ARROW ELECTRONICS INC (ARW) Stock Fundamental Analysis
USA - NYSE:ARW - US0427351004 - Common Stock
110.21 USD
-1.06 (-0.95%)
110.21 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. ARW has an average financial health and profitability rating. ARW has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
ARW had positive earnings in the past year.
ARW had a positive operating cash flow in the past year.
Each year in the past 5 years ARW has been profitable.
ARW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ARW's Return On Assets of 1.93% is in line compared to the rest of the industry. ARW outperforms 56.91% of its industry peers.
Looking at the Return On Equity, with a value of 7.38%, ARW is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.63%, ARW is doing good in 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 9.58%.
The 3 year average ROIC (12.62%) 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 | 7.38% | ||
| ROIC | 6.63% |
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 (1.64%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ARW has declined.
With a Operating Margin value of 2.85%, ARW perfoms like the industry average, outperforming 54.47% of the companies in the same industry.
In the last couple of years the Operating Margin of ARW has remained more or less at the same level.
The Gross Margin of ARW (11.27%) 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 | 2.85% | ||
| PM (TTM) | 1.64% | ||
| GM | 11.27% |
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
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.
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
ARW has an Altman-Z score of 2.13. 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 2.13, ARW is not doing good in the industry: 65.85% of the companies in the same industry are doing better.
The Debt to FCF ratio of ARW is 6.02, which is on the high side as it means it would take ARW, 6.02 years of fcf income to pay off all of its debts.
ARW has a Debt to FCF ratio (6.02) which is in line with its industry peers.
A Debt/Equity ratio of 0.45 indicates that ARW is not too dependend on debt financing.
ARW's Debt to Equity ratio of 0.45 is on the low side compared to the rest of the industry. ARW is outperformed by 67.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.02 | ||
| Altman-Z | 2.13 |
ROIC/WACC0.75
WACC8.87%
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 79.67% of its industry peers.
A Quick Ratio of 1.07 indicates that ARW should not have too much problems paying its short term obligations.
The Quick ratio of ARW (1.07) is worse than 73.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.07 |
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%.
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 very negative growth in Revenue. The Revenue has decreased by -15.66% 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)-14.65%
EPS 3Y-13.05%
EPS 5Y6.45%
EPS Q2Q%1.26%
Revenue 1Y (TTM)-15.66%
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 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
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
ARW is valuated reasonably with a Price/Earnings ratio of 11.47.
Based on the Price/Earnings ratio, ARW is valued cheaply inside the industry as 92.68% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.91. ARW is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.03, which indicates a very decent valuation of ARW.
Based on the Price/Forward Earnings ratio, ARW is valued cheaper than 96.75% 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 34.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 8.03 |
4.2 Price Multiples
93.50% of the companies in the same industry are more expensive than ARW, based on the Enterprise Value to EBITDA ratio.
93.50% of the companies in the same industry are more expensive than ARW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.1 | ||
| EV/EBITDA | 8.16 |
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.
ARW's earnings are expected to grow with 12.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.23
PEG (5Y)1.78
EPS Next 2Y15.72%
EPS Next 3Y12.11%
5. Dividend
5.1 Amount
ARW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
110.21
-1.06 (-0.95%)
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-0.48%
Ins Owners0.33%
Ins Owner Change1.55%
Market Cap5.68B
Revenue(TTM)27.92B
Net Income(TTM)467.68M
Analysts47.14
Price Target115.62 (4.91%)
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)0%
PT rev (3m)-3.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.87%
EPS NY rev (1m)0.16%
EPS NY rev (3m)0.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)3.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 8.03 | ||
| P/S | 0.2 | ||
| P/FCF | 12.1 | ||
| P/OCF | 10.26 | ||
| P/B | 0.9 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 8.16 |
EPS(TTM)9.61
EY8.72%
EPS(NY)13.73
Fwd EY12.45%
FCF(TTM)9.1
FCFY8.26%
OCF(TTM)10.74
OCFY9.75%
SpS553.4
BVpS122.99
TBVpS80.06
PEG (NY)6.23
PEG (5Y)1.78
Graham Number163.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 7.38% | ||
| ROCE | 8.77% | ||
| ROIC | 6.63% | ||
| ROICexc | 6.78% | ||
| ROICexgc | 8.84% | ||
| OM | 2.85% | ||
| PM (TTM) | 1.64% | ||
| GM | 11.27% | ||
| FCFM | 1.65% |
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-Score5
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.02 | ||
| Debt/EBITDA | 2.93 | ||
| Cap/Depr | 55.84% | ||
| Cap/Sales | 0.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.36% | ||
| Profit Quality | 100.26% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 2.13 |
F-Score5
WACC8.87%
ROIC/WACC0.75
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)-15.66%
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-32.97%
EBIT growth 3Y-16.61%
EBIT growth 5Y-0.12%
EBIT Next Year11.18%
EBIT Next 3Y17.61%
EBIT Next 5Y9.09%
FCF growth 1Y75.62%
FCF growth 3Y45.64%
FCF growth 5Y7.97%
OCF growth 1Y59.56%
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 7 / 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 11.47 and the Price/Book (PB) ratio is 0.9.
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.