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AROW

Arrow Financial NasdaqGS:AROW Stock Report

Last Price

US$31.86

Market Cap

US$510.5m

7D

0.2%

1Y

-9.0%

Updated

18 May, 2022

Data

Company Financials +
AROW fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance2/6
Financial Health6/6
Dividends4/6

AROW Stock Overview

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

Arrow Financial Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Arrow Financial
Historical stock prices
Current Share PriceUS$31.86
52 Week HighUS$38.25
52 Week LowUS$30.50
Beta0.62
1 Month Change1.76%
3 Month Change-8.61%
1 Year Change-8.97%
3 Year Change3.37%
5 Year Change15.06%
Change since IPO640.97%

Recent News & Updates

Mar 15

Arrow Financial: Attractively Valued With A Flattish Earnings Outlook

Loan growth will likely improve this year on the back of the economic recovery in New York. The net interest income is barely sensitive to rate changes in the first year of a rate hike. The provision expense will likely return to a normal level this year on the back of loan additions. The December 2022 target price suggests a high upside from the current market price. Further, AROW is offering a decent dividend yield.

Shareholder Returns

AROWUS BanksUS Market
7D0.2%1.5%2.7%
1Y-9.0%-16.6%-8.1%

Return vs Industry: AROW exceeded the US Banks industry which returned -16.6% over the past year.

Return vs Market: AROW matched the US Market which returned -8.1% over the past year.

Price Volatility

Is AROW's price volatile compared to industry and market?
AROW volatility
AROW Average Weekly Movement3.2%
Banks Industry Average Movement3.9%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market2.9%

Stable Share Price: AROW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: AROW's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1851512Tom Murphyhttps://www.arrowfinancial.com

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.

Arrow Financial Fundamentals Summary

How do Arrow Financial's earnings and revenue compare to its market cap?
AROW fundamental statistics
Market CapUS$510.47m
Earnings (TTM)US$49.15m
Revenue (TTM)US$142.26m

10.4x

P/E Ratio

1.4x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AROW income statement (TTM)
RevenueUS$142.26m
Cost of RevenueUS$0
Gross ProfitUS$142.26m
Other ExpensesUS$93.11m
EarningsUS$49.15m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.07
Gross Margin100.00%
Net Profit Margin34.55%
Debt/Equity Ratio13.8%

How did AROW perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

34%

Payout Ratio

Does AROW pay a reliable dividends?

See AROW dividend history and benchmarks
When do you need to buy AROW by to receive an upcoming dividend?
Arrow Financial dividend dates
Ex Dividend DateMay 31 2022
Dividend Pay DateJun 15 2022
Days until Ex dividend12 days
Days until Dividend pay date27 days

Does AROW pay a reliable dividends?

See AROW dividend history and benchmarks

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


45.8%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: AROW ($31.86) is trading below our estimate of fair value ($58.79)

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 (10.4x) compared to the US Banks industry average (9.7x).

PE vs Market: AROW is good value based on its PE Ratio (10.4x) compared to the US market (16x).


Price to Earnings Growth Ratio

PEG Ratio: AROW is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: AROW is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (1.1x).


Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


4.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AROW's forecast earnings growth (4.1% per year) is above the savings rate (1.9%).

Earnings vs Market: AROW's earnings (4.1% per year) are forecast to grow slower than the US market (12.4% per year).

High Growth Earnings: AROW's earnings are forecast to grow, but not significantly.

Revenue vs Market: AROW's revenue (5.2% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: AROW's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Arrow Financial performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


12.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AROW has high quality earnings.

Growing Profit Margin: AROW's current net profit margins (34.6%) are lower than last year (35.4%).


Past Earnings Growth Analysis

Earnings Trend: AROW's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: AROW's earnings growth over the past year (6.9%) is below its 5-year average (12.5% per year).

Earnings vs Industry: AROW earnings growth over the past year (6.9%) underperformed the Banks industry 20.9%.


Return on Equity

High ROE: AROW's Return on Equity (13.8%) is considered low.


Financial Health

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

Financial Health Score

6/6

Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: AROW's Assets to Equity ratio (11.6x) is moderate.

Allowance for Bad Loans: AROW has a sufficient allowance for bad loans (280%).

Low Risk Liabilities: 98% 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 (65%).

Low Risk Deposits: AROW's Loans to Deposits ratio (73%) is appropriate.

Level of Bad Loans: AROW has an appropriate level of bad loans (0.4%).


Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.39%

Current Dividend Yield

Upcoming Dividend Payment

TodayMay 18 2022Ex Dividend DateMay 31 2022Dividend Pay DateJun 15 202215 days from Ex DividendBuy in the next 12 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: AROW's dividend (3.39%) is higher than the bottom 25% of dividend payers in the US market (1.51%).

High Dividend: AROW's dividend (3.39%) is low compared to the top 25% of dividend payers in the US market (3.97%).


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

Earnings Coverage: With its reasonably low payout ratio (33.7%), 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 or that it will be covered by earnings.


Next Steps

Management

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

7.5yrs

Average management tenure


CEO

Tom Murphy (62 yo)

10.33yrs

Tenure

US$2,146,089

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 ($USD2.15M) is about average for companies of similar size in the US market ($USD2.63M).

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


Leadership Team

Experienced Management: AROW's management team is seasoned and experienced (7.5 years average tenure).


Board Members

Experienced Board: AROW's board of directors are considered experienced (8.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AROW 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 employee growth, exchange listings and data sources


Key Information

  • Name: Arrow Financial Corporation
  • Ticker: AROW
  • Exchange: NasdaqGS
  • Founded: 1851
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: US$510.470m
  • Shares outstanding: 16.02m
  • Website: https://www.arrowfinancial.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/18 00:00
End of Day Share Price2022/05/18 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.