Arrow Electronics Stock Analysis, Valuation (NYSE:ARW)

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$74.62 $0.47 (0.63%) ARW stock closing price May 18, 2018 (Closing)
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Arrow Electronics
Updated on : May 18, 2018
previous close
ARW 74.6 (0%)
NASDAQ 7354.3 (0%)
Closing Price On: May 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Electronic Parts Distributors
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
3.5%
Sector Average:
5.4%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
3.57B
Debt/Equity Ratio:
 0.69
Compared to the industry
Cash Flow
Operating cash flow:
-$75.1M
Net Income:
$139.1M
PROS      CONS
ROIC
ROE
PE Valuation
PS Valuation
High Debt Burden
Cash Flow
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ARW PS :
0.2
Industry PS :
2.9
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
7.3%
Return on Equity:
8.8%
Free Cash Flow Margin:
-1.6%
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Arrow Electronics Stock Analysis

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View the Arrow Electronics stock analysis video on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for ARW stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Arrow Electronics, Inc. Stock Rating 2.9/5

Amigobulls ARW stock analysis takes into account various financial ratios like relative valuation, Arrow Electronics revenue, growth and return on equity based on latest quarter 2018 Q1 financial statements. We also check Arrow Electronics dividend performance. Arrow Electronics valuation forms a crucial part of our stock analysis. Based on a company's historical fundamentals we arrive at Arrow Electronics stock rating which is indicative of the company's financial performance.

Should you buy ARW stock?

  • The price to earnings multiple of 9.3 is attractive when compared with the industry average PE ratio of 25.1.
  • ARW stock is trading at a favorable price to sales multiple of 0.2 as against the Electronic Parts Distributors industry average multiple of 2.9.
  • Arrow Electronics generates a high return on invested capital of 7.3%.
  • The LTM ROE of 8.8% for Arrow Electronics is attractive.

Should you sell ARW stock?

  • Arrow Electronics has a debt/equity ratio of  0.69, which is worse than the average in the Computer and Technology sector.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -1.6%.

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Comments on this video and Arrow Electronics stock

Investors can use Amigobulls Arrow Electronics stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. The fundamentals of a company are vital to identify long-term investment opportunities.

While doing a study of the company financials, Arrow Electronics revenue growth and profit or net income are two main metrics which help in identifying whether ARW stock is overvalued or undervalued. One can also combine technical analysis and fundamental analysis to get a holistic picture about ARW stock.