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ARROW FINANCIAL CORP (AROW) Stock Fundamental Analysis

NASDAQ:AROW - Nasdaq - US0427441029 - Common Stock - Currency: USD

28.16  +0.22 (+0.79%)

After market: 28.16 0 (0%)

Fundamental Rating

4

AROW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 393 industry peers in the Banks industry. The financial health of AROW is average, but there are quite some concerns on its profitability. AROW has a decent growth rate and is not valued too expensively. AROW also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

AROW had positive earnings in the past year.
In the past year AROW had a positive cash flow from operations.
In the past 5 years AROW has always been profitable.
AROW had a positive operating cash flow in each of the past 5 years.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M

1.2 Ratios

AROW's Return On Assets of 0.64% is on the low side compared to the rest of the industry. AROW is outperformed by 65.39% of its industry peers.
AROW's Return On Equity of 7.01% is on the low side compared to the rest of the industry. AROW is outperformed by 60.56% of its industry peers.
Industry RankSector Rank
ROA 0.64%
ROE 7.01%
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
AROW Yearly ROA, ROE, ROICAROW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

The Profit Margin of AROW (19.60%) is worse than 62.85% of its industry peers.
In the last couple of years the Profit Margin of AROW has declined.
The Operating Margin and Gross Margin are not available for AROW so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) 19.6%
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
AROW Yearly Profit, Operating, Gross MarginsAROW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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4

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.
Compared to 1 year ago, AROW has an improved debt to assets ratio.
AROW Yearly Shares OutstandingAROW Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M
AROW Yearly Total Debt VS Total AssetsAROW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.2 Solvency

AROW has a debt to FCF ratio of 0.88. This is a very positive value and a sign of high solvency as it would only need 0.88 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 0.88, AROW is doing good in the industry, outperforming 75.83% of the companies in the same industry.
AROW has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.06, AROW is in the better half of the industry, outperforming 78.88% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.88
Altman-Z N/A
ROIC/WACCN/A
WACC21.5%
AROW Yearly LT Debt VS Equity VS FCFAROW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M

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5

3. Growth

3.1 Past

The earnings per share for AROW have decreased strongly by -38.16% in the last year.
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.
Looking at the last year, AROW shows a quite strong growth in Revenue. The Revenue has grown by 10.31% in the last year.
AROW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.47% yearly.
EPS 1Y (TTM)-38.16%
EPS 3Y-11.5%
EPS 5Y-4.97%
EPS Q2Q%26.78%
Revenue 1Y (TTM)10.31%
Revenue growth 3Y0.54%
Revenue growth 5Y3.47%
Sales Q2Q%14.67%

3.2 Future

The Earnings Per Share is expected to grow by 18.57% on average over the next years. This is quite good.
AROW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.37% yearly.
EPS Next Y20.43%
EPS Next 2Y16.97%
EPS Next 3Y18.57%
EPS Next 5YN/A
Revenue Next Year5.62%
Revenue Next 2Y9.11%
Revenue Next 3Y8.37%
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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M
AROW Yearly EPS VS EstimatesAROW Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

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4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 15.39, AROW is valued correctly.
70.23% of the companies in the same industry are cheaper than AROW, based on the Price/Earnings ratio.
AROW is valuated rather cheaply when we compare the Price/Earnings ratio to 26.86, which is the current average of the S&P500 Index.
AROW is valuated reasonably with a Price/Forward Earnings ratio of 11.60.
Based on the Price/Forward Earnings ratio, AROW is valued a bit more expensive than 62.09% of the companies 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 34.94.
Industry RankSector Rank
PE 15.39
Fwd PE 11.6
AROW Price Earnings VS Forward Price EarningsAROW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, AROW is valued a bit more expensive than the industry average as 62.60% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 16.3
EV/EBITDA N/A
AROW Per share dataAROW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

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 18.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.75
PEG (5Y)N/A
EPS Next 2Y16.97%
EPS Next 3Y18.57%

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8

5. Dividend

5.1 Amount

AROW has a Yearly Dividend Yield of 4.07%, which is a nice return.
Compared to an average industry Dividend Yield of 3.41, AROW pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, AROW pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.07%

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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

64.95% of the earnings are spent on dividend by AROW. This is not a sustainable payout ratio.
The dividend of AROW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP64.95%
EPS Next 2Y16.97%
EPS Next 3Y18.57%
AROW Yearly Income VS Free CF VS DividendAROW Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
AROW Dividend Payout.AROW Dividend Payout, showing the Payout Ratio.AROW Dividend Payout.PayoutRetained Earnings

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ARROW FINANCIAL CORP

NASDAQ:AROW (8/20/2025, 8:00:00 PM)

After market: 28.16 0 (0%)

28.16

+0.22 (+0.79%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)07-24 2025-07-24/bmo
Earnings (Next)10-29 2025-10-29/bmo
Inst Owners53.26%
Inst Owner Change-3.18%
Ins Owners1.89%
Ins Owner Change0.43%
Market Cap464.08M
Analysts43.33
Price Target29.07 (3.23%)
Short Float %0.82%
Short Ratio3.19
Dividend
Industry RankSector Rank
Dividend Yield 4.07%
Yearly Dividend1.09
Dividend Growth(5Y)3.76%
DP64.95%
Div Incr Years3
Div Non Decr Years31
Ex-Date08-11 2025-08-11 (0.29)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-33.55%
Min EPS beat(2)-54.75%
Max EPS beat(2)-12.34%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)-7.25%
Min Revenue beat(2)-12.39%
Max Revenue beat(2)-2.12%
Revenue beat(4)0
Avg Revenue beat(4)-3.99%
Min Revenue beat(4)-12.39%
Max Revenue beat(4)-0.41%
Revenue beat(8)2
Avg Revenue beat(8)-3.6%
Revenue beat(12)4
Avg Revenue beat(12)-2.87%
Revenue beat(16)6
Avg Revenue beat(16)-2.09%
PT rev (1m)2.7%
PT rev (3m)2.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)-0.73%
Revenue NY rev (3m)-0.65%
Valuation
Industry RankSector Rank
PE 15.39
Fwd PE 11.6
P/S 3.21
P/FCF 16.3
P/OCF 13.57
P/B 1.15
P/tB 1.23
EV/EBITDA N/A
EPS(TTM)1.83
EY6.5%
EPS(NY)2.43
Fwd EY8.62%
FCF(TTM)1.73
FCFY6.14%
OCF(TTM)2.07
OCFY7.37%
SpS8.78
BVpS24.54
TBVpS22.98
PEG (NY)0.75
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.64%
ROE 7.01%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 19.6%
GM N/A
FCFM 19.68%
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 RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.88
Debt/EBITDA N/A
Cap/Depr 110.5%
Cap/Sales 3.95%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 100.41%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score7
WACC21.5%
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)-38.16%
EPS 3Y-11.5%
EPS 5Y-4.97%
EPS Q2Q%26.78%
EPS Next Y20.43%
EPS Next 2Y16.97%
EPS Next 3Y18.57%
EPS Next 5YN/A
Revenue 1Y (TTM)10.31%
Revenue growth 3Y0.54%
Revenue growth 5Y3.47%
Sales Q2Q%14.67%
Revenue Next Year5.62%
Revenue Next 2Y9.11%
Revenue Next 3Y8.37%
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-32.83%
FCF growth 3Y-22.1%
FCF growth 5Y-4.4%
OCF growth 1Y-39.12%
OCF growth 3Y-20.35%
OCF growth 5Y-4.74%