Arrow Electronics Stock Analysis, Valuation (NYSE:ARW)

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$76.84 $0.76 (1%) ARW stock closing price Aug 16, 2018 (Closing)

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 3.1/5

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 Q2 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 Arrow Electronics stock currently trades at a price to earnings ratio of 9.1, compared to the sector average of 25.4. We rate this as a positive.
  • When compared with the Computer and Technology sector average PS ratio of 2.9, the price-to-sales ratio of 0.2 for ARW stock is attractive.
  • Arrow Electronics's return on invested capital of 7.6 is good.
  • The LTM ROE of 10 for Arrow Electronics is attractive.

Should you sell ARW stock?

  • With a debt/equity ratio of 0.74, Arrow Electronics is highly leveraged in comparison to Computer and Technology peers.
  • The company's operations consume more cash than it generates. This is not a healthy sign.
  • The company has a negative free cash flow margin of -6.

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.