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ARW

Arrow ElectronicsNYSE:ARW Stock Report

Market Cap

US$8.5b

7D

-6.4%

1Y

28.6%

Updated

01 Dec, 2021

Data

Company Financials +
ARW fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health5/6
Dividends0/6

ARW Stock Overview

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.

Arrow Electronics Competitors

CDW

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TD SYNNEX

NYSE:SNX

US$9.9b

Avnet

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US$3.6b

Insight Enterprises

NasdaqGS:NSIT

US$3.4b

Price History & Performance

Summary of all time highs, changes and price drops for Arrow Electronics
Historical stock prices
Current Share PriceUS$120.44
52 Week HighUS$130.00
52 Week LowUS$92.47
Beta1.5
1 Month Change1.77%
3 Month Change1.32%
1 Year Change28.61%
3 Year Change59.71%
5 Year Change70.76%
Change since IPO6,116.26%

Recent News & Updates

Nov 01
Is It Time To Consider Buying Arrow Electronics, Inc. (NYSE:ARW)?

Is It Time To Consider Buying Arrow Electronics, Inc. (NYSE:ARW)?

Arrow Electronics, Inc. ( NYSE:ARW ), might not be a large cap stock, but it saw significant share price movement...

Oct 06
We Like These Underlying Return On Capital Trends At Arrow Electronics (NYSE:ARW)

We Like These Underlying Return On Capital Trends At Arrow Electronics (NYSE:ARW)

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Typically, we'll...

Shareholder Returns

ARWUS ElectronicUS Market
7D-6.4%-3.6%-2.8%
1Y28.6%23.8%20.0%

Return vs Industry: ARW exceeded the US Electronic industry which returned 23.8% over the past year.

Return vs Market: ARW exceeded the US Market which returned 20% over the past year.

Price Volatility

Is ARW's price volatile compared to industry and market?
ARW volatility
ARW Average Weekly Movement3.5%
Electronic Industry Average Movement7.0%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: ARW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ARW's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
193519,600Mike Longhttps://www.arrow.com

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.

Arrow Electronics Fundamentals Summary

How do Arrow Electronics's earnings and revenue compare to its market cap?
ARW fundamental statistics
Market CapUS$8.47b
Earnings (TTM)US$973.06m
Revenue (TTM)US$33.92b

8.6x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARW income statement (TTM)
RevenueUS$33.92b
Cost of RevenueUS$29.99b
Gross ProfitUS$3.93b
ExpensesUS$2.96b
EarningsUS$973.06m

Last Reported Earnings

Oct 02, 2021

Next Earnings Date

n/a

Earnings per share (EPS)13.97
Gross Margin11.59%
Net Profit Margin2.87%
Debt/Equity Ratio45.7%

How did ARW perform over the long term?

See historical performance and comparison

Valuation

Is Arrow Electronics undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ARW ($121.65) is trading below our estimate of fair value ($277.04)

Significantly Below Fair Value: ARW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ARW is good value based on its PE Ratio (8.7x) compared to the US Electronic industry average (16.9x).

PE vs Market: ARW is good value based on its PE Ratio (8.7x) compared to the US market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: ARW is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: ARW is good value based on its PB Ratio (1.6x) compared to the US Electronic industry average (2.5x).


Future Growth

How is Arrow Electronics forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARW's forecast earnings growth (6.8% per year) is above the savings rate (2%).

Earnings vs Market: ARW's earnings (6.8% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: ARW's earnings are forecast to grow, but not significantly.

Revenue vs Market: ARW's revenue (2.1% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: ARW's revenue (2.1% 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


Past Performance

How has Arrow Electronics performed over the past 5 years?

2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARW has high quality earnings.

Growing Profit Margin: ARW's current net profit margins (2.9%) are higher than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: ARW's earnings have grown by 2.6% per year over the past 5 years.

Accelerating Growth: ARW's earnings growth over the past year (107.9%) exceeds its 5-year average (2.6% per year).

Earnings vs Industry: ARW earnings growth over the past year (107.9%) exceeded the Electronic industry 52.7%.


Return on Equity

High ROE: ARW's Return on Equity (18.6%) is considered low.


Financial Health

How is Arrow Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: ARW's short term assets ($13.7B) exceed its short term liabilities ($9.5B).

Long Term Liabilities: ARW's short term assets ($13.7B) exceed its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: ARW's net debt to equity ratio (41.6%) is considered high.

Reducing Debt: ARW's debt to equity ratio has reduced from 62.1% to 45.7% over the past 5 years.

Debt Coverage: ARW's debt is well covered by operating cash flow (24.7%).

Interest Coverage: ARW's interest payments on its debt are well covered by EBIT (10.6x 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?

3.9yrs

Average management tenure


CEO

Mike Long (62 yo)

12.5yrs

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 ($USD11.51M) is above average for companies of similar size in the US market ($USD6.24M).

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 (3.9 years average tenure).


Board Members

Experienced Board: ARW's board of directors are considered experienced (7.2 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 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$8.470b
  • Shares outstanding: 69.63m
  • Website: https://www.arrow.com

Number of Employees


Location

  • Arrow Electronics, Inc.
  • 9201 East Dry Creek Road
  • Centennial
  • Colorado
  • 80112
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 23:54
End of Day Share Price2021/12/01 00:00
Earnings2021/10/02
Annual Earnings2020/12/31


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.