AROW Stock Analysis: Arrow Financial | NASDAQ
Banks - Regional | NASDAQ, USA | Market Cap: 682m USD | 12M Return: 54.7% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 4.06M
EPS Trend: 52.2%
Qual. Beats: 0
Rev. Trend: 94.6%
Qual. Beats: 0
Warnings
No concerns identified
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 Financial Corporation (AROW) is a New York-based bank holding company established in 1851. It operates primarily through its regional banking subsidiaries, offering a broad suite of financial services including commercial and consumer lending, deposit products, and wealth management. The company’s credit portfolio is diversified across commercial real estate, residential mortgages, and indirect automobile lending.
The regional banking sector typically relies on the net interest margin, which is the spread between the interest earned on loans and the interest paid to depositors. Beyond traditional banking, Arrow Financial generates non-interest income through trust and estate administration, pension plan services, and the sale of property, casualty, and life insurance products. This multi-channel approach allows regional banks to stabilize revenue during periods of fluctuating interest rates.
Investors can further evaluate these revenue streams by reviewing the fundamental analysis available on ValueRay. The company maintains a localized business model, focusing its operations on the Glens Falls and North Country regions of New York.
- Net interest margin compression impacts profitability amid fluctuating Federal Reserve rates
- Indirect automobile lending volume dictates consumer loan portfolio growth and risk
- Real estate concentration in Northern New York exposes bank to regional downturns
- Wealth management and insurance fee income stabilizes revenue during credit cycles
- Regulatory compliance costs and capital requirements influence dividend and buyback capacity
| Net Income: 51.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA 0.27 > 1.0 |
| NWC/Revenue: -280.9% < 20% (prev -1.42k%; Δ 1.14k% < -1%) |
| CFO/TA 0.01 > 3% & CFO 46.5m > Net Income 51.1m |
| Net Debt (9.92m) to EBITDA (70.1m): 0.14 < 3 |
| Current Ratio: 0.04 > 1.5 & < 3 |
| Outstanding Shares: last quarter (16.4m) vs 12m ago -1.62% < -2% |
| Gross Margin: 68.22% > 18% (prev 59.59%; Δ 8.63% > 0.5%) |
| Asset Turnover: 5.50% > 50% (prev 5.10%; Δ 0.41% > 0%) |
| Interest Coverage Ratio: 0.85 > 6 (EBIT TTM 64.6m / Interest Expense TTM 75.6m) |
| A: -0.15 (Total Current Assets 29.1m - Total Current Liabilities 722.4m) / Total Assets 4.52b |
| B: 0.02 (Retained Earnings 110.8m / Total Assets 4.52b) |
| C: 0.01 (EBIT TTM 64.6m / Avg Total Assets 4.49b) |
| D: 0.11 (Book Value of Equity 440.1m / Total Liabilities 4.08b) |
| Altman-Z'' = -0.72 = B |
As of July 08, 2026, the stock is trading at USD 40.82 with a total of 77,340 shares traded. Over the past week, the price has changed by -0.75%, over one month by +10.09%, over three months by +17.93% and over the past year by +54.71%.
Current recommended Stop Loss: 39.30 (which is 3.7% or 1.3 ATR below the current price).
Arrow Financial has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold AROW.
- StrongBuy: 0
- Buy: 0
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 41 | 0.4% |
P/E Trailing = 13.3625
P/E Forward = 13.0039
P/S = 4.0538
P/B = 1.5506
P/EG = 2.8438
Revenue TTM = 246.8m USD
EBIT TTM = 64.6m USD
EBITDA TTM = 70.1m USD
Long Term Debt = 24.3m USD (from longTermDebt, last quarter)
Short Term Debt = 1.15m USD (from shortTermDebt, last quarter)
Debt = 39.0m USD (from shortLongTermDebtTotal, last quarter) + Leases 4.91m
Net Debt = 9.92m USD (calculated: Debt 39.0m - CCE 29.1m)
Enterprise Value = 692.4m USD (682.5m + Debt 39.0m - CCE 29.1m)
Interest Coverage Ratio = 0.85 (Ebit TTM 64.6m / Interest Expense TTM 75.6m)
EV/FCF = 16.75x (Enterprise Value 692.4m / FCF TTM 41.3m)
FCF Yield = 5.97% (FCF TTM 41.3m / Enterprise Value 692.4m)
FCF Margin = 16.75% (FCF TTM 41.3m / Revenue TTM 246.8m)
Net Margin = 20.72% (Net Income TTM 51.1m / Revenue TTM 246.8m)
Gross Margin = 68.22% ((Revenue TTM 246.8m - Cost of Revenue TTM 78.4m) / Revenue TTM)
Gross Margin QoQ = 70.82% (prev 67.69%)
Tobins Q-Ratio = 0.15 (Enterprise Value 692.4m / Total Assets 4.52b)
Interest Expense / Debt = 193.8% (Interest Expense 75.6m / Debt 39.0m)
Taxrate = 20.86% (13.5m / 64.6m)
NOPAT = 51.1m (EBIT 64.6m * (1 - 20.86%))
Current Ratio = 0.04 (Total Current Assets 29.1m / Total Current Liabilities 722.4m)
Debt / Equity = 0.09 (Debt 39.0m / totalStockholderEquity, last quarter 440.1m)
Debt / EBITDA = 0.14 (Net Debt 9.92m / EBITDA 70.1m)
Debt / FCF = 0.24 (Net Debt 9.92m / FCF TTM 41.3m)
Total Stockholder Equity = 424.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 1.14% (Net Income 51.1m / Total Assets 4.52b)
RoE = 12.04% (Net Income TTM 51.1m / Total Stockholder Equity 424.5m)
RoCE = 14.39% (EBIT 64.6m / Capital Employed (Equity 424.5m + L.T.Debt 24.3m))
RoIC = 1.13% (NOPAT 51.1m / Invested Capital 4.51b)
WACC = 7.31% (E(682.5m)/V(721.5m) * Re(7.73%) + (debt cost/tax rate unavailable))
Discount Rate = 7.73% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -86.67 | Cagr: -1.59%
[DCF] Terminal Value 77.97% ; FCFF base≈36.2m ; Y1≈41.5m ; Y5≈61.1m
[DCF] Fair Price = 54.99 (EV 918.8m - Net Debt 9.92m = Equity 908.9m / Shares 16.5m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 52.17 | EPS CAGR: 10.83% | SUE: 0.41 | # QB: 0
Revenue Correlation: 94.59 | Revenue CAGR: 15.71% | SUE: 0.69 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.85 | Chg30d=+2.41% | Revisions=+0% | Analysts=3
EPS next Quarter (2026-09-30): EPS=0.97 | Chg30d=+1.39% | Revisions=+25% | Analysts=3
EPS current Year (2026-12-31): EPS=3.73 | Chg30d=+0.90% | Revisions=+25% | GrowthEPS=+36.1% | GrowthRev=+26.2%
EPS next Year (2027-12-31): EPS=4.33 | Chg30d=+0.77% | Revisions=-25% | GrowthEPS=+16.1% | GrowthRev=+16.3%
[Analyst] Revisions Ratio: +17% (up=2, down=1)