Arrow Electronics
Market Cap
US$4.3b
Last Updated
2020/03/31 00:55 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.
Rewards
Risk Analysis
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
| ARW | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.8% | 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
5 days ago | Simply Wall St
What You Must Know About Arrow Electronics, Inc.'s (NYSE:ARW) Beta Value3 weeks ago | Simply Wall St
How Many Arrow Electronics, Inc. (NYSE:ARW) Shares Have Insiders Sold, In The Last Year?1 month ago | Simply Wall St
The Arrow Electronics (NYSE:ARW) Share Price Has Gained 25% And Shareholders Are Hoping For MoreValuation
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 10.83yrs | US$15.34m | 0.41% $17.6m | |
| Senior VP & CFO | 3.83yrs | US$4.86m | 0.048% $2.1m | |
| Senior VP & Chief Strategy Officer | 13.17yrs | US$2.93m | 0.027% $1.2m | |
| President of Global Enterprise Computing Solutions | 5.83yrs | US$2.80m | 0.038% $1.6m | |
| President of Global Components | 4.25yrs | US$2.72m | 0.068% $3.0m | |
| Corporate Controller & Principal Accounting Officer | 1.83yrs | no data | no data | |
| Senior VP & Chief Information Officer | 13.42yrs | no data | 0.038% $1.6m | |
| Vice President of Investor Relations | no data | no data | no data | |
| Senior VP | 0.67yr | no data | no data | |
| Vice President of Global Communications | no data | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 10.83yrs | US$15.34m | 0.41% $17.6m | |
| Independent Director | 14yrs | US$250.30k | 0.011% $474.4k | |
| Independent Director | 16.67yrs | US$250.00k | no data | |
| Lead Independent Director | 8.83yrs | US$280.00k | no data | |
| Independent Director | 12yrs | US$250.00k | 0.000040% $1.7k | |
| Independent Director | 9.25yrs | US$260.00k | 0.0025% $106.6k | |
| Independent Director | 9.25yrs | US$270.00k | no data | |
| Independent Director | 15.58yrs | US$270.00k | no data | |
| Independent Director | 2.25yrs | US$153.69k | no data | |
| Director | 1.25yrs | no data | no 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
| 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 |
| ARW | BRSE (Berne Stock Exchange) | Yes | Common Stock | CH | CHF | 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, 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 00:55 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| 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.