Arrow Electronics
Market Cap
US$6.1b
Last Updated
2020/09/26 06:49 UTC
Data Sources
Company Financials +
Executive Summary
Arrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions in Americas, Europe, the Middle East, Africa, and the Asia Pacific. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet and good value.
Similar Companies
Share Price & News
How has Arrow Electronics's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ARW has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.3%
ARW
-2.3%
US Electronic
-0.8%
US Market
1 Year Return
5.3%
ARW
2.6%
US Electronic
13.8%
US Market
Return vs Industry: ARW exceeded the US Electronic industry which returned 1.4% over the past year.
Return vs Market: ARW underperformed the US Market which returned 12% over the past year.
Shareholder returns
| ARW | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.3% | -2.3% | -0.8% |
| 30 Day | 1.9% | -2.8% | -5.0% |
| 90 Day | 19.7% | 7.5% | 10.1% |
| 1 Year | 5.3%5.3% | 3.7%2.6% | 16.4%13.8% |
| 3 Year | -3.0%-3.0% | 14.1%10.9% | 36.9%27.8% |
| 5 Year | 38.2%38.2% | 77.9%69.7% | 85.0%64.2% |
Price Volatility Vs. Market
How volatile is Arrow Electronics's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
If You Had Bought Arrow Electronics (NYSE:ARW) Stock Five Years Ago, You Could Pocket A 41% Gain Today3 weeks ago | Simply Wall St
This Insider Has Just Sold Shares In Arrow Electronics, Inc. (NYSE:ARW)1 month ago | Simply Wall St
Is Arrow Electronics (NYSE:ARW) A Risky Investment?Valuation
Is Arrow Electronics undervalued compared to its fair value and its price relative to the market?
16.31x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ARW ($77.98) is trading above our estimate of fair value ($29.59)
Significantly Below Fair Value: ARW is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ARW is good value based on its PE Ratio (16.3x) compared to the US Electronic industry average (24.4x).
PE vs Market: ARW is good value based on its PE Ratio (16.3x) compared to the US market (17.5x).
Price to Earnings Growth Ratio
PEG Ratio: ARW is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: ARW is good value based on its PB Ratio (1.3x) compared to the US Electronic industry average (1.9x).
Next Steps
Future Growth
How is Arrow Electronics forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
29.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ARW's forecast earnings growth (29.8% per year) is above the savings rate (2.2%).
Earnings vs Market: ARW's earnings (29.8% per year) are forecast to grow faster than the US market (22.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ARW's revenue (3% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: ARW's revenue (3% 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 ARW's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Arrow Electronics performed over the past 5 years?
-22.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ARW has high quality earnings.
Growing Profit Margin: ARW's current net profit margins (1.4%) are higher than last year (0.02%).
Past Earnings Growth Analysis
Earnings Trend: ARW's earnings have declined by 22.1% per year over the past 5 years.
Accelerating Growth: ARW's earnings growth over the past year (5537.7%) exceeds its 5-year average (-22.1% per year).
Earnings vs Industry: ARW earnings growth over the past year (5537.7%) exceeded the Electronic industry -18%.
Return on Equity
High ROE: ARW's Return on Equity (8.2%) is considered low.
Next Steps
Financial Health
How is Arrow Electronics's financial position?
Financial Position Analysis
Short Term Liabilities: ARW's short term assets ($11.8B) exceed its short term liabilities ($8.1B).
Long Term Liabilities: ARW's short term assets ($11.8B) exceed its long term liabilities ($2.7B).
Debt to Equity History and Analysis
Debt Level: ARW's debt to equity ratio (42.9%) is considered high.
Reducing Debt: ARW's debt to equity ratio has reduced from 63% to 42.9% over the past 5 years.
Debt Coverage: ARW's debt is well covered by operating cash flow (81.8%).
Interest Coverage: ARW's interest payments on its debt are well covered by EBIT (4.2x coverage).
Balance Sheet
Next Steps
Dividend
What is Arrow Electronics's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ARW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ARW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ARW's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ARW's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ARW's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.3yrs
Average management tenure
CEO
Mike Long (61 yo)
11.33yrs
Tenure
US$11,671,842
Compensation
Mr. Michael J. Long, also known as Mike, has been the Chief Executive Officer of Arrow Electronics, Inc. since May 1, 2009 and has been its President since February 3, 2008. Mr. Long serves as the Chief Ex ...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD11.67M) is above average for companies of similar size in the US market ($USD7.46M).
Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 11.33yrs | US$11.67m | 0.33% $ 20.2m | |
| Senior VP & CFO | 4.33yrs | US$3.59m | 0.045% $ 2.7m | |
| Senior VP | 1.17yrs | US$2.87m | 0.0090% $ 546.0k | |
| President of Global Enterprise Computing Solutions | 6.33yrs | US$3.58m | 0.030% $ 1.8m | |
| President of Global Components | 4.83yrs | US$3.17m | 0.10% $ 6.2m | |
| Corporate Controller & Principal Accounting Officer | 2.33yrs | no data | no data | |
| Senior VP & Chief Information Officer | 14yrs | no data | 0.039% $ 2.4m | |
| Vice President of Investor Relations | no data | no data | no data | |
| Vice President of Global Communications | no data | no data | no data | |
| CFO of Emerging Businesses & VP of Corporate Development | no data | no data | no data | |
| Senior VP & Chief Marketing Officer | 0.67yr | no data | 0.012% $ 723.4k | |
| Senior VP & Chief Human Resources Officer | 3.08yrs | US$2.40m | 0.015% $ 898.9k |
4.3yrs
Average Tenure
56yo
Average Age
Experienced Management: ARW's management team is considered experienced (4.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 11.33yrs | US$11.67m | 0.33% $ 20.2m | |
| Independent Director | 14.58yrs | US$275.00k | 0.015% $ 881.4k | |
| Independent Director | 17.17yrs | US$275.00k | no data | |
| Lead Independent Director | 9.33yrs | US$305.00k | no data | |
| Independent Director | 12.5yrs | US$275.00k | 0.0032% $ 195.5k | |
| Independent Director | 9.75yrs | US$285.00k | 0.0057% $ 347.5k | |
| Director | 0.33yr | no data | no data | |
| Independent Director | 16.08yrs | US$297.50k | no data | |
| Director | no data | no data | no data | |
| Independent Director | 2.75yrs | US$275.00k | no data | |
| Independent Director | 1.75yrs | US$164.08k | 0.0013% $ 78.1k |
10.2yrs
Average Tenure
65yo
Average Age
Experienced Board: ARW's board of directors are seasoned and experienced ( 10.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ARW 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 Electronics, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Arrow Electronics, Inc.
- Ticker: ARW
- Exchange: NYSE
- Founded: 1935
- Industry: Technology Distributors
- Sector: Tech
- Market Cap: US$6.053b
- Shares outstanding: 77.63m
- Website: https://www.arrow.com
Number of Employees
Location
- Arrow Electronics, Inc.
- 9201 East Dry Creek Road
- Centennial
- Colorado
- 80112
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ARW | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| ARW | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| 0HI1 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1968 |
Biography
Arrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions in Americas, Europe, the Middle East, Afric ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/09/26 06:49 |
| End of Day Share Price | 2020/09/25 00:00 |
| Earnings | 2020/06/27 |
| 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.