ARROW ELECTRONICS INC (ARW) Stock Fundamental Analysis
NYSE:ARW - New York Stock Exchange, Inc. - US0427351004 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to ARW. ARW was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. Both the profitability and the financial health of ARW get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on ARW.
1. Profitability
1.1 Basic Checks
ARW had positive earnings in the past year.
In the past year ARW had a positive cash flow from operations.
ARW had positive earnings in each of the past 5 years.
Of the past 5 years ARW 4 years had a positive operating cash flow.
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 66.13% of the companies in the same industry.
ARW's Return On Invested Capital of 6.63% is fine compared to the rest of the industry. ARW outperforms 70.16% 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 9.54%.
The last Return On Invested Capital (6.63%) for ARW is well below the 3 year average (12.62%), which needs to be investigated, but indicates that ARW had better years and this may not be a problem.
| 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 (1.64%) which is comparable to the rest of the industry.
ARW's Profit Margin has declined in the last couple of years.
ARW has a Operating Margin (2.86%) which 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.
ARW's Gross Margin of 11.27% is on the low side compared to the rest of the industry. ARW is outperformed by 77.42% of its industry peers.
ARW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.86% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ARW is creating some value.
ARW has less shares outstanding than it did 1 year ago.
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
ARW has an Altman-Z score of 2.14. This is not the best score and indicates that ARW is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of ARW (2.14) is worse than 66.94% of its industry peers.
ARW has a debt to FCF ratio of 6.03. This is a slightly negative value and a sign of low solvency as ARW would need 6.03 years to pay back of all of its debts.
ARW has a Debt to FCF ratio (6.03) 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.
Looking at the Debt to Equity ratio, with a value of 0.45, ARW is doing worse than 64.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 2.14 |
ROIC/WACC0.73
WACC9.13%
2.3 Liquidity
ARW has a Current Ratio of 1.39. This is a normal value and indicates that ARW is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ARW (1.39) is worse than 80.65% of its industry peers.
A Quick Ratio of 1.07 indicates that ARW should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.07, ARW is not doing good in the industry: 76.61% of the companies in the same industry are doing better.
| 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 -26.42% 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.
Looking at the last year, ARW shows a decrease in Revenue. The Revenue has decreased by -3.95% in the last year.
The Revenue has been decreasing by -0.70% on average over the past years.
EPS 1Y (TTM)-26.42%
EPS 3Y-13.05%
EPS 5Y6.45%
EPS Q2Q%-2.41%
Revenue 1Y (TTM)-3.95%
Revenue growth 3Y-6.79%
Revenue growth 5Y-0.7%
Sales Q2Q%9.97%
3.2 Future
Based on estimates for the next years, ARW will show a very strong growth in Earnings Per Share. The EPS will grow by 24.41% on average per year.
The Revenue is expected to grow by 6.95% on average over the next years.
EPS Next Y1.24%
EPS Next 2Y21.14%
EPS Next 3Y24.41%
EPS Next 5YN/A
Revenue Next Year5.76%
Revenue Next 2Y5.91%
Revenue Next 3Y6.95%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.32, ARW is valued correctly.
Based on the Price/Earnings ratio, ARW is valued cheaply inside the industry as 91.94% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.24, ARW is valued rather cheaply.
ARW is valuated cheaply with a Price/Forward Earnings ratio of 7.84.
Based on the Price/Forward Earnings ratio, ARW is valued cheaper than 97.58% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.42. ARW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.32 | ||
| Fwd PE | 7.84 |
4.2 Price Multiples
ARW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ARW is cheaper than 92.74% of the companies in the same industry.
91.94% of the companies in the same industry are more expensive than ARW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.07 | ||
| EV/EBITDA | 8.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ARW's earnings are expected to grow with 24.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)9.96
PEG (5Y)1.91
EPS Next 2Y21.14%
EPS Next 3Y24.41%
5. Dividend
5.1 Amount
ARW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:ARW (8/5/2025, 12:58:42 PM)
118
+1.89 (+1.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners107.32%
Inst Owner Change4.8%
Ins Owners0.61%
Ins Owner Change4.99%
Market Cap6.12B
Analysts50
Price Target118.86 (0.73%)
Short Float %5.51%
Short Ratio6.77
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)0%
PT rev (3m)-0.45%
EPS NQ rev (1m)0.88%
EPS NQ rev (3m)0.19%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)7.36%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)5.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.32 | ||
| Fwd PE | 7.84 | ||
| P/S | 0.21 | ||
| P/FCF | 13.07 | ||
| P/OCF | 11.07 | ||
| P/B | 0.97 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 8.46 |
EPS(TTM)9.58
EY8.12%
EPS(NY)15.04
Fwd EY12.75%
FCF(TTM)9.03
FCFY7.65%
OCF(TTM)10.66
OCFY9.03%
SpS549.45
BVpS122.11
TBVpS79.49
PEG (NY)9.96
PEG (5Y)1.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 7.38% | ||
| ROCE | 8.78% | ||
| ROIC | 6.63% | ||
| ROICexc | 6.79% | ||
| ROICexgc | 8.84% | ||
| OM | 2.86% | ||
| PM (TTM) | 1.64% | ||
| GM | 11.27% | ||
| FCFM | 1.64% |
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%
ROICexcg growth 3Y-21.09%
ROICexcg 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 | 6.03 | ||
| Debt/EBITDA | 2.92 | ||
| Cap/Depr | 55.99% | ||
| Cap/Sales | 0.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.26% | ||
| Profit Quality | 100.19% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 2.14 |
F-Score5
WACC9.13%
ROIC/WACC0.73
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)-26.42%
EPS 3Y-13.05%
EPS 5Y6.45%
EPS Q2Q%-2.41%
EPS Next Y1.24%
EPS Next 2Y21.14%
EPS Next 3Y24.41%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.95%
Revenue growth 3Y-6.79%
Revenue growth 5Y-0.7%
Sales Q2Q%9.97%
Revenue Next Year5.76%
Revenue Next 2Y5.91%
Revenue Next 3Y6.95%
Revenue Next 5YN/A
EBIT growth 1Y-32.9%
EBIT growth 3Y-16.61%
EBIT growth 5Y-0.12%
EBIT Next Year13%
EBIT Next 3Y18.46%
EBIT Next 5YN/A
FCF growth 1Y75.33%
FCF growth 3Y45.64%
FCF growth 5Y7.97%
OCF growth 1Y59.45%
OCF growth 3Y39.21%
OCF growth 5Y5.67%