ARROW FINANCIAL CORP (AROW)

US0427441029 - Common Stock

25.02  +0.14 (+0.56%)

After market: 25.02 0 (0%)

Fundamental Rating

3

AROW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 415 industry peers in the Banks industry. AROW may be in some trouble as it scores bad on both profitability and health. AROW has a decent growth rate and is not valued too expensively. AROW also has an excellent dividend rating.



2

1. Profitability

1.1 Basic Checks

In the past year AROW was profitable.
AROW had a positive operating cash flow in the past year.
AROW had positive earnings in each of the past 5 years.
In the past 5 years AROW always reported a positive cash flow from operatings.

1.2 Ratios

Looking at the Return On Assets, with a value of 0.72%, AROW is doing worse than 66.51% of the companies in the same industry.
AROW's Return On Equity of 7.92% is on the low side compared to the rest of the industry. AROW is outperformed by 64.82% of its industry peers.
Industry RankSector Rank
ROA 0.72%
ROE 7.92%
ROIC N/A
ROA(3y)1.06%
ROA(5y)1.09%
ROE(3y)11.72%
ROE(5y)11.96%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

AROW has a Profit Margin of 22.45%. This is comparable to the rest of the industry: AROW outperforms 40.24% of its industry peers.
AROW's Profit Margin has declined in the last couple of years.
AROW does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) 22.45%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-10.15%
PM growth 5Y-6.93%
GM growth 3YN/A
GM growth 5YN/A

3

2. Health

2.1 Basic Checks

AROW does not have a ROIC to compare to the WACC, probably because it is not profitable.
AROW has less shares outstanding than it did 1 year ago.
The number of shares outstanding for AROW has been increased compared to 5 years ago.
Compared to 1 year ago, AROW has an improved debt to assets ratio.

2.2 Solvency

AROW has a debt to FCF ratio of 1.86. This is a very positive value and a sign of high solvency as it would only need 1.86 years to pay back of all of its debts.
AROW's Debt to FCF ratio of 1.86 is fine compared to the rest of the industry. AROW outperforms 60.48% of its industry peers.
AROW has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.07, AROW is doing good in the industry, outperforming 79.52% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF 1.86
Altman-Z N/A
ROIC/WACCN/A
WACC16.37%

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A

4

3. Growth

3.1 Past

AROW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.16%.
Measured over the past years, AROW shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.97% on average per year.
The Revenue for AROW has decreased by -10.25% in the past year. This is quite bad
The Revenue has been growing slightly by 3.47% on average over the past years.
EPS 1Y (TTM)-38.16%
EPS 3Y-11.5%
EPS 5Y-4.97%
EPS growth Q2Q-35.1%
Revenue 1Y (TTM)-10.25%
Revenue growth 3Y0.54%
Revenue growth 5Y3.47%
Revenue growth Q2Q-12.33%

3.2 Future

AROW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.42% yearly.
The Revenue is expected to grow by 6.90% on average over the next years.
EPS Next Y27.62%
EPS Next 2Y23.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.05%
Revenue Next 2Y6.9%
Revenue Next 3YN/A
Revenue Next 5YN/A

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.

4

4. Valuation

4.1 Price/Earnings Ratio

AROW is valuated correctly with a Price/Earnings ratio of 14.14.
Compared to the rest of the industry, the Price/Earnings ratio of AROW indicates a slightly more expensive valuation: AROW is more expensive than 78.31% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AROW to the average of the S&P500 Index (26.48), we can say AROW is valued slightly cheaper.
A Price/Forward Earnings ratio of 11.05 indicates a reasonable valuation of AROW.
AROW's Price/Forward Earnings ratio is in line with the industry average.
AROW is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.79, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.14
Fwd PE 11.05

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, AROW is valued more expensive than 81.45% of the companies in the same industry.
Industry RankSector Rank
P/FCF 30.67
EV/EBITDA N/A

4.3 Compensation for Growth

AROW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AROW's earnings are expected to grow with 23.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)N/A
EPS Next 2Y23.42%
EPS Next 3YN/A

8

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.33%, AROW is a good candidate for dividend investing.
AROW's Dividend Yield is a higher than the industry average which is at 3.70.
AROW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 4.33%

5.2 History

The dividend of AROW has a limited annual growth rate of 4.22%.
AROW has paid a dividend for at least 10 years, which is a reliable track record.
As AROW did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)4.22%
Div Incr Years2
Div Non Decr Years6

5.3 Sustainability

AROW pays out 59.80% of its income as dividend. This is a bit on the high side, but may be sustainable.
AROW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP59.8%
EPS Next 2Y23.42%
EPS Next 3YN/A

ARROW FINANCIAL CORP

NASDAQ:AROW (3/28/2024, 8:00:01 PM)

After market: 25.02 0 (0%)

25.02

+0.14 (+0.56%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap414.08M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.33%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 14.14
Fwd PE 11.05
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.51
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.72%
ROE 7.92%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) 22.45%
GM N/A
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio N/A
Quick Ratio N/A
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-38.16%
EPS 3Y-11.5%
EPS 5Y
EPS growth Q2Q
EPS Next Y27.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.25%
Revenue growth 3Y0.54%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y