ARROW ELECTRONICS INC (ARW) Stock Fundamental Analysis
NYSE:ARW • US0427351004
148.88 USD
-3.28 (-2.16%)
Last: Mar 2, 2026, 01:06 PM
We assign a fundamental rating of 4 out of 10 to ARW. 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 has a correct valuation and a medium growth rate.
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.
- 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
- ARW has a Return On Assets (1.96%) which is in line with its industry peers.
- With a decent Return On Equity value of 8.68%, ARW is doing good in the industry, outperforming 69.35% 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 73.39% 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 8.91%.
| 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.
- In the last couple of years the Profit Margin of ARW has declined.
- ARW has a Operating Margin (3.04%) which is comparable to the rest of the industry.
- ARW's Operating Margin has been stable in the last couple of years.
- ARW has a worse Gross Margin (11.24%) than 77.42% 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.
- 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.
2.2 Solvency
- ARW has an Altman-Z score of 1.97. 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.
- With a Altman-Z score value of 1.97, ARW perfoms like the industry average, outperforming 40.32% of the companies in the same industry.
- A Debt/Equity ratio of 0.47 indicates that ARW is not too dependend on debt financing.
- ARW has a worse Debt to Equity ratio (0.47) than 70.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.97 |
ROIC/WACC0.84
WACC8.66%
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 77.42% of its industry peers.
- A Quick Ratio of 1.09 indicates that ARW should not have too much problems paying its short term obligations.
- ARW has a worse Quick ratio (1.09) than 73.39% 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%.
- 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 12.16% on average per year.
- The Revenue is expected to grow by 7.35% on average over the next years.
EPS Next Y8.22%
EPS Next 2Y12.55%
EPS Next 3Y12.16%
EPS Next 5YN/A
Revenue Next Year14.18%
Revenue Next 2Y9.24%
Revenue Next 3Y7.35%
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
- Based on the Price/Earnings ratio of 13.50, the valuation of ARW can be described as correct.
- Based on the Price/Earnings ratio, ARW is valued cheaply inside the industry as 87.90% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.07. ARW is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 12.47, which indicates a correct valuation of ARW.
- 87.10% of the companies in the same industry are more expensive than ARW, based on the Price/Forward Earnings ratio.
- ARW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.05.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 12.47 |
4.2 Price Multiples
- ARW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ARW is cheaper than 87.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.8 |
4.3 Compensation for Growth
- ARW's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as ARW's earnings are expected to grow with 12.16% in the coming years.
PEG (NY)1.64
PEG (5Y)1.89
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 (3/2/2026, 1:06:56 PM)
148.88
-3.28 (-2.16%)
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 Change-0.97%
Ins Owners0.38%
Ins Owner Change4.45%
Market Cap7.60B
Revenue(TTM)30.85B
Net Income(TTM)571.27M
Analysts47.14
Price Target131.61 (-11.6%)
Short Float %5.91%
Short Ratio5.01
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)22.15%
PT rev (3m)21.09%
EPS NQ rev (1m)23.02%
EPS NQ rev (3m)23.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.04%
Revenue NQ rev (1m)10.54%
Revenue NQ rev (3m)10.54%
Revenue NY rev (1m)9.5%
Revenue NY rev (3m)8.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 12.47 | ||
| P/S | 0.25 | ||
| P/FCF | N/A | ||
| P/OCF | 118.71 | ||
| P/B | 1.15 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 9.8 |
EPS(TTM)11.03
EY7.41%
EPS(NY)11.94
Fwd EY8.02%
FCF(TTM)-0.73
FCFYN/A
OCF(TTM)1.25
OCFY0.84%
SpS604.13
BVpS128.94
TBVpS85.91
PEG (NY)1.64
PEG (5Y)1.89
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-7.06%
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 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 | 5.75 | ||
| Cash Conversion | 5.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 1.97 |
F-Score5
WACC8.66%
ROIC/WACC0.84
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 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 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 13.5 and the Price/Book (PB) ratio is 1.15.