NYSE:ARW

Stock Analysis Report

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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


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.3%

ARW

-2.3%

US Electronic

-0.8%

US Market


1 Year Return

5.3%

ARW

2.6%

US Electronic

13.8%

US Market

Return vs Industry: ARW exceeded the US Electronic industry which returned 1.4% over the past year.

Return vs Market: ARW underperformed the US Market which returned 12% over the past year.


Shareholder returns

ARWIndustryMarket
7 Day-2.3%-2.3%-0.8%
30 Day1.9%-2.8%-5.0%
90 Day19.7%7.5%10.1%
1 Year5.3%5.3%3.7%2.6%16.4%13.8%
3 Year-3.0%-3.0%14.1%10.9%36.9%27.8%
5 Year38.2%38.2%77.9%69.7%85.0%64.2%

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?

16.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ARW ($77.98) is trading above our estimate of fair value ($29.59)

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


Price To Earnings Ratio

PE vs Industry: ARW is good value based on its PE Ratio (16.3x) compared to the US Electronic industry average (24.4x).

PE vs Market: ARW is good value based on its PE Ratio (16.3x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

PEG Ratio: ARW is good value based on its PEG Ratio (0.5x)


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?

29.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARW's forecast earnings growth (29.8% per year) is above the savings rate (2.2%).

Earnings vs Market: ARW's earnings (29.8% per year) are forecast to grow faster than the US market (22.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ARW's revenue (3% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: ARW's revenue (3% per year) is forecast to grow slower than 20% 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?

-22.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARW has high quality earnings.

Growing Profit Margin: ARW's current net profit margins (1.4%) are higher than last year (0.02%).


Past Earnings Growth Analysis

Earnings Trend: ARW's earnings have declined by 22.1% per year over the past 5 years.

Accelerating Growth: ARW's earnings growth over the past year (5537.7%) exceeds its 5-year average (-22.1% per year).

Earnings vs Industry: ARW earnings growth over the past year (5537.7%) exceeded the Electronic industry -18%.


Return on Equity

High ROE: ARW's Return on Equity (8.2%) is considered low.


Next Steps

Financial Health

How is Arrow Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: ARW's short term assets ($11.8B) exceed its short term liabilities ($8.1B).

Long Term Liabilities: ARW's short term assets ($11.8B) exceed its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: ARW's debt to equity ratio (42.9%) is considered high.

Reducing Debt: ARW's debt to equity ratio has reduced from 63% to 42.9% over the past 5 years.

Debt Coverage: ARW's debt is well covered by operating cash flow (81.8%).

Interest Coverage: ARW's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


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 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?

4.3yrs

Average management tenure


CEO

Mike Long (61 yo)

11.33yrs

Tenure

US$11,671,842

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 ($USD11.67M) is above average for companies of similar size in the US market ($USD7.46M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Long
Chairman11.33yrsUS$11.67m0.33%
$ 20.2m
Christopher Stansbury
Senior VP & CFO4.33yrsUS$3.59m0.045%
$ 2.7m
Lily Hughes
Senior VP1.17yrsUS$2.87m0.0090%
$ 546.0k
Sean Kerins
President of Global Enterprise Computing Solutions6.33yrsUS$3.58m0.030%
$ 1.8m
Andrew King
President of Global Components4.83yrsUS$3.17m0.10%
$ 6.2m
Richard Seidlitz
Corporate Controller & Principal Accounting Officer2.33yrsno datano data
Vincent Melvin
Senior VP & Chief Information Officer14yrsno data0.039%
$ 2.4m
Steven O'Brien
Vice President of Investor Relationsno datano datano data
John Hourigan
Vice President of Global Communicationsno datano datano data
Greg Hanson
CFO of Emerging Businesses & VP of Corporate Developmentno datano datano data
Wei Gao
Senior VP & Chief Marketing Officer0.67yrno data0.012%
$ 723.4k
Gretchen Zech
Senior VP & Chief Human Resources Officer3.08yrsUS$2.40m0.015%
$ 898.9k

4.3yrs

Average Tenure

56yo

Average Age

Experienced Management: ARW's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Long
Chairman11.33yrsUS$11.67m0.33%
$ 20.2m
Richard Hill
Independent Director14.58yrsUS$275.00k0.015%
$ 881.4k
Stephen Patrick
Independent Director17.17yrsUS$275.00kno data
Barry Perry
Lead Independent Director9.33yrsUS$305.00kno data
Gail Hamilton
Independent Director12.5yrsUS$275.00k0.0032%
$ 195.5k
Andrew Kerin
Independent Director9.75yrsUS$285.00k0.0057%
$ 347.5k
William Austen
Director0.33yrno datano data
M. Keeth
Independent Director16.08yrsUS$297.50kno data
Gerry Smith
Directorno datano datano data
Steven Gunby
Independent Director2.75yrsUS$275.00kno data
Laurel Krzeminski
Independent Director1.75yrsUS$164.08k0.0013%
$ 78.1k

10.2yrs

Average Tenure

65yo

Average Age

Experienced Board: ARW's board of directors are seasoned and experienced ( 10.2 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$6.053b
  • Shares outstanding: 77.63m
  • 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 in Americas, Europe, the Middle East, Afric ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/26 06:49
End of Day Share Price2020/09/25 00:00
Earnings2020/06/27
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.