ARW Stock Analysis: Arrow Electronics | NYSE
Electronics & Computer Distribution | NYSE, USA | Market Cap: 10.098m USD | 12M Return: 51.7% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 123M
EPS Trend: -74.7%
Qual. Beats: 2
Rev. Trend: -47.1%
Qual. Beats: 2
Warnings
Tailwinds
Seasonality 10.5 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: 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 (1.18b): 1.84 < 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 11.54%; Δ -0.35% > 0.5%) |
| Asset Turnover: 116.9% > 50% (prev 130.0%; Δ -13.10% > 0%) |
| Interest Coverage Ratio: 4.78 > 6 (EBIT TTM 1.04b / 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 1.04b / Avg Total Assets 28.7b) |
| D: 0.23 (Book Value of Equity 6.74b / Total Liabilities 29.1b) |
| Altman-Z'' = 2.25 = BBB |
| DSRI: 1.73 (Receivables 26.0b/12.4b, Revenue 33.5b/27.8b) |
| GMI: 1.03 (GM 11.54% / 11.18%) |
| 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 = -2.48 (Cap -4..+1) = BBB |
As of July 06, 2026, the stock is trading at USD 197.48 with a total of 798,000 shares traded. Over the past week, the price has changed by -13.78%, over one month by -9.86%, over three months by +34.13% and over the past year by +51.66%.
Current recommended Stop Loss: 185.40 (which is 6.1% or 1.5 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 | 219.5 | 11.2% |
P/E Trailing = 14.1461
P/E Forward = 5.0277
P/S = 0.3013
P/B = 1.4978
P/EG = 0.945
Revenue TTM = 33.5b USD
EBIT TTM = 1.04b USD
EBITDA TTM = 1.18b 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 = 12.3b USD (10.1b + Debt 2.47b - CCE 286.5m)
Interest Coverage Ratio = 4.78 (Ebit TTM 1.04b / Interest Expense TTM 218.5m)
EV/FCF = 32.51x (Enterprise Value 12.3b / FCF TTM 377.6m)
FCF Yield = 3.08% (FCF TTM 377.6m / Enterprise Value 12.3b)
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 = 0.34 (Enterprise Value 12.3b / Total Assets 36.0b)
Interest Expense / Debt = 8.86% (Interest Expense 218.5m / Debt 2.47b)
Taxrate = 21.27% (196.1m / 922.0m)
NOPAT = 821.6m (EBIT 1.04b * (1 - 21.27%))
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 = 1.84 (Net Debt 2.18b / EBITDA 1.18b)
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 = 11.77% (EBIT 1.04b / Capital Employed (Equity 6.52b + L.T.Debt 2.35b))
RoIC = 8.65% (NOPAT 821.6m / Invested Capital 9.49b)
WACC = 9.16% (E(10.1b)/V(12.6b) * Re(9.69%) + D(2.47b)/V(12.6b) * Rd(8.86%) * (1-Tc(0.21)))
Discount Rate = 9.69% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -85.78 | Cagr: -4.00%
[DCF] Terminal Value 70.13% ; FCFF base≈622.9m ; Y1≈546.2m ; Y5≈441.3m
[DCF] Fair Price = 79.64 (EV 6.25b - Net Debt 2.18b = Equity 4.07b / Shares 51.1m; r=9.16% [WACC]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: -74.66 | EPS CAGR: -20.43% | 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=+0.00% | Revisions=+50% | Analysts=4
EPS next Quarter (2026-09-30): EPS=4.63 | Chg30d=+0.00% | Revisions=+50% | Analysts=4
EPS current Year (2026-12-31): EPS=19.90 | Chg30d=+0.03% | Revisions=+50% | GrowthEPS=+80.6% | GrowthRev=+26.2%
EPS next Year (2027-12-31): EPS=21.32 | Chg30d=+0.09% | Revisions=+57% | GrowthEPS=+7.2% | GrowthRev=+4.7%
[Analyst] Revisions Ratio: +81% (up=13, down=0)