Arrow Electronics, Inc.
$229.35
+5.4%Arrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Global Components and Global Enterprise Computing Solutions. The Global Components segment markets and distributes semiconductor products and related services; passive, electro-mechanical, and interconnect products, including capacitors, resistors, potentiometers, power supplies, relays, switches, and connectors; and computing and memory products, as well as other products and services. The Global Enterprise Computing Solutions segment offers computing solutions, such as datacenter, cloud, security, and analytics solutions. This segment provides access to various services, including engineering and integration support, warehousing and logistics, marketing resources, and authorized hardware and software training. The company serves original equipment manufacturers, value-added resellers, managed service providers, contract manufacturers, and other commercial customers. Arrow Electronics, Inc. was founded in 1935 and is based in Centennial, Colorado.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is mid-range (P/E 20.8).
Valuation inputs: P/E 20.8, earnings yield +4.8%, momentum +5.4%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +8.7%, ROIC +7.3%).
Profitability stack: net margin +1.8%, ROE +8.7%, ROIC +7.3%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +77.1%, momentum +5.4%, net margin +1.8%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Arrow Electronics, Inc. Market vs Earnings Trajectory
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Arrow Electronics, Inc. Fair Value Envelope
Arrow Electronics, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Thin margins leave little room for error. Cost management and pricing strategy are critical.
Operating Margin
Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.
Net Profit Margin
Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.
Arrow Electronics, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Very high capital intensity consumes most operating cash flow. Limited flexibility for dividends or debt reduction.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extension—monitor closely.
Cash Flow Quality Insight
Cash flow concerns: Despite profitability, the company is burning cash. Review working capital management, CapEx levels, and sustainability of current operations.
Arrow Electronics, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Positive working capital, but relatively tight. The company should monitor cash flow carefully.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Arrow Electronics, Inc. Street Expectations Map
Wall Street analysts project that ARW stock may see slight declines over the coming 12 months. The consensus 1-year price target stands at 208.33, with estimates ranging from a low of 165.00 to a high of 240.00.
The consensus 1-year price target stands at 208.33, with estimates ranging from a low of 165.00 to a high of 240.00.
Analyst Consensus Analysis
Upside Potential
Downside risk. Current price above analyst targets indicates potential overvaluation. Exercise caution and review catalysts.
Analyst Agreement
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Risk-Reward Profile
Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.
Analyst Conviction
Bearish or uncertain outlook. Limited upside or poor consensus suggests challenges ahead or fundamental concerns.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Arrow Electronics, Inc. Insider Positioning
During the last 12 months, insiders have purchased $1.59M and sold $8.75M worth of ARW shares, resulting in $7.15M of net selling activity.
3 Months
0
0.00
27.1K
5.76M
-5.8M
-$5.76M
3-6 Months
4.0K
601.41K
8.4K
1.32M
-715K
-$715K
6-9 Months
0
0.00
0
0.00
+0
+$0
9-12 Months
8.6K
991.69K
13.5K
1.67M
-674K
-$674K
Top Buyers
Kerins Sean J
Director, Officer: President And Ceo
$992K
Austen William F.
Director, Officer: Interim President And Ceo
$601K
Top Sellers
Zech Gretchen
Officer: Svp, Chief Gov, Sust, Hr Offr
$5.72M
Nowak Eric
Officer: President, Global Ecs
$1.36M
Jean-Claude Carine Lamercie
Officer: Svp, Clco And Secretary
$1.28M
Marano Richard John
Officer: President, Global Components
$388K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $7.15M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Weak buy/sell ratio. Selling significantly exceeds buying—monitor for potential fundamental concerns.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
4 insider sellers vs. 2 buyers. More insiders selling than buying suggests cautious or negative sentiment.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
No Dividend Yield Data
ARW has not reported any dividend yield values in the available annual periods.
arw Dividend History
Learning Layer
Related Guides
Build conviction on ARW by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.