NasdaqGS:AROW

Stock Analysis Report

Executive Summary

Arrow Financial Corporation, a bank holding company, provides commercial and consumer banking, and financial products and services.

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Arrow Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.5%

AROW

1.7%

US Banks

1.3%

US Market


1 Year Return

-3.4%

AROW

0.3%

US Banks

5.9%

US Market

Return vs Industry: AROW underperformed the US Banks industry which returned 0.3% over the past year.

Return vs Market: AROW underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

AROWIndustryMarket
7 Day-0.5%1.7%1.3%
30 Day-5.9%-2.4%-1.9%
90 Day-0.1%1.0%-1.8%
1 Year-0.4%-3.4%3.2%0.3%8.3%5.9%
3 Year21.6%11.4%52.1%41.7%45.6%36.2%
5 Year71.6%46.3%69.8%51.4%66.1%47.9%

Price Volatility Vs. Market

How volatile is Arrow Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Arrow Financial undervalued compared to its fair value and its price relative to the market?

13.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: AROW ($32.69) is trading above our estimate of fair value ($29.76)

Significantly Undervalued: AROW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AROW is poor value based on its PE Ratio (13.6x) compared to the Banks industry average (12.5x).

PE vs Market: AROW is good value based on its PE Ratio (13.6x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate AROW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AROW is overvalued based on its PB Ratio (1.7x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Arrow Financial forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

1.3%

Forecasted Banks industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if AROW's forecast earnings growth is above the savings rate (2.7%).

Earnings vs Market: Insufficient data to determine if AROW's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if AROW's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if AROW's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if AROW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Arrow Financial performed over the past 5 years?

10.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AROW's earnings have grown by 10.4% per year over the past 5 years.

Accelerating Growth: AROW's earnings growth over the past year (5.7%) is below its 5-year average (10.4% per year).

Earnings vs Industry: AROW earnings growth over the past year (5.7%) underperformed the Banks industry 31.8%.


Return on Equity

High ROE: AROW's Return on Equity (12.5%) is considered low.


Return on Assets

ROA vs Industry: AROW has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate AROW's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Arrow Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: AROW has a low level of unsold assets or inventory.

Debt Coverage by Assets: AROW's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: AROW's level of assets compared to its equity is moderate.

Allowance for Bad Loans: AROW has a sufficient allowance for bad loans.

Low Risk Liabilities: AROW's liabilities are made up of primarily low risk sources of funding.

Loan Level: AROW has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AROW's loans are broadly funded by customer deposits.

Level of Bad Loans: AROW has an appropriate level of bad loans (0.24%)


Next Steps

Dividend

What is Arrow Financial's current dividend yield, its reliability and sustainability?

3.09%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.5%markettop25%3.8%industryaverage3.1%forecastin3Years3.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AROW's dividend (3.09%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: AROW's dividend (3.09%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: AROW's dividends per share have been stable in the past 10 years.

Growing Dividend: AROW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.7%), AROW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Arrow Financial's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

Tom Murphy (60yo)

6.8yrs

Tenure

US$1,335,544

Compensation

Mr. Thomas J. Murphy, also known as Tom, CPA has been the Chief Executive Officer and President of Glens Falls National Bank and Trust Company since January 1, 2013. Mr. Murphy serves as the President of C ...


CEO Compensation Analysis

Compensation vs. Market: Tom's total compensation ($USD1.34M) is about average for companies of similar size in the US market ($USD1.83M).

Compensation vs Earnings: Tom's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.7yrs

Average Tenure

57yo

Average Age

Experienced Management: AROW's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

14.6yrs

Average Tenure

68yo

Average Age

Experienced Board: AROW's board of directors are seasoned and experienced ( 14.6 years average tenure).


Insider Trading

Insider Buying: AROW insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$112,03509 Sep 19
Gary Dake
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,605
Max PriceUS$31.08
SellUS$32,17505 Sep 19
David DeMarco
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Banking Officer
Shares1,019.7
Max PriceUS$31.55
SellUS$91,09730 Aug 19
David DeMarco
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Banking Officer
Shares2,887.09
Max PriceUS$31.55
SellUS$3,25029 Aug 19
David DeMarco
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Banking Officer
Shares103
Max PriceUS$31.55
SellUS$113,33412 Aug 19
Gary Dake
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,605
Max PriceUS$31.44
SellUS$59,13608 Aug 19
David DeMarco
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Banking Officer
Shares1,845.76
Max PriceUS$32.04
SellUS$11,48203 Jul 19
Colin Read
EntityIndividual
Role
Member of the Board of Directors
Director
Shares367.71
Max PriceUS$31.26
SellUS$25,05515 Mar 19
Richard Reisman
EntityIndividual
Role
Member of the Board of Directors
Director
Shares734.39
Max PriceUS$34.12

Ownership Breakdown


Management Team

  • David Kaiser (58yo)

    Senior Vice President

    • Tenure: 4.7yrs
    • Compensation: US$426.69k
  • Peter Lareau

    Corporate Secretary

    • Tenure: 0yrs
  • Dave DeMarco (57yo)

    Senior VP & Chief Banking Officer

    • Tenure: 10.4yrs
    • Compensation: US$524.32k
  • Tom Murphy (60yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$1.34m
  • Ed Campanella (51yo)

    Senior VP

    • Tenure: 2.1yrs
    • Compensation: US$343.35k
  • Andrew Wise (52yo)

    Senior VP & COO

    • Tenure: 1.7yrs
    • Compensation: US$313.18k

Board Members

  • Michael Massiano (84yo)

    Chairman Emeritus

    • Tenure: 15.5yrs
    • Compensation: US$20.10k
  • Tom Hoy (70yo)

    Chairman of the Board

    • Tenure: 15.5yrs
    • Compensation: US$104.46k
  • David Kruczlnicki (66yo)

    Director

    • Tenure: 30.8yrs
    • Compensation: US$59.65k
  • Richard Reisman (73yo)

    Director

    • Tenure: 20.8yrs
    • Compensation: US$65.45k
  • Bill Owens (70yo)

    Lead Director

    • Tenure: 2.4yrs
    • Compensation: US$52.69k
  • Gary Dake (58yo)

    Director

    • Tenure: 16.8yrs
    • Compensation: US$56.21k
  • Michael Clarke (72yo)

    Director

    • Tenure: 13.7yrs
    • Compensation: US$60.76k
  • Ray O'Conor (63yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$59.06k
  • Tom Murphy (60yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$1.34m
  • Colin Read (59yo)

    Director

    • Tenure: 6.4yrs
    • Compensation: US$54.31k

Company Information

Arrow Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Arrow Financial Corporation
  • Ticker: AROW
  • Exchange: NasdaqGS
  • Founded: 1851
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$488.706m
  • Shares outstanding: 14.95m
  • Website: https://www.arrowfinancial.com

Number of Employees


Location

  • Arrow Financial Corporation
  • 250 Glen Street
  • Glens Falls
  • New York
  • 12801
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AROWNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1975

Biography

Arrow Financial Corporation, a bank holding company, provides commercial and consumer banking, and financial products and services. The company’s deposit products include demand deposits, interest-bearing  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:31
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.