ARROW ELECTRONICS INC (ARW) Fundamental Analysis & Valuation

NYSE:ARW • US0427351004

Current stock price

143.24 USD
-2.89 (-1.98%)
At close:
143.24 USD
0 (0%)
After Hours:

This ARW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. ARW Profitability Analysis

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.
ARW Yearly Net Income VS EBIT VS OCF VS FCFARW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B

1.2 Ratios

  • The Return On Assets of ARW (1.96%) is comparable to the rest of the industry.
  • ARW has a better Return On Equity (8.68%) than 66.94% of its industry peers.
  • ARW has a Return On Invested Capital of 7.27%. This is in the better half of the industry: ARW outperforms 73.39% of its industry peers.
  • 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 8.36%.
Industry RankSector 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%
ARW Yearly ROA, ROE, ROICARW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15 20 25

1.3 Margins

  • Looking at the Profit Margin, with a value of 1.85%, ARW is in line with its industry, outperforming 56.45% of the companies in the same industry.
  • ARW's Profit Margin has declined in the last couple of years.
  • The Operating Margin of ARW (3.04%) 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 11.24% is on the low side compared to the rest of the industry. ARW is outperformed by 77.42% 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 RankSector 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%
ARW Yearly Profit, Operating, Gross MarginsARW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10

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3

2. ARW Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ARW 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.
  • ARW has a better debt/assets ratio than last year.
ARW Yearly Shares OutstandingARW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M
ARW Yearly Total Debt VS Total AssetsARW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • An Altman-Z score of 1.96 indicates that ARW is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • ARW has a worse Altman-Z score (1.96) than 62.90% of its industry peers.
  • A Debt/Equity ratio of 0.47 indicates that ARW is not too dependend on debt financing.
  • With a Debt to Equity ratio value of 0.47, ARW is not doing good in the industry: 73.39% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF N/A
Altman-Z 1.96
ROIC/WACC0.8
WACC9.11%
ARW Yearly LT Debt VS Equity VS FCFARW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B

2.3 Liquidity

  • ARW has a Current Ratio of 1.36. This is a normal value and indicates that ARW is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of ARW (1.36) is worse than 78.23% 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.
  • The Quick ratio of ARW (1.09) is worse than 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 1.09
ARW Yearly Current Assets VS Current LiabilitesARW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

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5

3. ARW Growth Analysis

3.1 Past

  • ARW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.61%.
  • 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%.
  • Measured over the past years, ARW shows a small growth in Revenue. The Revenue has been growing by 1.48% on average per year.
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 16.51% on average per year.
  • ARW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.37% yearly.
EPS Next Y21.63%
EPS Next 2Y17.54%
EPS Next 3Y16.51%
EPS Next 5YN/A
Revenue Next Year14.21%
Revenue Next 2Y9.25%
Revenue Next 3Y7.37%
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.
ARW Yearly Revenue VS EstimatesARW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 10B 20B 30B
ARW Yearly EPS VS EstimatesARW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5 10 15 20

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6

4. ARW Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 12.99, which indicates a correct valuation of ARW.
  • Compared to the rest of the industry, the Price/Earnings ratio of ARW indicates a rather cheap valuation: ARW is cheaper than 87.90% of the companies listed in the same industry.
  • ARW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.23.
  • A Price/Forward Earnings ratio of 10.68 indicates a reasonable valuation of ARW.
  • 88.71% of the companies in the same industry are more expensive than ARW, based on the Price/Forward Earnings ratio.
  • ARW is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.51, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 12.99
Fwd PE 10.68
ARW Price Earnings VS Forward Price EarningsARW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ARW is valued cheaper than 87.10% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 9.38
ARW Per share dataARW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 200 400 600

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • A more expensive valuation may be justified as ARW's earnings are expected to grow with 16.51% in the coming years.
PEG (NY)0.6
PEG (5Y)1.82
EPS Next 2Y17.54%
EPS Next 3Y16.51%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ARW Dividend Analysis

5.1 Amount

  • No dividends for ARW!.
Industry RankSector Rank
Dividend Yield 0%

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ARW Fundamentals: All Metrics, Ratios and Statistics

ARROW ELECTRONICS INC

NYSE:ARW (3/26/2026, 8:04:54 PM)

After market: 143.24 0 (0%)

143.24

-2.89 (-1.98%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-05
Earnings (Next)04-29
Inst Owners108.77%
Inst Owner Change-0.97%
Ins Owners0.44%
Ins Owner Change4.87%
Market Cap7.32B
Revenue(TTM)30.85B
Net Income(TTM)571.27M
Analysts47.14
Price Target131.61 (-8.12%)
Short Float %3.64%
Short Ratio2.86
Dividend
Industry RankSector 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)22.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)23.2%
EPS NY rev (1m)12.4%
EPS NY rev (3m)12.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.54%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)9.58%
Valuation
Industry RankSector Rank
PE 12.99
Fwd PE 10.68
P/S 0.24
P/FCF N/A
P/OCF 114.26
P/B 1.11
P/tB 1.67
EV/EBITDA 9.38
EPS(TTM)11.03
EY7.7%
EPS(NY)13.42
Fwd EY9.37%
FCF(TTM)-0.73
FCFYN/A
OCF(TTM)1.25
OCFY0.88%
SpS603.89
BVpS128.88
TBVpS85.88
PEG (NY)0.6
PEG (5Y)1.82
Graham Number178.85
Profitability
Industry RankSector 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 RankSector 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 1.96
F-Score5
WACC9.11%
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 Y21.63%
EPS Next 2Y17.54%
EPS Next 3Y16.51%
EPS Next 5YN/A
Revenue 1Y (TTM)10.49%
Revenue growth 3Y-5.98%
Revenue growth 5Y1.48%
Sales Q2Q%20.1%
Revenue Next Year14.21%
Revenue Next 2Y9.25%
Revenue Next 3Y7.37%
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 Fundamental Analysis 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 4 / 10.


Can you provide the PE and PB ratios for ARW stock?

The Price/Earnings (PE) ratio for ARROW ELECTRONICS INC (ARW) is 12.99 and the Price/Book (PB) ratio is 1.11.