ARROW ELECTRONICS INC (ARW) Fundamental Analysis & Valuation

NYSE:ARW • US0427351004

Current stock price

184.02 USD
-2.49 (-1.34%)
At close:
184.02 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.

4

1. ARW Profitability Analysis

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.
ARW Yearly Net Income VS EBIT VS OCF VS FCFARW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B

1.2 Ratios

  • ARW's Return On Assets of 1.96% is in line compared to the rest of the industry. ARW outperforms 58.87% of its industry peers.
  • Looking at the Return On Equity, with a value of 8.68%, ARW is in the better half of the industry, outperforming 66.13% of the companies in the same industry.
  • With a decent Return On Invested Capital value of 7.27%, ARW is doing good in the industry, outperforming 73.39% of the companies in the same industry.
  • ARW had an Average Return On Invested Capital over the past 3 years of 9.31%. This is in line with the industry average of 8.09%.
Industry RankSector 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%
ARW Yearly ROA, ROE, ROICARW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15 20 25

1.3 Margins

  • ARW has a Profit Margin (1.85%) which is comparable to the rest of the industry.
  • ARW's Profit Margin has declined in the last couple of years.
  • ARW has a Operating Margin of 3.04%. This is comparable to the rest of the industry: ARW outperforms 54.84% of its industry peers.
  • ARW's Operating Margin has been stable in the last couple of years.
  • ARW has a worse Gross Margin (11.24%) than 79.03% of its industry peers.
  • ARW's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
ARW Yearly Profit, Operating, Gross MarginsARW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10

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3

2. ARW Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARW is destroying 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.
  • Compared to 1 year ago, ARW has an improved debt to assets ratio.
ARW Yearly Shares OutstandingARW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M
ARW Yearly Total Debt VS Total AssetsARW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • An Altman-Z score of 2.02 indicates that ARW is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • ARW has a worse Altman-Z score (2.02) than 61.29% 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 70.97% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF N/A
Altman-Z 2.02
ROIC/WACC0.75
WACC9.71%
ARW Yearly LT Debt VS Equity VS FCFARW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 1.36 indicates that ARW should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.36, ARW is not doing good in the industry: 79.03% 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.
  • ARW's Quick ratio of 1.09 is on the low side compared to the rest of the industry. ARW is outperformed by 75.81% of its industry peers.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 1.09
ARW Yearly Current Assets VS Current LiabilitesARW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. ARW Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 7.61% over the past year.
  • ARW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.15% yearly.
  • 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

  • ARW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.51% yearly.
  • ARW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.37% yearly.
EPS Next Y21.63%
EPS Next 2Y17.54%
EPS Next 3Y16.51%
EPS Next 5YN/A
Revenue Next Year14.58%
Revenue Next 2Y9.46%
Revenue Next 3Y7.37%
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.
ARW Yearly Revenue VS EstimatesARW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 10B 20B 30B
ARW Yearly EPS VS EstimatesARW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5 10 15 20

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5

4. ARW Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 16.68, ARW is valued correctly.
  • 86.29% of the companies in the same industry are more expensive than ARW, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 26.91, ARW is valued a bit cheaper.
  • With a Price/Forward Earnings ratio of 13.72, ARW is valued correctly.
  • ARW's Price/Forward Earnings ratio is rather cheap when compared to the industry. ARW is cheaper than 87.10% of the companies in the same industry.
  • ARW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.99.
Industry RankSector Rank
PE 16.68
Fwd PE 13.72
ARW Price Earnings VS Forward Price EarningsARW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • ARW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ARW is cheaper than 82.26% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 11.44
ARW Per share dataARW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 200 400 600

4.3 Compensation for Growth

  • ARW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • ARW's earnings are expected to grow with 16.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.77
PEG (5Y)2.33
EPS Next 2Y17.54%
EPS Next 3Y16.51%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ARW Dividend Analysis

5.1 Amount

  • ARW does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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ARW Fundamentals: All Metrics, Ratios and Statistics

ARROW ELECTRONICS INC

NYSE:ARW (4/28/2026, 8:13:34 PM)

After market: 184.02 0 (0%)

184.02

-2.49 (-1.34%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)02-05
Earnings (Next)05-07
Inst Owners108.83%
Inst Owner Change0.88%
Ins Owners0.34%
Ins Owner Change2%
Market Cap9.40B
Revenue(TTM)30.85B
Net Income(TTM)571.27M
Analysts46.15
Price Target135.64 (-26.29%)
Short Float %3.69%
Short Ratio3.4
Dividend
Industry RankSector 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)3.06%
PT rev (3m)25.9%
EPS NQ rev (1m)0.88%
EPS NQ rev (3m)24.1%
EPS NY rev (1m)0%
EPS NY rev (3m)12.4%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)10.9%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)9.88%
Valuation
Industry RankSector Rank
PE 16.68
Fwd PE 13.72
P/S 0.3
P/FCF N/A
P/OCF 146.76
P/B 1.43
P/tB 2.14
EV/EBITDA 11.44
EPS(TTM)11.03
EY5.99%
EPS(NY)13.42
Fwd EY7.29%
FCF(TTM)-0.73
FCFYN/A
OCF(TTM)1.25
OCFY0.68%
SpS604.01
BVpS128.91
TBVpS85.9
PEG (NY)0.77
PEG (5Y)2.33
Graham Number178.864 (-2.8%)
Profitability
Industry RankSector 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 RankSector 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 2.02
F-Score5
WACC9.71%
ROIC/WACC0.75
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 Year14.58%
Revenue Next 2Y9.46%
Revenue Next 3Y7.37%
Revenue Next 5YN/A
EBIT growth 1Y3.01%
EBIT growth 3Y-23.33%
EBIT growth 5Y0.51%
EBIT Next Year37.13%
EBIT Next 3Y18%
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 5 / 10 to ARROW ELECTRONICS INC (ARW). This can be considered as Fairly Valued.


What is the profitability of ARW stock?

ARROW ELECTRONICS INC (ARW) has a profitability rating of 4 / 10.


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 21.63% in the next year.