ARROW ELECTRONICS INC (ARW) Stock Fundamental Analysis
USA - NYSE:ARW - US0427351004 - Common Stock
122.68 USD
+3.6 (+3.02%)
Taking everything into account, ARW scores 4 out of 10 in our fundamental rating. ARW was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. ARW has only an average score on both its financial health and profitability. ARW scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year ARW was profitable.
ARW had a positive operating cash flow in the past year.
Each year in the past 5 years ARW has been profitable.
Of the past 5 years ARW 4 years had a positive operating cash flow.
1.2 Ratios
ARW's Return On Assets of 1.93% is in line compared to the rest of the industry. ARW outperforms 56.80% of its industry peers.
ARW's Return On Equity of 7.38% is fine compared to the rest of the industry. ARW outperforms 65.60% of its industry peers.
ARW has a Return On Invested Capital of 6.63%. This is in the better half of the industry: ARW outperforms 69.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARW is above the industry average of 9.48%.
The 3 year average ROIC (12.62%) for ARW is well above the current ROIC(6.63%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 7.38% | ||
| ROIC | 6.63% |
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
With a Profit Margin value of 1.64%, ARW perfoms like the industry average, outperforming 56.80% of the companies in the same industry.
ARW's Profit Margin has declined in the last couple of years.
ARW has a Operating Margin (2.86%) which is in line with its industry peers.
ARW's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 11.27%, ARW is doing worse than 77.60% of the companies in the same industry.
ARW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.86% | ||
| PM (TTM) | 1.64% | ||
| GM | 11.27% |
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.
ARW has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 2.14 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 (2.14) than 68.00% of its industry peers.
The Debt to FCF ratio of ARW is 6.03, which is on the high side as it means it would take ARW, 6.03 years of fcf income to pay off all of its debts.
ARW's Debt to FCF ratio of 6.03 is in line compared to the rest of the industry. ARW outperforms 58.40% of its industry peers.
ARW has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
ARW has a worse Debt to Equity ratio (0.45) than 64.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 2.14 |
ROIC/WACC0.73
WACC9.08%
2.3 Liquidity
A Current Ratio of 1.39 indicates that ARW should not have too much problems paying its short term obligations.
The Current ratio of ARW (1.39) is worse than 78.40% of its industry peers.
A Quick Ratio of 1.07 indicates that ARW should not have too much problems paying its short term obligations.
The Quick ratio of ARW (1.07) is worse than 72.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
ARW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.42%.
ARW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.45% yearly.
ARW shows a decrease in Revenue. In the last year, the revenue decreased by -3.95%.
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)-26.42%
EPS 3Y-13.05%
EPS 5Y6.45%
EPS Q2Q%-2.41%
Revenue 1Y (TTM)-3.95%
Revenue growth 3Y-6.79%
Revenue growth 5Y-0.7%
Sales Q2Q%9.97%
3.2 Future
Based on estimates for the next years, ARW will show a very strong growth in Earnings Per Share. The EPS will grow by 23.81% on average per year.
ARW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.98% yearly.
EPS Next Y1.24%
EPS Next 2Y19.06%
EPS Next 3Y23.81%
EPS Next 5YN/A
Revenue Next Year9.78%
Revenue Next 2Y7.86%
Revenue Next 3Y6.98%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.81, the valuation of ARW can be described as correct.
Based on the Price/Earnings ratio, ARW is valued cheaply inside the industry as 95.20% of the companies are valued more expensively.
ARW is valuated cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
ARW is valuated reasonably with a Price/Forward Earnings ratio of 8.44.
ARW's Price/Forward Earnings ratio is rather cheap when compared to the industry. ARW is cheaper than 96.80% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. ARW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.81 | ||
| Fwd PE | 8.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARW is valued cheaper than 94.40% of the companies in the same industry.
94.40% of the companies in the same industry are more expensive than ARW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.5 | ||
| EV/EBITDA | 8.57 |
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 23.81% in the coming years.
PEG (NY)10.34
PEG (5Y)1.99
EPS Next 2Y19.06%
EPS Next 3Y23.81%
5. Dividend
5.1 Amount
ARW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:ARW (9/18/2025, 12:52:48 PM)
122.68
+3.6 (+3.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners107.81%
Inst Owner Change2.1%
Ins Owners0.61%
Ins Owner Change-0.17%
Market Cap6.32B
Analysts48.57
Price Target120.08 (-2.12%)
Short Float %5.07%
Short Ratio5.68
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)20.14%
Min EPS beat(2)16%
Max EPS beat(2)24.28%
EPS beat(4)4
Avg EPS beat(4)14.6%
Min EPS beat(4)6.15%
Max EPS beat(4)24.28%
EPS beat(8)8
Avg EPS beat(8)12.01%
EPS beat(12)10
Avg EPS beat(12)8.03%
EPS beat(16)14
Avg EPS beat(16)9.27%
Revenue beat(2)2
Avg Revenue beat(2)5.77%
Min Revenue beat(2)4.8%
Max Revenue beat(2)6.75%
Revenue beat(4)4
Avg Revenue beat(4)3.52%
Min Revenue beat(4)0.39%
Max Revenue beat(4)6.75%
Revenue beat(8)5
Avg Revenue beat(8)1.64%
Revenue beat(12)6
Avg Revenue beat(12)0.68%
Revenue beat(16)8
Avg Revenue beat(16)0.58%
PT rev (1m)0%
PT rev (3m)1.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.76%
Revenue NY rev (1m)3.8%
Revenue NY rev (3m)4.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.81 | ||
| Fwd PE | 8.44 | ||
| P/S | 0.22 | ||
| P/FCF | 13.5 | ||
| P/OCF | 11.43 | ||
| P/B | 1 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 8.57 |
EPS(TTM)9.58
EY7.81%
EPS(NY)14.53
Fwd EY11.84%
FCF(TTM)9.09
FCFY7.41%
OCF(TTM)10.73
OCFY8.75%
SpS553.4
BVpS122.99
TBVpS80.06
PEG (NY)10.34
PEG (5Y)1.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 7.38% | ||
| ROCE | 8.78% | ||
| ROIC | 6.63% | ||
| ROICexc | 6.79% | ||
| ROICexgc | 8.84% | ||
| OM | 2.86% | ||
| PM (TTM) | 1.64% | ||
| GM | 11.27% | ||
| FCFM | 1.64% |
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%
ROICexcg growth 3Y-21.09%
ROICexcg 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-Score5
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.03 | ||
| Debt/EBITDA | 2.92 | ||
| Cap/Depr | 55.99% | ||
| Cap/Sales | 0.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.26% | ||
| Profit Quality | 100.19% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 2.14 |
F-Score5
WACC9.08%
ROIC/WACC0.73
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)-26.42%
EPS 3Y-13.05%
EPS 5Y6.45%
EPS Q2Q%-2.41%
EPS Next Y1.24%
EPS Next 2Y19.06%
EPS Next 3Y23.81%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.95%
Revenue growth 3Y-6.79%
Revenue growth 5Y-0.7%
Sales Q2Q%9.97%
Revenue Next Year9.78%
Revenue Next 2Y7.86%
Revenue Next 3Y6.98%
Revenue Next 5YN/A
EBIT growth 1Y-32.9%
EBIT growth 3Y-16.61%
EBIT growth 5Y-0.12%
EBIT Next Year11.49%
EBIT Next 3Y17.76%
EBIT Next 5YN/A
FCF growth 1Y75.33%
FCF growth 3Y45.64%
FCF growth 5Y7.97%
OCF growth 1Y59.45%
OCF growth 3Y39.21%
OCF growth 5Y5.67%