32.57 USD
-0.07 (-0.21%)
Taking everything into account, AROW scores 4 out of 10 in our fundamental rating. AROW was compared to 383 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 correct valuation and a medium growth rate. AROW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year AROW was profitable.
- In the past year AROW had a positive cash flow from operations.
- 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
- Looking at the Return On Assets, with a value of 0.75%, AROW is doing worse than 62.40% of the companies in the same industry.
- AROW has a Return On Equity (8.24%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 8.24% | ||
| 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 22.04%, AROW is not doing good in the industry: 60.31% of the companies in the same industry are doing better.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 22.04% | ||
| 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.
- AROW has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, AROW has less shares outstanding
- Compared to 1 year ago, AROW has an improved debt to assets ratio.
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.
- AROW has a better Debt to FCF ratio (0.70) than 75.20% of its industry peers.
- A Debt/Equity ratio of 0.06 indicates that AROW is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.06, AROW is in the better half of the industry, outperforming 78.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.7 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC19.87%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- AROW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.15%.
- The Earnings Per Share has been decreasing by -4.38% on average over the past years.
- AROW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.31%.
- AROW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.71% yearly.
EPS 1Y (TTM)6.15%
EPS 3Y-15.3%
EPS 5Y-4.38%
EPS Q2Q%45.28%
Revenue 1Y (TTM)12.31%
Revenue growth 3Y-0.7%
Revenue growth 5Y3.71%
Sales Q2Q%17.16%
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 19.78% yearly.
- AROW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.96% yearly.
EPS Next Y24.58%
EPS Next 2Y27.39%
EPS Next 3Y19.78%
EPS Next 5YN/A
Revenue Next Year14.95%
Revenue Next 2Y12.44%
Revenue Next 3Y9.96%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- AROW is valuated correctly with a Price/Earnings ratio of 15.73.
- Based on the Price/Earnings ratio, AROW is valued a bit more expensive than 71.54% of the companies in the same industry.
- AROW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
- With a Price/Forward Earnings ratio of 9.39, the valuation of AROW can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AROW indicates a somewhat cheap valuation: AROW is cheaper than 70.50% 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 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.73 | ||
| Fwd PE | 9.39 |
4.2 Price Multiples
- AROW's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. AROW is more expensive than 63.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.1 | ||
| 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.
- AROW's earnings are expected to grow with 19.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)N/A
EPS Next 2Y27.39%
EPS Next 3Y19.78%
5. Dividend
5.1 Amount
- AROW has a Yearly Dividend Yield of 3.43%.
- Compared to an average industry Dividend Yield of 2.64, AROW pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, AROW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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 54.67% of its income as dividend. This is a bit on the high side, but may be sustainable.
- AROW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP54.67%
EPS Next 2Y27.39%
EPS Next 3Y19.78%
ARROW FINANCIAL CORP / AROW 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 4 / 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 15.73 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 24.58% in the next year.