ARROW ELECTRONICS INC (ARW) Stock Fundamental Analysis
USA - NYSE:ARW - US0427351004 - Common Stock
117.48 USD
+1.63 (+1.41%)
117.48 USD
0 (0%)
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. Both the profitability and the financial health of ARW get a neutral evaluation. Nothing too spectacular is happening here. ARW may be a bit undervalued, certainly considering the very reasonable score on growth
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.
In the past 5 years ARW has always been profitable.
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 comparable to the rest of the industry.
ARW has a better Return On Equity (7.39%) than 65.32% of its industry peers.
ARW has a Return On Invested Capital of 6.63%. This is in the better half of the industry: ARW outperforms 68.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ARW is above the industry average of 9.32%.
The last Return On Invested Capital (6.63%) for ARW is well below the 3 year average (12.61%), 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 | 7.39% | ||
| ROIC | 6.63% |
ROA(3y)4.17%
ROA(5y)4.32%
ROE(3y)16.04%
ROE(5y)16.11%
ROIC(3y)12.61%
ROIC(5y)12.41%
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.
ARW's Operating Margin has been stable in the last couple of years.
ARW has a Gross Margin of 11.27%. This is in the lower half of the industry: ARW underperforms 78.23% 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 | 2.86% | ||
| PM (TTM) | 1.64% | ||
| GM | 11.27% |
OM growth 3Y-10.52%
OM growth 5Y0.59%
PM growth 3Y-24.12%
PM growth 5YN/A
GM growth 3Y-1.1%
GM growth 5Y0.67%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ARW is still creating some value.
ARW has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ARW has less shares outstanding
The debt/assets ratio for ARW has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.14 indicates that ARW is not a great score, but indicates only limited risk for bankruptcy at the moment.
ARW's Altman-Z score of 2.14 is on the low side compared to the rest of the industry. ARW is outperformed by 70.16% of its industry peers.
The Debt to FCF ratio of ARW is 6.03, which is on the high side as it means it would take ARW, 6.03 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.03, ARW perfoms like the industry average, outperforming 57.26% of the companies in the same industry.
A Debt/Equity ratio of 0.45 indicates that ARW is not too dependend on debt financing.
The Debt to Equity ratio of ARW (0.45) is worse than 66.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 2.14 |
ROIC/WACC0.74
WACC8.9%
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.
With a Current ratio value of 1.39, ARW is not doing good in the industry: 79.03% of the companies in the same industry are doing better.
ARW has a Quick Ratio of 1.07. This is a normal value and indicates that ARW is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ARW (1.07) is worse than 72.58% 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 -26.42% in the last year.
Measured over the past 5 years, ARW shows a small growth in Earnings Per Share. The EPS has been growing by 6.45% on average per year.
The Revenue has decreased by -3.95% in the past year.
ARW shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.70% yearly.
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
The Earnings Per Share is expected to grow by 23.81% on average over the next years. This is a very strong growth
ARW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.00% yearly.
EPS Next Y1.67%
EPS Next 2Y18.74%
EPS Next 3Y23.81%
EPS Next 5YN/A
Revenue Next Year9.92%
Revenue Next 2Y7.96%
Revenue Next 3Y7%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
ARW is valuated correctly with a Price/Earnings ratio of 12.26.
Compared to the rest of the industry, the Price/Earnings ratio of ARW indicates a rather cheap valuation: ARW is cheaper than 94.35% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.53, ARW is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.13, the valuation of ARW can be described as reasonable.
Based on the Price/Forward Earnings ratio, ARW is valued cheaply inside the industry as 97.58% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.04, ARW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 8.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARW is valued cheaper than 91.94% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ARW is valued cheaply inside the industry as 93.55% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.93 | ||
| EV/EBITDA | 8.49 |
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.
ARW's earnings are expected to grow with 23.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.33
PEG (5Y)1.9
EPS Next 2Y18.74%
EPS Next 3Y23.81%
5. Dividend
5.1 Amount
No dividends for ARW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
117.48
+1.63 (+1.41%)
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-0.1%
Ins Owners0.33%
Ins Owner Change2.06%
Market Cap6.05B
Analysts47.14
Price Target115.62 (-1.58%)
Short Float %5.85%
Short Ratio5.77
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)-3.72%
PT rev (3m)-2.73%
EPS NQ rev (1m)0.87%
EPS NQ rev (3m)-7.85%
EPS NY rev (1m)0.43%
EPS NY rev (3m)0.43%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)5.47%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)4.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 8.13 | ||
| P/S | 0.21 | ||
| P/FCF | 12.93 | ||
| P/OCF | 10.94 | ||
| P/B | 0.96 | ||
| P/tB | 1.47 | ||
| EV/EBITDA | 8.49 |
EPS(TTM)9.58
EY8.15%
EPS(NY)14.45
Fwd EY12.3%
FCF(TTM)9.09
FCFY7.74%
OCF(TTM)10.74
OCFY9.14%
SpS553.4
BVpS122.99
TBVpS80.06
PEG (NY)7.33
PEG (5Y)1.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 7.39% | ||
| ROCE | 8.78% | ||
| ROIC | 6.63% | ||
| ROICexc | 6.78% | ||
| 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)16.04%
ROE(5y)16.11%
ROIC(3y)12.61%
ROIC(5y)12.41%
ROICexc(3y)12.88%
ROICexc(5y)12.74%
ROICexgc(3y)16.79%
ROICexgc(5y)17.18%
ROCE(3y)16.81%
ROCE(5y)16.22%
ROICexcg growth 3Y-21.08%
ROICexcg growth 5Y-3.75%
ROICexc growth 3Y-19.54%
ROICexc growth 5Y-2.38%
OM growth 3Y-10.52%
OM growth 5Y0.59%
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 | 56.29% | ||
| Cap/Sales | 0.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.31% | ||
| Profit Quality | 100% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 2.14 |
F-Score5
WACC8.9%
ROIC/WACC0.74
Cap/Depr(3y)48.32%
Cap/Depr(5y)50.66%
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 Y1.67%
EPS Next 2Y18.74%
EPS Next 3Y23.81%
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 Year9.92%
Revenue Next 2Y7.96%
Revenue Next 3Y7%
Revenue Next 5YN/A
EBIT growth 1Y-32.93%
EBIT growth 3Y-16.6%
EBIT growth 5Y-0.11%
EBIT Next Year11.18%
EBIT Next 3Y17.61%
EBIT Next 5YN/A
FCF growth 1Y75.28%
FCF growth 3Y45.61%
FCF growth 5Y7.96%
OCF growth 1Y59.5%
OCF growth 3Y39.19%
OCF growth 5Y5.66%