ARROW ELECTRONICS INC (ARW)
US0427351004 - Common Stock
Taking everything into account, ARW scores 5 out of 10 in our fundamental rating. ARW was compared to 127 industry peers in the Electronic Equipment, Instruments & Components industry. While ARW has a great profitability rating, there are quite some concerns on its financial health. ARW has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year ARW was profitable.
In the past year ARW had a positive cash flow from operations.
ARW had positive earnings in 4 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 better Return On Assets (4.16%) than 66.67% of its industry peers.
ARW has a better Return On Equity (15.57%) than 84.13% of its industry peers.
ARW's Return On Invested Capital of 12.38% is amongst the best of the industry. ARW outperforms 85.71% of its industry peers.
ARW had an Average Return On Invested Capital over the past 3 years of 14.61%. This is significantly above the industry average of 9.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.16% | ||
| ROE | 15.57% | ||
| ROIC | 12.38% |
ROA(3y)5.46%
ROA(5y)3.71%
ROE(3y)20.76%
ROE(5y)13.9%
ROIC(3y)14.61%
ROIC(5y)12.25%
1.3 Margins
ARW has a Profit Margin of 2.73%. This is comparable to the rest of the industry: ARW outperforms 58.73% of its industry peers.
ARW's Profit Margin has improved in the last couple of years.
ARW's Operating Margin of 4.70% is fine compared to the rest of the industry. ARW outperforms 61.11% of its industry peers.
ARW's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 12.53%, ARW is doing worse than 72.22% of the companies in the same industry.
ARW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.7% | ||
| PM (TTM) | 2.73% | ||
| GM | 12.53% |
OM growth 3Y13.75%
OM growth 5Y2.84%
PM growth 3Y10.24%
PM growth 5Y2.5%
GM growth 3Y4.04%
GM growth 5Y0.1%
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.
The number of shares outstanding for ARW has been reduced compared to 1 year ago.
The number of shares outstanding for ARW has been reduced compared to 5 years ago.
The debt/assets ratio for ARW is higher compared to a year ago.
2.2 Solvency
ARW has an Altman-Z score of 2.67. 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.
With a Altman-Z score value of 2.67, ARW perfoms like the industry average, outperforming 50.79% of the companies in the same industry.
ARW has a debt to FCF ratio of 6.12. This is a slightly negative value and a sign of low solvency as ARW would need 6.12 years to pay back of all of its debts.
ARW has a Debt to FCF ratio (6.12) which is in line with its industry peers.
ARW has a Debt/Equity ratio of 0.57. This is a neutral value indicating ARW is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.57, ARW is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 6.12 | ||
| Altman-Z | 2.67 |
ROIC/WACC1.34
WACC9.21%
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.
Looking at the Current ratio, with a value of 1.39, ARW is doing worse than 81.75% of the companies in the same industry.
A Quick Ratio of 1.00 indicates that ARW may have some problems paying its short term obligations.
With a Quick ratio value of 1.00, ARW is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
ARW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.53%.
ARW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.12% yearly.
ARW shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.82%.
ARW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.21% yearly.
EPS 1Y (TTM)-23.53%
EPS 3Y29.83%
EPS 5Y14.12%
EPS growth Q2Q-30.05%
Revenue 1Y (TTM)-10.82%
Revenue growth 3Y4.91%
Revenue growth 5Y2.21%
Revenue growth Q2Q-15.81%
3.2 Future
The Earnings Per Share is expected to grow by 5.13% on average over the next years.
ARW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.36% yearly.
EPS Next Y-29.22%
EPS Next 2Y-2.39%
EPS Next 3Y5.13%
EPS Next 5YN/A
Revenue Next Year-10.17%
Revenue Next 2Y-2.31%
Revenue Next 3Y0.36%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.18 indicates a rather cheap valuation of ARW.
ARW's Price/Earnings ratio is rather cheap when compared to the industry. ARW is cheaper than 95.24% of the companies in the same industry.
ARW is valuated cheaply when we compare the Price/Earnings ratio to 28.06, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.14, the valuation of ARW can be described as reasonable.
ARW's Price/Forward Earnings ratio is rather cheap when compared to the industry. ARW is cheaper than 88.10% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.72. ARW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.18 | ||
| Fwd PE | 10.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARW is valued cheaper than 94.44% of the companies in the same industry.
88.89% 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 | 10.65 | ||
| EV/EBITDA | 5.28 |
4.3 Compensation for Growth
ARW has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.51
EPS Next 2Y-2.39%
EPS Next 3Y5.13%
5. Dividend
5.1 Amount
No dividends for ARW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ARROW ELECTRONICS INC
NYSE:ARW (5/2/2024, 7:04:00 PM)
After market: 122.71 0 (0%)122.71
-2.14 (-1.71%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.62B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.18 | ||
| Fwd PE | 10.14 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.16% | ||
| ROE | 15.57% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.7% | ||
| PM (TTM) | 2.73% | ||
| GM | 12.53% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-23.53%
EPS 3Y29.83%
EPS 5Y
EPS growth Q2Q
EPS Next Y-29.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.82%
Revenue growth 3Y4.91%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y