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 worldwide.

Snowflake

Fundamentals

Mediocre balance sheet and slightly overvalued.


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


Market Performance


7 Day Return

1.2%

ARW

2.0%

US Electronic

0.4%

US Market


1 Year Return

17.7%

ARW

19.3%

US Electronic

11.4%

US Market

Return vs Industry: ARW exceeded the US Electronic industry which returned 19.3% over the past year.

Return vs Market: ARW exceeded the US Market which returned 11.4% over the past year.


Shareholder returns

ARWIndustryMarket
7 Day1.2%2.0%0.4%
30 Day2.6%4.1%0.3%
90 Day7.6%2.8%-1.2%
1 Year17.7%17.7%20.5%19.3%13.9%11.4%
3 Year22.7%22.7%55.3%51.0%47.2%37.6%
5 Year39.2%39.2%82.7%73.8%62.4%44.6%

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?

15.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ARW ($76.58) is trading below our estimate of fair value ($90.82)

Significantly Below Fair Value: ARW is trading below fair value, but not by a significant amount.


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 (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?

222.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARW is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: ARW is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: ARW is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: ARW's revenue is expected to decline over the next 3 years (-0.1% per year).

High Growth Revenue: ARW's revenue is forecast to decline over the next 3 years (-0.1% 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?

-1.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ARW is unprofitable, and losses have increased over the past 5 years at a rate of -1.4% 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 (58.6%).


Return on Equity

High ROE: ARW has a negative Return on Equity (0.11%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: ARW is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: ARW is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Arrow Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: ARW's short term assets ($12.1B) exceeds its short term liabilities ($7.4B)

Long Term Liabilities: ARW's short term assets (12.1B) exceeds its long term liabilities (3.8B)


Debt to Equity History and Analysis

Debt Level: ARW's debt to equity ratio (71.4%) is considered high

Reducing Debt: ARW's debt to equity ratio has increased from 49.3% to 71.4% over the past 5 years.

Debt Coverage: ARW's debt is well covered by operating cash flow (24.2%).

Interest Coverage: ARW is unprofitable, therefore interest payments are not well covered by earnings.


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 3.5x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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

4.7yrs

Average management tenure


CEO

Mike Long (60yo)

10.4yrs

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 ($USD15.34M) is about average for companies of similar size in the US market ($USD6.91M).

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


Management Age and Tenure

4.7yrs

Average Tenure

55.5yo

Average Age

Experienced Management: ARW's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

9.3yrs

Average Tenure

67.5yo

Average Age

Experienced Board: ARW's board of directors are considered experienced (9.3 years average tenure).


Insider Trading

Insider Buying: ARW insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,591,87221 Aug 19
Christopher Stansbury
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares23,100
Max PriceUS$69.59
SellUS$217,95219 Aug 19
Charles Kostalnick
EntityIndividual
Shares3,200
Max PriceUS$68.11
SellUS$431,54927 Feb 19
Sean Kerins
EntityIndividual
Role
Unit President
President of Global Enterprise Computing Solutions
Shares5,286
Max PriceUS$81.64
SellUS$167,34225 Feb 19
Gail Hamilton
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,043
Max PriceUS$81.91
SellUS$76,08521 Feb 19
Mary Morris
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Strategy Officer
Shares929
Max PriceUS$81.90
SellUS$559,85321 Feb 19
Andrew Kerin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,845
Max PriceUS$81.79
SellUS$4,892,46221 Feb 19
Michael Long
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares60,252
Max PriceUS$81.20
SellUS$102,48821 Feb 19
Charles Kostalnick
EntityIndividual
Shares1,250
Max PriceUS$81.99
SellUS$4,356,50920 Feb 19
Michael Long
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares53,984
Max PriceUS$80.70
SellUS$52,05907 Nov 18
Charles Kostalnick
EntityIndividual
Shares700
Max PriceUS$74.37

Ownership Breakdown


Management Team

  • Mike Long (60yo)

    Chairman

    • Tenure: 10.4yrs
    • Compensation: US$15.34m
  • Vincent Melvin (55yo)

    Senior VP & Chief Information Officer

    • Tenure: 13.1yrs
  • Steven O'Brien

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Cathy Morris (60yo)

    Senior VP & Chief Strategy Officer

    • Tenure: 12.8yrs
    • Compensation: US$2.93m
  • Andy King (55yo)

    President of Global Components

    • Tenure: 3.9yrs
    • Compensation: US$2.72m
  • John Hourigan

    Vice President of Global Communications

    • Tenure: 0yrs
  • Sean Kerins (56yo)

    President of Global Enterprise Computing Solutions

    • Tenure: 5.4yrs
    • Compensation: US$2.80m
  • Chris Stansbury (54yo)

    Senior VP & CFO

    • Tenure: 3.4yrs
    • Compensation: US$4.86m
  • Lily Hughes (56yo)

    Senior VP & Chief Legal Officer

    • Tenure: 0.3yrs
  • Richard Seidlitz (40yo)

    Corporate Controller & Principal Accounting Officer

    • Tenure: 1.4yrs

Board Members

  • Rick Hill (67yo)

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: US$250.30k
  • Mike Long (60yo)

    Chairman

    • Tenure: 10.4yrs
    • Compensation: US$15.34m
  • Stephen Patrick (69yo)

    Independent Director

    • Tenure: 16.3yrs
    • Compensation: US$250.00k
  • Barry Perry (73yo)

    Lead Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$280.00k
  • Gail Hamilton (69yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$250.00k
  • Andrew Kerin (55yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$260.00k
  • Philip Asherman (68yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$270.00k
  • Fran Keeth (72yo)

    Independent Director

    • Tenure: 15.2yrs
    • Compensation: US$270.00k
  • Steve Gunby (61yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$153.69k
  • Laurel Krzeminski (64yo)

    Director

    • Tenure: 0.8yrs

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$6.367b
  • Shares outstanding: 83.14m
  • 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

Biography

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 segm ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:32
End of Day Share Price2019/10/23 00:00
Earnings2019/06/29
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.