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Arrow Electronics

NYSE:ARW
Snowflake Description

Good value with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ARW
NYSE
$7B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Arrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions worldwide. The last earnings update was 41 days ago. More info.


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ARW Share Price and Events
7 Day Returns
-0.4%
NYSE:ARW
0.7%
US Electronic
1.2%
US Market
1 Year Returns
-2.2%
NYSE:ARW
-0.3%
US Electronic
3%
US Market
ARW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Arrow Electronics (ARW) -0.4% -3.7% 15.8% -2.2% 25.1% 34.6%
US Electronic 0.7% 1.1% 21.2% -0.3% 59.3% 59.2%
US Market 1.2% 2.1% 14.6% 3% 39% 43.5%
1 Year Return vs Industry and Market
  • ARW underperformed the Electronic industry which returned -0.3% over the past year.
  • ARW underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
ARW
Industry
5yr Volatility vs Market
Related Companies

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Arrow Electronics to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Arrow Electronics.

NYSE:ARW Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:ARW
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.071 (1 + (1- 21%) (52.5%))
1.345
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.35
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.345 * 5.96%)
10.75%

Discounted Cash Flow Calculation for NYSE:ARW using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Arrow Electronics is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:ARW DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.75%)
2019 864.72 Analyst x2 780.81
2020 935.28 Analyst x2 762.57
2021 938.00 Analyst x1 690.57
2022 767.00 Analyst x1 509.88
2023 851.00 Analyst x1 510.82
2024 829.02 Est @ -2.58% 449.34
2025 820.83 Est @ -0.99% 401.72
2026 821.87 Est @ 0.13% 363.20
2027 829.33 Est @ 0.91% 330.93
2028 841.39 Est @ 1.45% 303.16
Present value of next 10 years cash flows $5,102.99
NYSE:ARW DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $841.39 × (1 + 2.73%) ÷ (10.75% – 2.73%)
$10,781.52
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $10,781.52 ÷ (1 + 10.75%)10
$3,884.70
NYSE:ARW Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,102.99 + $3,884.70
$8,987.69
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $8,987.69 / 84.92
$105.84
NYSE:ARW Discount to Share Price
Calculation Result
Value per share (USD) From above. $105.84
Current discount Discount to share price of $78.19
= -1 x ($78.19 - $105.84) / $105.84
26.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Arrow Electronics is available for.
Intrinsic value
26%
Share price is $78.19 vs Future cash flow value of $105.84
Current Discount Checks
For Arrow Electronics to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Arrow Electronics's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Arrow Electronics's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Arrow Electronics's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Arrow Electronics's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:ARW PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $8.19
NYSE:ARW Share Price ** NYSE (2019-03-20) in USD $78.19
United States of America Electronic Industry PE Ratio Median Figure of 92 Publicly-Listed Electronic Companies 19.54x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Arrow Electronics.

NYSE:ARW PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ARW Share Price ÷ EPS (both in USD)

= 78.19 ÷ 8.19

9.55x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arrow Electronics is good value based on earnings compared to the US Electronic industry average.
  • Arrow Electronics is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Arrow Electronics's expected growth come at a high price?
Raw Data
NYSE:ARW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.55x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
4.8%per year
United States of America Electronic Industry PEG Ratio Median Figure of 60 Publicly-Listed Electronic Companies 1.54x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NYSE:ARW PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.55x ÷ 4.8%

1.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arrow Electronics is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Arrow Electronics's assets?
Raw Data
NYSE:ARW PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $62.51
NYSE:ARW Share Price * NYSE (2019-03-20) in USD $78.19
United States of America Electronic Industry PB Ratio Median Figure of 151 Publicly-Listed Electronic Companies 2.1x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.89x
NYSE:ARW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ARW Share Price ÷ Book Value per Share (both in USD)

= 78.19 ÷ 62.51

1.25x

* Primary Listing of Arrow Electronics.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arrow Electronics is good value based on assets compared to the US Electronic industry average.
X
Value checks
We assess Arrow Electronics's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. Arrow Electronics has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Arrow Electronics expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Arrow Electronics expected to grow at an attractive rate?
  • Arrow Electronics's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Arrow Electronics's earnings growth is positive but not above the United States of America market average.
  • Arrow Electronics's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:ARW Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:ARW Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 4.8%
NYSE:ARW Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 0.7%
United States of America Electronic Industry Earnings Growth Rate Market Cap Weighted Average 17%
United States of America Electronic Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:ARW Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:ARW Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 30,066 1
2022-12-31 30,066 1
2021-12-31 30,498 2
2020-12-31 30,653 846 788 9
2019-12-31 29,991 845 744 9
NYSE:ARW Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 29,677 273 716
2018-09-29 29,556 132 539
2018-06-30 28,922 -227 497
2018-03-31 27,951 70 426
2017-12-31 26,555 125 402
2017-09-30 25,458 221 513
2017-07-01 24,538 111 497
2017-04-01 24,088 372 531
2016-12-31 23,488 360 523
2016-10-01 24,134 685 517
2016-07-02 23,896 551 508
2016-04-02 23,754 863 498

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Arrow Electronics's earnings are expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).
  • Arrow Electronics's revenue is expected to grow by 0.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:ARW Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Arrow Electronics Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ARW Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 9.07 9.81 7.86 5.00
2019-12-31 8.49 9.06 7.53 5.00
NYSE:ARW Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 8.19
2018-09-29 6.13
2018-06-30 5.64
2018-03-31 4.83
2017-12-31 4.54
2017-09-30 5.76
2017-07-01 5.54
2017-04-01 5.88
2016-12-31 5.75
2016-10-01 5.63
2016-07-02 5.49
2016-04-02 5.32

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Arrow Electronics is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Arrow Electronics's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Arrow Electronics has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Arrow Electronics performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Arrow Electronics's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Arrow Electronics's year on year earnings growth rate has been positive over the past 5 years.
  • Arrow Electronics's 1-year earnings growth exceeds its 5-year average (78.1% vs 3.7%)
  • Arrow Electronics's earnings growth has exceeded the US Electronic industry average in the past year (78.1% vs 61%).
Earnings and Revenue History
Arrow Electronics's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Arrow Electronics Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ARW Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 29,676.77 716.20 2,309.92
2018-09-29 29,555.98 538.98 2,280.38
2018-06-30 28,921.64 496.51 2,257.84
2018-03-31 27,951.34 426.32 2,209.87
2017-12-31 26,554.56 402.18 2,185.91
2017-09-30 25,458.01 513.04 2,123.84
2017-07-01 24,537.99 496.70 2,079.35
2017-04-01 24,087.86 531.25 2,064.38
2016-12-31 23,487.87 522.82 2,067.37
2016-10-01 24,133.71 516.72 2,063.62
2016-07-02 23,895.92 508.24 2,051.48
2016-04-02 23,753.81 497.90 2,037.53
2015-12-31 23,282.02 497.73 1,986.25
2015-09-26 22,927.56 455.41 1,963.23
2015-06-27 22,842.47 493.03 1,951.22
2015-03-28 22,689.02 496.98 1,936.38
2014-12-31 22,768.67 498.05 1,959.75
2014-09-27 22,525.16 516.70 1,951.11
2014-06-28 21,960.15 466.61 1,919.17
2014-03-29 21,589.70 428.67 1,900.14
2013-12-31 21,357.29 399.42 1,873.64
2013-09-28 20,606.63 439.29 1,856.30
2013-06-29 20,520.75 446.13 1,858.90
2013-03-30 20,365.23 470.58 1,845.10
2012-12-31 20,405.13 506.33 1,849.53
2012-09-29 20,442.90 505.72 1,839.19
2012-06-30 20,667.42 534.32 1,849.99
2012-03-31 21,056.79 576.13 1,883.51

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Arrow Electronics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Arrow Electronics used its assets less efficiently than the US Electronic industry average last year based on Return on Assets.
  • Arrow Electronics has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Arrow Electronics's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Arrow Electronics has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Arrow Electronics's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Arrow Electronics's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Arrow Electronics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Arrow Electronics's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Arrow Electronics's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Arrow Electronics Company Filings, last reported 2 months ago.

NYSE:ARW Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 5,376.37 3,485.96 509.33
2018-09-29 5,302.04 3,511.15 474.19
2018-06-30 5,167.31 3,805.91 330.52
2018-03-31 5,148.81 3,571.92 548.64
2017-12-31 4,997.94 3,290.00 730.08
2017-09-30 4,925.29 3,183.17 584.34
2017-07-01 4,750.86 3,069.08 419.92
2017-04-01 4,556.81 2,931.60 521.56
2016-12-31 4,465.62 2,790.16 534.32
2016-10-01 4,480.46 2,782.20 384.42
2016-07-02 4,448.88 2,730.26 495.77
2016-04-02 4,374.11 2,695.19 394.66
2015-12-31 4,194.81 2,424.60 273.09
2015-09-26 4,212.61 2,834.08 336.74
2015-06-27 4,179.92 2,631.19 399.72
2015-03-28 4,018.29 2,470.22 305.29
2014-12-31 4,158.91 2,081.36 400.36
2014-09-27 4,251.03 2,229.09 258.23
2014-06-28 4,308.15 2,121.30 308.94
2014-03-29 4,225.91 2,159.44 258.28
2013-12-31 4,184.83 2,250.01 390.60
2013-09-28 4,033.37 1,944.82 251.79
2013-06-29 3,824.23 2,097.55 345.89
2013-03-30 3,908.67 2,241.76 364.15
2012-12-31 3,987.36 1,962.67 409.68
2012-09-29 3,795.33 1,952.69 358.55
2012-06-30 3,723.73 1,994.37 325.83
2012-03-31 3,808.80 2,281.02 739.71
  • Arrow Electronics's level of debt (64.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (53.7% vs 64.8% today).
  • Debt is not well covered by operating cash flow (7.8%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.6x coverage).
X
Financial health checks
We assess Arrow Electronics's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Arrow Electronics has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Arrow Electronics dividends. Estimated to be 0% next year.
If you bought $2,000 of Arrow Electronics shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Arrow Electronics's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Arrow Electronics's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:ARW Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
United States of America Electronic Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:ARW Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 1.00
2020-12-31 0.00 2.00
2019-12-31 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Arrow Electronics has not reported any payouts.
  • Unable to verify if Arrow Electronics's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Arrow Electronics's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Arrow Electronics has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Arrow Electronics's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Arrow Electronics's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Arrow Electronics afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Arrow Electronics has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mike Long
COMPENSATION $10,994,550
AGE 59
TENURE AS CEO 9.8 years
CEO Bio

Mr. Michael J. Long, also known as Mike, has been the Chief Executive Officer of Arrow Electronics, Inc. since May 1, 2009 and has been its President since February 3, 2008. Mr. Long serves as the Chief Executive Officer, President and Chairman of Arrow Electronics Italia S.r.l. He served as the Chief Operating Officer of Arrow Electronics, Inc. from February 3, 2008 to May 2009. Mr. Long served as the Senior Vice President of Arrow Electronics Inc. from January 2006 to February 2008 and served as its Vice President until March 1, 2006. He served as the President of Arrow Global Components of Arrow Electronics Inc. since September 18, 2006. He served as the President of North America of Arrow Electronics Inc. from May 10, 2005 to December 2005. He served as the President of North America and Asia/Pacific Components of Arrow Electronics Inc. from January 25, 2006 to September 2006. He served as President of North American Computer Products of Arrow from July 1999 to May 10, 2005 and Chief Operating Officer of North American Computer Products (NACP) of Arrow Electronics Inc., since July 1999. Mr. Long has over 25 years of experience in electronic components and computer products distribution and served as President and Chief Operating Officer of Arrow's Enterprise Computing Solutions business from July 1999 to April 2005. He joined Arrow in 1990, when it merged with Schweber Electronics Inc. During his career, he led both Capstone Electronics - an Arrow company as President since 1994 - and Gates/Arrow Distributing as President from 1995 to 1999. Prior to a merger between Arrow and Schweber Electronics in 1991, Mr. Long served as Regional Vice President for Schweber, among other leadership roles, after joined Schweber in 1983. Mr. Long has been the Chairman of Arrow Electronics, Inc. since January 1, 2010. He has been the Chairman of Global Technology Distribution Council since September 2016 and served as its Vice Chairman from September 9, 2015 t September 2016. He has been an Independent Director of AmerisourceBergen Corporation since May 11, 2006. He has been a Director of Arrow Electronics, Inc. since February 3, 2008. He serves as a Director of the Denver Zoo. He is active in the Global Peer Networking Group, Young President' Organization. Mr. Long holds Bachelor of Science Degree in Business Administration from University of Wisconsin, Whitewater and studied Electrical Engineering at Milwaukee School of Engineering.

CEO Compensation
  • Mike's compensation has been consistent with company performance over the past year.
  • Mike's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Arrow Electronics management team in years:

3.8
Average Tenure
54
Average Age
  • The tenure for the Arrow Electronics management team is about average.
Management Team

Mike Long

TITLE
Chairman
COMPENSATION
$11M
AGE
59
TENURE
9.8 yrs

Chris Stansbury

TITLE
Senior VP & CFO
COMPENSATION
$2M
AGE
53
TENURE
2.8 yrs

Gretchen Zech

TITLE
Senior VP & Chief Human Resources Officer
COMPENSATION
$2M
AGE
48
TENURE
1.6 yrs

Sean Kerins

TITLE
President of Arrow Global Enterprise Computing Solutions Business
COMPENSATION
$3M
AGE
55
TENURE
4.8 yrs

Andy King

TITLE
President of Arrow Global Components
COMPENSATION
$3M
AGE
54
TENURE
3.3 yrs

Richard Seidlitz

TITLE
Corporate Controller & Principal Accounting Officer
AGE
39
TENURE
0.8 yrs

Vincent Melvin

TITLE
Senior VP & Chief Information Officer
AGE
54
TENURE
12.5 yrs

Steven O'Brien

TITLE
Vice President of Investor Relations

Greg Tarpinian

TITLE
Senior VP
AGE
56
TENURE
4.2 yrs

John Hourigan

TITLE
Vice President of Global Communications
Board of Directors Tenure

Average tenure and age of the Arrow Electronics board of directors in years:

8.7
Average Tenure
66.5
Average Age
  • The tenure for the Arrow Electronics board of directors is about average.
Board of Directors

Mike Long

TITLE
Chairman
COMPENSATION
$11M
AGE
59
TENURE
9.2 yrs

Fran Keeth

TITLE
Director
COMPENSATION
$260K
AGE
71
TENURE
14.6 yrs

Andrew Kerin

TITLE
Director
COMPENSATION
$246K
AGE
54
TENURE
8.3 yrs

Philip Asherman

TITLE
Director
COMPENSATION
$250K
AGE
67
TENURE
8.3 yrs

Barry Perry

TITLE
Lead Independent Director
COMPENSATION
$270K
AGE
72
TENURE
7.8 yrs

Stephen Patrick

TITLE
Director
COMPENSATION
$240K
AGE
68
TENURE
15.7 yrs

Rick Hill

TITLE
Director
COMPENSATION
$242K
AGE
66
TENURE
13.1 yrs

Gail Hamilton

TITLE
Director
COMPENSATION
$246K
AGE
68
TENURE
11 yrs

Steve Gunby

TITLE
Director
AGE
60
TENURE
1.3 yrs

Laurel Krzeminski

TITLE
Director
AGE
63
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • Arrow Electronics insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
27. Feb 19 Sell Sean Kerins Individual 26. Feb 19 26. Feb 19 -5,286 $81.64 $-431,549
25. Feb 19 Sell Gail Hamilton Individual 25. Feb 19 25. Feb 19 -2,043 $81.91 $-167,342
21. Feb 19 Sell Mary Morris Individual 21. Feb 19 21. Feb 19 -929 $81.90 $-76,085
21. Feb 19 Sell Michael Long Individual 20. Feb 19 20. Feb 19 -60,252 $81.20 $-4,892,462
21. Feb 19 Sell Charles Kostalnick Individual 20. Feb 19 20. Feb 19 -1,250 $81.99 $-102,488
21. Feb 19 Sell Andrew Kerin Individual 20. Feb 19 20. Feb 19 -6,845 $81.79 $-559,853
20. Feb 19 Sell Michael Long Individual 19. Feb 19 19. Feb 19 -53,984 $80.70 $-4,356,509
07. Nov 18 Sell Charles Kostalnick Individual 06. Nov 18 06. Nov 18 -700 $74.37 $-52,059
23. Aug 18 Sell Mary Morris Individual 21. Aug 18 21. Aug 18 -4,506 $79.25 $-357,101
21. Aug 18 Sell Vincent Melvin Individual 20. Aug 18 20. Aug 18 -2,000 $78.10 $-156,200
08. Aug 18 Sell Gretchen Zech Individual 07. Aug 18 07. Aug 18 -4,500 $77.00 $-346,500
30. May 18 Sell Matthew Anderson Individual 29. May 18 29. May 18 -1,785 $74.16 $-132,367
X
Management checks
We assess Arrow Electronics's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Arrow Electronics has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Arrow Electronics, Inc.'s (NYSE:ARW) CEO Being Overpaid?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Mike Long's Compensation Compare With Similar Sized Companies. … has a market cap of US$6.6b, and is paying total annual CEO compensation of US$11m.

Simply Wall St -

Should We Be Delighted With Arrow Electronics, Inc.'s (NYSE:ARW) ROE Of 13%?

To keep the lesson grounded in practicality, we'll use ROE to better understand Arrow Electronics, Inc. … That means that for every $1 worth of shareholders' equity, it generated $0.13 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should You Think About Buying Arrow Electronics, Inc. (NYSE:ARW) Now?

(NYSE:ARW), which is in the electronic business, and is based in United States,. … As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s take a look at Arrow Electronics’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Simply Wall St -

What Investors Should Know About Arrow Electronics, Inc.'s (NYSE:ARW) Financial Strength

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Arrow Electronics, Inc. … However, history shows that overlooked mid-cap companies have performed better on a risk-adjusted manner than the smaller and larger segment of the market. … Don’t forget that this is a general and concentrated examination of Arrow Electronics’s financial health, so you should conduct further analysis.

Simply Wall St -

Calculating The Fair Value Of Arrow Electronics, Inc. (NYSE:ARW)

by taking the foreast future cash flows of the company and discounting them back to today's value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand Arrow Electronics, Inc. (NYSE:ARW)

We'll look at Arrow Electronics, Inc.'s (NYSE:ARW) P/E ratio and reflect on what it tells us about the company's share price. … Based on the last twelve months, Arrow Electronics's P/E ratio is 11.12. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Are Insiders Selling Arrow Electronics, Inc. (NYSE:ARW) Stock?

So we'll take a look at whether insiders have been buying or selling shares in Arrow Electronics, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … Over the last year we saw more insider selling of Arrow Electronics shares, than buying.

Simply Wall St -

Understanding Your Return On Investment In Arrow Electronics Inc (NYSE:ARW)

and want a simplistic look at the return on Arrow Electronics Inc (NYSE:ARW) stock. … This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … To understand Arrow Electronics’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St -

Is Arrow Electronics Inc's (NYSE:ARW) 10% Better Than Average?

This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.10 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Arrow Electronics Inc (NYSE:ARW) Excessively Paying Its CEO?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Mike Long's Compensation Compare With Similar Sized Companies. … It would therefore appear that Arrow Electronics Inc pays Mike Long more than the median CEO remuneration at companies of a similar size, in the same market

Simply Wall St -

Company Info

Description

Arrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions worldwide. The company operates in two segments, Global Components and Global Enterprise Computing Solutions. The Global Components segment markets and distributes semiconductor products and related services; passive, electro-mechanical, and interconnect products consisting primarily of capacitors, resistors, potentiometers, power supplies, relays, switches, and connectors; and computing and memory products, as well as other products and services. The Global Enterprise Computing Solutions segment offers computing solutions, including data-center, cloud, security, and analytics solutions. This segment provides access to various services, including engineering and integration support, warehousing and logistics, marketing resources, and authorized hardware and software training. The company serves original equipment manufacturers, value-added resellers, managed service providers, contract manufacturers, and other commercial customers. Arrow Electronics, Inc. was founded in 1935 and is based in Centennial, Colorado.

Details
Name: Arrow Electronics, Inc.
ARW
Exchange: NYSE
Founded: 1935
$6,639,687,831
84,917,353
Website: http://www.arrow.com
Address: Arrow Electronics, Inc.
9201 East Dry Creek Road,
Centennial,
Colorado, 80112,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ARW Common Stock New York Stock Exchange US USD 02. Jan 1968
DB ARW Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
LSE 0HI1 Common Stock London Stock Exchange GB USD 02. Jan 1968
Number of employees
Current staff
Staff numbers
20,100
Arrow Electronics employees.
Industry
Technology Distributors
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 23:32
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/02/13
Last earnings filing: 2019/02/07
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.