Stock Analysis Report

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Executive Summary

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


Trading at 24.1% below our estimate of its fair value

Earnings grew by 9% over the past year

Pays a reliable dividend of 3.06%

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




US Banks


US Market

1 Year Return




US Banks


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

7 Day6.7%4.5%-0.4%
30 Day9.5%12.3%-2.9%
90 Day11.6%26.1%5.0%
1 Year16.8%12.8%40.3%35.5%39.1%36.2%
3 Year18.3%7.6%13.1%3.4%48.4%39.0%
5 Year72.9%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


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


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?


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?


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


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


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


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Tom Murphy (61 yo)





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

Thomas Murphy
$ 1.9m
Edward Campanella
Senior VP3.5yrsUS$379.50k0.0013%
$ 6.7k
Andrew Wise
Senior VP & COO3.08yrsUS$349.59k0.0088%
$ 46.6k
David DeMarco
Senior VP & Chief Banking Officer11.83yrsUS$532.58k0.18%
$ 963.6k
Peter Lareau
Corporate Secretaryno datano datano data


Average Tenure


Average Age

Experienced Management: AROW's management team is seasoned and experienced (5.8 years average tenure).

Board Members

Thomas Murphy
$ 1.9m
Michael Massiano
Chairman Emeritus16.92yrsUS$20.10kno data
Thomas Hoy
Independent Chairman of the Board16.92yrsUS$71.25k1.33%
$ 7.0m
David Kruczlnicki
Independent Director32.17yrsUS$63.02k0.28%
$ 1.5m
Richard Reisman
Independent Director22.17yrsUS$68.03k0.12%
$ 625.2k
William Owens
Independent Lead Director3.83yrsUS$55.45k0.063%
$ 333.9k
Gary Dake
Independent Director18.17yrsUS$57.95k0.22%
$ 1.2m
Michael Clarke
Independent Director15.08yrsUS$64.60k0.098%
$ 518.7k
Mark Behan
Independent Director4.17yrsUS$55.95k0.023%
$ 122.4k
Raymond O'Conor
Independent Director4.17yrsUS$61.85k0.29%
$ 1.5m
Colin Read
Independent Director7.83yrsUS$57.10k0.087%
$ 459.4k
Tenée Casaccio
Independent Director7.25yrsUS$55.95k0.088%
$ 462.9k


Average Tenure


Average Age

Experienced Board: AROW's board of directors are seasoned and experienced ( 11.9 years average tenure).


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:

Number of Employees


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


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


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 Analysis2021/03/08 00:16
End of Day Share Price2021/03/05 00:00
Annual Earnings2020/12/31

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.