ARROW ELECTRONICS INC (ARW) Stock Fundamental Analysis
USA - NYSE:ARW - US0427351004 - Common Stock
113.23 USD
-2.87 (-2.47%)
112.78 USD
-0.45 (-0.4%)
Taking everything into account, ARW scores 5 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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
With a Return On Assets value of 1.93%, 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 7.39%, ARW is in the better half of the industry, outperforming 65.04% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.63%, ARW is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ARW is above the industry average of 9.37%.
The 3 year average ROIC (12.61%) for ARW is well above the current ROIC(6.63%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 7.39% | ||
| ROIC | 6.63% |
ROA(3y)4.17%
ROA(5y)4.32%
ROE(3y)16.04%
ROE(5y)16.11%
ROIC(3y)12.61%
ROIC(5y)12.41%
1.3 Margins
ARW has a Profit Margin (1.64%) which is comparable to the rest of the industry.
ARW's Profit Margin has declined in the last couple of years.
ARW has a Operating Margin (2.86%) which is comparable to the rest of the industry.
ARW's Operating Margin has been stable in the last couple of years.
ARW's Gross Margin of 11.27% is on the low side compared to the rest of the industry. ARW is outperformed by 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.86% | ||
| PM (TTM) | 1.64% | ||
| GM | 11.27% |
OM growth 3Y-10.52%
OM growth 5Y0.59%
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.
The debt/assets ratio for ARW has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.14 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 2.14, ARW is doing worse than 68.29% of the companies in the same industry.
The Debt to FCF ratio of ARW is 6.03, which is on the high side as it means it would take ARW, 6.03 years of fcf income to pay off all of its debts.
ARW has a Debt to FCF ratio (6.03) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.45 indicates that ARW is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.45, ARW is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 2.14 |
ROIC/WACC0.74
WACC9.01%
2.3 Liquidity
A Current Ratio of 1.39 indicates that ARW should not have too much problems paying its short term obligations.
ARW has a worse Current ratio (1.39) than 78.86% of its industry peers.
A Quick Ratio of 1.07 indicates that ARW should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.07, ARW is doing worse than 73.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The earnings per share for ARW have decreased strongly by -26.42% 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 decrease in Revenue. The Revenue has decreased by -3.95% 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)-26.42%
EPS 3Y-13.05%
EPS 5Y6.45%
EPS Q2Q%-2.41%
Revenue 1Y (TTM)-3.95%
Revenue growth 3Y-6.79%
Revenue growth 5Y-0.7%
Sales Q2Q%9.97%
3.2 Future
The Earnings Per Share is expected to grow by 23.81% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.00% on average over the next years.
EPS Next Y1.77%
EPS Next 2Y18.55%
EPS Next 3Y23.81%
EPS Next 5YN/A
Revenue Next Year9.92%
Revenue Next 2Y7.96%
Revenue Next 3Y7%
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.
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
Based on the Price/Earnings ratio of 11.82, the valuation of ARW can be described as reasonable.
ARW's Price/Earnings ratio is rather cheap when compared to the industry. ARW is cheaper than 94.31% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.19, ARW is valued rather cheaply.
ARW is valuated cheaply with a Price/Forward Earnings ratio of 7.86.
Based on the Price/Forward Earnings ratio, ARW is valued cheaply inside the industry as 96.75% of the companies are valued more expensively.
ARW is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 7.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARW indicates a rather cheap valuation: ARW is cheaper than 92.68% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ARW is valued cheaply inside the industry as 93.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.46 | ||
| EV/EBITDA | 8.42 |
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 23.81% in the coming years.
PEG (NY)6.68
PEG (5Y)1.83
EPS Next 2Y18.55%
EPS Next 3Y23.81%
5. Dividend
5.1 Amount
No dividends for ARW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
113.23
-2.87 (-2.47%)
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-1.15%
Ins Owners0.33%
Ins Owner Change2.06%
Market Cap5.83B
Revenue(TTM)28.50B
Net Income(TTM)468.00M
Analysts47.14
Price Target115.62 (2.11%)
Short Float %5.87%
Short Ratio6.04
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)20.14%
Min EPS beat(2)16%
Max EPS beat(2)24.28%
EPS beat(4)4
Avg EPS beat(4)14.6%
Min EPS beat(4)6.15%
Max EPS beat(4)24.28%
EPS beat(8)8
Avg EPS beat(8)12.01%
EPS beat(12)10
Avg EPS beat(12)8.03%
EPS beat(16)14
Avg EPS beat(16)9.27%
Revenue beat(2)2
Avg Revenue beat(2)5.77%
Min Revenue beat(2)4.8%
Max Revenue beat(2)6.75%
Revenue beat(4)4
Avg Revenue beat(4)3.52%
Min Revenue beat(4)0.39%
Max Revenue beat(4)6.75%
Revenue beat(8)5
Avg Revenue beat(8)1.64%
Revenue beat(12)6
Avg Revenue beat(12)0.68%
Revenue beat(16)8
Avg Revenue beat(16)0.58%
PT rev (1m)-3.72%
PT rev (3m)-2.73%
EPS NQ rev (1m)0.87%
EPS NQ rev (3m)-7.85%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)5.24%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)4.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 7.86 | ||
| P/S | 0.2 | ||
| P/FCF | 12.46 | ||
| P/OCF | 10.54 | ||
| P/B | 0.92 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 8.42 |
EPS(TTM)9.58
EY8.46%
EPS(NY)14.41
Fwd EY12.72%
FCF(TTM)9.09
FCFY8.03%
OCF(TTM)10.74
OCFY9.48%
SpS553.4
BVpS122.99
TBVpS80.06
PEG (NY)6.68
PEG (5Y)1.83
Graham Number162.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 7.39% | ||
| ROCE | 8.78% | ||
| ROIC | 6.63% | ||
| ROICexc | 6.78% | ||
| ROICexgc | 8.84% | ||
| OM | 2.86% | ||
| PM (TTM) | 1.64% | ||
| GM | 11.27% | ||
| FCFM | 1.64% |
ROA(3y)4.17%
ROA(5y)4.32%
ROE(3y)16.04%
ROE(5y)16.11%
ROIC(3y)12.61%
ROIC(5y)12.41%
ROICexc(3y)12.88%
ROICexc(5y)12.74%
ROICexgc(3y)16.79%
ROICexgc(5y)17.18%
ROCE(3y)16.81%
ROCE(5y)16.22%
ROICexgc growth 3Y-21.08%
ROICexgc growth 5Y-3.75%
ROICexc growth 3Y-19.54%
ROICexc growth 5Y-2.38%
OM growth 3Y-10.52%
OM growth 5Y0.59%
PM growth 3Y-24.12%
PM growth 5YN/A
GM growth 3Y-1.1%
GM growth 5Y0.67%
F-Score5
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.03 | ||
| Debt/EBITDA | 2.92 | ||
| Cap/Depr | 56.29% | ||
| Cap/Sales | 0.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.31% | ||
| Profit Quality | 100% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 2.14 |
F-Score5
WACC9.01%
ROIC/WACC0.74
Cap/Depr(3y)48.32%
Cap/Depr(5y)50.66%
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)-26.42%
EPS 3Y-13.05%
EPS 5Y6.45%
EPS Q2Q%-2.41%
EPS Next Y1.77%
EPS Next 2Y18.55%
EPS Next 3Y23.81%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.95%
Revenue growth 3Y-6.79%
Revenue growth 5Y-0.7%
Sales Q2Q%9.97%
Revenue Next Year9.92%
Revenue Next 2Y7.96%
Revenue Next 3Y7%
Revenue Next 5YN/A
EBIT growth 1Y-32.93%
EBIT growth 3Y-16.6%
EBIT growth 5Y-0.11%
EBIT Next Year11.18%
EBIT Next 3Y17.61%
EBIT Next 5YN/A
FCF growth 1Y75.28%
FCF growth 3Y45.61%
FCF growth 5Y7.96%
OCF growth 1Y59.5%
OCF growth 3Y39.19%
OCF growth 5Y5.66%
ARROW ELECTRONICS INC / ARW FAQ
What is the fundamental rating for ARW stock?
ChartMill assigns a fundamental rating of 5 / 10 to ARW.
What is the valuation status of ARROW ELECTRONICS INC (ARW) stock?
ChartMill assigns a valuation rating of 8 / 10 to ARROW ELECTRONICS INC (ARW). This can be considered as Undervalued.
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 11.82 and the Price/Book (PB) ratio is 0.92.
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 1.77% in the next year.