Overview Dividends

(AROW) Arrow Financial - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US0427441029

Deposits, Loans, Retirement, Insurance, Advisory

AROW EPS (Earnings per Share)

EPS Growth (3Y CAGR): 3.85%
EPS Trend (3Y Correlation): 13.2%

AROW Revenue

Revenue Growth (3Y CAGR): 13.60%
Revenue Trend (3Y Correlation): 81.1%

Description: AROW Arrow Financial October 24, 2025

Arrow Financial Corporation (NASDAQ:AROW) is a New York-based bank holding company that offers a full suite of commercial and consumer banking services across the United States. Its deposit franchise includes demand deposits, interest-bearing checking, savings, and various time-deposit products. On the lending side, Arrow originates commercial loans (term loans, lines of credit, and CRE financing), consumer installment loans, auto loans, and residential mortgage products such as home-equity loans and HELOCs. The firm also provides wealth-management services-including retirement planning, trust and estate administration-along with insurance brokerage and investment advisory capabilities, and it owns a real-estate investment trust.

Key operating metrics (Q2 2024) show a net interest margin of roughly 3.1%, a loan-to-deposit ratio of 78%, and a return on equity of 9.2%, all modestly above the regional-bank median. Loan growth has accelerated to 5.4% year-over-year, driven largely by commercial real-estate and consumer credit expansion, while credit quality remains stable with a non-performing loan ratio of 0.9%.

Given the sensitivity of regional banks to Federal Reserve rate policy and commercial-real-estate cycles, monitoring Arrow’s exposure to those sectors is essential; a deeper dive on ValueRay can help you quantify how these macro drivers may affect the stock’s upside potential.

AROW Stock Overview

Market Cap in USD	458m
Sub-Industry	Regional Banks
IPO / Inception	1984-09-07

AROW Stock Ratings

Growth Rating	-6.33%
Fundamental	64.7%
Dividend Rating	57.4%
Return 12m vs S&P 500	-12.9%
Analyst Rating	3.0 of 5

AROW Dividends

Dividend Yield 12m	2.88%
Yield on Cost 5y	3.72%
Annual Growth 5y	4.02%
Payout Consistency	93.5%
Payout Ratio	48.3%

AROW Growth Ratios

Growth Correlation 3m	-42.2%
Growth Correlation 12m	-1.5%
Growth Correlation 5y	-34.9%
CAGR 5y	-0.81%
CAGR/Max DD 3y (Calmar Ratio)	-0.02
CAGR/Mean DD 3y (Pain Ratio)	-0.04
Sharpe Ratio 12m	-0.96
Alpha	-12.14
Beta	0.776
Volatility	30.97%
Current Volume	74.1k
Average Volume 20d	30.8k
Stop Loss	28.5 (-3.4%)
Signal	1.08

Piotroski VR‑10 (Strict, 0-10) 5.0

Net Income (34.4m TTM) > 0 and > 6% of Revenue (6% = 13.6m TTM)

FCFTA 0.01 (>2.0%) and ΔFCFTA -0.06pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue -1673 % (prev -1393 %; Δ -280.0pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.01 (>3.0%) and CFO 35.4m > Net Income 34.4m (YES >=105%, WARN >=100%)

Net Debt (-45.9m) to EBITDA (31.8m) ratio: -1.44 <= 3.0 (WARN <= 3.5)

Current Ratio 0.01 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (16.4m) change vs 12m ago -2.01% (target <= -2.0% for YES)

Gross Margin 70.05% (prev 61.95%; Δ 8.09pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 5.03% (prev 4.98%; Δ 0.04pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 0.35 (EBITDA TTM 31.8m / Interest Expense TTM 78.7m) >= 6 (WARN >= 3)

Altman Z'' -5.27

(A) -0.82 = (Total Current Assets 45.9m - Total Current Liabilities 3.83b) / Total Assets 4.59b

(B) 0.02 = Retained Earnings (Balance) 93.0m / Total Assets 4.59b

(D) 0.03 = Book Value of Equity 106.5m / Total Liabilities 4.17b

Total Rating: -5.27 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 64.69

1. Piotroski 5.0pt = 0.0

2. FCF Yield 6.55% = 3.28

3. FCF Margin 12.93% = 3.23

4. Debt/Equity 0.08 = 2.50

5. Debt/Ebitda -1.44 = 2.50

6. ROIC - WACC (= -3.40)% = -4.26

7. RoE 8.44% = 0.70

8. Rev. Trend 81.07% = 6.08

9. EPS Trend 13.18% = 0.66

What is the price of AROW shares?

As of November 04, 2025, the stock is trading at USD 29.49 with a total of 74,141 shares traded.
Over the past week, the price has changed by +8.70%, over one month by +6.85%, over three months by +12.17% and over the past year by +5.76%.

Is Arrow Financial a good stock to buy?

Neither. Based on ValueRay´s Fundamental Analyses, Arrow Financial is currently (November 2025) neither a good nor a bad stock to buy. It has a ValueRay Fundamental Rating of 64.69 and therefor a neutral outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of AROW is around 27.24 USD . This means that AROW is currently overvalued and has a potential downside of -7.63%.

Is AROW a buy, sell or hold?

Arrow Financial has received a consensus analysts rating of 3.00. Therefor, it is recommend to hold AROW.

Strong Buy: 0
Buy: 0
Hold: 2
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the AROW price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	33.5	13.6%
Analysts Target Price	33.5	13.6%
ValueRay Target Price	30.3	2.7%

AROW Fundamental Data Overview November 02, 2025

Market Cap USD = 458.4m (458.4m USD * 1.0 USD.USD)
P/E Trailing = 15.2404
P/S = 3.1226
P/B = 1.1087
P/EG = 2.41
Beta = 0.776
Revenue TTM = 226.1m USD
EBIT TTM = 27.2m USD
EBITDA TTM = 31.8m USD
Long Term Debt = 28.6m USD (from longTermDebt, last fiscal year)
Short Term Debt = unknown (none)
Debt = 33.6m USD (from shortLongTermDebtTotal, last fiscal year)
Net Debt = -45.9m USD (from netDebt column, last quarter)
Enterprise Value = 446.1m USD (458.4m + Debt 33.6m - CCE 45.9m)
Interest Coverage Ratio = 0.35 (Ebit TTM 27.2m / Interest Expense TTM 78.7m)
FCF Yield = 6.55% (FCF TTM 29.2m / Enterprise Value 446.1m)
FCF Margin = 12.93% (FCF TTM 29.2m / Revenue TTM 226.1m)
Net Margin = 15.22% (Net Income TTM 34.4m / Revenue TTM 226.1m)
Gross Margin = 70.05% ((Revenue TTM 226.1m - Cost of Revenue TTM 67.7m) / Revenue TTM)
Gross Margin QoQ = 100.0% (prev 66.82%)
Tobins Q-Ratio = 0.10 (Enterprise Value 446.1m / Total Assets 4.59b)
Interest Expense / Debt = 57.93% (Interest Expense 19.5m / Debt 33.6m)
Taxrate = 22.74% (3.77m / 16.6m)
NOPAT = 21.1m (EBIT 27.2m * (1 - 22.74%))
Current Ratio = 0.01 (Total Current Assets 45.9m / Total Current Liabilities 3.83b)
Debt / Equity = 0.08 (Debt 33.6m / totalStockholderEquity, last quarter 417.7m)
Debt / EBITDA = -1.44 (Net Debt -45.9m / EBITDA 31.8m)
Debt / FCF = -1.57 (Net Debt -45.9m / FCF TTM 29.2m)
Total Stockholder Equity = 407.9m (last 4 quarters mean from totalStockholderEquity)
RoA = 0.75% (Net Income 34.4m / Total Assets 4.59b)
RoE = 8.44% (Net Income TTM 34.4m / Total Stockholder Equity 407.9m)
RoCE = 6.24% (EBIT 27.2m / Capital Employed (Equity 407.9m + L.T.Debt 28.6m))
RoIC = 4.86% (NOPAT 21.1m / Invested Capital 433.2m)
WACC = 8.26% (E(458.4m)/V(492.1m) * Re(8.87%) + (debt cost/tax rate unavailable))
Discount Rate = 8.87% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -1.77%
[DCF Debug] Terminal Value 71.38% ; FCFE base≈29.8m ; Y1≈24.0m ; Y5≈16.5m
Fair Price DCF = 16.15 (DCF Value 265.4m / Shares Outstanding 16.4m; 5y FCF grow -23.34% → 3.0% )
EPS Correlation: 13.18 | EPS CAGR: 3.85% | SUE: 1.13 | # QB: 2
Revenue Correlation: 81.07 | Revenue CAGR: 13.60% | SUE: 0.53 | # QB: 0

Additional Sources for AROW Stock

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