NasdaqGS:AROW

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


Snowflake Analysis

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

Stable Share Price: AROW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.1%

AROW

1.2%

US Banks

-1.3%

US Market


1 Year Return

-18.3%

AROW

-28.5%

US Banks

18.5%

US Market

Return vs Industry: AROW exceeded the US Banks industry which returned -28% over the past year.

Return vs Market: AROW underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

AROWIndustryMarket
7 Day-3.1%1.2%-1.3%
30 Day-2.4%3.5%5.3%
90 Day-4.8%-0.05%7.5%
1 Year-15.5%-18.3%-25.9%-28.5%21.3%18.5%
3 Year-7.4%-15.6%-18.6%-25.4%42.4%32.9%
5 Year31.1%12.2%16.1%1.6%84.2%63.5%

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?

33.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AROW ($26.81) is trading below our estimate of fair value ($40.23)

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 (11.2x) compared to the US Banks industry average (9.9x).

PE vs Market: AROW is good value based on its PE Ratio (11.2x) compared to the US market (19x).


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 (1.3x) 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?

-0.7%

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 (-0.7% per year).

Earnings vs Market: AROW's earnings are forecast to decline over the next 3 years (-0.7% per year).

High Growth Earnings: AROW's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AROW's revenue is expected to decline over the next 3 years (-12.4% per year).

High Growth Revenue: AROW's revenue is forecast to decline over the next 3 years (-12.4% 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


Next Steps

Past Performance

How has Arrow Financial performed over the past 5 years?

10.3%

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%) are lower than last year (32.1%).


Past Earnings Growth Analysis

Earnings Trend: AROW's earnings have grown by 10.3% per year over the past 5 years.

Accelerating Growth: AROW's earnings growth over the past year (3.9%) is below its 5-year average (10.3% per year).

Earnings vs Industry: AROW earnings growth over the past year (3.9%) exceeded the Banks industry -3%.


Return on Equity

High ROE: AROW's Return on Equity (11.7%) 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 (11.2x) is moderate.

Allowance for Bad Loans: AROW has a sufficient allowance for bad loans (404%).

Low Risk Liabilities: 95% 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 (71%).

Low Risk Deposits: AROW's Loans to Deposits ratio (83%) is appropriate.

Level of Bad Loans: AROW has an appropriate level of bad loans (0.3%).


Next Steps

Dividend

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

3.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AROW's dividend (3.77%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: AROW's dividend (3.77%) is low compared to the top 25% of dividend payers in the US market (4.66%).


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 (41.6%), 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

  • Explore strong dividend paying companies in the Banks industry.

Management

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

5.4yrs

Average management tenure


CEO

Tom Murphy (61 yo)

7.75yrs

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 ($USD1.43M) is about average for companies of similar size in the US market ($USD1.91M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Murphy
President7.75yrsUS$1.43m0.36%
$ 1.5m
Edward Campanella
Senior VP3.08yrsUS$379.50k0.0013%
$ 5.5k
Andrew Wise
Senior VP & COO2.67yrsUS$349.59k0.0055%
$ 22.8k
David DeMarco
Senior VP & Chief Banking Officer11.42yrsUS$532.58k0.19%
$ 783.1k
Peter Lareau
Corporate Secretaryno datano datano data

5.4yrs

Average Tenure

55.5yo

Average Age

Experienced Management: AROW's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Murphy
President7.75yrsUS$1.43m0.36%
$ 1.5m
Michael Massiano
Chairman Emeritus16.5yrsUS$20.10kno data
Thomas Hoy
Independent Chairman of the Board16.5yrsUS$71.25k1.35%
$ 5.6m
David Kruczlnicki
Independent Director31.75yrsUS$63.02k0.27%
$ 1.1m
Richard Reisman
Independent Director21.75yrsUS$68.03k0.12%
$ 515.0k
William Owens
Independent Lead Director3.42yrsUS$55.45k0.051%
$ 212.2k
Gary Dake
Independent Director17.75yrsUS$57.95k0.21%
$ 888.6k
Michael Clarke
Independent Director14.67yrsUS$64.60k0.11%
$ 454.3k
Mark Behan
Independent Director3.75yrsUS$55.95k0.021%
$ 88.4k
Raymond O'Conor
Independent Director3.75yrsUS$61.85k0.29%
$ 1.2m
Colin Read
Independent Director7.42yrsUS$57.10k0.084%
$ 346.9k
Tenée Casaccio
Independent Director6.83yrsUS$55.95k0.082%
$ 341.6k

11.5yrs

Average Tenure

65.5yo

Average Age

Experienced Board: AROW's board of directors are seasoned and experienced ( 11.5 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 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$414.630m
  • Shares outstanding: 15.47m
  • 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 Analysis2020/10/19 23:43
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.