Arrow Electronics (ARW) AI Stock Analysis

• Market Cap: $6.75B
• Dividend Yield: N/A
• Average Volume (3M): 424.92K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.97
• Revenue Growth: -11.13%
• EPS Growth: -43.00%
• Country: US
• Employees: 21,520
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 1.80
• Shares Outstanding: 51,873,985
• 10 Day Avg. Volume: 468,580
• 30 Day Avg. Volume: 424,918
• PEG Ratio: -122.40
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.32
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 2.89
• Enterprise Value/Ebitda: 1.95
• 1Y Price Target: $110.00
• Price Target Upside: -15.52% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 61 Neutral
• Price Target: $142.00 ▲(9.05%Upside)

Arrow Electronics maintains a stable financial position with robust cash flow and conservative leverage. Technical indicators show positive momentum, further supported by exceeding earnings guidance. However, valuation remains moderate, and risks such as declining margins and potential tariff impacts temper the outlook.

Positive Factors

Billings Growth

In the ECS segment ARW delivered year-over-year billings growth.

Cash Flow Improvement

Despite a 4% increase in inventory, Arrow's cash flow grew to $326M due to a favorable move in accounts payable.

Supply Chain Management

ARW's supply chain management and integration services were accretive to operating results.

Negative Factors

Market Challenges

The company's components segment is facing weak margins due to challenges in the European market and certain end markets.

Revenue and Earnings Guidance

Revenue and earnings guidance for the upcoming quarter are significantly below expectations, impacting the stock's performance.

Tariffs Impact

Significant uncertainty remains with the potential impact of tariffs on end demand.

Arrow Electronics Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Arrow Electronics makes money through the sale of electronic components and enterprise computing solutions. Its Global Components segment generates revenue by distributing electronic components to industrial and commercial customers, providing design, engineering, and supply chain services. The Global Enterprise Computing Solutions segment earns revenue by delivering enterprise computing products, services, and solutions to value-added resellers, managed service providers, and system integrators. Key revenue streams include the distribution of semiconductors and computing products, as well as the provision of supply chain management and logistics services. The company also forms strategic partnerships with leading technology manufacturers and suppliers, which enhances its product offerings and contributes significantly to its earnings.

Arrow Electronics Financial Statement Overview

Summary

Arrow Electronics demonstrates a stable financial foundation with moderate profitability and robust cash flow generation. Despite facing revenue contraction, the company maintains healthy margins and conservative leverage. The balance sheet reflects a sound position with a focus on maintaining financial stability. Continued enhancement of profitability metrics and revenue growth will be crucial for future performance improvements.

Income Statement

Arrow Electronics shows a mixed performance in TTM. The gross profit margin is 11.24% and net profit margin is 1.40%, indicating stable but not exceptional profitability. Revenue has decreased from the previous year, showcasing a revenue contraction trend. EBIT and EBITDA margins stand at 2.81% and 3.05%, respectively, reflecting moderate operational efficiency. The trajectory indicates caution in revenue growth despite steady margins.

Balance Sheet

The company maintains a stable balance sheet with a debt-to-equity ratio of 0.48, indicating a conservative leverage position. Return on equity (ROE) is at 6.55%, showing moderate profitability for shareholders. The equity ratio of 27.69% suggests a reasonable proportion of assets financed by equity. Overall, Arrow Electronics demonstrates financial stability with manageable leverage, though growth in equity returns remains moderate.

Cash Flow

Arrow Electronics exhibits robust cash flow management. The operating cash flow to net income ratio is 2.78, highlighting strong cash conversion capabilities. Free cash flow has decreased slightly but remains positive at $1.02 billion, indicating solid free cash flow generation despite a challenging revenue environment. This positions the company well for future financial commitments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.81B	27.92B	33.11B	37.12B	34.48B	28.67B
Gross Profit	3.13B	3.29B	4.15B	4.84B	4.20B	3.19B
EBITDA	848.26M	984.44M	1.67B	2.26B	1.78B	1.10B
Net Income	388.19M	392.07M	903.50M	1.43B	1.11B	584.44M
Balance Sheet
Total Assets	21.40B	21.76B	21.73B	21.76B	19.54B	17.05B
Cash, Cash Equivalents and Short-Term Investments	231.88M	188.81M	218.05M	176.91M	222.19M	373.62M
Total Debt	2.84B	3.12B	3.81B	3.77B	2.63B	2.26B
Total Liabilities	15.40B	15.93B	15.85B	16.15B	14.19B	11.90B
Stockholders Equity	5.93B	5.76B	5.81B	5.55B	5.28B	5.09B
Cash Flow
Free Cash Flow	1.02B	1.04B	622.16M	-111.91M	335.93M	1.24B
Operating Cash Flow	1.08B	1.13B	705.45M	-33.08M	418.98M	1.36B
Investing Cash Flow	-95.03M	-94.44M	-72.32M	-57.71M	-60.12M	-138.79M
Financing Cash Flow	-981.28M	-956.83M	-666.22M	109.78M	-463.30M	-1.23B

Arrow Electronics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 130.21
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 130.21 is above the 20-day moving average (MA) of 126.15, above the 50-day MA of 121.02, and above the 200-day MA of 117.42, indicating a bullish trend. The MACD of 3.08 indicates Negative momentum. The RSI at 65.99 is Neutral, neither overbought nor oversold. The STOCH value of 80.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARW.

Arrow Electronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNX	78 Outperform	$11.51B	16.31	8.83%	1.25%	6.60%	19.93%
CNXN	65 Neutral	$1.69B	20.19	10.11%	0.89%	4.21%	6.38%
AVT	64 Neutral	$4.62B	15.46	6.42%	2.35%	-10.52%	-42.40%
Sector *	63 Neutral	$33.79B	5.85	-11.85%	1.81%	5.29%	-18.24%
ARW	61 Neutral	$6.75B	17.92	6.68%	―	-11.13%	-43.00%
NSIT	61 Neutral	$4.55B	28.49	11.37%	―	-8.73%	-35.37%
SCSC	61 Neutral	$959.64M	15.31	7.32%	―	-14.07%	-9.65%

Arrow Electronics Corporate Events

Arrow Electronics Extends Credit Facility to $2 Billion

On June 27, 2025, Arrow Electronics, Inc. and its subsidiaries entered into a Fifth Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A., extending their existing credit facility to $2 billion. This agreement extends the maturity date to June 27, 2030, introduces a step-up provision for leverage ratios during material acquisitions, and modifies various covenants and financial definitions, impacting the company’s operational flexibility and financial strategies.

The most recent analyst rating on (ARW) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on Arrow Electronics stock, see the ARW Stock Forecast page.

Arrow Electronics Amends By-laws and Elects Directors

On May 6, 2025, Arrow Electronics‘ Board of Directors approved an amendment and restatement of the company’s By-laws, introducing changes such as enhanced advance notice requirements for shareholder proposals, powers for meeting chairs, and proxy card color specifications. Additionally, at the 2025 Annual Meeting of Shareholders, ten directors were elected, Ernst & Young LLP’s appointment as the independent auditor was ratified, executive compensation was approved, and a proposal to replace supermajority voting provisions with simple majority standards was passed.