ARROW ELECTRONICS INC (ARW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARW - US0427351004 - Common Stock
105.88 USD
+0.14 (+0.13%)
105.88 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 decent growth rate and is not valued too expensively.
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.
In the past 5 years ARW has always 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 of 1.94%. This is comparable to the rest of the industry: ARW outperforms 55.28% of its industry peers.
Looking at the Return On Equity, with a value of 7.43%, ARW is in the better half of the industry, outperforming 64.23% of the companies in the same industry.
The Return On Invested Capital of ARW (6.43%) is better than 65.85% of its industry peers.
ARW had an Average Return On Invested Capital over the past 3 years of 12.62%. This is above the industry average of 9.11%.
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's Profit Margin of 1.62% is in line compared to the rest of the industry. ARW outperforms 52.85% of its industry peers.
In the last couple of years the Profit Margin of ARW has declined.
The Operating Margin of ARW (2.79%) 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.
ARW has a worse Gross Margin (11.10%) than 78.86% 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
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
ARW has a better debt/assets ratio than last year.
2.2 Solvency
ARW has an Altman-Z score of 2.18. 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.
Looking at the Altman-Z score, with a value of 2.18, ARW is doing worse than 68.29% 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 comparable to the rest of the industry.
A Debt/Equity ratio of 0.49 indicates that ARW is not too dependend on debt financing.
The Debt to Equity ratio of ARW (0.49) is worse than 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 33.32 | ||
| Altman-Z | 2.18 |
ROIC/WACC0.71
WACC9.01%
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.
ARW has a Current ratio of 1.46. This is in the lower half of the industry: ARW underperforms 77.24% of its industry peers.
A Quick Ratio of 1.14 indicates that ARW should not have too much problems paying its short term obligations.
The Quick ratio of ARW (1.14) is worse 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.
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
The Earnings Per Share is expected to grow by 11.01% on average over the next years. This is quite good.
ARW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.45% yearly.
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
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
Based on the Price/Earnings ratio of 11.02, the valuation of ARW can be described as reasonable.
Based on the Price/Earnings ratio, ARW is valued cheaper than 91.87% of the companies in the same industry.
When comparing the Price/Earnings ratio of ARW to the average of the S&P500 Index (25.65), we can say ARW is valued rather cheaply.
A Price/Forward Earnings ratio of 7.71 indicates a rather cheap valuation of ARW.
Based on the Price/Forward Earnings ratio, ARW is valued cheaply inside the industry as 95.94% of the companies are valued more expensively.
ARW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.02 | ||
| Fwd PE | 7.71 |
4.2 Price Multiples
ARW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ARW is cheaper than 89.43% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.05 | ||
| EV/EBITDA | 8.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as ARW's earnings are expected to grow with 12.11% in the coming years.
PEG (NY)5.99
PEG (5Y)1.71
EPS Next 2Y15.72%
EPS Next 3Y12.11%
5. Dividend
5.1 Amount
No dividends for ARW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
105.88
+0.14 (+0.13%)
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-0.15%
Ins Owners0.33%
Ins Owner Change2.7%
Market Cap5.45B
Revenue(TTM)29.39B
Net Income(TTM)475.87M
Analysts47.14
Price Target108.68 (2.64%)
Short Float %6.22%
Short Ratio4.95
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)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)-6%
PT rev (3m)-9.49%
EPS NQ rev (1m)-6.11%
EPS NQ rev (3m)-6.5%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)-2.69%
Revenue NQ rev (3m)-2.42%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.02 | ||
| Fwd PE | 7.71 | ||
| P/S | 0.19 | ||
| P/FCF | 58.05 | ||
| P/OCF | 28.62 | ||
| P/B | 0.85 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 8.68 |
EPS(TTM)9.61
EY9.08%
EPS(NY)13.73
Fwd EY12.96%
FCF(TTM)1.82
FCFY1.72%
OCF(TTM)3.7
OCFY3.49%
SpS570.67
BVpS124.29
TBVpS81.59
PEG (NY)5.99
PEG (5Y)1.71
Graham Number163.93
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 | 2.18 |
F-Score3
WACC9.01%
ROIC/WACC0.71
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)3.16%
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-22.06%
EBIT growth 3Y-16.61%
EBIT growth 5Y-0.12%
EBIT Next Year11.18%
EBIT Next 3Y17.61%
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 of ARROW ELECTRONICS INC (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.
What are the PE and PB ratios of ARROW ELECTRONICS INC (ARW) stock?
The Price/Earnings (PE) ratio for ARROW ELECTRONICS INC (ARW) is 11.02 and the Price/Book (PB) ratio is 0.85.
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.