Arrow Electronics (ARW) AI Stock Analysis

• Market Cap: $6.46B
• Dividend Yield: N/A
• Average Volume (3M): 533.66K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.04
• Revenue Growth: -3.95%
• EPS Growth: -16.72%
• Country: US
• Employees: 21,520
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 2.43
• Shares Outstanding: 51,501,705
• 10 Day Avg. Volume: 535,194
• 30 Day Avg. Volume: 533,661
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 2.94
• Enterprise Value/Ebitda: 10.56
• 1Y Price Target: $119.00
• Price Target Upside: -0.89% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 70 Outperform
• Price Target: $132.00 ▲(9.94% Upside)

Arrow Electronics' overall stock score is driven by a positive earnings call reflecting strong sales growth and promising future prospects. However, financial performance is pressured by declining margins and cash flow, and technical indicators suggest potential bearish momentum. The valuation is moderate, with no dividend yield to attract income investors.

Positive Factors

Revenue Growth

The 10% year-over-year sales increase demonstrates strong demand and effective market positioning, supporting long-term growth prospects.

Segment Performance

The ECS segment's robust growth indicates successful strategic initiatives and strengthens Arrow's competitive position in IT solutions.

Inventory Management

Improved inventory management enhances operational efficiency and cash flow, supporting sustainable business operations.

Negative Factors

Gross Margin Decline

Declining gross margins indicate pressure on profitability, which could affect long-term earnings and operational efficiency.

Free Cash Flow Decline

A significant decline in free cash flow may limit Arrow's ability to invest in growth opportunities and manage financial obligations.

Interest Expense

Rising interest expenses and tax rates could impact net income, reducing financial flexibility and affecting future profitability.

Arrow Electronics Business Overview & Revenue Model

Company Description

Arrow Electronics, Inc. (ARW) is a global provider of technology solutions, primarily serving industrial and commercial customers. The company operates in two main segments: Global Components and Global Enterprise Computing Solutions. Arrow's core products and services include electronic components, integrated supply chain solutions, and IT services, which cater to a diverse range of industries such as telecommunications, automotive, and healthcare. With its extensive distribution network and strong supplier relationships, Arrow is positioned to deliver innovative solutions and support for its customers' technology needs.

How the Company Makes Money

Arrow Electronics generates revenue through multiple key channels. The primary source of income is the distribution of electronic components, where the company earns margins on the products it purchases from manufacturers and sells to customers. Additionally, Arrow provides value-added services such as logistics, supply chain management, and technical support, which further enhance its revenue. The Global Enterprise Computing Solutions segment contributes to earnings by offering IT solutions and services, including cloud computing and data center solutions, often through partnerships with leading technology providers. Significant partnerships with major manufacturers like Intel, Texas Instruments, and HP also bolster Arrow's product offerings, ensuring a steady stream of income from both product sales and service contracts.

Arrow Electronics Financial Statement Overview

Summary

Arrow Electronics demonstrates a stable yet pressured financial position with reasonable profitability and manageable leverage. However, the declining profitability margins and free cash flow, along with moderate revenue growth, highlight challenges in sustaining growth and operational efficiency in a competitive technology distribution industry.

Income Statement

Arrow Electronics has shown a mixed performance in the TTM with a gross profit margin of 11.1% and a net profit margin of 1.6%. The revenue growth rate from the previous year is 2.1%, indicating slow growth. The EBIT margin stands at 2.5%, and the EBITDA margin is 2.7%, reflecting moderate operational efficiency. However, the decline in margins over the years suggests pressure on profitability.

Balance Sheet

The debt-to-equity ratio is 0.45, reflecting a manageable level of leverage. ROE is calculated at 7.4%, which is reasonable but not exceptional. The equity ratio is 26.1%, indicating a moderate level of financial stability. However, decreasing equity over the years and increasing liabilities pose potential risks.

Cash Flow

Free cash flow has grown by -50.7% compared to the last annual report, indicating a considerable decline. The operating cash flow to net income ratio is 1.18, suggesting that operating cash flows are sufficient to cover net income. However, a decrease in free cash flow poses a concern for future cash availability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.50B	27.92B	33.11B	37.12B	34.48B	28.67B
Gross Profit	3.17B	3.29B	4.15B	4.84B	4.20B	3.19B
EBITDA	883.79M	984.44M	1.67B	2.26B	1.78B	1.10B
Net Income	467.24M	392.07M	903.50M	1.43B	1.11B	584.44M
Balance Sheet
Total Assets	24.25B	21.76B	21.73B	21.76B	19.54B	17.05B
Cash, Cash Equivalents and Short-Term Investments	221.97M	188.81M	218.05M	176.91M	222.19M	373.62M
Total Debt	2.82B	3.12B	3.81B	3.77B	2.63B	2.26B
Total Liabilities	17.84B	15.93B	15.85B	16.15B	14.19B	11.90B
Stockholders Equity	6.33B	5.76B	5.81B	5.55B	5.28B	5.09B
Cash Flow
Free Cash Flow	468.14M	1.04B	622.16M	-111.91M	335.93M	1.24B
Operating Cash Flow	552.80M	1.13B	705.45M	-33.08M	418.98M	1.36B
Investing Cash Flow	32.00M	-94.44M	-72.32M	-57.71M	-60.12M	-138.79M
Financing Cash Flow	-737.87M	-956.83M	-666.22M	109.78M	-463.30M	-1.23B

Arrow Electronics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 120.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARW, the sentiment is Negative. The current price of 120.07 is above the 20-day moving average (MA) of 119.78, below the 50-day MA of 123.18, and above the 200-day MA of 117.39, indicating a neutral trend. The MACD of -0.56 indicates Negative momentum. The RSI at 48.48 is Neutral, neither overbought nor oversold. The STOCH value of 81.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARW.

Arrow Electronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNX	76 Outperform	$12.62B	16.82	9.23%	1.16%	6.95%	19.19%
CNXN	74 Outperform	$1.58B	18.91	9.78%	0.88%	4.94%	-1.79%
ARW	70 Outperform	$6.46B	13.57	7.74%	―	-3.95%	-16.72%
SCSC	66 Neutral	$939.94M	14.07	7.82%	―	-6.72%	-1.14%
AVT	65 Neutral	$4.24B	18.98	4.83%	2.62%	-6.55%	-49.61%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NSIT	60 Neutral	$3.45B	26.12	8.67%	―	-7.61%	-50.01%

Arrow Electronics Corporate Events

Arrow Electronics Appoints William Austen as Interim CEO

On September 16, 2025, Arrow Electronics announced a leadership change with William F. Austen appointed as Interim President and CEO, succeeding Sean Kerins. The Board expressed confidence in the leadership team during this transition, and Mr. Kerins will assist in the transition process. This change is not related to the company’s financial statements.

The most recent analyst rating on (ARW) stock is a Buy with a $141.00 price target. To see the full list of analyst forecasts on Arrow Electronics stock, see the ARW Stock Forecast page.

Arrow Electronics Exceeds Q2 Expectations Amid Optimism

Arrow Electronics Exceeds Expectations Amid Cautious Optimism

Arrow Electronics Exceeds Q2 2025 Financial Expectations

Arrow Electronics, Inc. is a global provider of technology solutions, operating primarily in the electronics distribution industry, with a focus on sourcing and engineering solutions for manufacturers and service providers.