ARROW ELECTRONICS INC (ARW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARW - US0427351004 - Common Stock
113.04 USD
-0.35 (-0.31%)
113.04 USD
0 (0%)
ARW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ARW was profitable.
In the past year ARW had a positive cash flow from operations.
In the past 5 years ARW has always been profitable.
ARW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.94%, ARW perfoms like the industry average, outperforming 57.26% of the companies in the same industry.
ARW has a better Return On Equity (7.43%) than 65.32% of its industry peers.
With a decent Return On Invested Capital value of 6.43%, ARW is doing good in the industry, outperforming 65.32% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARW is above the industry average of 9.30%.
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 comparable to the rest of the industry.
ARW's Profit Margin has declined in the last couple of years.
ARW's Operating Margin of 2.79% is in line compared to the rest of the industry. ARW outperforms 54.03% of its industry peers.
In the last couple of years the Operating Margin of ARW has remained more or less at the same level.
ARW's Gross Margin of 11.10% is on the low side compared to the rest of the industry. ARW is outperformed by 79.03% of its industry peers.
ARW's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ARW is still creating some value.
ARW has less shares outstanding than it did 1 year ago.
ARW has less shares outstanding than it did 5 years ago.
ARW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.19 indicates that ARW is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ARW (2.19) is worse than 67.74% 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's Debt to FCF ratio of 33.32 is in line compared to the rest of the industry. ARW outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that ARW is not too dependend on debt financing.
The Debt to Equity ratio of ARW (0.49) is worse than 69.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 33.32 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.73
WACC8.85%
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.
ARW has a worse Current ratio (1.46) than 76.61% 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 worse Quick ratio (1.14) than 72.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The earnings per share for ARW have decreased strongly by -14.65% in the last year.
Measured over the past 5 years, ARW shows a small growth in Earnings Per Share. The EPS has been growing by 6.45% on average per year.
Looking at the last year, ARW shows a small growth in Revenue. The Revenue has grown by 3.16% in the last year.
ARW shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.70% yearly.
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
ARW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.01% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.76, which indicates a very decent valuation of ARW.
Based on the Price/Earnings ratio, ARW is valued cheaper than 91.94% of the companies in the same industry.
ARW is valuated cheaply when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
ARW is valuated reasonably with a Price/Forward Earnings ratio of 9.47.
ARW's Price/Forward Earnings ratio is rather cheap when compared to the industry. ARW is cheaper than 93.55% of the companies in the same industry.
ARW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 9.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARW is valued cheaper than 90.32% of the companies in the same industry.
ARW's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.99 | ||
| EV/EBITDA | 9.08 |
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)19.42
PEG (5Y)1.82
EPS Next 2Y7.91%
EPS Next 3Y10.88%
5. Dividend
5.1 Amount
ARW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
113.04
-0.35 (-0.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners110.27%
Inst Owner Change-0.13%
Ins Owners0.38%
Ins Owner Change2.98%
Market Cap5.82B
Revenue(TTM)29.39B
Net Income(TTM)475.87M
Analysts47.14
Price Target107.74 (-4.69%)
Short Float %6.78%
Short Ratio5.65
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)-0.87%
PT rev (3m)-10.28%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-6.26%
EPS NY rev (1m)-1.21%
EPS NY rev (3m)-1.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.42%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 9.47 | ||
| P/S | 0.2 | ||
| P/FCF | 61.99 | ||
| P/OCF | 30.56 | ||
| P/B | 0.91 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 9.08 |
EPS(TTM)9.61
EY8.5%
EPS(NY)11.94
Fwd EY10.56%
FCF(TTM)1.82
FCFY1.61%
OCF(TTM)3.7
OCFY3.27%
SpS570.56
BVpS124.26
TBVpS81.58
PEG (NY)19.42
PEG (5Y)1.82
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 | 2.19 |
F-Score3
WACC8.85%
ROIC/WACC0.73
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 of ARROW ELECTRONICS INC (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 5 / 10.
What are the PE and PB ratios of ARROW ELECTRONICS INC (ARW) stock?
The Price/Earnings (PE) ratio for ARROW ELECTRONICS INC (ARW) is 11.76 and the Price/Book (PB) ratio is 0.91.
What is the earnings growth outlook for ARROW ELECTRONICS INC?
The Earnings per Share (EPS) of ARROW ELECTRONICS INC (ARW) is expected to grow by 0.61% in the next year.