Arrow Financial Corporation (AROW)
NASDAQ:AROW
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Arrow Financial
(NASDAQ:AROW)
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Rating:74Outperform
Price Target:
$40.00
▲(31.19% Upside)
Action:Reiterated
Date:05/14/26
The score is driven primarily by solid financial performance (improving profitability/cash generation and conservative leverage) and favorable valuation (low P/E with a solid dividend yield). Technical signals are mixed near-term, and while corporate events are positive (deal-driven expansion and strong credit metrics), they add execution/regulatory risk that modestly tempers the outlook.
Positive Factors
Conservative balance sheet
Arrow’s leverage has materially declined (D/E ~0.07) while equity rose to roughly $432M. A stronger capital base increases resilience to credit cycles, supports lending capacity and M&A, and reduces refinancing and liquidity strain—providing durable stability over several quarters.
Negative Factors
Earnings and margin volatility
Arrow’s reported margins and earnings have shown notable cyclicality versus 2021–2022 peaks. Persistent volatility complicates forecasting and capital allocation, can compress return on equity in down cycles, and reduces predictability of long-term dividend and growth capacity over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Arrow’s leverage has materially declined (D/E ~0.07) while equity rose to roughly $432M. A stronger capital base increases resilience to credit cycles, supports lending capacity and M&A, and reduces refinancing and liquidity strain—providing durable stability over several quarters.
Read all positive factors
Arrow Financial (AROW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$608.60M
Dividend Yield3.59%
Average Volume (3M)78.57K
Price to Earnings (P/E)10.2
Beta (1Y)0.86
Revenue Growth8.85%
EPS Growth82.76%
CountryUS
Employees580
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.10
Shares Outstanding16,529,018
10 Day Avg. Volume75,721
30 Day Avg. Volume78,573
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)1.20
Price to Sales (P/S)2.14
P/FCF Ratio14.32
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue2.47
Enterprise Value/Gross Profit3.62
Enterprise Value/Ebitda9.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.65
Revenue Forecast (FY)$207.00M
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 ...
How the Company Makes Money
Arrow Financial primarily earns money through (1) net interest income and (2) noninterest (fee) income. Net interest income is generated by taking in deposits and other funding (for which the company pays interest and incurs funding costs) and inv...
Arrow Financial Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
84
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 246.80M | 242.58M | 223.07M | 191.68M | 160.55M | 147.92M |
| Gross Profit | 168.35M | 158.32M | 134.63M | 130.57M | 144.44M | 142.45M |
| EBITDA | 67.53M | 55.39M | 42.72M | 44.24M | 70.46M | 72.23M |
| Net Income | 51.13M | 43.95M | 29.71M | 30.07M | 48.80M | 49.86M |
Balance Sheet | ||||||
| Total Assets | 4.52B | 4.45B | 4.31B | 4.17B | 3.97B | 4.03B |
| Cash, Cash Equivalents and Short-Term Investments | 29.10M | 29.13M | 617.66M | 640.30M | 638.15M | 1.02B |
| Total Debt | 29.17M | 29.19M | 33.60M | 71.57M | 106.92M | 70.17M |
| Total Liabilities | 4.08B | 4.01B | 3.91B | 3.79B | 3.62B | 3.66B |
| Stockholders Equity | 440.14M | 431.85M | 400.90M | 379.77M | 353.54M | 371.19M |
Cash Flow | ||||||
| Free Cash Flow | 41.34M | 36.19M | 28.87M | 13.50M | 45.46M | 61.07M |
| Operating Cash Flow | 46.45M | 41.28M | 34.47M | 20.58M | 59.71M | 68.21M |
| Investing Cash Flow | -81.64M | -61.45M | -88.95M | -82.65M | -393.06M | -274.60M |
| Financing Cash Flow | 19.35M | 79.81M | 66.49M | 139.95M | -59.69M | 283.10M |
Arrow Financial Technical Analysis
Positive
30.49
Price Trends
35.08
Positive
34.07
Positive
31.33
Positive
Market Momentum
0.26
Positive
58.49
Neutral
71.78
Neutral
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 36.27, below the 50-day MA of 35.08, and below the 200-day MA of 31.33, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 58.49 is Neutral, neither overbought nor oversold. The STOCH value of 71.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AROW.
Arrow Financial Risk Analysis
Arrow Financial disclosed 25 risk factors in its most recent earnings report. Arrow Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Arrow Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $556.05M | 9.04 | 12.38% | 2.78% | 38.10% | 68.10% | |
74 Outperform | $608.60M | 10.20 | 12.04% | 3.59% | 8.85% | 82.76% | |
70 Outperform | $521.98M | 7.07 | 10.67% | ― | 17.01% | 61.90% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $537.73M | 22.37 | 4.89% | 5.16% | 17.82% | ― | |
63 Neutral | $591.80M | 11.37 | 0.68% | 4.38% | 6.67% | -84.79% |
* Financial Sector Average
AROW
Arrow Financial
36.82
12.13
49.11%
ACNB
ACNB
54.45
13.74
33.75%
FFIC
Flushing Financial
15.87
4.82
43.57%
NFBK
Northfield Bancorp
14.17
3.24
29.66%
BWB
Bridgewater Bancshares
18.72
4.02
27.35%
Arrow Financial Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Arrow Financial Posts Strong Q1 Results Amid Adirondack Deal
Positive
Apr 30, 2026
Arrow Financial Corporation reported first-quarter 2026 net income of $13.5 million, or $0.82 per diluted share, compared with $14.0 million and $0.85 per share in the fourth quarter of 2025, with results pressured by about $790,000 in merger expe...
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Arrow Financial to Acquire Adirondack Bancorp in Merger
Positive
Feb 26, 2026
Arrow Financial Corporation said on February 25, 2026, that it signed an agreement to acquire Adirondack Bancorp in a two-step merger, followed by the combination of Adirondack Bank into Arrow Bank National Association. Adirondack shareholders are...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.