ARROW ELECTRONICS INC (ARW) Stock Fundamental Analysis
NYSE:ARW • US0427351004
155.5 USD
-2.31 (-1.46%)
Last: Feb 12, 2026, 03:32 PM
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 a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
- Of the past 5 years ARW 4 years had a positive operating cash flow.
1.2 Ratios
- ARW's Return On Assets of 1.96% is in line compared to the rest of the industry. ARW outperforms 59.35% of its industry peers.
- Looking at the Return On Equity, with a value of 8.68%, ARW is in the better half of the industry, outperforming 69.11% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 7.27%, ARW is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
- ARW had an Average Return On Invested Capital over the past 3 years of 9.31%. This is in line with the industry average of 8.99%.
| Industry Rank | Sector 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%
1.3 Margins
- ARW has a Profit Margin (1.85%) 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 3.04% is in line compared to the rest of the industry. ARW outperforms 55.28% of its industry peers.
- 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 77.24% of its industry peers.
- ARW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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
- Compared to 1 year ago, ARW has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 1.98 indicates that ARW is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of ARW (1.98) is worse than 63.41% 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.
- Looking at the Debt to Equity ratio, with a value of 0.47, ARW is doing worse than 67.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.98 |
ROIC/WACC0.8
WACC9.04%
2.3 Liquidity
- A Current Ratio of 1.36 indicates that ARW should not have too much problems paying its short term obligations.
- The Current ratio of ARW (1.36) is worse than 78.05% of its industry peers.
- 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.
- ARW has a worse Quick ratio (1.09) than 73.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 7.61% over the past year.
- ARW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.15% yearly.
- ARW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.49%.
- ARW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.48% yearly.
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 12.16% on average per year.
- Based on estimates for the next years, ARW will show a small growth in Revenue. The Revenue will grow by 4.20% on average per year.
EPS Next Y8.22%
EPS Next 2Y12.55%
EPS Next 3Y12.16%
EPS Next 5YN/A
Revenue Next Year4.28%
Revenue Next 2Y4.79%
Revenue Next 3Y4.2%
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 accelerating.
- 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 14.10, which indicates a correct valuation of ARW.
- 88.62% of the companies in the same industry are more expensive than ARW, based on the Price/Earnings ratio.
- ARW is valuated rather cheaply when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
- ARW is valuated correctly with a Price/Forward Earnings ratio of 13.03.
- 88.62% of the companies in the same industry are more expensive than ARW, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.01, ARW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 13.03 |
4.2 Price Multiples
- ARW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ARW is cheaper than 88.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.07 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ARW's earnings are expected to grow with 12.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.72
PEG (5Y)1.97
EPS Next 2Y12.55%
EPS Next 3Y12.16%
5. Dividend
5.1 Amount
- ARW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:ARW (2/12/2026, 3:32:09 PM)
155.5
-2.31 (-1.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-05 2026-02-05/amc
Earnings (Next)04-29 2026-04-29
Inst Owners110.26%
Inst Owner Change0.3%
Ins Owners0.38%
Ins Owner Change2.49%
Market Cap7.94B
Revenue(TTM)30.85B
Net Income(TTM)571.27M
Analysts47.14
Price Target107.74 (-30.71%)
Short Float %5.86%
Short Ratio6.03
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)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)0%
PT rev (3m)-6.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.17%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 13.03 | ||
| P/S | 0.26 | ||
| P/FCF | N/A | ||
| P/OCF | 123.99 | ||
| P/B | 1.21 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | 10.07 |
EPS(TTM)11.03
EY7.09%
EPS(NY)11.94
Fwd EY7.68%
FCF(TTM)-0.73
FCFYN/A
OCF(TTM)1.25
OCFY0.81%
SpS604.13
BVpS128.94
TBVpS85.91
PEG (NY)1.72
PEG (5Y)1.97
Graham Number178.88
Profitability
| Industry Rank | Sector 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-7.05%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.87 | ||
| Cap/Depr | 73.51% | ||
| Cap/Sales | 0.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 5.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 1.98 |
F-Score5
WACC9.04%
ROIC/WACC0.8
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 Y8.22%
EPS Next 2Y12.55%
EPS Next 3Y12.16%
EPS Next 5YN/A
Revenue 1Y (TTM)10.49%
Revenue growth 3Y-5.98%
Revenue growth 5Y1.48%
Sales Q2Q%20.1%
Revenue Next Year4.28%
Revenue Next 2Y4.79%
Revenue Next 3Y4.2%
Revenue Next 5YN/A
EBIT growth 1Y3.01%
EBIT growth 3Y-23.33%
EBIT growth 5Y0.51%
EBIT Next Year27.21%
EBIT Next 3Y14.43%
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 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 4 / 10.
Can you provide the PE and PB ratios for ARW stock?
The Price/Earnings (PE) ratio for ARROW ELECTRONICS INC (ARW) is 14.1 and the Price/Book (PB) ratio is 1.21.