ARROW ELECTRONICS INC (ARW) Stock Fundamental Analysis
USA - NYSE:ARW - US0427351004 - Common Stock
111.2 USD
-1.63 (-1.44%)
111.3 USD
+0.1 (+0.09%)
Overall ARW gets a fundamental rating of 4 out of 10. We evaluated ARW against 124 industry peers in the Electronic Equipment, Instruments & Components industry. ARW has an average financial health and profitability rating. ARW is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ARW had positive earnings in the past year.
ARW had a positive operating cash flow in the past year.
ARW had positive earnings in each of the past 5 years.
ARW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ARW has a Return On Assets (1.93%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 7.38%, ARW is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
ARW has a better Return On Invested Capital (6.63%) than 68.55% of its industry peers.
ARW had an Average Return On Invested Capital over the past 3 years of 12.62%. This is above the industry average of 9.51%.
The 3 year average ROIC (12.62%) for ARW is well above the current ROIC(6.63%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 7.38% | ||
| ROIC | 6.63% |
ROA(3y)4.17%
ROA(5y)4.32%
ROE(3y)16.03%
ROE(5y)16.11%
ROIC(3y)12.62%
ROIC(5y)12.42%
1.3 Margins
ARW has a Profit Margin of 1.64%. This is comparable to the rest of the industry: ARW outperforms 54.84% of its industry peers.
ARW's Profit Margin has declined in the last couple of years.
The Operating Margin of ARW (2.85%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ARW has remained more or less at the same level.
The Gross Margin of ARW (11.27%) is worse than 77.42% of its industry peers.
In the last couple of years the Gross Margin of ARW has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.85% | ||
| PM (TTM) | 1.64% | ||
| GM | 11.27% |
OM growth 3Y-10.54%
OM growth 5Y0.58%
PM growth 3Y-24.12%
PM growth 5YN/A
GM growth 3Y-1.1%
GM growth 5Y0.67%
2. Health
2.1 Basic Checks
ARW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ARW has less shares outstanding
ARW has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ARW has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.13 indicates that ARW is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.13, ARW is doing worse than 65.32% of the companies in the same industry.
ARW has a debt to FCF ratio of 6.02. This is a slightly negative value and a sign of low solvency as ARW would need 6.02 years to pay back of all of its debts.
ARW has a Debt to FCF ratio (6.02) which is in line with its industry peers.
A Debt/Equity ratio of 0.45 indicates that ARW is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.45, ARW is not doing good in the industry: 66.94% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.02 | ||
| Altman-Z | 2.13 |
ROIC/WACC0.74
WACC8.98%
2.3 Liquidity
A Current Ratio of 1.39 indicates that ARW should not have too much problems paying its short term obligations.
ARW has a worse Current ratio (1.39) than 78.23% of its industry peers.
A Quick Ratio of 1.07 indicates that ARW should not have too much problems paying its short term obligations.
ARW has a worse Quick ratio (1.07) than 73.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The earnings per share for ARW have decreased strongly by -14.65% in the last year.
ARW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.45% yearly.
ARW shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.66%.
Measured over the past years, ARW shows a decrease in Revenue. The Revenue has been decreasing by -0.70% on average per year.
EPS 1Y (TTM)-14.65%
EPS 3Y-13.05%
EPS 5Y6.45%
EPS Q2Q%1.26%
Revenue 1Y (TTM)-15.66%
Revenue growth 3Y-6.79%
Revenue growth 5Y-0.7%
Sales Q2Q%13.03%
3.2 Future
The Earnings Per Share is expected to grow by 11.01% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.45% on average over the next years.
EPS Next Y1.84%
EPS Next 2Y15.72%
EPS Next 3Y12.11%
EPS Next 5Y11.01%
Revenue Next Year9.63%
Revenue Next 2Y7.38%
Revenue Next 3Y6.64%
Revenue Next 5Y5.45%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.57, the valuation of ARW can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of ARW indicates a rather cheap valuation: ARW is cheaper than 93.55% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.67. ARW is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.10, the valuation of ARW can be described as reasonable.
96.77% of the companies in the same industry are more expensive than ARW, based on the Price/Forward Earnings ratio.
ARW is valuated cheaply when we compare the Price/Forward Earnings ratio to 31.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.57 | ||
| Fwd PE | 8.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARW is valued cheaply inside the industry as 93.55% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ARW is valued cheaper than 93.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.21 | ||
| EV/EBITDA | 8.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ARW does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as ARW's earnings are expected to grow with 12.11% in the coming years.
PEG (NY)6.29
PEG (5Y)1.79
EPS Next 2Y15.72%
EPS Next 3Y12.11%
5. Dividend
5.1 Amount
No dividends for ARW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
111.2
-1.63 (-1.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners109.57%
Inst Owner Change-1.24%
Ins Owners0.33%
Ins Owner Change2.06%
Market Cap5.73B
Revenue(TTM)27.92B
Net Income(TTM)467.68M
Analysts47.14
Price Target115.62 (3.97%)
Short Float %5.87%
Short Ratio6.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.14%
Min EPS beat(2)16%
Max EPS beat(2)24.28%
EPS beat(4)4
Avg EPS beat(4)14.6%
Min EPS beat(4)6.15%
Max EPS beat(4)24.28%
EPS beat(8)8
Avg EPS beat(8)12.01%
EPS beat(12)10
Avg EPS beat(12)8.03%
EPS beat(16)14
Avg EPS beat(16)9.27%
Revenue beat(2)2
Avg Revenue beat(2)5.77%
Min Revenue beat(2)4.8%
Max Revenue beat(2)6.75%
Revenue beat(4)4
Avg Revenue beat(4)3.52%
Min Revenue beat(4)0.39%
Max Revenue beat(4)6.75%
Revenue beat(8)5
Avg Revenue beat(8)1.64%
Revenue beat(12)6
Avg Revenue beat(12)0.68%
Revenue beat(16)8
Avg Revenue beat(16)0.58%
PT rev (1m)-3.72%
PT rev (3m)-2.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.93%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.57 | ||
| Fwd PE | 8.1 | ||
| P/S | 0.2 | ||
| P/FCF | 12.21 | ||
| P/OCF | 10.35 | ||
| P/B | 0.9 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 8.25 |
EPS(TTM)9.61
EY8.64%
EPS(NY)13.73
Fwd EY12.34%
FCF(TTM)9.1
FCFY8.19%
OCF(TTM)10.74
OCFY9.66%
SpS553.4
BVpS122.99
TBVpS80.06
PEG (NY)6.29
PEG (5Y)1.79
Graham Number163.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 7.38% | ||
| ROCE | 8.77% | ||
| ROIC | 6.63% | ||
| ROICexc | 6.78% | ||
| ROICexgc | 8.84% | ||
| OM | 2.85% | ||
| PM (TTM) | 1.64% | ||
| GM | 11.27% | ||
| FCFM | 1.65% |
ROA(3y)4.17%
ROA(5y)4.32%
ROE(3y)16.03%
ROE(5y)16.11%
ROIC(3y)12.62%
ROIC(5y)12.42%
ROICexc(3y)12.88%
ROICexc(5y)12.75%
ROICexgc(3y)16.8%
ROICexgc(5y)17.19%
ROCE(3y)16.81%
ROCE(5y)16.22%
ROICexgc growth 3Y-21.09%
ROICexgc growth 5Y-3.76%
ROICexc growth 3Y-19.55%
ROICexc growth 5Y-2.39%
OM growth 3Y-10.54%
OM growth 5Y0.58%
PM growth 3Y-24.12%
PM growth 5YN/A
GM growth 3Y-1.1%
GM growth 5Y0.67%
F-Score5
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.02 | ||
| Debt/EBITDA | 2.93 | ||
| Cap/Depr | 55.84% | ||
| Cap/Sales | 0.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.36% | ||
| Profit Quality | 100.26% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 2.13 |
F-Score5
WACC8.98%
ROIC/WACC0.74
Cap/Depr(3y)48.3%
Cap/Depr(5y)50.65%
Cap/Sales(3y)0.27%
Cap/Sales(5y)0.29%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-14.65%
EPS 3Y-13.05%
EPS 5Y6.45%
EPS Q2Q%1.26%
EPS Next Y1.84%
EPS Next 2Y15.72%
EPS Next 3Y12.11%
EPS Next 5Y11.01%
Revenue 1Y (TTM)-15.66%
Revenue growth 3Y-6.79%
Revenue growth 5Y-0.7%
Sales Q2Q%13.03%
Revenue Next Year9.63%
Revenue Next 2Y7.38%
Revenue Next 3Y6.64%
Revenue Next 5Y5.45%
EBIT growth 1Y-32.97%
EBIT growth 3Y-16.61%
EBIT growth 5Y-0.12%
EBIT Next Year11.18%
EBIT Next 3Y17.61%
EBIT Next 5Y9.09%
FCF growth 1Y75.62%
FCF growth 3Y45.64%
FCF growth 5Y7.97%
OCF growth 1Y59.56%
OCF growth 3Y39.21%
OCF growth 5Y5.67%
ARROW ELECTRONICS INC / ARW FAQ
What is the fundamental rating for ARW stock?
ChartMill assigns a fundamental rating of 4 / 10 to ARW.
What is the valuation status of ARROW ELECTRONICS INC (ARW) stock?
ChartMill assigns a valuation rating of 7 / 10 to ARROW ELECTRONICS INC (ARW). This can be considered as Undervalued.
Can you provide the profitability details for ARROW ELECTRONICS INC?
ARROW ELECTRONICS INC (ARW) has a profitability rating of 5 / 10.
What are the PE and PB ratios of ARROW ELECTRONICS INC (ARW) stock?
The Price/Earnings (PE) ratio for ARROW ELECTRONICS INC (ARW) is 11.57 and the Price/Book (PB) ratio is 0.9.
What is the earnings growth outlook for ARROW ELECTRONICS INC?
The Earnings per Share (EPS) of ARROW ELECTRONICS INC (ARW) is expected to grow by 1.84% in the next year.