ARW Stock Analysis: Arrow Electronics | NYSE
Electronics & Computer Distribution | NYSE, USA | Market Cap: 10.925m USD | 12M Return: 73.2% | US0427351004 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 101M
EPS Trend: -34.1%
Qual. Beats: 3
Rev. Trend: 5.4%
Qual. Beats: 3
Warnings
Tailwinds
Seasonality 11.7 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. is a global technology distributor that sources and engineers technology solutions for manufacturers, service providers, and enterprise computing users across the Americas, Europe, the Middle East, Africa, and Asia Pacific. Founded in 1935 and headquartered in Centennial, Colorado, the company operates through two main segments: Global Components and Global Enterprise Computing Solutions. Arrow Electronics is listed on the NYSE under the ticker ARW and falls within the Technology Distributors sub-industry of the Information Technology sector.
The Global Components segment markets and distributes a broad range of electronic components, including semiconductors, interconnect, passive and electromechanical products (such as capacitors, resistors, potentiometers, power supplies, relays, switches, and connectors), as well as computing and memory products. Electronic component distributors typically operate on a high-volume, low-margin model, acting as intermediaries between component manufacturers and the OEMs, resellers, and contract manufacturers that incorporate these parts into finished goods.
The Global Enterprise Computing Solutions (ECS) segment offers datacenter, cloud, security, and analytics solutions, along with value-added services such as engineering and integration support, warehousing and logistics, marketing resources, and authorized hardware and software training. This segment reflects the broader shift in IT distribution toward hybrid and cloud infrastructure, where distributors increasingly bundle hardware resale with deployment and managed services.
Arrow Electronics serves a diverse customer base that includes original equipment manufacturers (OEMs), value-added resellers (VARs), managed service providers (MSPs), contract manufacturers, and other commercial customers. This breadth of customers across both component and enterprise solution channels positions the company across multiple stages of the technology value chain.
- Global Components margins expand on semiconductor cycle recovery
- Enterprise Computing Solutions revenue grows on datacenter demand
- Capital allocation through buybacks and dividends supports EPS
| 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 (1.24b): 1.55 < 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 October 26, 2026, the stock is trading at USD 209.76 with a total of 366,867 shares traded. Over the past week, the price has changed by -2.26%, over one month by -7.52%, over three months by -2.49% and over the past year by +73.20%.
Current recommended Stop Loss: 185.90 (which is 11.4% or 2.8 ATR below the current price).
Arrow Electronics has received a consensus analysts rating of 3.25. Therefore, it is recommended to hold ARW.
- StrongBuy: 1
- Buy: 1
- Hold: 1
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 235 | 12% |
P/E Trailing = 13.7219
P/E Forward = 5.0277
P/S = 0.3041
P/B = 1.5625
P/EG = 0.945
Revenue TTM = 35.9b USD
EBIT TTM = 1.10b USD
EBITDA TTM = 1.24b 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 = 12.9b USD (10.9b + Debt 2.17b - CCE 244.6m)
Interest Coverage Ratio = 4.95 (Ebit TTM 1.10b / Interest Expense TTM 223.0m)
EV/FCF = 14.29x (Enterprise Value 12.9b / FCF TTM 899.3m)
FCF Yield = 7.00% (FCF TTM 899.3m / Enterprise Value 12.9b)
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 12.9b / 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 = 1.55 (Net Debt 1.93b / EBITDA 1.24b)
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 = 9.63% (E(10.9b)/V(13.1b) * Re(9.95%) + D(2.17b)/V(13.1b) * Rd(10.27%) * (1-Tc(0.22)))
Discount Rate = 9.95% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.82 | Cagr: -2.43%
[DCF] Terminal Value 73.95% ; FCFF base≈726.9m ; Y1≈833.2m ; Y5≈1.23b
[DCF] Fair Price = 258.0 (EV 15.1b - Net Debt 1.93b = Equity 13.1b / Shares 50.9m; r=9.63% [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)