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ARROW FINANCIAL CORP (AROW) Stock Fundamental Analysis

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

25.32  -0.83 (-3.17%)

After market: 25.32 0 (0%)

Fundamental Rating

4

AROW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 396 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.


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.
Each year in the past 5 years AROW has been profitable.
Each year in the past 5 years AROW 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M

1.2 Ratios

With a Return On Assets value of 0.64%, AROW is not doing good in the industry: 66.16% of the companies in the same industry are doing better.
AROW has a Return On Equity of 7.01%. This is in the lower half of the industry: AROW underperforms 61.62% 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

AROW has a Profit Margin of 19.60%. This is in the lower half of the industry: AROW underperforms 64.39% of its industry peers.
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 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.
AROW has less shares outstanding than it did 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 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

The Debt to FCF ratio of AROW is 0.88, which is an excellent value as it means it would take AROW, only 0.88 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AROW (0.88) is better than 76.77% 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 78.79% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.88
Altman-Z N/A
ROIC/WACCN/A
WACC22.68%
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

AROW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.70%.
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 8.39%.
Measured over the past years, AROW shows a small growth in Revenue. The Revenue has been growing by 3.71% on average per year.
EPS 1Y (TTM)-0.7%
EPS 3Y-15.3%
EPS 5Y-4.38%
EPS Q2Q%-15.56%
Revenue 1Y (TTM)8.39%
Revenue growth 3Y-0.7%
Revenue growth 5Y3.71%
Sales Q2Q%14.23%

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 17.96% yearly.
Based on estimates for the next years, AROW will show a quite strong growth in Revenue. The Revenue will grow by 10.22% on average per year.
EPS Next Y14.32%
EPS Next 2Y17.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.46%
Revenue Next 2Y10.22%
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 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

Based on the Price/Earnings ratio of 14.89, 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 70.45% of the companies in the same industry.
When comparing the Price/Earnings ratio of AROW to the average of the S&P500 Index (26.31), we can say AROW is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 8.52, the valuation of AROW can be described as reasonable.
AROW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AROW is cheaper than 64.90% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.13. AROW is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 14.89
Fwd PE 8.52
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 64.65% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.83
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

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AROW's earnings are expected to grow with 17.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.04
PEG (5Y)N/A
EPS Next 2Y17.96%
EPS Next 3YN/A

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8

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.41%, AROW is a good candidate for dividend investing.
AROW's Dividend Yield is rather good when compared to the industry average which is at 3.51. AROW pays more dividend than 80.56% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, AROW pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.41%

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.
AROW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP64.95%
EPS Next 2Y17.96%
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 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 (6/13/2025, 8:00:01 PM)

After market: 25.32 0 (0%)

25.32

-0.83 (-3.17%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)05-01 2025-05-01/bmo
Earnings (Next)07-23 2025-07-23/bmo
Inst Owners52.21%
Inst Owner Change1.59%
Ins Owners2.15%
Ins Owner Change4.02%
Market Cap422.34M
Analysts45.71
Price Target28.31 (11.81%)
Short Float %0.57%
Short Ratio1.97
Dividend
Industry RankSector Rank
Dividend Yield 4.41%
Yearly Dividend1.09
Dividend Growth(5Y)3.76%
DP64.95%
Div Incr Years3
Div Non Decr Years31
Ex-Date05-13 2025-05-13 (0.28)
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)0%
PT rev (3m)-8.26%
EPS NQ rev (1m)-3.28%
EPS NQ rev (3m)-5.6%
EPS NY rev (1m)-5.34%
EPS NY rev (3m)-6.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.3%
Valuation
Industry RankSector Rank
PE 14.89
Fwd PE 8.52
P/S 2.92
P/FCF 14.83
P/OCF 12.35
P/B 1.04
P/tB 1.12
EV/EBITDA N/A
EPS(TTM)1.7
EY6.71%
EPS(NY)2.97
Fwd EY11.74%
FCF(TTM)1.71
FCFY6.74%
OCF(TTM)2.05
OCFY8.1%
SpS8.67
BVpS24.25
TBVpS22.7
PEG (NY)1.04
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
WACC22.68%
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)-0.7%
EPS 3Y-15.3%
EPS 5Y-4.38%
EPS Q2Q%-15.56%
EPS Next Y14.32%
EPS Next 2Y17.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.39%
Revenue growth 3Y-0.7%
Revenue growth 5Y3.71%
Sales Q2Q%14.23%
Revenue Next Year13.46%
Revenue Next 2Y10.22%
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-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%