ARROW ELECTRONICS INC (ARW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARW - US0427351004 - Common Stock
113.37 USD
-4.83 (-4.09%)
113.37 USD
0 (0%)
Overall ARW gets a fundamental rating of 4 out of 10. We evaluated ARW against 124 industry peers in the Electronic Equipment, Instruments & Components industry. ARW has only an average score on both its financial health and profitability. ARW is not valued too expensively and it also shows a decent growth rate.
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.
- Each year in the past 5 years ARW has been profitable.
- Of the past 5 years ARW 4 years had a positive operating cash flow.
1.2 Ratios
- ARW has a Return On Assets (1.94%) which is comparable to the rest of the industry.
- ARW's Return On Equity of 7.43% is fine compared to the rest of the industry. ARW outperforms 65.32% of its industry peers.
- The Return On Invested Capital of ARW (6.43%) is better than 66.94% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ARW is above the industry average of 8.82%.
- 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 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 (2.79%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of ARW has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 11.10%, ARW is doing worse than 78.23% 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ARW is still creating some value.
- Compared to 1 year ago, ARW has less shares outstanding
- Compared to 5 years ago, ARW has less shares outstanding
- The debt/assets ratio for ARW has been reduced compared to a year ago.
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 66.13% 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 has a Debt to FCF ratio (33.32) which is comparable to the rest of the industry.
- ARW has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
- ARW has a Debt to Equity ratio of 0.49. This is in the lower half of the industry: ARW underperforms 68.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 33.32 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.55
WACC11.64%
2.3 Liquidity
- A Current Ratio of 1.46 indicates that ARW should not have too much problems paying its short term obligations.
- ARW has a worse Current ratio (1.46) than 75.81% 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 worse Quick ratio (1.14) than 71.77% 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.
- ARW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.45% yearly.
- The Revenue has been growing slightly by 3.16% in the past 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
- ARW is valuated reasonably with a Price/Earnings ratio of 11.80.
- 90.32% of the companies in the same industry are more expensive than ARW, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of ARW to the average of the S&P500 Index (26.94), we can say ARW is valued rather cheaply.
- With a Price/Forward Earnings ratio of 9.50, the valuation of ARW can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ARW indicates a rather cheap valuation: ARW is cheaper than 93.55% of the companies listed 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 23.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 9.5 |
4.2 Price Multiples
- ARW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ARW is cheaper than 90.32% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ARW.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.17 | ||
| 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)19.47
PEG (5Y)1.83
EPS Next 2Y7.91%
EPS Next 3Y10.88%
5. Dividend
5.1 Amount
- No dividends for ARW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
113.37
-4.83 (-4.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)02-04 2026-02-04/amc
Inst Owners110.26%
Inst Owner Change0.05%
Ins Owners0.38%
Ins Owner Change2.98%
Market Cap5.84B
Revenue(TTM)29.39B
Net Income(TTM)475.87M
Analysts47.14
Price Target107.74 (-4.97%)
Short Float %6.19%
Short Ratio6.63
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%
PT rev (3m)-6.81%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-6.01%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-1.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 9.5 | ||
| P/S | 0.2 | ||
| P/FCF | 62.17 | ||
| P/OCF | 30.65 | ||
| P/B | 0.91 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 9.08 |
EPS(TTM)9.61
EY8.48%
EPS(NY)11.94
Fwd EY10.53%
FCF(TTM)1.82
FCFY1.61%
OCF(TTM)3.7
OCFY3.26%
SpS570.56
BVpS124.26
TBVpS81.58
PEG (NY)19.47
PEG (5Y)1.83
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
WACC11.64%
ROIC/WACC0.55
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 for 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.
Can you provide the PE and PB ratios for ARW stock?
The Price/Earnings (PE) ratio for ARROW ELECTRONICS INC (ARW) is 11.8 and the Price/Book (PB) ratio is 0.91.