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ARROW FINANCIAL CORP (AROW) Stock Fundamental Analysis

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

28.02  +0.36 (+1.3%)

Fundamental Rating

4

Taking everything into account, AROW scores 4 out of 10 in our fundamental rating. AROW was compared to 395 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 correct valuation and a medium growth rate. Finally AROW also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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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.
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 has a Return On Assets of 0.64%. This is in the lower half of the industry: AROW underperforms 66.08% of its industry peers.
AROW has a Return On Equity of 7.01%. This is in the lower half of the industry: AROW underperforms 61.77% 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's Profit Margin of 19.60% is on the low side compared to the rest of the industry. AROW is outperformed by 64.56% 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.
Compared to 1 year ago, AROW has less shares outstanding
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

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 76.96% 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 78.73% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.88
Altman-Z N/A
ROIC/WACCN/A
WACC21.47%
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%.
The Earnings Per Share has been decreasing by -4.38% on average over the past years.
The Revenue has grown by 8.39% in the past year. This is quite good.
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

The Earnings Per Share is expected to grow by 17.96% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.22% on average over the next years. This is quite good.
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

AROW is valuated correctly with a Price/Earnings ratio of 16.48.
Based on the Price/Earnings ratio, AROW is valued a bit more expensive than 71.14% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, AROW is valued a bit cheaper.
With a Price/Forward Earnings ratio of 9.42, the valuation of AROW can be described as very reasonable.
Based on the Price/Forward Earnings ratio, AROW is valued a bit cheaper than 66.58% of the companies in the same industry.
AROW is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 16.48
Fwd PE 9.42
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

64.05% of the companies in the same industry are cheaper than AROW, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 16.41
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.
A more expensive valuation may be justified as AROW's earnings are expected to grow with 17.96% in the coming years.
PEG (NY)1.15
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 4.21%, AROW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.47, AROW pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, AROW pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.21%

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 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 (7/3/2025, 7:02:43 PM)

28.02

+0.36 (+1.3%)

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 Owners52.54%
Inst Owner Change1.59%
Ins Owners1.84%
Ins Owner Change4%
Market Cap467.37M
Analysts45.71
Price Target28.31 (1.03%)
Short Float %0.77%
Short Ratio2.46
Dividend
Industry RankSector Rank
Dividend Yield 4.21%
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)0%
EPS NQ rev (3m)-7.81%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.3%
Valuation
Industry RankSector Rank
PE 16.48
Fwd PE 9.42
P/S 3.23
P/FCF 16.41
P/OCF 13.67
P/B 1.16
P/tB 1.23
EV/EBITDA N/A
EPS(TTM)1.7
EY6.07%
EPS(NY)2.97
Fwd EY10.61%
FCF(TTM)1.71
FCFY6.09%
OCF(TTM)2.05
OCFY7.32%
SpS8.67
BVpS24.25
TBVpS22.7
PEG (NY)1.15
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
WACC21.47%
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%