Arrow Financial
Market Cap
US$527.2m
Last Updated
2021/03/08 00:16 UTC
Data Sources
Company Financials +
Executive Summary
Arrow Financial Corporation, a bank holding company, provides commercial and consumer banking, and financial products and services. More Details
Rewards
Risk Analysis
No risks detected for AROW from our risk checks.
Snowflake Analysis
Flawless balance sheet established 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
Stable Share Price: AROW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: AROW's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
6.7%
AROW
4.5%
US Banks
-0.4%
US Market
1 Year Return
12.8%
AROW
35.5%
US Banks
36.2%
US Market
Return vs Industry: AROW underperformed the US Banks industry which returned 35.5% over the past year.
Return vs Market: AROW underperformed the US Market which returned 36.2% over the past year.
Shareholder returns
| AROW | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.7% | 4.5% | -0.4% |
| 30 Day | 9.5% | 12.3% | -2.9% |
| 90 Day | 11.6% | 26.1% | 5.0% |
| 1 Year | 16.8%12.8% | 40.3%35.5% | 39.1%36.2% |
| 3 Year | 18.3%7.6% | 13.1%3.4% | 48.4%39.0% |
| 5 Year | 72.9%48.2% | 100.7%75.2% | 116.5%92.4% |
Long-Term 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
1 week ago | Simply Wall St
Be Sure To Check Out Arrow Financial Corporation (NASDAQ:AROW) Before It Goes Ex-Dividend2 weeks ago | Simply Wall St
Did You Participate In Any Of Arrow Financial's (NASDAQ:AROW) Respectable 63% Return?1 month ago | Simply Wall St
Arrow Financial Corporation's (NASDAQ:AROW) 3.4% Dividend Yield Looks Pretty InterestingValuation
Is Arrow Financial undervalued compared to its fair value and its price relative to the market?
24.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AROW ($33.98) is trading below our estimate of fair value ($44.76)
Significantly Below Fair Value: AROW is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AROW is good value based on its PE Ratio (12.9x) compared to the US Banks industry average (13.1x).
PE vs Market: AROW is good value based on its PE Ratio (12.9x) compared to the US market (21.5x).
Price to Earnings Growth Ratio
PEG Ratio: AROW is poor value based on its PEG Ratio (25x)
Price to Book Ratio
PB vs Industry: AROW is overvalued based on its PB Ratio (1.6x) compared to the US Banks industry average (1.1x).
Next Steps
Future Growth
How is Arrow Financial forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
0.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AROW's forecast earnings growth (0.5% per year) is below the savings rate (2%).
Earnings vs Market: AROW's earnings (0.5% per year) are forecast to grow slower than the US market (19.2% per year).
High Growth Earnings: AROW's earnings are forecast to grow, but not significantly.
Revenue vs Market: AROW's revenue (3.1% per year) is forecast to grow slower than the US market (10% per year).
High Growth Revenue: AROW's revenue (3.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AROW's Return on Equity is forecast to be low in 3 years time (11%).
Next Steps
Past Performance
How has Arrow Financial performed over the past 5 years?
10.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AROW has high quality earnings.
Growing Profit Margin: AROW's current net profit margins (33.3%) are higher than last year (32.7%).
Past Earnings Growth Analysis
Earnings Trend: AROW's earnings have grown by 10.2% per year over the past 5 years.
Accelerating Growth: AROW's earnings growth over the past year (9%) is below its 5-year average (10.2% per year).
Earnings vs Industry: AROW earnings growth over the past year (9%) exceeded the Banks industry 0.5%.
Return on Equity
High ROE: AROW's Return on Equity (12.2%) is considered low.
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
Financial Institutions Analysis
Asset Level: AROW's Assets to Equity ratio (11x) is moderate.
Allowance for Bad Loans: AROW has a sufficient allowance for bad loans (456%).
Low Risk Liabilities: 96% of AROW's liabilities are made up of primarily low risk sources of funding.
Loan Level: AROW has an appropriate level of Loans to Assets ratio (70%).
Low Risk Deposits: AROW's Loans to Deposits ratio (79%) is appropriate.
Level of Bad Loans: AROW has an appropriate level of bad loans (0.2%).
Next Steps
Dividend
What is Arrow Financial current dividend yield, its reliability and sustainability?
3.06%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AROW's dividend (3.06%) is higher than the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: AROW's dividend (3.06%) is low compared to the top 25% of dividend payers in the US market (3.64%).
Stability and Growth of Payments
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 (39.4%), AROW's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AROW's dividends in 3 years are forecast to be well covered by earnings (40.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.8yrs
Average management tenure
CEO
Tom Murphy (61 yo)
8.17yrs
Tenure
US$1,428,711
Compensation
Mr. Thomas J. Murphy, also known as Tom, CPA has been the Chief Executive Officer and President of Glens Falls National Bank and Trust Company since January 1, 2013. Mr. Murphy serves as the President of C...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD1.43M) is about average for companies of similar size in the US market ($USD1.49M).
Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 8.17yrs | US$1.43m | 0.36% $ 1.9m | |
| Senior VP | 3.5yrs | US$379.50k | 0.0013% $ 6.7k | |
| Senior VP & COO | 3.08yrs | US$349.59k | 0.0088% $ 46.6k | |
| Senior VP & Chief Banking Officer | 11.83yrs | US$532.58k | 0.18% $ 963.6k | |
| Corporate Secretary | no data | no data | no data |
5.8yrs
Average Tenure
55.5yo
Average Age
Experienced Management: AROW's management team is seasoned and experienced (5.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 8.17yrs | US$1.43m | 0.36% $ 1.9m | |
| Chairman Emeritus | 16.92yrs | US$20.10k | no data | |
| Independent Chairman of the Board | 16.92yrs | US$71.25k | 1.33% $ 7.0m | |
| Independent Director | 32.17yrs | US$63.02k | 0.28% $ 1.5m | |
| Independent Director | 22.17yrs | US$68.03k | 0.12% $ 625.2k | |
| Independent Lead Director | 3.83yrs | US$55.45k | 0.063% $ 333.9k | |
| Independent Director | 18.17yrs | US$57.95k | 0.22% $ 1.2m | |
| Independent Director | 15.08yrs | US$64.60k | 0.098% $ 518.7k | |
| Independent Director | 4.17yrs | US$55.95k | 0.023% $ 122.4k | |
| Independent Director | 4.17yrs | US$61.85k | 0.29% $ 1.5m | |
| Independent Director | 7.83yrs | US$57.10k | 0.087% $ 459.4k | |
| Independent Director | 7.25yrs | US$55.95k | 0.088% $ 462.9k |
11.9yrs
Average Tenure
65.5yo
Average Age
Experienced Board: AROW's board of directors are seasoned and experienced ( 11.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$527.225m
- Shares outstanding: 15.52m
- Website: https://www.arrowfinancial.com
Number of Employees
Location
- Arrow Financial Corporation
- 250 Glen Street
- Glens Falls
- New York
- 12801
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AROW | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/08 00:16 |
| End of Day Share Price | 2021/03/05 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.