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ARW

NEUTRAL
$116.66 Live
Arrow Electronics, Inc. · NYSE
Target $108.25 (-7.2%)
$86.5 52W Range $134.74

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AI Analysis

AI-powered fundamental assessment

Confidence
65%
The Advanced Deterministic Scorecard reveals a weak financial health profile with a Piotroski F-Score of just 3/9, indicating significant concerns in profitability, leverage, and operating efficiency. Despite this, the company shows resilience through solid revenue growth (13% YoY), consistent earnings beats (25.62% average surprise over last 4 quarters), and a reasonable Debt/Equity ratio of 0.48. Valuation appears attractive relative to peers with a P/E of 13.08 versus sector average of 89.76 and a Price/Book under 1, though low margins and declining recent EPS growth (-0.8% QoQ) temper optimism. The stock trades below its Graham Number ($157.92) and intrinsic value estimate ($212.3), suggesting potential undervaluation, but weak profitability metrics and lack of Altman Z-Score data limit confidence in financial stability.

Key Strengths

Revenue growth of 13% YoY outpaces most peers in a high-growth sector
Consistently beats earnings estimates, with an average surprise of 25.62% over the last four quarters
Attractive valuation metrics: P/E of 13.08 and Price/Sales of 0.20 well below sector averages
Debt/Equity ratio of 0.48 indicates conservative capital structure
Current Price of $116.66 is significantly below Graham Number ($157.92), implying margin of safety

Key Risks

Very low Piotroski F-Score of 3/9 signals weak financial health across profitability, leverage, and operational efficiency
Profit margin of only 1.62% and ROE of 7.61% are weak for reinvestment and competitive advantage
Missing Altman Z-Score prevents definitive assessment of bankruptcy risk, a critical data gap
Recent Q/Q EPS growth is negative (-0.8%), indicating possible earnings deceleration
Lack of dividend and zero payout ratio reduces appeal for income investors and limits capital return visibility
AI Fair Value Estimate
Based on comprehensive analysis
$165.0
+41.4% above current price

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