ARROW ELECTRONICS INC (ARW) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:ARW • US0427351004

139.625 USD
+1.63 (+1.18%)
Last: Feb 5, 2026, 03:31 PM
Fundamental Rating

4

Taking everything into account, ARW scores 4 out of 10 in our fundamental rating. ARW was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. ARW has an average financial health and profitability rating. ARW is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

  • ARW had positive earnings in the past year.
  • ARW had a positive operating cash flow in the past year.
  • ARW had positive earnings in each of the past 5 years.
  • 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 0 500M 1B 1.5B 2B

1.2 Ratios

  • ARW has a Return On Assets of 1.94%. This is comparable to the rest of the industry: ARW outperforms 59.35% of its industry peers.
  • The Return On Equity of ARW (7.43%) is better than 65.04% of its industry peers.
  • ARW has a better Return On Invested Capital (6.43%) than 65.04% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ARW is above the industry average of 8.89%.
  • 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 RankSector 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%
ARW Yearly ROA, ROE, ROICARW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15 20 25

1.3 Margins

  • ARW has a Profit Margin (1.62%) which is in line with its industry peers.
  • ARW's Profit Margin has declined in the last couple of years.
  • ARW has a Operating Margin of 2.79%. This is comparable to the rest of the industry: ARW outperforms 54.47% of its industry peers.
  • ARW's Operating Margin has been stable in the last couple of years.
  • ARW has a worse Gross Margin (11.10%) than 78.05% 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 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%
ARW Yearly Profit, Operating, Gross MarginsARW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

4

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.
  • ARW has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for ARW has been reduced compared to 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 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 5B 10B 15B 20B

2.2 Solvency

  • An Altman-Z score of 2.23 indicates that ARW is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • The Altman-Z score of ARW (2.23) is worse than 62.60% 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.
  • ARW has a Debt to FCF ratio (33.32) which is in line with its industry peers.
  • ARW has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of ARW (0.49) is worse than 67.48% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 33.32
Altman-Z 2.23
ROIC/WACC0.53
WACC12.17%
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 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.
  • ARW's Current ratio of 1.46 is on the low side compared to the rest of the industry. ARW is outperformed by 75.61% of its industry peers.
  • 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 Quick ratio of 1.14. This is in the lower half of the industry: ARW underperforms 71.54% of its industry peers.
Industry RankSector Rank
Current Ratio 1.46
Quick Ratio 1.14
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 5B 10B 15B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

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%.
  • The Revenue has been decreasing by -0.70% on average over the past years.
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

  • Based on estimates for the next years, ARW will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.01% on average per year.
  • 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.
  • 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

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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 14.53, which indicates a correct valuation of ARW.
  • ARW's Price/Earnings ratio is rather cheap when compared to the industry. ARW is cheaper than 86.99% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of ARW to the average of the S&P500 Index (28.25), we can say ARW is valued slightly cheaper.
  • ARW is valuated reasonably with a Price/Forward Earnings ratio of 11.70.
  • Based on the Price/Forward Earnings ratio, ARW is valued cheaper than 91.06% of the companies in the same industry.
  • ARW is valuated cheaply when we compare the Price/Forward Earnings ratio to 27.50, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.53
Fwd PE 11.7
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 cheaply inside the industry as 87.80% of the companies are valued more expensively.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as ARW.
Industry RankSector Rank
P/FCF 76.56
EV/EBITDA 10.4
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 high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ARW does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)23.98
PEG (5Y)2.25
EPS Next 2Y7.91%
EPS Next 3Y10.88%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • ARW does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

ARROW ELECTRONICS INC

NYSE:ARW (2/5/2026, 3:31:48 PM)

139.625

+1.63 (+1.18%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)10-30
Earnings (Next)02-05
Inst Owners110.26%
Inst Owner Change-0.77%
Ins Owners0.38%
Ins Owner Change2.22%
Market Cap7.19B
Revenue(TTM)29.39B
Net Income(TTM)475.87M
Analysts47.14
Price Target107.74 (-22.84%)
Short Float %5.86%
Short Ratio6.03
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)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%
EPS NQ rev (3m)-6.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.59%
Valuation
Industry RankSector Rank
PE 14.53
Fwd PE 11.7
P/S 0.24
P/FCF 76.56
P/OCF 37.75
P/B 1.12
P/tB 1.71
EV/EBITDA 10.4
EPS(TTM)9.61
EY6.88%
EPS(NY)11.94
Fwd EY8.55%
FCF(TTM)1.82
FCFY1.31%
OCF(TTM)3.7
OCFY2.65%
SpS570.56
BVpS124.26
TBVpS81.58
PEG (NY)23.98
PEG (5Y)2.25
Graham Number163.92
Profitability
Industry RankSector 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 RankSector 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 2.23
F-Score3
WACC12.17%
ROIC/WACC0.53
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 14.53 and the Price/Book (PB) ratio is 1.12.