ARW Arrow Electronics Inc
$214.95
▼ 2.4%Updated Oct 16, 2:25 PM ET
Report Card
ARW at a glance — five pillars scored 0–100 from real filed financials.
How the 0–100 rating is calculatedOverall: 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% in the year to Jul 6, 2026
Key Metrics
Market Cap
$10.10B
P/E
15.22x
Forward P/E (est.)
10.87x
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
1.22x
Dividend Yield
—
Implied Growth (rev. DCF)
—
Rating Score
68/100
Business Overview
Arrow Electronics Inc (ARW) is a large-cap NYSE-listed company in the Electrical Equipment industry, within the Industrials sector, 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.
Economic Moat
Evidence of durable competitive advantage in the filed financials (10 years of history).
Profit margins and economic moats, explainedThe numbers don't show a durable competitive advantage — margins, growth, or returns on capital have been unstable or thin. Great returns are still possible; they just aren't protected.
11.9% average over the last 3 years
±0.7 pts around 12.2% across 10 years
grew in 5 of the last 9 year-over-year periods
positive in 7 of 10 years
7.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical Analysis (Educational)
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 $214.95, above its 50-day average ($210.50) and 200-day average ($149.12). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
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 (~3.6% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. In the month to Jul 6, 2026, ARW found buyers near $195.63 (support) and sellers near $237.33 (resistance); its 52-week range then was $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. The indicators were last computed on Jul 6, 2026; the price is current.
Revenue Growth
4Y CAGR
-2.7%
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
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
Total Debt
$2.05B
Net Debt
$1.81B
Net Debt / EBITDA
2.2x
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 $2.05B of total debt against $244.63M of cash.
Cash Flow Analysis
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
P/E
15.22x
P/S
0.33x
P/B
0.92x
EV / EBITDA
12.4x
ARW trades at 15.2x trailing earnings (about 10.9x on estimated forward earnings), 0.3x sales, and 0.9x book value. That is a fairly typical valuation for a profitable company.
Metrics vs. Sector Range
Where ARW sits versus the Industrials companies we cover.
Bands show the middle half (25th–75th percentile) of the 144 Industrials companies in our coverage that have fundamentals data — 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.
Among the 142 rated Industrials companies we cover, ARW ranks #6 by our overall rating. It trades at a discount versus the sector on earnings (15.2x P/E vs. 30.5x median) with a lower return on equity (11.2% vs. 18.1%) and faster revenue growth (20.5% vs. 6.0%).
P/E vs sector
15.2x
median 30.5x
ROE vs sector
11.2%
median 18.1%
Growth vs sector
20.5%
median 6.0%
Sector rank
#6
of 142 rated
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Industrials companies by sub-industry and size, preferring ones with full data. Sector medians and rank use the 142 rated companies among the 273 Industrials stocks we cover. Educational, not a recommendation.
5-Year Projection Model
Project revenue → earnings → price. Edit the assumptions to build your own case.
What drives this projection, and its limits2030 scenario price range (Base Case)
$441.24 – $735.39
vs. $214.95 today · implied CAGR 15% – 28%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $37.02B | $44.43B | $53.31B | $63.98B | $76.77B |
| Net income | $1.11B | $1.33B | $1.60B | $1.92B | $2.30B |
| EPS | $23.64 | $28.37 | $34.05 | $40.86 | $49.03 |
| Share price (low) | $212.79 | $255.35 | $306.41 | $367.70 | $441.24 |
| Share price (high) | $354.65 | $425.58 | $510.69 | $612.83 | $735.39 |
| CAGR (low–high) | -1% / 65% | 9% / 41% | 13% / 33% | 14% / 30% | 15% / 28% |
Educational scenario model, not a forecast or investment advice. It starts from the latest annual revenue in SEC filings. By default, growth is trailing revenue growth (held between 3% and 45% a year), the net margin is the latest one (held between 3% and 50%, so a loss-making company is modeled with a small profit), and the Base case P/E runs from 60% to 100% of today's. Carrying recent growth forward five years can miss badly in either direction. Outputs are only as good as the 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
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
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 15.2x earnings, which our model scores Favorable (68/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Latest SEC Filings
ARW's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen. How to read a 10-K
In the Idea Lab
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 starts from the latest annual revenue and net margin in SEC filings, grows revenue at an assumed rate (trailing revenue growth by default), and applies a P/E range built around today's multiple to show the resulting share-price range. When a stock has no growth or P/E data, the starting values are placeholders. 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.