ARROW FINANCIAL CORP (AROW) Fundamental Analysis & Valuation

NASDAQ:AROW • US0427441029

Current stock price

32.41 USD
-0.07 (-0.22%)
At close:
32.41 USD
0 (0%)
After Hours:

This AROW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. AROW Profitability Analysis

1.1 Basic Checks

  • In the past year AROW was profitable.
  • In the past year AROW had a positive cash flow from operations.
  • AROW had positive earnings in each of the past 5 years.
  • Of the past 5 years AROW 4 years had a positive operating cash flow.
AROW Yearly Net Income VS EBIT VS OCF VS FCFAROW 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 20M 40M 60M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 0.75%, AROW is doing worse than 65.35% of the companies in the same industry.
  • AROW's Return On Equity of 8.24% is in line compared to the rest of the industry. AROW outperforms 41.21% of its industry peers.
Industry RankSector Rank
ROA 0.75%
ROE 8.24%
ROIC N/A
ROA(3y)0.8%
ROA(5y)0.97%
ROE(3y)8.5%
ROE(5y)10.55%
ROIC(3y)N/A
ROIC(5y)N/A
AROW Yearly ROA, ROE, ROICAROW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • Looking at the Profit Margin, with a value of 22.04%, AROW is doing worse than 63.25% of the companies in the same industry.
  • 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) 22.04%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-6.68%
PM growth 5Y-3%
GM growth 3YN/A
GM growth 5YN/A
AROW Yearly Profit, Operating, Gross MarginsAROW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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4

2. AROW Health Analysis

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.
  • AROW has a better debt/assets ratio than last year.
AROW Yearly Shares OutstandingAROW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M
AROW Yearly Total Debt VS Total AssetsAROW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.2 Solvency

  • The Debt to FCF ratio of AROW is 0.70, which is an excellent value as it means it would take AROW, only 0.70 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of AROW (0.70) is better than 75.85% 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 has a better Debt to Equity ratio (0.06) than 78.22% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.7
Altman-Z N/A
ROIC/WACCN/A
WACC19.98%
AROW Yearly LT Debt VS Equity VS FCFAROW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
AROW Yearly Current Assets VS Current LiabilitesAROW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M

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6

3. AROW Growth Analysis

3.1 Past

  • AROW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.49%, which is quite impressive.
  • The Earnings Per Share has been growing slightly by 1.29% on average over the past years.
  • AROW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.45%.
  • The Revenue has been growing slightly by 4.64% on average over the past years.
EPS 1Y (TTM)50.49%
EPS 3Y-2.62%
EPS 5Y1.29%
EPS Q2Q%214.81%
Revenue 1Y (TTM)18.45%
Revenue growth 3Y3.49%
Revenue growth 5Y4.64%
Sales Q2Q%28%

3.2 Future

  • The Earnings Per Share is expected to grow by 18.53% on average over the next years. This is quite good.
  • AROW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.81% yearly.
EPS Next Y32.79%
EPS Next 2Y18.53%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.47%
Revenue Next 2Y7.81%
Revenue Next 3YN/A
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.
AROW Yearly Revenue VS EstimatesAROW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 50M 100M 150M
AROW Yearly EPS VS EstimatesAROW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3

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5

4. AROW Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 12.23, AROW is valued correctly.
  • AROW's Price/Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Earnings ratio is at 25.96. AROW is valued rather cheaply when compared to this.
  • Based on the Price/Forward Earnings ratio of 9.21, the valuation of AROW can be described as reasonable.
  • Based on the Price/Forward Earnings ratio, AROW is valued a bit cheaper than 66.14% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, AROW is valued rather cheaply.
Industry RankSector Rank
PE 12.23
Fwd PE 9.21
AROW Price Earnings VS Forward Price EarningsAROW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Price/Free Cash Flow ratio, AROW is valued a bit more expensive than the industry average as 64.83% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 15.03
EV/EBITDA N/A
AROW Per share dataAROW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

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.
  • A more expensive valuation may be justified as AROW's earnings are expected to grow with 18.53% in the coming years.
PEG (NY)0.37
PEG (5Y)9.46
EPS Next 2Y18.53%
EPS Next 3YN/A

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

7

5. AROW Dividend Analysis

5.1 Amount

  • AROW has a Yearly Dividend Yield of 3.67%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.90, AROW pays a bit more dividend than its industry peers.
  • AROW's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 3.67%

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
AROW Yearly Dividends per shareAROW Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • AROW pays out 54.67% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • The dividend of AROW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP54.67%
EPS Next 2Y18.53%
EPS Next 3YN/A
AROW Yearly Income VS Free CF VS DividendAROW Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
AROW Dividend Payout.AROW Dividend Payout, showing the Payout Ratio.AROW Dividend Payout.PayoutRetained Earnings

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AROW Fundamentals: All Metrics, Ratios and Statistics

ARROW FINANCIAL CORP

NASDAQ:AROW (3/16/2026, 8:08:12 PM)

After market: 32.41 0 (0%)

32.41

-0.07 (-0.22%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)01-29
Earnings (Next)04-29
Inst Owners58.45%
Inst Owner Change10.73%
Ins Owners2.16%
Ins Owner Change5.99%
Market Cap533.14M
Revenue(TTM)165.60M
Net Income(TTM)34.41M
Analysts43.33
Price Target35.19 (8.58%)
Short Float %0.88%
Short Ratio1.57
Dividend
Industry RankSector Rank
Dividend Yield 3.67%
Yearly Dividend1.09
Dividend Growth(5Y)3.76%
DP54.67%
Div Incr Years3
Div Non Decr Years31
Ex-Date02-11
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.32%
Min EPS beat(2)4.85%
Max EPS beat(2)13.8%
EPS beat(4)2
Avg EPS beat(4)-12.11%
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)1
Avg Revenue beat(2)0.54%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)2.46%
Revenue beat(4)1
Avg Revenue beat(4)-3.35%
Min Revenue beat(4)-12.39%
Max Revenue beat(4)2.46%
Revenue beat(8)2
Avg Revenue beat(8)-2.64%
Revenue beat(12)3
Avg Revenue beat(12)-3.24%
Revenue beat(16)6
Avg Revenue beat(16)-2.18%
PT rev (1m)0%
PT rev (3m)2.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)1.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.44%
Valuation
Industry RankSector Rank
PE 12.23
Fwd PE 9.21
P/S 3.42
P/FCF 15.03
P/OCF 13
P/B 1.28
P/tB 1.36
EV/EBITDA N/A
EPS(TTM)2.65
EY8.18%
EPS(NY)3.52
Fwd EY10.86%
FCF(TTM)2.16
FCFY6.65%
OCF(TTM)2.49
OCFY7.69%
SpS9.49
BVpS25.39
TBVpS23.84
PEG (NY)0.37
PEG (5Y)9.46
Graham Number38.91
Profitability
Industry RankSector Rank
ROA 0.75%
ROE 8.24%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 22.04%
GM N/A
FCFM 22.72%
ROA(3y)0.8%
ROA(5y)0.97%
ROE(3y)8.5%
ROE(5y)10.55%
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
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-6.68%
PM growth 5Y-3%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.7
Debt/EBITDA N/A
Cap/Depr 100.82%
Cap/Sales 3.54%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 103.08%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score6
WACC19.98%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)50.49%
EPS 3Y-2.62%
EPS 5Y1.29%
EPS Q2Q%214.81%
EPS Next Y32.79%
EPS Next 2Y18.53%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)18.45%
Revenue growth 3Y3.49%
Revenue growth 5Y4.64%
Sales Q2Q%28%
Revenue Next Year10.47%
Revenue Next 2Y7.81%
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 1Y353.03%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y227.34%
OCF growth 3YN/A
OCF growth 5YN/A

ARROW FINANCIAL CORP / AROW Fundamental Analysis FAQ

What is the ChartMill fundamental rating of ARROW FINANCIAL CORP (AROW) stock?

ChartMill assigns a fundamental rating of 4 / 10 to AROW.


Can you provide the valuation status for ARROW FINANCIAL CORP?

ChartMill assigns a valuation rating of 5 / 10 to ARROW FINANCIAL CORP (AROW). This can be considered as Fairly Valued.


Can you provide the profitability details for ARROW FINANCIAL CORP?

ARROW FINANCIAL CORP (AROW) has a profitability rating of 2 / 10.


Can you provide the PE and PB ratios for AROW stock?

The Price/Earnings (PE) ratio for ARROW FINANCIAL CORP (AROW) is 12.23 and the Price/Book (PB) ratio is 1.28.


What is the earnings growth outlook for ARROW FINANCIAL CORP?

The Earnings per Share (EPS) of ARROW FINANCIAL CORP (AROW) is expected to grow by 32.79% in the next year.