ARROW ELECTRONICS INC (ARW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARW - US0427351004 - Common Stock
107.9 USD
+1.07 (+1%)
107.9 USD
0 (0%)
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. 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
ARW had positive earnings in the past year.
In the past year ARW had a positive cash flow from operations.
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.
1.2 Ratios
With a Return On Assets value of 1.94%, ARW perfoms like the industry average, outperforming 55.28% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.43%, ARW is in the better half of the industry, outperforming 64.23% of the companies in the same industry.
The Return On Invested Capital of ARW (6.43%) is better than 65.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARW is above the industry average of 9.11%.
The 3 year average ROIC (12.62%) for ARW is well above the current ROIC(6.43%). The reason for the recent decline needs to be investigated.
| 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 in line with its industry peers.
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 54.47% of its industry peers.
ARW's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 11.10%, ARW is doing worse than 78.86% of the companies in the same industry.
In the last couple of years the Gross Margin of ARW has remained more or less at the same level.
| 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
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 2.18 indicates that ARW is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.18, ARW is doing worse than 68.29% of the companies in the same industry.
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 50.41% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that ARW is not too dependend on debt financing.
ARW has a worse Debt to Equity ratio (0.49) than 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 33.32 | ||
| Altman-Z | 2.18 |
ROIC/WACC0.72
WACC8.99%
2.3 Liquidity
A Current Ratio of 1.46 indicates that ARW should not have too much problems paying its short term obligations.
The Current ratio of ARW (1.46) is worse than 77.24% of its industry peers.
A Quick Ratio of 1.14 indicates that ARW should not have too much problems paying 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.14 |
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.
Looking at the last year, ARW shows a small growth in Revenue. The Revenue has grown by 3.16% in the last year.
Measured over the past years, ARW shows a decrease in Revenue. The Revenue has been decreasing by -0.70% on average per year.
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.
ARW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.45% yearly.
EPS Next Y1.84%
EPS Next 2Y15.72%
EPS Next 3Y12.11%
EPS Next 5Y11.01%
Revenue Next Year9.63%
Revenue Next 2Y7.38%
Revenue Next 3Y6.64%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.23, the valuation of ARW can be described as very reasonable.
Based on the Price/Earnings ratio, ARW is valued cheaper than 91.87% of the companies in the same industry.
When comparing the Price/Earnings ratio of ARW to the average of the S&P500 Index (26.15), we can say ARW is valued rather cheaply.
ARW is valuated cheaply with a Price/Forward Earnings ratio of 7.86.
ARW's Price/Forward Earnings ratio is rather cheap when compared to the industry. ARW is cheaper than 95.94% 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 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.23 | ||
| Fwd PE | 7.86 |
4.2 Price Multiples
89.43% of the companies in the same industry are more expensive than ARW, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.16 | ||
| EV/EBITDA | 8.79 |
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.
A more expensive valuation may be justified as ARW's earnings are expected to grow with 12.11% in the coming years.
PEG (NY)6.1
PEG (5Y)1.74
EPS Next 2Y15.72%
EPS Next 3Y12.11%
5. Dividend
5.1 Amount
No dividends for ARW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
107.9
+1.07 (+1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners109.57%
Inst Owner Change-0.15%
Ins Owners0.33%
Ins Owner Change2.7%
Market Cap5.56B
Revenue(TTM)29.39B
Net Income(TTM)475.87M
Analysts47.14
Price Target108.68 (0.72%)
Short Float %6.22%
Short Ratio4.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-6%
PT rev (3m)-9.49%
EPS NQ rev (1m)-6.11%
EPS NQ rev (3m)-6.5%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)-2.69%
Revenue NQ rev (3m)-2.42%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.23 | ||
| Fwd PE | 7.86 | ||
| P/S | 0.19 | ||
| P/FCF | 59.16 | ||
| P/OCF | 29.17 | ||
| P/B | 0.87 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | 8.79 |
EPS(TTM)9.61
EY8.91%
EPS(NY)13.73
Fwd EY12.72%
FCF(TTM)1.82
FCFY1.69%
OCF(TTM)3.7
OCFY3.43%
SpS570.67
BVpS124.29
TBVpS81.59
PEG (NY)6.1
PEG (5Y)1.74
Graham Number163.93
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 | 2.18 |
F-Score3
WACC8.99%
ROIC/WACC0.72
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 Y1.84%
EPS Next 2Y15.72%
EPS Next 3Y12.11%
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 Year9.63%
Revenue Next 2Y7.38%
Revenue Next 3Y6.64%
Revenue Next 5Y5.45%
EBIT growth 1Y-22.06%
EBIT growth 3Y-16.61%
EBIT growth 5Y-0.12%
EBIT Next Year11.18%
EBIT Next 3Y17.61%
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 11.23 and the Price/Book (PB) ratio is 0.87.
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 1.84% in the next year.