Arrow Electronics
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
1 Year Returns
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.
Value
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Arrow Electronics.
| 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.
| 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.
| 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 | ||
| 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 |
| 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 |
| 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
Current Discount Checks
- 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?
| 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.
| 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?
| 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 .
| 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?
| 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 |
| 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.
Value checks
We assess Arrow Electronics's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check) 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
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!
Earnings growth vs Low Risk Savings
- 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
| 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
| 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 |
| 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 |
| 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.
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.
| 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 |
| 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.
Future performance checks
We assess Arrow Electronics's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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
Past Earnings growth analysis
- 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
All data from Arrow Electronics Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| 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).
Past performance checks
We assess Arrow Electronics's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
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.
- 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
Assets
Liabilities and shares
- 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.
All data from Arrow Electronics Company Filings, last reported 2 months ago.
| 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).
Financial health checks
We assess Arrow Electronics's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Arrow Electronics has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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
If you bought
$2,000 of
Arrow Electronics
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- 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.
| 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.
| 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.
Income/ dividend checks
We assess Arrow Electronics's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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
CEO
| 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:
- The tenure for the Arrow Electronics management team is about average.
Management Team
Mike Long
Chairman
$11M
59
9.8 yrs
Chris Stansbury
Senior VP & CFO
$2M
53
2.8 yrs
Gretchen Zech
Senior VP & Chief Human Resources Officer
$2M
48
1.6 yrs
Sean Kerins
President of Arrow Global Enterprise Computing Solutions Business
$3M
55
4.8 yrs
Andy King
President of Arrow Global Components
$3M
54
3.3 yrs
Richard Seidlitz
Corporate Controller & Principal Accounting Officer
39
0.8 yrs
Vincent Melvin
Senior VP & Chief Information Officer
54
12.5 yrs
Steven O'Brien
Vice President of Investor Relations
Greg Tarpinian
Senior VP
56
4.2 yrs
John Hourigan
Vice President of Global Communications
Board of Directors Tenure
Average tenure and age of the Arrow Electronics board of directors in years:
- The tenure for the Arrow Electronics board of directors is about average.
Board of Directors
Mike Long
Chairman
$11M
59
9.2 yrs
Fran Keeth
Director
$260K
71
14.6 yrs
Andrew Kerin
Director
$246K
54
8.3 yrs
Philip Asherman
Director
$250K
67
8.3 yrs
Barry Perry
Lead Independent Director
$270K
72
7.8 yrs
Stephen Patrick
Director
$240K
68
15.7 yrs
Rick Hill
Director
$242K
66
13.1 yrs
Gail Hamilton
Director
$246K
68
11 yrs
Steve Gunby
Director
60
1.3 yrs
Laurel Krzeminski
Director
63
0.3 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | 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 | ||
Management checks
We assess Arrow Electronics's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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 - – Full articleShould 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 - – Full articleShould 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 - – Full articleWhat 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 - – Full articleCalculating 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 - – Full articleHere'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 - – Full articleAre 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 - – Full articleUnderstanding 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 - – Full articleIs 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 - – Full articleIs 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 - – Full articleCompany 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
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.
