ARROW ELECTRONICS INC (ARW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARW - US0427351004 - Common Stock
113.65 USD
+0.28 (+0.25%)
ARW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 124 industry peers in the Electronic Equipment, Instruments & Components industry. ARW has an average financial health and profitability rating. ARW has a decent growth rate and is not valued too expensively.
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.
ARW had positive earnings in each of the past 5 years.
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 in line with its industry peers.
With a decent Return On Equity value of 7.43%, ARW is doing good in the industry, outperforming 65.32% of the companies in the same industry.
ARW's Return On Invested Capital of 6.43% is fine compared to the rest of the industry. ARW outperforms 66.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARW is above the industry average of 9.00%.
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's Profit Margin of 1.62% is in line compared to the rest of the industry. ARW outperforms 54.03% of its industry peers.
In the last couple of years the Profit Margin of ARW has declined.
ARW has a Operating Margin (2.79%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ARW has remained more or less at the same level.
ARW has a Gross Margin of 11.10%. This is in the lower half of the industry: ARW underperforms 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 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ARW is 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.
Looking at the Altman-Z score, with a value of 2.19, ARW is doing worse than 67.74% of the companies in the same industry.
ARW has a debt to FCF ratio of 33.32. This is a negative value and a sign of low solvency as ARW would need 33.32 years to pay back of all of its debts.
ARW has a Debt to FCF ratio (33.32) which is in line with its industry peers.
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 69.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 33.32 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.7
WACC9.14%
2.3 Liquidity
ARW has a Current Ratio of 1.46. This is a normal value and indicates that ARW is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.46, ARW is doing worse than 75.81% of the companies in the same industry.
ARW has a Quick Ratio of 1.14. This is a normal value and indicates that ARW is financially healthy and should not expect problems in meeting its short term obligations.
ARW has a worse Quick ratio (1.14) than 72.58% 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.
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
Based on estimates for the next years, ARW will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.01% on average per year.
ARW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.45% yearly.
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 11.83.
Based on the Price/Earnings ratio, ARW is valued cheaply inside the industry as 91.94% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.00, ARW is valued rather cheaply.
The Price/Forward Earnings ratio is 9.52, which indicates a very decent valuation of ARW.
93.55% of the companies in the same industry are more expensive than ARW, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.70, ARW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.83 | ||
| Fwd PE | 9.52 |
4.2 Price Multiples
ARW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ARW is cheaper than 91.13% of the companies in the same industry.
ARW's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.32 | ||
| EV/EBITDA | 9.08 |
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)19.52
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% |
NYSE:ARW (1/9/2026, 11:08:04 AM)
113.65
+0.28 (+0.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners110.26%
Inst Owner Change0%
Ins Owners0.38%
Ins Owner Change2.98%
Market Cap5.85B
Revenue(TTM)29.39B
Net Income(TTM)475.87M
Analysts47.14
Price Target107.74 (-5.2%)
Short Float %6.5%
Short Ratio5.56
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)-0.87%
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 | 11.83 | ||
| Fwd PE | 9.52 | ||
| P/S | 0.2 | ||
| P/FCF | 62.32 | ||
| P/OCF | 30.73 | ||
| P/B | 0.91 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 9.08 |
EPS(TTM)9.61
EY8.46%
EPS(NY)11.94
Fwd EY10.5%
FCF(TTM)1.82
FCFY1.6%
OCF(TTM)3.7
OCFY3.25%
SpS570.56
BVpS124.26
TBVpS81.58
PEG (NY)19.52
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
WACC9.14%
ROIC/WACC0.7
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 11.83 and the Price/Book (PB) ratio is 0.91.