NasdaqGS:AROW

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.

Risks

  • Arrow Financial is covered by less than 3 analysts.

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


Market Performance


7 Day Return

-3.5%

AROW

-1.1%

US Banks

-0.6%

US Market


1 Year Return

-7.2%

AROW

-6.9%

US Banks

0.6%

US Market

AROW matched the Banks industry (-6.4%) over the past year.

AROW underperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

AROWIndustryMarket
7 Day-3.5%-1.1%-0.6%
30 Day8.4%8.5%2.2%
90 Day6.4%4.6%1.1%
1 Year-4.3%-7.2%-4.2%-6.9%2.9%0.6%
3 Year23.0%12.7%53.6%43.1%44.6%35.2%
5 Year81.9%55.0%63.8%46.1%61.9%44.2%

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

3 weeks ago | Simply Wall St

What Kind Of Shareholder Appears On The Arrow Financial Corporation's (NASDAQ:AROW) Shareholder Register?

Valuation

Is Arrow Financial undervalued based on future cash flows and its price relative to the stock market?

14.4x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Arrow Financial's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Arrow Financial's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Arrow Financial is overvalued based on earnings compared to the US Banks industry average.

Arrow Financial is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Arrow Financial is poor value based on expected growth next year.


Price Based on Value of Assets

Arrow Financial is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

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

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Arrow Financial's revenue is expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).

Arrow Financial's earnings are expected to grow by 6.8% yearly, however this is not considered high growth (20% yearly).

Arrow Financial's revenue growth is positive but not above the United States of America market average.

Arrow Financial's earnings growth is positive but not above the United States of America market average.

Arrow Financial's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Arrow Financial will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Arrow Financial performed over the past 5 years?

10.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Arrow Financial's year on year earnings growth rate has been positive over the past 5 years.

Arrow Financial's 1-year earnings growth is less than its 5-year average (5.7% vs 10.4%)

Arrow Financial's earnings growth has not exceeded the US Banks industry average in the past year (5.7% vs 32%).


Return on Equity

Arrow Financial has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Arrow Financial used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Arrow Financial improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

Arrow Financial has an acceptable proportion of non-loan assets held.

Arrow Financial has a sufficient allowance for bad loans.

Arrow Financial's liabilities are made up of primarily low risk sources of funding.

Arrow Financial's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at Arrow Financial are broadly funded by customer deposits.

Arrow Financial has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

3.00%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Arrow Financial's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Arrow Financial's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Arrow Financial's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Tom Murphy (60yo)

6.7yrs

Tenure

US$1,335,544

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

Tom's remuneration is about average for companies of similar size in United States of America.

Tom's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

4.6yrs

Average Tenure

57yo

Average Age

The tenure for the Arrow Financial management team is about average.


Board Age and Tenure

14.5yrs

Average Tenure

68yo

Average Age

The average tenure for the Arrow Financial board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Arrow Financial individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$112,03509 Sep 19
Gary Dake
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,605
Max PriceUS$31.08
SellUS$32,17505 Sep 19
David DeMarco
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Banking Officer
Shares1,019.7
Max PriceUS$31.55
SellUS$91,09730 Aug 19
David DeMarco
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Banking Officer
Shares2,887.09
Max PriceUS$31.55
SellUS$3,25029 Aug 19
David DeMarco
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Banking Officer
Shares103
Max PriceUS$31.55
SellUS$113,33412 Aug 19
Gary Dake
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,605
Max PriceUS$31.44
SellUS$59,13608 Aug 19
David DeMarco
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Banking Officer
Shares1,845.76
Max PriceUS$32.04
SellUS$11,48203 Jul 19
Colin Read
EntityIndividual
Role
Member of the Board of Directors
Director
Shares367.71
Max PriceUS$31.26
SellUS$25,05515 Mar 19
Richard Reisman
EntityIndividual
Role
Member of the Board of Directors
Director
Shares734.39
Max PriceUS$34.12

Ownership Breakdown


Management Team

  • David Kaiser (58yo)

    Senior Vice President

    • Tenure: 4.6yrs
    • Compensation: US$426.69k
  • Peter Lareau

    Corporate Secretary

    • Tenure: 0yrs
  • Dave DeMarco (57yo)

    Senior VP & Chief Banking Officer

    • Tenure: 10.3yrs
    • Compensation: US$524.32k
  • Tom Murphy (60yo)

    President

    • Tenure: 6.7yrs
    • Compensation: US$1.34m
  • Ed Campanella (51yo)

    Senior VP

    • Tenure: 2yrs
    • Compensation: US$343.35k
  • Andrew Wise (52yo)

    Senior VP & COO

    • Tenure: 1.6yrs
    • Compensation: US$313.18k

Board Members

  • Michael Massiano (84yo)

    Chairman Emeritus

    • Tenure: 15.4yrs
    • Compensation: US$20.10k
  • Tom Hoy (70yo)

    Chairman of the Board

    • Tenure: 15.4yrs
    • Compensation: US$104.46k
  • David Kruczlnicki (66yo)

    Director

    • Tenure: 30.7yrs
    • Compensation: US$59.65k
  • Richard Reisman (73yo)

    Director

    • Tenure: 20.7yrs
    • Compensation: US$65.45k
  • Bill Owens (70yo)

    Lead Director

    • Tenure: 2.3yrs
    • Compensation: US$52.69k
  • Gary Dake (58yo)

    Director

    • Tenure: 16.7yrs
    • Compensation: US$56.21k
  • Michael Clarke (72yo)

    Director

    • Tenure: 13.6yrs
    • Compensation: US$60.76k
  • Ray O'Conor (63yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$59.06k
  • Tom Murphy (60yo)

    President

    • Tenure: 6.7yrs
    • Compensation: US$1.34m
  • Colin Read (59yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: US$54.31k

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$515.914m
  • Shares outstanding: 14.95m
  • 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 Analysis2019/09/20 23:32
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.