ARROW ELECTRONICS INC (ARW) Fundamental Analysis & Valuation
NYSE:ARW • US0427351004
Current stock price
140.12 USD
-0.77 (-0.55%)
At close:
140.12 USD
0 (0%)
After Hours:
This ARW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ARW Profitability Analysis
1.1 Basic Checks
- In the past year ARW was profitable.
- In the past year ARW had a positive cash flow from operations.
- 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
- The Return On Assets of ARW (1.96%) is comparable to the rest of the industry.
- The Return On Equity of ARW (8.68%) is better than 67.74% of its industry peers.
- ARW has a Return On Invested Capital of 7.27%. This is in the better half of the industry: ARW outperforms 73.39% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ARW is in line with the industry average of 8.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 8.68% | ||
| ROIC | 7.27% |
ROA(3y)2.64%
ROA(5y)4.03%
ROE(3y)10.35%
ROE(5y)15.55%
ROIC(3y)9.31%
ROIC(5y)12.06%
1.3 Margins
- ARW's Profit Margin of 1.85% is in line compared to the rest of the industry. ARW outperforms 57.26% of its industry peers.
- ARW's Profit Margin has declined in the last couple of years.
- ARW has a Operating Margin (3.04%) which 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.
- The Gross Margin of ARW (11.24%) is worse than 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 | 3.04% | ||
| PM (TTM) | 1.85% | ||
| GM | 11.24% |
OM growth 3Y-18.45%
OM growth 5Y-0.96%
PM growth 3Y-21.61%
PM growth 5Y-1.89%
GM growth 3Y-4.82%
GM growth 5Y0.19%
2. ARW Health Analysis
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
- ARW has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ARW has an improved debt to assets ratio.
2.2 Solvency
- ARW has an Altman-Z score of 1.96. 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.
- The Altman-Z score of ARW (1.96) is worse than 64.52% of its industry peers.
- ARW has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of ARW (0.47) is worse than 72.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.96 |
ROIC/WACC0.83
WACC8.76%
2.3 Liquidity
- ARW has a Current Ratio of 1.36. 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 Current ratio value of 1.36, ARW is not doing good in the industry: 76.61% of the companies in the same industry are doing better.
- ARW has a Quick Ratio of 1.09. 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 Quick ratio, with a value of 1.09, ARW is doing worse than 73.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.09 |
3. ARW Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 7.61% over the past year.
- Measured over the past 5 years, ARW shows a small growth in Earnings Per Share. The EPS has been growing by 7.15% on average per year.
- Looking at the last year, ARW shows a quite strong growth in Revenue. The Revenue has grown by 10.49% in the last year.
- The Revenue has been growing slightly by 1.48% on average over the past years.
EPS 1Y (TTM)7.61%
EPS 3Y-20.97%
EPS 5Y7.15%
EPS Q2Q%47.81%
Revenue 1Y (TTM)10.49%
Revenue growth 3Y-5.98%
Revenue growth 5Y1.48%
Sales Q2Q%20.1%
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 16.51% on average per year.
- ARW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.35% yearly.
EPS Next Y21.63%
EPS Next 2Y17.54%
EPS Next 3Y16.51%
EPS Next 5YN/A
Revenue Next Year14.18%
Revenue Next 2Y9.24%
Revenue Next 3Y7.35%
Revenue Next 5YN/A
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. ARW Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 12.70, the valuation of ARW can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of ARW indicates a rather cheap valuation: ARW is cheaper than 89.52% of the companies listed in the same industry.
- ARW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.79.
- With a Price/Forward Earnings ratio of 10.44, the valuation of ARW can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, ARW is valued cheaply inside the industry as 87.90% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of ARW to the average of the S&P500 Index (23.80), we can say ARW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.7 | ||
| Fwd PE | 10.44 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ARW is valued cheaper than 87.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.27 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as ARW's earnings are expected to grow with 16.51% in the coming years.
PEG (NY)0.59
PEG (5Y)1.78
EPS Next 2Y17.54%
EPS Next 3Y16.51%
5. ARW Dividend Analysis
5.1 Amount
- No dividends for ARW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ARW Fundamentals: All Metrics, Ratios and Statistics
140.12
-0.77 (-0.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-05 2026-02-05/amc
Earnings (Next)04-29 2026-04-29
Inst Owners108.77%
Inst Owner Change-0.97%
Ins Owners0.44%
Ins Owner Change4.87%
Market Cap7.16B
Revenue(TTM)30.85B
Net Income(TTM)571.27M
Analysts47.14
Price Target131.61 (-6.07%)
Short Float %3.64%
Short Ratio2.86
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)12.68%
Min EPS beat(2)3.46%
Max EPS beat(2)21.91%
EPS beat(4)4
Avg EPS beat(4)16.41%
Min EPS beat(4)3.46%
Max EPS beat(4)24.28%
EPS beat(8)8
Avg EPS beat(8)12.34%
EPS beat(12)11
Avg EPS beat(12)10.2%
EPS beat(16)14
Avg EPS beat(16)8.82%
Revenue beat(2)1
Avg Revenue beat(2)2.79%
Min Revenue beat(2)-0.56%
Max Revenue beat(2)6.15%
Revenue beat(4)3
Avg Revenue beat(4)4.28%
Min Revenue beat(4)-0.56%
Max Revenue beat(4)6.75%
Revenue beat(8)6
Avg Revenue beat(8)2.7%
Revenue beat(12)7
Avg Revenue beat(12)1.32%
Revenue beat(16)8
Avg Revenue beat(16)1.04%
PT rev (1m)22.15%
PT rev (3m)22.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)23.2%
EPS NY rev (1m)12.4%
EPS NY rev (3m)12.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.54%
Revenue NY rev (1m)9.5%
Revenue NY rev (3m)9.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.7 | ||
| Fwd PE | 10.44 | ||
| P/S | 0.23 | ||
| P/FCF | N/A | ||
| P/OCF | 111.77 | ||
| P/B | 1.09 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 9.27 |
EPS(TTM)11.03
EY7.87%
EPS(NY)13.42
Fwd EY9.57%
FCF(TTM)-0.73
FCFYN/A
OCF(TTM)1.25
OCFY0.89%
SpS603.89
BVpS128.88
TBVpS85.88
PEG (NY)0.59
PEG (5Y)1.78
Graham Number178.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 8.68% | ||
| ROCE | 9.17% | ||
| ROIC | 7.27% | ||
| ROICexc | 7.5% | ||
| ROICexgc | 9.63% | ||
| OM | 3.04% | ||
| PM (TTM) | 1.85% | ||
| GM | 11.24% | ||
| FCFM | N/A |
ROA(3y)2.64%
ROA(5y)4.03%
ROE(3y)10.35%
ROE(5y)15.55%
ROIC(3y)9.31%
ROIC(5y)12.06%
ROICexc(3y)9.54%
ROICexc(5y)12.34%
ROICexgc(3y)12.4%
ROICexgc(5y)16.35%
ROCE(3y)12.46%
ROCE(5y)15.75%
ROICexgc growth 3Y-25.05%
ROICexgc growth 5Y-7.06%
ROICexc growth 3Y-24.69%
ROICexc growth 5Y-4.78%
OM growth 3Y-18.45%
OM growth 5Y-0.96%
PM growth 3Y-21.61%
PM growth 5Y-1.89%
GM growth 3Y-4.82%
GM growth 5Y0.19%
F-Score5
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.87 | ||
| Cap/Depr | 73.51% | ||
| Cap/Sales | 0.33% | ||
| Interest Coverage | 5.75 | ||
| Cash Conversion | 5.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 1.96 |
F-Score5
WACC8.76%
ROIC/WACC0.83
Cap/Depr(3y)58.79%
Cap/Depr(5y)52.2%
Cap/Sales(3y)0.3%
Cap/Sales(5y)0.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.61%
EPS 3Y-20.97%
EPS 5Y7.15%
EPS Q2Q%47.81%
EPS Next Y21.63%
EPS Next 2Y17.54%
EPS Next 3Y16.51%
EPS Next 5YN/A
Revenue 1Y (TTM)10.49%
Revenue growth 3Y-5.98%
Revenue growth 5Y1.48%
Sales Q2Q%20.1%
Revenue Next Year14.18%
Revenue Next 2Y9.24%
Revenue Next 3Y7.35%
Revenue Next 5YN/A
EBIT growth 1Y3.01%
EBIT growth 3Y-23.33%
EBIT growth 5Y0.51%
EBIT Next Year36.7%
EBIT Next 3Y17.98%
EBIT Next 5YN/A
FCF growth 1Y-103.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-94.33%
OCF growth 3YN/A
OCF growth 5Y-45.72%
ARROW ELECTRONICS INC / ARW Fundamental Analysis 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 4 / 10.
Can you provide the PE and PB ratios for ARW stock?
The Price/Earnings (PE) ratio for ARROW ELECTRONICS INC (ARW) is 12.7 and the Price/Book (PB) ratio is 1.09.