Arrow Electronics
Market Cap
US$9.2b
Last Updated
2021/04/16 22:14 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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: ARW's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
1.9%
ARW
1.0%
US Electronic
1.3%
US Market
1 Year Return
113.2%
ARW
87.6%
US Electronic
53.9%
US Market
Return vs Industry: ARW exceeded the US Electronic industry which returned 87.6% over the past year.
Return vs Market: ARW exceeded the US Market which returned 53.9% over the past year.
Shareholder returns
| ARW | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.9% | 1.0% | 1.3% |
| 30 Day | 7.6% | 4.2% | 3.3% |
| 90 Day | 13.4% | 9.7% | 8.9% |
| 1 Year | 113.2%113.2% | 91.2%87.6% | 56.6%53.9% |
| 3 Year | 51.4%51.4% | 70.8%63.6% | 64.4%53.6% |
| 5 Year | 85.3%85.3% | 169.7%152.4% | 120.4%95.7% |
Long-Term 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
2 weeks ago | Simply Wall St
Investors Who Bought Arrow Electronics (NYSE:ARW) Shares A Year Ago Are Now Up 119%1 month ago | Simply Wall St
Returns On Capital At Arrow Electronics (NYSE:ARW) Paint An Interesting Picture2 months ago | Simply Wall St
Estimating The Intrinsic Value Of Arrow Electronics, Inc. (NYSE:ARW)Valuation
Is Arrow Electronics undervalued compared to its fair value and its price relative to the market?
6.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ARW ($117.86) is trading below our estimate of fair value ($125.33)
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 good value based on its PE Ratio (15.7x) compared to the US Electronic industry average (28.3x).
PE vs Market: ARW is good value based on its PE Ratio (15.7x) compared to the US market (22.5x).
Price to Earnings Growth Ratio
PEG Ratio: ARW is poor value based on its PEG Ratio (2.1x)
Price to Book Ratio
PB vs Industry: ARW is good value based on its PB Ratio (1.7x) compared to the US Electronic industry average (2.9x).
Future Growth
How is Arrow Electronics forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
7.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ARW's forecast earnings growth (7.5% per year) is above the savings rate (2%).
Earnings vs Market: ARW's earnings (7.5% per year) are forecast to grow slower than the US market (18.1% per year).
High Growth Earnings: ARW's earnings are forecast to grow, but not significantly.
Revenue vs Market: ARW's revenue (4.8% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: ARW's revenue (4.8% per year) is forecast to grow slower than 20% 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 (11.2%).
Past Performance
How has Arrow Electronics performed over the past 5 years?
-16.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ARW has high quality earnings.
Growing Profit Margin: ARW became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: ARW's earnings have declined by 16.5% per year over the past 5 years.
Accelerating Growth: ARW has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: ARW has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (-6.4%).
Return on Equity
High ROE: ARW's Return on Equity (11.4%) is considered low.
Financial Health
How is Arrow Electronics's financial position?
Financial Position Analysis
Short Term Liabilities: ARW's short term assets ($13.2B) exceed its short term liabilities ($9.1B).
Long Term Liabilities: ARW's short term assets ($13.2B) exceed its long term liabilities ($2.8B).
Debt to Equity History and Analysis
Debt Level: ARW's debt to equity ratio (43.8%) is considered high.
Reducing Debt: ARW's debt to equity ratio has reduced from 57.9% to 43.8% over the past 5 years.
Debt Coverage: ARW's debt is well covered by operating cash flow (60.3%).
Interest Coverage: ARW's interest payments on its debt are well covered by EBIT (6.6x coverage).
Balance Sheet
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?
3.3yrs
Average management tenure
CEO
Mike Long (61 yo)
11.92yrs
Tenure
US$11,513,092
Compensation
Mr. Michael J. Long, also known as Mike, has been the Chief Executive Officer of Arrow Electronics, Inc. since May 1, 2009 and has been its President since February 3, 2008. Mr. Long serves as the Chief Ex...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD11.51M) is above average for companies of similar size in the US market ($USD6.50M).
Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: ARW's management team is considered experienced (3.3 years average tenure).
Board Members
Experienced Board: ARW's board of directors are seasoned and experienced ( 10.3 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$9.192b
- Shares outstanding: 74.60m
- Website: https://www.arrow.com
Number of Employees
Location
- Arrow Electronics, Inc.
- 9201 East Dry Creek Road
- Centennial
- Colorado
- 80112
- United States
Listings
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 | 2021/04/16 22:14 |
| End of Day Share Price | 2021/04/16 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.