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ARW

NYSE
Favorable · 68/100

Arrow Electronics Inc

Industrials
Electrical Equipment

$200.30

1.4%

Updated Today 12:11 PM ET

Report Card

ARW at a glance — five pillars scored 0–100 from real filed financials.

Value
0
Growth
0
Profitability
0
Health
0
Dividends
0

Overall: Favorable · 68/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Price — Past Year

▲ Up 51.7% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$10.10B

P/E

14.18x

Forward P/E (est.)

10.13x

ROE

11.2%

Revenue Growth

20.5%

EPS Growth

91.4%

Profit Margin

2.2%

FCF Yield

10.7%

Debt / Equity

0.47x

ROIC

7.0%

Interest Coverage

Current Ratio

1.24x

Dividend Yield

Implied Growth (rev. DCF)

Rating Score

68/100

Business Overview
Research

Arrow Electronics Inc (ARW) is a large-cap company in the Electrical Equipment industry, part of the Industrials sector of the S&P 500, with a market value around $10.10B.

In its latest reported year it generated about $30.85B in revenue and $571.27M in net profit.

Our model rates ARW Favorable (68/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what ARW's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. ARW trades near $200.30, around its 50-day average ($210.50) and 200-day average ($149.12). Price tangled in its moving averages means there is no clear trend — the stock is ranging.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 29 it is oversold — selling has been heavy and a bounce is possible.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.

Volatility — ATR. Average True Range is the typical daily move. ARW's is $7.78 (~3.9% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month ARW found buyers near $195.63 (support) and sellers near $237.33 (resistance); its 52-week range is $101.79–$237.33. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.2× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Revenue Growth
Research

4Y CAGR

-2.7%

4/4 checks passedRevenue growingRevenue growth beats sector midpointEPS growingEPS growing faster than revenue

Revenue moved from $23.49B in 2016 to $30.85B in 2025, a 3.1% compound annual growth rate. The most recent year grew a strong 20.5% year over year. Consistent top-line growth is one sign of healthy demand.

Profitability
Research
1/4 checks passedProfitableNet margin above sector midpointROE above 12%ROIC above 10%

Gross Margin

11.2%

Operating Margin

2.7%

Net Margin

1.9%

ROE

11.2%

Arrow Electronics Inc keeps about 2.2% of each sales dollar as net profit, with a 11.2% gross margin and 2.7% operating margin. Return on equity is 11.2% and return on invested capital about 7.0%. Thin margins leave less cushion if costs rise.

Debt Analysis
Research
3/3 checks passedDebt under 1× equityDebt under 2× equityShort-term bills covered

Total Debt

$2.35B

Net Debt

$2.07B

Net Debt / EBITDA

2.51x

Debt / Equity

0.47x

Leverage: debt-to-equity is 0.5x, with a current ratio of 1.2x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $2.35B of total debt against $286.51M of cash.

Cash Flow Analysis
Research
2/2 checks passedPositive free cash flowFCF yield above 2%

Operating CF

$64.05M

Free Cash Flow

-$37.20M

FCF Margin

-0.1%

In the latest year Arrow Electronics Inc produced about $64.05M of operating cash flow but negative free cash flow as it invested heavily. That is a free-cash-flow yield of about 10.7% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.

Valuation Analysis
Research
3/3 checks passedPositive earnings (P/E meaningful)P/E below sector's upper bandForward P/E below trailing (earnings growing)

P/E

14.18x

P/S

0.33x

P/B

0.86x

EV / EBITDA

12.67x

ARW trades at 14.2x trailing earnings (about 10.1x on estimated forward earnings), 0.3x sales, and 0.9x book value. That is an undemanding multiple — potentially cheap if the business is stable.

Metrics vs. Sector Range

Where ARW sits versus its Industrials sector peers in the S&P 500.

TTM P/E
14.2xCheap
Forward P/E
10.1xCheap
P/S ratio
0.3xCheap
Revenue growth
20.5%Strong
EPS growth
91.4%Strong
Gross margin
11.2%Weak
Net margin
2.2%Weak
ROE
11.2%Weak

Bands show the middle half (25th–75th percentile) of the 87 Industrials companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.

Sector Peer Comparison

How ARW stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.

In the Industrials sector (165 S&P 500 companies), ARW ranks #3 of 165 by our overall rating. It trades at a discount versus the sector on earnings (14.2x P/E vs. 32x median) with a lower return on equity (11.2% vs. 19.7%) and faster revenue growth (20.5% vs. 5.2%).

P/E vs sector

14.2x

median 32x

ROE vs sector

11.2%

median 19.7%

Growth vs sector

20.5%

median 5.2%

Sector rank

#3

of 165 by rating

CompanyP/ERev Gr.Rating
ARWThis stock14.2x20.5%Favorable· 68
AYI22.8x10.5%Favorable· 61
FPSWeak· 18
FN42.5x29.8%Favorable· 63
CLS40.9x36.7%Favorable· 63
BE56.5%Weak· 26
AEISNot rated
AEVANot rated
Industrials median32x5.2%21/100

Valuation vs. quality map

sector medianAYIFNCLSARWP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Industrials companies by sub-industry and size. Sector median is across all 165 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$0.00 $0.00

vs. $200.30 today · expected CAGR 12%26%

Metric20262027202820292030
Revenue$37.02B$44.43B$53.31B$63.98B$76.77B
Net income$1.11B$1.33B$1.60B$1.92B$2.30B
EPS$21.72$26.07$31.28$37.53$45.04
Share price (low)$173.77$208.53$250.23$300.28$360.33
Share price (high)$304.10$364.92$437.91$525.49$630.58
CAGR (low–high)-13% / 52%2% / 35%8% / 30%11% / 27%12% / 26%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for ARW:

  • Revenue is growing 20.5% a year, a sign of real demand.
  • Healthy free-cash-flow yield (~10.7%) funds buybacks and dividends.
  • A conservative balance sheet (debt/equity 0.5x) lowers risk.
  • Our model's overall read is Favorable (68/100).
Bear Case

The case against ARW:

  • Thin net margins (2.2%) leave little room for error.
  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Margin risk — thin profitability (2.2%) is vulnerable to cost or pricing pressure.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen favourably: Arrow Electronics Inc is a large-cap industrials business still growing nicely, with modest profitability, and a sound balance sheet. It trades at 14.2x earnings, which our model scores Favorable (68/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

ARW — frequently asked questions

Is ARW a good stock to buy?

We don't give buy or sell advice. Our model rates Arrow Electronics Inc Favorable (68/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is ARW's rating on The Stocks School?

Arrow Electronics Inc currently scores 68/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does ARW's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from Arrow Electronics Inc's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for ARW calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this ARW analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell ARW. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.