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. ARW Profitability Analysis

1.1 Basic Checks

  • In the past year ARW was profitable.
  • In the past year ARW had a positive cash flow from operations.
  • Each year in the past 5 years ARW has been 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B

1.2 Ratios

  • The Return On Assets of ARW (1.96%) is comparable to the rest of the industry.
  • The Return On Equity of ARW (8.68%) is better than 67.74% of its industry peers.
  • ARW has a Return On Invested Capital of 7.27%. This is in the better half of the industry: ARW outperforms 73.39% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ARW is in line with the industry average of 8.63%.
Industry RankSector Rank
ROA 1.96%
ROE 8.68%
ROIC 7.27%
ROA(3y)2.64%
ROA(5y)4.03%
ROE(3y)10.35%
ROE(5y)15.55%
ROIC(3y)9.31%
ROIC(5y)12.06%
ARW Yearly ROA, ROE, ROICARW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15 20 25

1.3 Margins

  • ARW's Profit Margin of 1.85% is in line compared to the rest of the industry. ARW outperforms 57.26% of its industry peers.
  • ARW's Profit Margin has declined in the last couple of years.
  • ARW has a Operating Margin (3.04%) 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.
  • The Gross Margin of ARW (11.24%) is worse than 77.42% 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 3.04%
PM (TTM) 1.85%
GM 11.24%
OM growth 3Y-18.45%
OM growth 5Y-0.96%
PM growth 3Y-21.61%
PM growth 5Y-1.89%
GM growth 3Y-4.82%
GM growth 5Y0.19%
ARW Yearly Profit, Operating, Gross MarginsARW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10

3

2. ARW Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ARW is creating some value.
  • Compared to 1 year ago, ARW has less shares outstanding
  • ARW has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, ARW has an improved debt to assets ratio.
ARW Yearly Shares OutstandingARW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M
ARW Yearly Total Debt VS Total AssetsARW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • ARW has an Altman-Z score of 1.96. 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.
  • The Altman-Z score of ARW (1.96) is worse than 64.52% of its industry peers.
  • ARW has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of ARW (0.47) is worse than 72.58% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF N/A
Altman-Z 1.96
ROIC/WACC0.83
WACC8.76%
ARW Yearly LT Debt VS Equity VS FCFARW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B

2.3 Liquidity

  • ARW has a Current Ratio of 1.36. 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 1.36, ARW is not doing good in the industry: 76.61% of the companies in the same industry are doing better.
  • ARW has a Quick Ratio of 1.09. This is a normal value and indicates that ARW is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 1.09, ARW is doing worse than 73.39% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 1.09
ARW Yearly Current Assets VS Current LiabilitesARW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

5

3. ARW Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 7.61% over the past year.
  • Measured over the past 5 years, ARW shows a small growth in Earnings Per Share. The EPS has been growing by 7.15% on average per year.
  • Looking at the last year, ARW shows a quite strong growth in Revenue. The Revenue has grown by 10.49% in the last year.
  • The Revenue has been growing slightly by 1.48% on average over the past years.
EPS 1Y (TTM)7.61%
EPS 3Y-20.97%
EPS 5Y7.15%
EPS Q2Q%47.81%
Revenue 1Y (TTM)10.49%
Revenue growth 3Y-5.98%
Revenue growth 5Y1.48%
Sales Q2Q%20.1%

3.2 Future

  • Based on estimates for the next years, ARW will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.51% on average per year.
  • ARW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.35% yearly.
EPS Next Y21.63%
EPS Next 2Y17.54%
EPS Next 3Y16.51%
EPS Next 5YN/A
Revenue Next Year14.18%
Revenue Next 2Y9.24%
Revenue Next 3Y7.35%
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.
ARW Yearly Revenue VS EstimatesARW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 10B 20B 30B
ARW Yearly EPS VS EstimatesARW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5 10 15 20

6

4. ARW Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 12.70, the valuation of ARW can be described as correct.
  • Compared to the rest of the industry, the Price/Earnings ratio of ARW indicates a rather cheap valuation: ARW is cheaper than 89.52% of the companies listed in the same industry.
  • ARW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.79.
  • With a Price/Forward Earnings ratio of 10.44, the valuation of ARW can be described as very reasonable.
  • Based on the Price/Forward Earnings ratio, ARW is valued cheaply inside the industry as 87.90% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of ARW to the average of the S&P500 Index (23.80), we can say ARW is valued rather cheaply.
Industry RankSector Rank
PE 12.7
Fwd PE 10.44
ARW Price Earnings VS Forward Price EarningsARW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ARW is valued cheaper than 87.90% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 9.27
ARW Per share dataARW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 200 400 600

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.
  • A more expensive valuation may be justified as ARW's earnings are expected to grow with 16.51% in the coming years.
PEG (NY)0.59
PEG (5Y)1.78
EPS Next 2Y17.54%
EPS Next 3Y16.51%

0

5. ARW Dividend Analysis

5.1 Amount

  • No dividends for ARW!.
Industry RankSector Rank
Dividend Yield 0%

ARW Fundamentals: All Metrics, Ratios and Statistics

ARROW ELECTRONICS INC

NYSE:ARW (3/18/2026, 8:04:00 PM)

After market: 140.12 0 (0%)

140.12

-0.77 (-0.55%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-05
Earnings (Next)04-29
Inst Owners108.77%
Inst Owner Change-0.97%
Ins Owners0.44%
Ins Owner Change4.87%
Market Cap7.16B
Revenue(TTM)30.85B
Net Income(TTM)571.27M
Analysts47.14
Price Target131.61 (-6.07%)
Short Float %3.64%
Short Ratio2.86
Dividend
Industry RankSector 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)12.68%
Min EPS beat(2)3.46%
Max EPS beat(2)21.91%
EPS beat(4)4
Avg EPS beat(4)16.41%
Min EPS beat(4)3.46%
Max EPS beat(4)24.28%
EPS beat(8)8
Avg EPS beat(8)12.34%
EPS beat(12)11
Avg EPS beat(12)10.2%
EPS beat(16)14
Avg EPS beat(16)8.82%
Revenue beat(2)1
Avg Revenue beat(2)2.79%
Min Revenue beat(2)-0.56%
Max Revenue beat(2)6.15%
Revenue beat(4)3
Avg Revenue beat(4)4.28%
Min Revenue beat(4)-0.56%
Max Revenue beat(4)6.75%
Revenue beat(8)6
Avg Revenue beat(8)2.7%
Revenue beat(12)7
Avg Revenue beat(12)1.32%
Revenue beat(16)8
Avg Revenue beat(16)1.04%
PT rev (1m)22.15%
PT rev (3m)22.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)23.2%
EPS NY rev (1m)12.4%
EPS NY rev (3m)12.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.54%
Revenue NY rev (1m)9.5%
Revenue NY rev (3m)9.55%
Valuation
Industry RankSector Rank
PE 12.7
Fwd PE 10.44
P/S 0.23
P/FCF N/A
P/OCF 111.77
P/B 1.09
P/tB 1.63
EV/EBITDA 9.27
EPS(TTM)11.03
EY7.87%
EPS(NY)13.42
Fwd EY9.57%
FCF(TTM)-0.73
FCFYN/A
OCF(TTM)1.25
OCFY0.89%
SpS603.89
BVpS128.88
TBVpS85.88
PEG (NY)0.59
PEG (5Y)1.78
Graham Number178.85
Profitability
Industry RankSector Rank
ROA 1.96%
ROE 8.68%
ROCE 9.17%
ROIC 7.27%
ROICexc 7.5%
ROICexgc 9.63%
OM 3.04%
PM (TTM) 1.85%
GM 11.24%
FCFM N/A
ROA(3y)2.64%
ROA(5y)4.03%
ROE(3y)10.35%
ROE(5y)15.55%
ROIC(3y)9.31%
ROIC(5y)12.06%
ROICexc(3y)9.54%
ROICexc(5y)12.34%
ROICexgc(3y)12.4%
ROICexgc(5y)16.35%
ROCE(3y)12.46%
ROCE(5y)15.75%
ROICexgc growth 3Y-25.05%
ROICexgc growth 5Y-7.06%
ROICexc growth 3Y-24.69%
ROICexc growth 5Y-4.78%
OM growth 3Y-18.45%
OM growth 5Y-0.96%
PM growth 3Y-21.61%
PM growth 5Y-1.89%
GM growth 3Y-4.82%
GM growth 5Y0.19%
F-Score5
Asset Turnover1.06
Health
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF N/A
Debt/EBITDA 2.87
Cap/Depr 73.51%
Cap/Sales 0.33%
Interest Coverage 5.75
Cash Conversion 5.95%
Profit Quality N/A
Current Ratio 1.36
Quick Ratio 1.09
Altman-Z 1.96
F-Score5
WACC8.76%
ROIC/WACC0.83
Cap/Depr(3y)58.79%
Cap/Depr(5y)52.2%
Cap/Sales(3y)0.3%
Cap/Sales(5y)0.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.61%
EPS 3Y-20.97%
EPS 5Y7.15%
EPS Q2Q%47.81%
EPS Next Y21.63%
EPS Next 2Y17.54%
EPS Next 3Y16.51%
EPS Next 5YN/A
Revenue 1Y (TTM)10.49%
Revenue growth 3Y-5.98%
Revenue growth 5Y1.48%
Sales Q2Q%20.1%
Revenue Next Year14.18%
Revenue Next 2Y9.24%
Revenue Next 3Y7.35%
Revenue Next 5YN/A
EBIT growth 1Y3.01%
EBIT growth 3Y-23.33%
EBIT growth 5Y0.51%
EBIT Next Year36.7%
EBIT Next 3Y17.98%
EBIT Next 5YN/A
FCF growth 1Y-103.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-94.33%
OCF growth 3YN/A
OCF growth 5Y-45.72%

ARROW ELECTRONICS INC / ARW Fundamental Analysis 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 6 / 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 4 / 10.


Can you provide the PE and PB ratios for ARW stock?

The Price/Earnings (PE) ratio for ARROW ELECTRONICS INC (ARW) is 12.7 and the Price/Book (PB) ratio is 1.09.