ARROW ELECTRONICS INC (ARW) Stock Fundamental Analysis
USA - NYSE:ARW - US0427351004 - Common Stock
105.74 USD
+3.87 (+3.8%)
105.74 USD
0 (0%)
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. Both the profitability and the financial health of ARW get a neutral evaluation. Nothing too spectacular is happening here. ARW is not valued too expensively and it also shows a decent growth rate.
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.
Of the past 5 years ARW 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.94%, ARW is in line with its industry, outperforming 56.10% of the companies in the same industry.
ARW has a better Return On Equity (7.43%) than 65.85% of its industry peers.
ARW has a better Return On Invested Capital (6.43%) than 65.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARW is above the industry average of 9.10%.
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
Looking at the Profit Margin, with a value of 1.62%, ARW is in line with its industry, outperforming 54.47% of the companies in the same 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 has a Gross Margin of 11.10%. This is in the lower half of the industry: ARW underperforms 78.86% of its industry peers.
ARW's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ARW is still creating some value.
Compared to 1 year ago, ARW has less shares outstanding
ARW has less shares outstanding than it did 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 2.17 indicates that ARW is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.17, ARW is not doing good in the industry: 67.48% of the companies in the same industry are doing better.
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's Debt to FCF ratio of 33.32 is in line compared to the rest of the industry. ARW outperforms 50.41% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that ARW is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.49, ARW is not doing good in the industry: 70.73% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 33.32 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.72
WACC8.89%
2.3 Liquidity
A Current Ratio of 1.46 indicates that ARW should not have too much problems paying its short term obligations.
ARW has a worse Current ratio (1.46) than 78.05% 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.
ARW has a worse Quick ratio (1.14) than 71.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The earnings per share for ARW have decreased strongly by -14.65% in the last year.
ARW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.45% yearly.
Looking at the last year, ARW shows a small growth in Revenue. The Revenue has grown by 3.16% in the last year.
The Revenue has been decreasing by -0.70% on average over the past years.
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
ARW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.01% yearly.
The Revenue is expected to grow by 5.45% on average over the next years.
EPS Next Y1.84%
EPS Next 2Y15.72%
EPS Next 3Y12.11%
EPS Next 5Y11.01%
Revenue Next Year9.63%
Revenue Next 2Y7.38%
Revenue Next 3Y6.64%
Revenue Next 5Y5.45%
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. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.00 indicates a reasonable valuation of ARW.
ARW's Price/Earnings ratio is rather cheap when compared to the industry. ARW is cheaper than 91.87% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.45, ARW is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.70, the valuation of ARW can be described as very cheap.
Based on the Price/Forward Earnings ratio, ARW is valued cheaper than 95.94% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, ARW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11 | ||
| Fwd PE | 7.7 |
4.2 Price Multiples
ARW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ARW is cheaper than 89.43% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.97 | ||
| EV/EBITDA | 8.47 |
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.
A more expensive valuation may be justified as ARW's earnings are expected to grow with 12.11% in the coming years.
PEG (NY)5.98
PEG (5Y)1.71
EPS Next 2Y15.72%
EPS Next 3Y12.11%
5. Dividend
5.1 Amount
No dividends for ARW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
105.74
+3.87 (+3.8%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners109.57%
Inst Owner Change-0.16%
Ins Owners0.33%
Ins Owner Change4.58%
Market Cap5.45B
Revenue(TTM)29.39B
Net Income(TTM)475.87M
Analysts47.14
Price Target115.62 (9.34%)
Short Float %6.22%
Short Ratio4.95
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)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)-3.72%
EPS NQ rev (1m)-3.93%
EPS NQ rev (3m)-4.33%
EPS NY rev (1m)0.16%
EPS NY rev (3m)0.6%
Revenue NQ rev (1m)-2.69%
Revenue NQ rev (3m)-2.42%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)3.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11 | ||
| Fwd PE | 7.7 | ||
| P/S | 0.19 | ||
| P/FCF | 57.97 | ||
| P/OCF | 28.58 | ||
| P/B | 0.85 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 8.47 |
EPS(TTM)9.61
EY9.09%
EPS(NY)13.73
Fwd EY12.98%
FCF(TTM)1.82
FCFY1.72%
OCF(TTM)3.7
OCFY3.5%
SpS570.67
BVpS124.29
TBVpS81.59
PEG (NY)5.98
PEG (5Y)1.71
Graham Number163.93
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 | 2.17 |
F-Score3
WACC8.89%
ROIC/WACC0.72
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 Y1.84%
EPS Next 2Y15.72%
EPS Next 3Y12.11%
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 Year9.63%
Revenue Next 2Y7.38%
Revenue Next 3Y6.64%
Revenue Next 5Y5.45%
EBIT growth 1Y-22.06%
EBIT growth 3Y-16.61%
EBIT growth 5Y-0.12%
EBIT Next Year11.18%
EBIT Next 3Y17.61%
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 of ARROW ELECTRONICS INC (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 5 / 10.
What are the PE and PB ratios of ARROW ELECTRONICS INC (ARW) stock?
The Price/Earnings (PE) ratio for ARROW ELECTRONICS INC (ARW) is 11 and the Price/Book (PB) ratio is 0.85.
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 1.84% in the next year.