(ARW) Arrow Electronics - Overview
Sector: Technology | Industry: Electronics & Computer Distribution | Exchange: NYSE (USA) | Market Cap: 10.883m USD | Total Return: 81.2% in 12m
Avg Turnover: 151M
EPS Trend: -72.9%
Qual. Beats: 2
Rev. Trend: -47.1%
Qual. Beats: 2
Warnings
No concerns identified
Tailwinds
Supp Ema8, Supp Ema20, Leader, Pead, Tailwind, Confidence, Garp
Arrow Electronics, Inc. (ARW) functions as a global supply chain partner and distributor of electronic components and enterprise computing solutions. Operating through two primary segments, Global Components and Global Enterprise Computing Solutions, the company facilitates the bridge between technology suppliers and a diverse customer base of manufacturers and service providers.
The business model relies on high-volume distribution and value-added services, such as engineering support and logistics management, to maintain margins in the competitive technology hardware sector. As a technology distributor, Arrow operates within a cyclical industry where performance is closely tied to semiconductor lead times and global industrial production levels.
For a deeper look into the companys valuation metrics, consider reviewing the latest data on ValueRay.
Founded in 1935 and headquartered in Colorado, the company maintains an extensive international footprint across the Americas, EMEA, and Asia Pacific regions. Its portfolio encompasses a wide range of products, from semiconductors and electromechanical components to sophisticated cloud and data center security solutions.
- Global semiconductor inventory cycles dictate component segment revenue and margin volatility
- Enterprise IT spending shifts toward cloud and security services drive computing margins
- Fluctuations in interest rates significantly impact financing costs for high-volume distribution
- Demand from industrial and automotive manufacturers influences long-term electronic component sales volume
- Supply chain disruptions and lead time variability affect inventory valuation and cash flow
| Net Income: 726.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -3.58 > 1.0 |
| NWC/Revenue: 18.70% < 20% (prev 19.52%; Δ -0.82% < -1%) |
| CFO/TA 0.01 > 3% & CFO 412.1m > Net Income 726.7m |
| Net Debt (2.18b) to EBITDA (1.32b): 1.65 < 3 |
| Current Ratio: 1.24 > 1.5 & < 3 |
| Outstanding Shares: last quarter (51.7m) vs 12m ago -1.84% < -2% |
| Gross Margin: 11.18% > 18% (prev 0.12%; Δ 1.11k% > 0.5%) |
| Asset Turnover: 116.9% > 50% (prev 130.0%; Δ -13.10% > 0%) |
| Interest Coverage Ratio: 5.41 > 6 (EBITDA TTM 1.32b / Interest Expense TTM 218.5m) |
| A: 0.17 (Total Current Assets 32.6b - Total Current Liabilities 26.3b) / Total Assets 36.0b |
| B: 0.19 (Retained Earnings 6.79b / Total Assets 36.0b) |
| C: 0.04 (EBIT TTM 1.18b / Avg Total Assets 28.7b) |
| D: 0.23 (Book Value of Equity 6.60b / Total Liabilities 29.1b) |
| Altman-Z'' = 2.27 = BBB |
| DSRI: 1.73 (Receivables 26.0b/12.4b, Revenue 33.5b/27.8b) |
| GMI: 1.03 (GM 11.18% / 11.54%) |
| AQI: 0.60 (AQ_t 0.08 / AQ_t-1 0.14) |
| SGI: 1.20 (Revenue 33.5b / 27.8b) |
| TATA: 0.01 (NI 726.7m - CFO 412.1m) / TA 36.0b) |
| Beneish M = -2.47 (Cap -4..+1) = BBB |
As of May 25, 2026, the stock is trading at USD 217.33 with a total of 340,024 shares traded.
Over the past week, the price has changed by +4.30%,
over one month by +16.21%,
over three months by +38.51% and
over the past year by +81.24%.
Arrow Electronics has received a consensus analysts rating of 2.67. Therefore, it is recommended to hold ARW.
- StrongBuy: 0
- Buy: 1
- Hold: 3
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 214.5 | -1.3% |
P/E Forward = 5.0277
P/S = 0.3248
P/B = 1.6143
P/EG = 0.945
Revenue TTM = 33.5b USD
EBIT TTM = 1.18b USD
EBITDA TTM = 1.32b USD
Long Term Debt = 2.35b USD (from longTermDebt, last quarter)
Short Term Debt = 113.4m USD (from shortTermDebt, last quarter)
Debt = 2.47b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.18b USD (calculated: Debt 2.47b - CCE 286.5m)
Enterprise Value = 13.1b USD (10.9b + Debt 2.47b - CCE 286.5m)
Interest Coverage Ratio = 5.41 (Ebit TTM 1.18b / Interest Expense TTM 218.5m)
EV/FCF = 34.59x (Enterprise Value 13.1b / FCF TTM 377.6m)
FCF Yield = 2.89% (FCF TTM 377.6m / Enterprise Value 13.1b)
FCF Margin = 1.13% (FCF TTM 377.6m / Revenue TTM 33.5b)
Net Margin = 2.17% (Net Income TTM 726.7m / Revenue TTM 33.5b)
Gross Margin = 11.18% ((Revenue TTM 33.5b - Cost of Revenue TTM 29.8b) / Revenue TTM)
Gross Margin QoQ = 11.13% (prev 11.53%)
Tobins Q-Ratio = 0.36 (Enterprise Value 13.1b / Total Assets 36.0b)
Interest Expense / Debt = 8.86% (Interest Expense 218.5m / Debt 2.47b)
Taxrate = 23.18% (71.2m / 307.3m)
NOPAT = 908.8m (EBIT 1.18b * (1 - 23.18%))
Current Ratio = 1.24 (Total Current Assets 32.6b / Total Current Liabilities 26.3b)
Debt / Equity = 0.37 (Debt 2.47b / totalStockholderEquity, last quarter 6.74b)
Debt / EBITDA = 1.65 (Net Debt 2.18b / EBITDA 1.32b)
Debt / FCF = 5.77 (Net Debt 2.18b / FCF TTM 377.6m)
Total Stockholder Equity = 6.52b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.53% (Net Income 726.7m / Total Assets 36.0b)
RoE = 11.15% (Net Income TTM 726.7m / Total Stockholder Equity 6.52b)
RoCE = 13.34% (EBIT 1.18b / Capital Employed (Equity 6.52b + L.T.Debt 2.35b))
RoIC = 9.30% (NOPAT 908.8m / Invested Capital 9.78b)
WACC = 9.04% (E(10.9b)/V(13.3b) * Re(9.55%) + D(2.47b)/V(13.3b) * Rd(8.86%) * (1-Tc(0.23)))
Discount Rate = 9.55% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -94.39 | Cagr: -2.72%
[DCF] Terminal Value 70.54% ; FCFF base≈622.9m ; Y1≈546.2m ; Y5≈441.3m
[DCF] Fair Price = 81.69 (EV 6.36b - Net Debt 2.18b = Equity 4.18b / Shares 51.1m; r=9.04% [WACC]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: -72.90 | EPS CAGR: -19.68% | SUE: 4.0 | # QB: 2
Revenue Correlation: -47.14 | Revenue CAGR: -4.49% | SUE: 4.0 | # QB: 2
EPS current Quarter (2026-06-30): EPS=4.46 | Chg30d=+53.26% | Revisions=+43% | Analysts=4
EPS next Quarter (2026-09-30): EPS=4.63 | Chg30d=+49.04% | Revisions=+43% | Analysts=4
EPS current Year (2026-12-31): EPS=19.89 | Chg30d=+49.38% | Revisions=+43% | GrowthEPS=+80.5% | GrowthRev=+26.2%
EPS next Year (2027-12-31): EPS=21.30 | Chg30d=+41.21% | Revisions=+50% | GrowthEPS=+7.1% | GrowthRev=+4.7%
[Analyst] Revisions Ratio: +50%