ARW Stock Analysis: Arrow Electronics | NYSE
Electronics & Computer Distribution | NYSE, USA | Market Cap: 10.705m USD | 12M Return: 73.3% | US0427351004 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 120M
EPS Trend: -34.1%
Qual. Beats: 3
Rev. Trend: 5.4%
Qual. Beats: 3
Warnings
No concerns identified
Tailwinds
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Arrow Electronics, Inc. (NYSE: ARW) is a global technology distributor headquartered in Centennial, Colorado, founded in 1935. The company operates two business segments: Global Components, which markets and distributes semiconductors, interconnect, passive, and electromechanical products, and computing and memory products; and Global Enterprise Computing Solutions, which provides datacenter, cloud, security, and analytics solutions along with engineering, integration, logistics, and training services.
Arrow serves a broad customer base that includes original equipment manufacturers (OEMs), value-added resellers (VARs), managed service providers (MSPs), and contract manufacturers across the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is classified within the Information Technology sector under the GICS Technology Distributors sub-industry.
As a distributor, Arrow functions as an intermediary between component makers and end-users, capturing value through scale, inventory management, and value-added services rather than through manufacturing margins, which is characteristic of the technology distribution business model. Arrow is a large-cap company with a market capitalization of approximately $11.7 billion and has been publicly traded since its 1984 IPO.
- Industrial cycle weakness pressures Global Components revenue and margins
- Enterprise IT spending correction weighs on ECS segment growth
- Book-to-bill trends signal near-term demand stabilization across segments
| Net Income: 811.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA 0.41 > 1.0 |
| NWC/Revenue: 17.39% < 20% (prev 20.59%; Δ -3.20% < -1%) |
| CFO/TA 0.02 > 3% & CFO 936.4m > Net Income 811.6m |
| Net Debt (1.93b) to EBITDA (1.28b): 1.51 < 3 |
| Current Ratio: 1.22 > 1.5 & < 3 |
| Outstanding Shares: last quarter (51.9m) vs 12m ago -1.53% < -2% |
| Gross Margin: 11.20% > 18% (prev 11.27%; Δ -0.07% > 0.5%) |
| Asset Turnover: 114.7% > 50% (prev 117.5%; Δ -2.79% > 0%) |
| Interest Coverage Ratio: 4.95 > 6 (EBIT TTM 1.10b / Interest Expense TTM 223.0m) |
| A: 0.16 (Total Current Assets 35.0b - Total Current Liabilities 28.7b) / Total Assets 38.4b |
| B: 0.18 (Retained Earnings 7.06b / Total Assets 38.4b) |
| C: 0.04 (EBIT TTM 1.10b / Avg Total Assets 31.3b) |
| D: 0.22 (Book Value of Equity 7.01b / Total Liabilities 31.3b) |
| Altman-Z'' = 2.14 = BBB |
| DSRI: 1.46 (Receivables 28.0b/15.3b, Revenue 35.9b/28.5b) |
| GMI: 1.01 (GM 11.27% / 11.20%) |
| AQI: 0.63 (AQ_t 0.08 / AQ_t-1 0.12) |
| SGI: 1.26 (Revenue 35.9b / 28.5b) |
| TATA: -0.00 (NI 811.6m - CFO 936.4m) / TA 38.4b) |
| Beneish M = -2.68 (Cap -4..+1) = A |
As of August 17, 2026, the stock is trading at USD 213.99 with a total of 417,380 shares traded. Over the past week, the price has changed by +5.15%, over one month by +4.85%, over three months by +2.91% and over the past year by +73.29%.
Current recommended Stop Loss: 203.40 (which is 4.9% or 1.2 ATR below the current price).
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 | 235 | 9.8% |
P/E Trailing = 13.1932
P/E Forward = 5.0277
P/S = 0.298
P/B = 1.472
P/EG = 0.945
Revenue TTM = 35.9b USD
EBIT TTM = 1.10b USD
EBITDA TTM = 1.28b USD
Long Term Debt = 2.05b USD (from longTermDebt, last quarter)
Short Term Debt = 117.5m USD (from shortTermDebt, last quarter)
Debt = 2.17b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.93b USD (calculated: Debt 2.17b - CCE 244.6m)
Enterprise Value = 12.6b USD (10.7b + Debt 2.17b - CCE 244.6m)
Interest Coverage Ratio = 4.95 (Ebit TTM 1.10b / Interest Expense TTM 223.0m)
EV/FCF = 14.05x (Enterprise Value 12.6b / FCF TTM 899.3m)
FCF Yield = 7.12% (FCF TTM 899.3m / Enterprise Value 12.6b)
FCF Margin = 2.50% (FCF TTM 899.3m / Revenue TTM 35.9b)
Net Margin = 2.26% (Net Income TTM 811.6m / Revenue TTM 35.9b)
Gross Margin = 11.20% ((Revenue TTM 35.9b - Cost of Revenue TTM 31.9b) / Revenue TTM)
Gross Margin QoQ = 11.26% (prev 11.13%)
Tobins Q-Ratio = 0.33 (Enterprise Value 12.6b / Total Assets 38.4b)
Interest Expense / Debt = 10.27% (Interest Expense 223.0m / Debt 2.17b)
Taxrate = 22.12% (230.5m / 1.04b)
NOPAT = 859.4m (EBIT 1.10b * (1 - 22.12%))
Current Ratio = 1.22 (Total Current Assets 35.0b / Total Current Liabilities 28.7b)
Debt / Equity = 0.31 (Debt 2.17b / totalStockholderEquity, last quarter 7.01b)
Debt / EBITDA = 1.51 (Net Debt 1.93b / EBITDA 1.28b)
Debt / FCF = 2.14 (Net Debt 1.93b / FCF TTM 899.3m)
Total Stockholder Equity = 6.68b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.59% (Net Income 811.6m / Total Assets 38.4b)
RoE = 12.14% (Net Income TTM 811.6m / Total Stockholder Equity 6.68b)
RoCE = 12.63% (EBIT 1.10b / Capital Employed (Equity 6.68b + L.T.Debt 2.05b))
RoIC = 9.04% (NOPAT 859.4m / Invested Capital 9.51b)
WACC = 10.00% (E(10.7b)/V(12.9b) * Re(10.41%) + D(2.17b)/V(12.9b) * Rd(10.27%) * (1-Tc(0.22)))
Discount Rate = 10.41% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.82 | Cagr: -2.43%
[DCF] Terminal Value 72.81% ; FCFF base≈726.9m ; Y1≈833.2m ; Y5≈1.23b
[DCF] Fair Price = 242.7 (EV 14.3b - Net Debt 1.93b = Equity 12.4b / Shares 50.9m; r=10.00% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -34.12 | EPS CAGR: -8.91% | SUE: 1.36 | # QB: 3
Revenue Correlation: 5.41 | Revenue CAGR: 0.53% | SUE: 1.28 | # QB: 3
EPS current Quarter (2026-09-30): EPS=4.96 | Chg30d=+7.54% | Revisions=+50% | Analysts=4
EPS current Year (2026-12-31): EPS=21.64 | Chg30d=+9.23% | Revisions=+50% | GrowthEPS=+96.3% | GrowthRev=+29.8%
EPS next Year (2027-12-31): EPS=23.93 | Chg30d=+12.19% | Revisions=+57% | GrowthEPS=+10.6% | GrowthRev=+7.8%
[Analyst] Revisions Ratio: +77% (up=10, down=0)