ARROW ELECTRONICS INC (ARW) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ARW • US0427351004
132.49 USD
-0.42 (-0.32%)
At close: Jan 30, 2026
132.49 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
ARW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 123 industry peers in the Electronic Equipment, Instruments & Components industry. ARW has an average financial health and profitability rating. ARW has a correct valuation and a medium growth rate.
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.
- 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
- Looking at the Return On Assets, with a value of 1.94%, ARW is in line with its industry, outperforming 59.35% of the companies in the same industry.
- ARW's Return On Equity of 7.43% is fine compared to the rest of the industry. ARW outperforms 65.04% of its industry peers.
- With a decent Return On Invested Capital value of 6.43%, ARW is doing good in the industry, outperforming 65.04% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ARW is above the industry average of 8.85%.
- The last Return On Invested Capital (6.43%) for ARW is well below the 3 year average (12.62%), which needs to be investigated, but indicates that ARW had better years and this may not be a problem.
| 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.
- ARW's Profit Margin has declined in the last couple of years.
- ARW has a Operating Margin of 2.79%. This is comparable 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.
- The Gross Margin of ARW (11.10%) is worse than 78.05% of its industry peers.
- ARW's Gross Margin has been stable in the last couple of years.
| 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.
- The number of shares outstanding for ARW has been reduced compared to 1 year ago.
- ARW has less shares outstanding than it did 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 2.22. 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 2.22, ARW is not doing good in the industry: 62.60% of the companies in the same industry are doing better.
- 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.
- With a Debt to FCF ratio value of 33.32, ARW perfoms like the industry average, outperforming 50.41% of the companies in the same 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 worse Debt to Equity ratio (0.49) than 67.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 33.32 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.85
WACC7.6%
2.3 Liquidity
- A Current Ratio of 1.46 indicates that ARW should not have too much problems paying its short term obligations.
- ARW's Current ratio of 1.46 is on the low side compared to the rest of the industry. ARW is outperformed by 76.42% 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 71.54% 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.
- 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 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
- 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.
- The Revenue is expected to grow by 5.45% on average over the next years.
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.
- 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
- ARW is valuated correctly with a Price/Earnings ratio of 13.79.
- Based on the Price/Earnings ratio, ARW is valued cheaper than 86.99% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.32. ARW is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 11.10 indicates a reasonable valuation of ARW.
- Based on the Price/Forward Earnings ratio, ARW is valued cheaper than 91.06% 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 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.79 | ||
| Fwd PE | 11.1 |
4.2 Price Multiples
- 88.62% of the companies in the same industry are more expensive than ARW, based on the Enterprise Value to EBITDA ratio.
- ARW's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.65 | ||
| EV/EBITDA | 10.1 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)22.76
PEG (5Y)2.14
EPS Next 2Y7.91%
EPS Next 3Y10.88%
5. Dividend
5.1 Amount
- ARW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 5 / 10.
Can you provide the PE and PB ratios for ARW stock?
The Price/Earnings (PE) ratio for ARROW ELECTRONICS INC (ARW) is 13.79 and the Price/Book (PB) ratio is 1.07.