ARW Arrow Electronics, Inc. - Fundamental Analysis
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ARW Stock | Fundamental Analysis & Investment Insights
NYSE
Technology
Electronics & Computer Distribution
Current Price
Live
$116.66
Analyst Target
$108.25
-7.2%
Downside
52W High
$134.74
52W Low
$86.5
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 24, 2026
Market cap
$6.01B
P/E
13.08
ROE
7.6%
Profit margin
1.6%
Debt/Equity
0.48
Dividend yield
N/A
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
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
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
50
Moderate
82
55
60
35
20
AI Verdict
Mixed outlook with value appeal offset by weak financial health and uncertain earnings trajectory
Key drivers: Low Piotroski F-Score, Strong revenue growth and earnings beat history, Attractive valuation multiples, Negative Q/Q EPS growth, Absence of Altman Z-Score
Confidence
70%
Value
82/100
Ref P/E, PEG, Graham Number
Positives
- P/E of 13.08 well below sector average of 89.76
- Price/Book of 0.94 suggests asset-backed floor
- Current price below Graham Number ($157.92)
Watchpoints
- No PEG ratio due to inconsistent growth or volatility
- Price/Sales of 0.20 may reflect low pricing power
Future
55/100
Ref Growth rates
Positives
- 13% YoY revenue growth
- 11.2% YoY earnings growth
Watchpoints
- Q/Q EPS growth of -0.8% indicates near-term weakness
- Forward P/E of 9.87 not supported by strong growth visibility
Past
60/100
Ref Historical trends
Positives
- 24 out of 25 quarters beat EPS estimates
- Long track record of positive earnings surprises
Watchpoints
- EPS peaked in early 2023 and has trended downward since
- Recent quarters show decelerating earnings
Health
35/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Current Ratio of 1.46 and Quick Ratio of 1.10 indicate short-term liquidity
- Debt/Equity of 0.48 is manageable
Watchpoints
- Piotroski F-Score of 3/9 indicates poor financial health
- Missing Altman Z-Score limits risk assessment
- Low ROA (2.38%) and ROIC unavailable
Dividend
20/100
Ref Yield, Payout
Positives
No standout positives identified.
Watchpoints
- No dividend yield or payout history
- Dividend Strength score of 0/100
- Zero payout ratio suggests no capital return policy
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$116.66
Analyst Target
$108.25
Upside/Downside
-7.2%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for ARW and closest competitors.
Updated 2026-01-23
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
ARW
Arrow Electronics, Inc.
Primary
|
+11.2% | +0.7% | -2.2% | -8.7% | +3.7% | -1.3% |
|
APPF
AppFolio, Inc.
Peer
|
+21.3% | +44.8% | -16.5% | -37.5% | -3.5% | -9.8% |
|
ALGM
Allegro MicroSystems, Inc.
Peer
|
+15.8% | -31.1% | +18.6% | +4.5% | -27.3% | -2.5% |
|
BLSH
Bullish
Peer
|
-47.4% | -47.4% | -47.4% | -47.4% | -16.6% | -8.4% |
|
BMI
Badger Meter, Inc.
Peer
|
+72.2% | +51.7% | -22.0% | -11.8% | -7.1% | -1.3% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
13.08
Forward P/E
9.87
PEG Ratio
N/A
P/B Ratio
0.94
P/S Ratio
0.2
EV/Revenue
0.31
EV/EBITDA
8.94
Market Cap
$6.01B
Profitability
Profit margins and return metrics
Profit Margin
1.62%
Operating Margin
2.75%
Gross Margin
11.3%
ROE
7.61%
ROA
2.38%
Growth
Revenue and earnings growth rates
Revenue Growth
+13.0%
Earnings Growth
+11.2%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+8.6%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.48
Low debt
Current Ratio
1.46
Good
Quick Ratio
1.1
Good
Cash/Share
$4.15
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-05
$N/A
2025-10-30
$2.41
+5.1% surprise
2025-07-31
$2.43
+18.7% surprise
2025-05-01
$1.51
+53.0% surprise
Technology Sector Comparison
Comparing ARW against 149 companies in the Technology sector
(10 bullish, 66 neutral, 73 bearish)
P/E Ratio
13.08
This Stock
vs
90.97
Sector Avg
-85.6%
(Discount)
Return on Equity (ROE)
7.61%
This Stock
vs
-8.13%
Sector Avg
-193.6%
(Below Avg)
Profit Margin
1.62%
This Stock
vs
-7.75%
Sector Avg
-120.9%
(Weaker)
Debt to Equity
0.48
This Stock
vs
0.76
Sector Avg
-36.8%
(Less Debt)
Revenue Growth
13.0%
This Stock
vs
56.87%
Sector Avg
-77.1%
(Slower)
Current Ratio
1.46
This Stock
vs
3.33
Sector Avg
-56.1%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
ARW
Arrow Electronics, Inc.
|
NEUTRAL | $6.01B | 13.08 | 7.6% | 1.6% | $116.66 | |
|
APPF
AppFolio, Inc.
|
BEARISH | $6.21B | 44.46 | 26.5% | 14.8% | $172.5 | |
|
ALGM
Allegro MicroSystems, Inc.
|
BEARISH | $5.77B | - | -1.4% | -1.6% | $31.13 | |
|
BLSH
Bullish
|
BEARISH | $5.39B | - | -% | -30.7% | $35.75 | |
|
BMI
Badger Meter, Inc.
|
NEUTRAL | $5.0B | 36.77 | 21.5% | 15.4% | $169.52 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-09-30 | AUSTEN WILLIAM F | Chief Executive Officer | Stock Award | 29,753 | - |
| 2025-08-01 | KERINS SEAN J. | Chief Executive Officer | Purchase | 8,630 | $991,693 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
NONE
4 analysts
Wells Fargo
2025-10-31
Underweight
Underweight
Past News Coverage
Recent headlines mentioning ARW from our newsroom.
Newest → oldest
No matching news yet.