Overall ARW gets a fundamental rating of 4 out of 10. We evaluated ARW 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.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years ARW has always been profitable.
ARW had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

The Return On Assets of ARW (1.94%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 7.43%, ARW is in the better half of the industry, outperforming 65.04% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.43%, ARW is doing good in the industry, outperforming 66.67% 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 8.87%.
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

The Profit Margin of ARW (1.62%) is comparable to the rest of the industry.
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.
ARW's Operating Margin has been stable in the last couple of years.
ARW's Gross Margin of 11.10% is on the low side compared to the rest of the industry. ARW is outperformed by 78.05% 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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

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
Compared to 5 years ago, ARW has less shares outstanding
Compared to 1 year ago, ARW has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.21 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 2.21, ARW is doing worse than 65.85% 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.
A Debt/Equity ratio of 0.49 indicates that ARW is not too dependend on debt financing.
ARW's Debt to Equity ratio of 0.49 is on the low side compared to the rest of the industry. ARW is outperformed by 68.29% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.49
Debt/FCF	33.32
Altman-Z	2.21

ROIC/WACC0.85

WACC7.56%

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 76.42% of its industry peers.
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.
With a Quick ratio value of 1.14, ARW is not doing good in the industry: 71.54% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	1.46
Quick Ratio	1.14

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

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

The Earnings Per Share is expected to grow by 11.01% on average over the next years. This is quite good.
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

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

ARW is valuated correctly with a Price/Earnings ratio of 12.60.
ARW's Price/Earnings ratio is rather cheap when compared to the industry. ARW is cheaper than 88.62% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.82. ARW is valued rather cheaply when compared to this.
ARW is valuated reasonably with a Price/Forward Earnings ratio of 10.15.
92.68% of the companies in the same industry are more expensive than ARW, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ARW to the average of the S&P500 Index (25.95), we can say ARW is valued rather cheaply.

		Industry Rank	Sector Rank
PE	12.6
Fwd PE	10.15

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 89.43% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ARW.

		Industry Rank	Sector Rank
P/FCF	66.41
EV/EBITDA	9.49

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)20.8

PEG (5Y)1.95

EPS Next 2Y7.91%

EPS Next 3Y10.88%

More info and screens

Show best valued peers

5. Dividend

5.1 Amount

No dividends for ARW!.

		Industry Rank	Sector Rank
Dividend Yield	0%

More info and screens

Find the best dividend stocks

Show peers with best dividend

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 12.6 and the Price/Book (PB) ratio is 0.97.