ARROW ELECTRONICS INC (ARW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARW - US0427351004 - Common Stock
118.65 USD
+2.65 (+2.28%)
118.65 USD
0 (0%)
ARW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 125 industry peers in the Electronic Equipment, Instruments & Components industry. ARW has only an average score on both its financial health and profitability. 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 58.40% of its industry peers.
- ARW's Return On Equity of 7.43% is fine compared to the rest of the industry. ARW outperforms 65.60% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.43%, ARW is in the better half of the industry, outperforming 67.20% 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 8.82%.
- 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 of 1.62%. This is comparable to the rest of the industry: ARW outperforms 54.40% of its industry peers.
- In the last couple of years the Profit Margin of ARW has declined.
- ARW has a Operating Margin of 2.79%. This is comparable to the rest of the industry: ARW outperforms 55.20% of its industry peers.
- ARW's Operating Margin has been stable in the last couple of years.
- ARW has a Gross Margin of 11.10%. This is in the lower half of the industry: ARW underperforms 77.60% 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
- ARW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, ARW has less shares outstanding
- The number of shares outstanding for ARW has been reduced compared to 5 years ago.
- The debt/assets ratio for ARW has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.20 indicates that ARW is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ARW has a Altman-Z score of 2.20. This is in the lower half of the industry: ARW underperforms 66.40% of its industry peers.
- 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.
- 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.
- With a Debt to Equity ratio value of 0.49, ARW is not doing good in the industry: 68.80% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 33.32 | ||
| Altman-Z | 2.2 |
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.
- ARW has a worse Current ratio (1.46) than 76.00% 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 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.14 |
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.
- 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.
- Based on estimates for the next years, ARW will show a small growth in Revenue. The Revenue will grow by 5.45% on average per year.
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
- 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.
- 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 correctly with a Price/Earnings ratio of 12.35.
- Compared to the rest of the industry, the Price/Earnings ratio of ARW indicates a rather cheap valuation: ARW is cheaper than 91.20% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.54. ARW is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 9.94, which indicates a very decent valuation of ARW.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ARW indicates a rather cheap valuation: ARW is cheaper than 92.80% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.31. ARW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 9.94 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARW indicates a rather cheap valuation: ARW is cheaper than 91.20% of the companies listed in the same industry.
- ARW's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.06 | ||
| EV/EBITDA | 9.36 |
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.
PEG (NY)20.38
PEG (5Y)1.92
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% |
118.65
+2.65 (+2.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)02-05 2026-02-05/amc
Inst Owners110.26%
Inst Owner Change0.06%
Ins Owners0.38%
Ins Owner Change2.98%
Market Cap6.11B
Revenue(TTM)29.39B
Net Income(TTM)475.87M
Analysts47.14
Price Target107.74 (-9.2%)
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%
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 | 12.35 | ||
| Fwd PE | 9.94 | ||
| P/S | 0.21 | ||
| P/FCF | 65.06 | ||
| P/OCF | 32.08 | ||
| P/B | 0.95 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 9.36 |
EPS(TTM)9.61
EY8.1%
EPS(NY)11.94
Fwd EY10.06%
FCF(TTM)1.82
FCFY1.54%
OCF(TTM)3.7
OCFY3.12%
SpS570.56
BVpS124.26
TBVpS81.58
PEG (NY)20.38
PEG (5Y)1.92
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 | 2.2 |
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 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 12.35 and the Price/Book (PB) ratio is 0.95.