ARROW FINANCIAL CORP (AROW) Stock Fundamental Analysis
USA - NASDAQ:AROW - US0427441029 - Common Stock
26.895 USD
+0.07 (+0.28%)
26.895 USD
0 (0%)
AROW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 391 industry peers in the Banks industry. AROW scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. AROW has a decent growth rate and is not valued too expensively. AROW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year AROW was profitable.
AROW had a positive operating cash flow in the past year.
In the past 5 years AROW has always been profitable.
Each year in the past 5 years AROW had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AROW (0.69%) is worse than 62.15% of its industry peers.
AROW has a Return On Equity (7.48%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.69% | ||
| ROE | 7.48% | ||
| ROIC | N/A |
ROA(3y)0.88%
ROA(5y)1%
ROE(3y)9.71%
ROE(5y)10.96%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 20.40%, AROW is not doing good in the industry: 62.15% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of AROW has declined.
AROW does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 20.4% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-15.28%
PM growth 5Y-7.97%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
AROW does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for AROW has been reduced compared to 1 year ago.
The number of shares outstanding for AROW has been reduced compared to 5 years ago.
The debt/assets ratio for AROW has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of AROW is 0.85, which is an excellent value as it means it would take AROW, only 0.85 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AROW (0.85) is better than 74.94% of its industry peers.
AROW has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
AROW's Debt to Equity ratio of 0.06 is fine compared to the rest of the industry. AROW outperforms 78.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.85 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC21.78%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for AROW have decreased by -2.08% in the last year.
Measured over the past years, AROW shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.38% on average per year.
AROW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.31%.
AROW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.71% yearly.
EPS 1Y (TTM)-2.08%
EPS 3Y-15.3%
EPS 5Y-4.38%
EPS Q2Q%26.78%
Revenue 1Y (TTM)10.31%
Revenue growth 3Y-0.7%
Revenue growth 5Y3.71%
Sales Q2Q%14.67%
3.2 Future
AROW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.67% yearly.
The Revenue is expected to grow by 9.78% on average over the next years. This is quite good.
EPS Next Y17.9%
EPS Next 2Y19.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.72%
Revenue Next 2Y9.78%
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. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.70, the valuation of AROW can be described as correct.
AROW's Price/Earnings ratio is a bit more expensive when compared to the industry. AROW is more expensive than 68.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.77, AROW is valued a bit cheaper.
The Price/Forward Earnings ratio is 8.79, which indicates a very decent valuation of AROW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AROW indicates a somewhat cheap valuation: AROW is cheaper than 69.05% of the companies listed in the same industry.
AROW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.7 | ||
| Fwd PE | 8.79 |
4.2 Price Multiples
61.38% of the companies in the same industry are cheaper than AROW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.15 | ||
| EV/EBITDA | N/A |
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 AROW's earnings are expected to grow with 19.67% in the coming years.
PEG (NY)0.82
PEG (5Y)N/A
EPS Next 2Y19.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.45%, AROW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.60, AROW pays a better dividend. On top of this AROW pays more dividend than 80.82% of the companies listed in the same industry.
AROW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
5.2 History
The dividend of AROW has a limited annual growth rate of 3.76%.
AROW has been paying a dividend for at least 10 years, so it has a reliable track record.
AROW has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.76%
Div Incr Years3
Div Non Decr Years31
5.3 Sustainability
AROW pays out 60.77% of its income as dividend. This is not a sustainable payout ratio.
The dividend of AROW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.77%
EPS Next 2Y19.67%
EPS Next 3YN/A
26.895
+0.07 (+0.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners52.68%
Inst Owner Change-0.28%
Ins Owners2%
Ins Owner Change2.76%
Market Cap442.96M
Analysts43.33
Price Target29.07 (8.09%)
Short Float %0.89%
Short Ratio3.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
Yearly Dividend1.09
Dividend Growth(5Y)3.76%
DP60.77%
Div Incr Years3
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.73%
Min EPS beat(2)-12.34%
Max EPS beat(2)13.8%
EPS beat(4)1
Avg EPS beat(4)-13.81%
Min EPS beat(4)-54.75%
Max EPS beat(4)13.8%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.74%
Min Revenue beat(2)-2.12%
Max Revenue beat(2)-1.37%
Revenue beat(4)0
Avg Revenue beat(4)-4.07%
Min Revenue beat(4)-12.39%
Max Revenue beat(4)-0.41%
Revenue beat(8)2
Avg Revenue beat(8)-2.89%
Revenue beat(12)3
Avg Revenue beat(12)-3.18%
Revenue beat(16)5
Avg Revenue beat(16)-2.35%
PT rev (1m)0%
PT rev (3m)3.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)3.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.7 | ||
| Fwd PE | 8.79 | ||
| P/S | 2.96 | ||
| P/FCF | 15.15 | ||
| P/OCF | 12.52 | ||
| P/B | 1.08 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.83
EY6.8%
EPS(NY)3.06
Fwd EY11.38%
FCF(TTM)1.78
FCFY6.6%
OCF(TTM)2.15
OCFY7.99%
SpS9.1
BVpS24.8
TBVpS23.25
PEG (NY)0.82
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.69% | ||
| ROE | 7.48% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 20.4% | ||
| GM | N/A | ||
| FCFM | 19.51% |
ROA(3y)0.88%
ROA(5y)1%
ROE(3y)9.71%
ROE(5y)10.96%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-15.28%
PM growth 5Y-7.97%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.85 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 115.33% | ||
| Cap/Sales | 4.11% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 95.66% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC21.78%
ROIC/WACCN/A
Cap/Depr(3y)132.85%
Cap/Depr(5y)112.88%
Cap/Sales(3y)6.27%
Cap/Sales(5y)5.54%
Profit Quality(3y)78.41%
Profit Quality(5y)89.75%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.08%
EPS 3Y-15.3%
EPS 5Y-4.38%
EPS Q2Q%26.78%
EPS Next Y17.9%
EPS Next 2Y19.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.31%
Revenue growth 3Y-0.7%
Revenue growth 5Y3.71%
Sales Q2Q%14.67%
Revenue Next Year12.72%
Revenue Next 2Y9.78%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-29.55%
FCF growth 3Y-22.1%
FCF growth 5Y-4.4%
OCF growth 1Y-35.34%
OCF growth 3Y-20.35%
OCF growth 5Y-4.74%