NYSE:ARW

Stock Analysis Report

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.


Snowflake Analysis

Mediocre balance sheet with moderate growth potential.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.8%

ARW

3.7%

US Electronic

7.2%

US Market


1 Year Return

-31.6%

ARW

-20.6%

US Electronic

-10.4%

US Market

Return vs Industry: ARW underperformed the US Electronic industry which returned -21.6% over the past year.

Return vs Market: ARW underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

ARWIndustryMarket
7 Day2.8%3.7%7.2%
30 Day-19.9%-16.7%-12.6%
90 Day-36.6%-28.1%-19.4%
1 Year-31.6%-31.6%-19.7%-20.6%-8.5%-10.4%
3 Year-25.6%-25.6%2.3%-0.6%15.8%8.3%
5 Year-11.5%-11.5%25.9%19.6%35.8%21.0%

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

Valuation

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

0.9x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: ARW ($50.23) is trading above our estimate of fair value ($26.45)

Significantly Below Fair Value: ARW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ARW is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: ARW is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ARW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ARW is good value based on its PB Ratio (0.8x) compared to the US Electronic industry average (1.5x).


Next Steps

Future Growth

How is Arrow Electronics forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

103.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARW is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: ARW is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ARW's is expected to become profitable in the next 3 years.

Revenue vs Market: ARW's revenue is expected to decline over the next 3 years (-1% per year).

High Growth Revenue: ARW's revenue is forecast to decline over the next 3 years (-1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARW's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

How has Arrow Electronics performed over the past 5 years?

-15.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARW is currently unprofitable.

Growing Profit Margin: ARW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ARW is unprofitable, and losses have increased over the past 5 years at a rate of -15.2% per year.

Accelerating Growth: Unable to compare ARW's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ARW is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (3.2%).


Return on Equity

High ROE: ARW has a negative Return on Equity (-4.11%), as it is currently unprofitable.


Next Steps

Financial Health

How is Arrow Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: ARW's short term assets ($12.5B) exceed its short term liabilities ($8.3B).

Long Term Liabilities: ARW's short term assets ($12.5B) exceed its long term liabilities ($3.3B).


Debt to Equity History and Analysis

Debt Level: ARW's debt to equity ratio (61.3%) is considered high.

Reducing Debt: ARW's debt to equity ratio has increased from 50.2% to 61.3% over the past 5 years.


Balance Sheet

Inventory Level: ARW has a high level of physical assets or inventory.

Debt Coverage by Assets: ARW's debt is covered by short term assets (assets are 4.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ARW has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: ARW has been profitable on average in the past, therefore cash runway is not a concern.


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 payouts.

High Dividend: Unable to evaluate ARW's dividend yield against the top 25% of dividend payers, as the company has not reported any 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?

5.0yrs

Average management tenure


CEO

Mike Long (60yo)

10.83s

Tenure

US$15,339,932

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 ($USD15.34M) is above average for companies of similar size in the US market ($USD5.55M).

Compensation vs Earnings: Mike's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Long
Chairman10.83yrsUS$15.34m0.41% $17.6m
Christopher Stansbury
Senior VP & CFO3.83yrsUS$4.86m0.048% $2.1m
Mary Morris
Senior VP & Chief Strategy Officer13.17yrsUS$2.93m0.027% $1.2m
Sean Kerins
President of Global Enterprise Computing Solutions5.83yrsUS$2.80m0.038% $1.6m
Andrew King
President of Global Components4.25yrsUS$2.72m0.068% $3.0m
Richard Seidlitz
Corporate Controller & Principal Accounting Officer1.83yrsno datano data
Vincent Melvin
Senior VP & Chief Information Officer13.42yrsno data0.038% $1.6m
Steven O'Brien
Vice President of Investor Relationsno datano datano data
Lily Hughes
Senior VP0.67yrno datano data
John Hourigan
Vice President of Global Communicationsno datano datano data

5.0yrs

Average Tenure

55.5yo

Average Age

Experienced Management: ARW's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Long
Chairman10.83yrsUS$15.34m0.41% $17.6m
Richard Hill
Independent Director14yrsUS$250.30k0.011% $474.4k
Stephen Patrick
Independent Director16.67yrsUS$250.00kno data
Barry Perry
Lead Independent Director8.83yrsUS$280.00kno data
Gail Hamilton
Independent Director12yrsUS$250.00k0.000040% $1.7k
Andrew Kerin
Independent Director9.25yrsUS$260.00k0.0025% $106.6k
Philip Asherman
Independent Director9.25yrsUS$270.00kno data
M. Keeth
Independent Director15.58yrsUS$270.00kno data
Steven Gunby
Independent Director2.25yrsUS$153.69kno data
Laurel Krzeminski
Director1.25yrsno datano data

9.7yrs

Average Tenure

67.5yo

Average Age

Experienced Board: ARW's board of directors are considered experienced (9.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 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$4.332b
  • Shares outstanding: 80.64m
  • Website: https://www.arrow.com

Number of Employees


Location

  • Arrow Electronics, Inc.
  • 9201 East Dry Creek Road
  • Centennial
  • Colorado
  • 80112
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARWNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
ARWDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0HI1LSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
ARWBRSE (Berne Stock Exchange)YesCommon StockCHCHFJan 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, Africa, and the Asia Pacific. 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, as well as 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, as well as manages service providers, contract manufacturers, and other commercial customers. Arrow Electronics, Inc. was founded in 1935 and is based in Centennial, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 00:55
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
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.