Arrow Financial
Market Cap
US$358.8m
Last Updated
2020/04/04 02:22 UTC
Data Sources
Company Financials +
Executive Summary
Arrow Financial Corporation, a bank holding company, provides commercial and consumer banking, and financial products and services.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -2.5% per year for the next 3 years
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-7.4%
AROW
-7.1%
US Banks
-2.0%
US Market
1 Year Return
-26.7%
AROW
-32.9%
US Banks
-15.1%
US Market
Return vs Industry: AROW exceeded the US Banks industry which returned -33.7% over the past year.
Return vs Market: AROW underperformed the US Market which returned -14.9% over the past year.
Shareholder returns
| AROW | Industry | Market | |
|---|---|---|---|
| 7 Day | -7.4% | -7.1% | -2.0% |
| 30 Day | -25.2% | -30.6% | -19.7% |
| 90 Day | -35.5% | -42.5% | -23.2% |
| 1 Year | -24.3%-26.7% | -30.9%-32.9% | -13.4%-15.1% |
| 3 Year | -14.8%-22.1% | -21.7%-27.5% | 10.9%3.7% |
| 5 Year | 20.6%3.1% | 3.5%-8.4% | 28.4%14.4% |
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 day ago | Simply Wall St
Do Institutions Own Shares In Arrow Financial Corporation (NASDAQ:AROW)?2 weeks ago | Simply Wall St
Does Arrow Financial Corporation's (NASDAQ:AROW) CEO Salary Compare Well With Others?1 month ago | Simply Wall St
Is It Smart To Buy Arrow Financial Corporation (NASDAQ:AROW) Before It Goes Ex-Dividend?Valuation
Is Arrow Financial undervalued compared to its fair value and its price relative to the market?
45.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AROW ($23.95) is trading below our estimate of fair value ($43.73)
Significantly Below Fair Value: AROW is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AROW is poor value based on its PE Ratio (9.5x) compared to the Banks industry average (8.6x).
PE vs Market: AROW is good value based on its PE Ratio (9.5x) compared to the US market (12.5x).
Price to Earnings Growth Ratio
PEG Ratio: AROW's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: AROW is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (0.8x).
Next Steps
Future Growth
How is Arrow Financial forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
-2.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AROW's earnings are forecast to decline over the next 3 years (-2.5% per year).
Earnings vs Market: AROW's earnings are forecast to decline over the next 3 years (-2.5% per year).
High Growth Earnings: AROW's earnings are forecast to decline over the next 3 years.
Revenue vs Market: AROW's revenue (2.7% per year) is forecast to grow slower than the US market (7.1% per year).
High Growth Revenue: AROW's revenue (2.7% 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 (10.7%).
Next Steps
Past Performance
How has Arrow Financial performed over the past 5 years?
10.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AROW has high quality earnings.
Growing Profit Margin: AROW's current net profit margins (32.7%) are lower than last year (32.9%).
Past Earnings Growth Analysis
Earnings Trend: AROW's earnings have grown by 10.6% per year over the past 5 years.
Accelerating Growth: AROW's earnings growth over the past year (3.3%) is below its 5-year average (10.6% per year).
Earnings vs Industry: AROW earnings growth over the past year (3.3%) underperformed the Banks industry 10.9%.
Return on Equity
High ROE: AROW's Return on Equity (12.4%) 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
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 (0.18%)
Next Steps
Dividend
What is Arrow Financial's current dividend yield, its reliability and sustainability?
4.34%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AROW's dividend (4.34%) is higher than the bottom 25% of dividend payers in the US market (2.04%).
High Dividend: AROW's dividend (4.34%) is low compared to the top 25% of dividend payers in the US market (5.7%).
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 (40.5%), 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 (45.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.9yrs
Average management tenure
CEO
Tom Murphy (60yo)
7.25s
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 below average for companies of similar size in the US market ($USD2.23M).
Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 7.25yrs | US$1.43m | 0.33% $1.2m | |
| Senior VP | 2.58yrs | US$379.50k | 0.0013% $4.8k | |
| Senior VP & COO | 2.17yrs | US$349.59k | 0.0055% $19.8k | |
| Senior VP & Chief Banking Officer | 10.92yrs | US$532.58k | 0.19% $679.2k | |
| Corporate Secretary | no data | no data | no data |
4.9yrs
Average Tenure
54.5yo
Average Age
Experienced Management: AROW's management team is considered experienced (4.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 7.25yrs | US$1.43m | 0.33% $1.2m | |
| Chairman Emeritus | 16yrs | US$20.10k | no data | |
| Chairman of the Board | 16yrs | US$71.25k | 1.33% $4.8m | |
| Independent Director | 31.25yrs | US$64.02k | 0.27% $967.6k | |
| Independent Director | 21.25yrs | US$68.03k | 0.10% $372.1k | |
| Lead Director | 2.92yrs | US$55.45k | 0.049% $175.3k | |
| Independent Director | 17.25yrs | US$58.95k | 0.21% $755.5k | |
| Independent Director | 14.17yrs | US$64.60k | 0.088% $317.3k | |
| Independent Director | 3.25yrs | US$62.85k | 0.29% $1.1m | |
| Independent Director | 6.92yrs | US$57.10k | 0.081% $291.3k |
15.1yrs
Average Tenure
68yo
Average Age
Experienced Board: AROW's board of directors are seasoned and experienced ( 15.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AROW insiders have only sold shares 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$358.784m
- Shares outstanding: 14.98m
- 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 checking accounts, savings deposits, time deposits, and other time deposits. Its lending activities comprise commercial loans, such as term loans, time notes, and lines of credit; and commercial real estate loans to finance real estate purchases, refinancing, expansions, and improvements to commercial properties, as well as commercial construction and land development loans to finance projects. The company’s lending activities also include consumer installment loans to finance personal expenditures, personal lines of credit, overdraft protection, and automobile loans; and residential real estate loans, as well as fixed home equity loans and home equity lines of credit for consumers to finance home improvements, debt consolidation, education, and other uses. In addition, it maintains an indirect lending program; and sells residential real estate loan originations into the secondary market. Further, the company provides retirement planning, trust, and estate administration services for individuals; and pension, profit-sharing, and employee benefit plan administration services for corporations. Additionally, it offers insurance agency services comprising group health care policies and life insurance, and property and casualty insurance products; and investment advisory services to its proprietary mutual funds, as well as holds a real estate investment trust. The company operates in the northeastern region of New York State in Warren, Washington, Saratoga, Essex, Clinton, Rensselaer, Albany, and Schenectady counties, as well as surrounding areas. It owns 28 branch banking offices; and leases 12 branch banking offices, as well as 2 residential loan origination offices. The company was founded in 1851 and is headquartered in Glens Falls, New York.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/04 02:22 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.