Arrow Financial (AROW) AI Stock Analysis

• Market Cap: $601.52M
• Dividend Yield: 3.59%
• Average Volume (3M): 101.25K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.85
• Revenue Growth: 6.86%
• EPS Growth: 6.11%
• Country: US
• Employees: 580
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.85
• Shares Outstanding: 16,511,642
• 10 Day Avg. Volume: 102,121
• 30 Day Avg. Volume: 101,247
• PEG Ratio: 0.24
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 2.14
• P/FCF Ratio: 14.32
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.48
• Enterprise Value/Gross Profit: 3.80
• Enterprise Value/Ebitda: 10.10
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 3.45
• Revenue Forecast (FY): $182.50M

• Rating: 66 Neutral
• Price Target: $36.00 ▲(18.07% Upside)
• Action: Downgraded Date: 03/07/26
• Date: Action: Downgraded 03/07/26

The score is primarily held back by the sharp 2025 cash flow deterioration despite improved profitability and a strong, low-leverage balance sheet. Valuation (low P/E and solid dividend yield) and positive corporate actions (dividend raise and expansion-oriented acquisition announcement) provide support, while technical indicators are mixed and do not add strong momentum.

Positive Factors

Conservative balance sheet and growing tangible equity

A very low debt-to-equity ratio and a sizable, growing tangible equity base give Arrow durable capital resilience. That conservatism supports regulatory cushions, loss-absorbing capacity in downturns, ability to fund organic growth or M&A and underpins dividend policy over the medium term.

Negative Factors

Sharp deterioration in operating and free cash flow

A collapse in operating/free cash flow despite reported earnings raises durable concerns about earnings quality and cash convertibility. Weak cash generation can strain the ability to fund dividends, organic investments or acquisitions without raising external capital, reducing financial flexibility.

Arrow Financial Business Overview & Revenue Model

Company Description

Arrow Financial Corporation, a bank holding company, provides commercial and consumer banking, and financial products and services. The company's deposit products include demand deposits, interest-bearing checking accounts, savings deposits, time ...

Read more

Arrow Financial Corporation, a bank holding company, provides commercial and consumer banking, and financial products and services. The company's deposit products include demand deposits, interest-bearing checking accounts, savings deposits, time ...

How the Company Makes Money

Arrow Financial generates revenue through multiple streams, primarily from interest income on loans and mortgages, as well as fees associated with its banking services. The company earns significant income from its insurance operations through pre...

Read more

Arrow Financial generates revenue through multiple streams, primarily from interest income on loans and mortgages, as well as fees associated with its banking services. The company earns significant income from its insurance operations through pre...

Arrow Financial Financial Statement Overview

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	242.58M	223.07M	191.68M	160.55M	147.92M
Gross Profit	158.32M	134.63M	130.57M	144.44M	142.45M
EBITDA	55.39M	42.72M	44.24M	70.46M	72.23M
Net Income	43.95M	29.71M	30.07M	48.80M	49.86M
Balance Sheet
Total Assets	4.45B	4.31B	4.17B	3.97B	4.03B
Cash, Cash Equivalents and Short-Term Investments	29.13M	617.66M	640.30M	638.15M	1.02B
Total Debt	29.19M	33.60M	71.57M	106.92M	70.17M
Total Liabilities	4.01B	3.91B	3.79B	3.62B	3.66B
Stockholders Equity	431.85M	400.90M	379.77M	353.54M	371.19M
Cash Flow
Free Cash Flow	36.19M	28.87M	13.50M	45.46M	61.07M
Operating Cash Flow	41.28M	34.47M	20.58M	59.71M	68.21M
Investing Cash Flow	-61.45M	-88.95M	-82.65M	-393.06M	-274.60M
Financing Cash Flow	79.81M	66.49M	139.95M	-59.69M	283.10M

Arrow Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AROW, the sentiment is Positive. The current price of 30.49 is below the 20-day moving average (MA) of 33.63, below the 50-day MA of 33.95, and above the 200-day MA of 30.04, indicating a bullish trend. The MACD of 0.69 indicates Negative momentum. The RSI at 75.41 is Negative, neither overbought nor oversold. The STOCH value of 97.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AROW.

Arrow Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AROW	66 Neutral	$601.52M	11.79	10.58%	3.59%	6.86%	6.11%
ACNB	63 Neutral	$530.31M	13.39	9.18%	2.78%	41.95%	-4.72%
BWB	63 Neutral	$526.44M	10.41	8.63%	―	13.96%	25.74%
FFIC	57 Neutral	$539.77M	32.49	2.67%	5.16%	-11.91%	-235.73%
NFBK	49 Neutral	$580.52M	576.05	0.11%	4.38%	6.08%	52.64%

Arrow Financial Corporate Events