📊 ARW Key Takeaways
Is Arrow Electronics, Inc.. (ARW) a Good Investment?
Arrow Electronics operates a large revenue base with positive free cash flow generation ($667.6M), but exhibits concerning profitability metrics including weak ROE (3.5%), ROA (0.7%), and net margins (2.5%). The reported YoY revenue growth of 14,443% appears anomalous and raises data quality concerns, while net income growth of only 0.3% suggests significant margin compression or one-time items distorting reported figures.
Arrow Electronics shows a fundamentally stable but unexceptional profile: positive earnings, adequate liquidity, and moderate leverage support resilience, but profitability remains thin and cash generation is currently weak. The biggest concern is growth quality, as the reported revenue surge appears inconsistent with flat net income and negative free cash flow, suggesting either low-quality growth or a data classification issue rather than true operating acceleration.
Arrow Electronics, Inc.. Key Strengths (ARW)
- Positive operating cash flow of $699.8M and strong free cash flow of $667.6M indicating underlying business cash generation
- Moderate leverage with debt-to-equity ratio of 0.35x and long-term debt of $2.4B manageable relative to equity base
- Substantial asset base of $36.0B with established market position in electronic parts distribution
- Positive net income with modest year-over-year improvement
- Healthy liquidity profile with 1.36x current ratio and 1.09x quick ratio
- Moderate leverage with debt-to-equity of 0.47x and a solid equity base
ARW Stock Risks: Arrow Electronics, Inc.. Investment Risks
- Extremely thin profitability margins (11.5% gross, 3.8% operating, 2.5% net) indicating structural low-return business model
- Critically weak return metrics with ROE of 3.5% and ROA of 0.7% suggesting poor capital efficiency
- Inadequate liquidity with current ratio of 1.24x and quick ratio of 1.02x leaving minimal buffer for disruptions; suspicious revenue growth data (14,443% YoY) creates fundamental analytical uncertainty
- Negative free cash flow and very low operating cash flow relative to revenue
- Razor-thin margins leave little room for execution errors or cyclical pressure
- Reported revenue growth appears anomalous, raising concerns about growth quality and data reliability
Key Metrics to Watch
- Net profit margin trend and operating margin sustainability
- Free cash flow maintenance and working capital efficiency (inventory and receivables turnover for distributors)
- Debt levels and interest coverage given thin operating margins
- Operating cash flow and free cash flow conversion
- Operating margin trend
Arrow Electronics, Inc.. (ARW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Arrow Electronics, Inc.. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
ARW Profit Margin, ROE & Profitability Analysis
ARW vs Technology Sector: How Arrow Electronics, Inc.. Compares
How Arrow Electronics, Inc.. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Arrow Electronics, Inc.. Stock Overvalued? ARW Valuation Analysis 2026
Based on fundamental analysis, Arrow Electronics, Inc.. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Arrow Electronics, Inc.. Balance Sheet: ARW Debt, Cash & Liquidity
ARW Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Arrow Electronics, Inc..'s revenue has remained relatively flat over the 5-year period, with a 4% decline. The most recent EPS of $15.84 reflects profitable operations.
ARW Revenue Growth, EPS Growth & YoY Performance
ARW Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $6.8B | $79.7M | $1.51 |
| Q3 2025 | $6.8B | $100.6M | $1.88 |
| Q2 2025 | $6.9B | $108.7M | $2.01 |
| Q1 2025 | $6.8B | $79.7M | $1.51 |
| Q3 2024 | $6.8B | $100.6M | $1.88 |
| Q2 2024 | $6.9B | $108.7M | $2.01 |
| Q1 2024 | $6.9B | $83.6M | $1.53 |
| Q3 2023 | $8.0B | $198.7M | $3.53 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Arrow Electronics, Inc.. Dividends, Buybacks & Capital Allocation
ARW SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Arrow Electronics, Inc.. (CIK: 0000007536)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ARW
What is the AI rating for ARW?
Arrow Electronics, Inc.. (ARW) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ARW's key strengths?
Claude: Positive operating cash flow of $699.8M and strong free cash flow of $667.6M indicating underlying business cash generation. Moderate leverage with debt-to-equity ratio of 0.35x and long-term debt of $2.4B manageable relative to equity base. ChatGPT: Positive net income with modest year-over-year improvement. Healthy liquidity profile with 1.36x current ratio and 1.09x quick ratio.
What are the risks of investing in ARW?
Claude: Extremely thin profitability margins (11.5% gross, 3.8% operating, 2.5% net) indicating structural low-return business model. Critically weak return metrics with ROE of 3.5% and ROA of 0.7% suggesting poor capital efficiency. ChatGPT: Negative free cash flow and very low operating cash flow relative to revenue. Razor-thin margins leave little room for execution errors or cyclical pressure.
What is ARW's revenue and growth?
Arrow Electronics, Inc.. reported revenue of $9.5B.
Does ARW pay dividends?
Arrow Electronics, Inc.. does not currently pay dividends.
Where can I find ARW SEC filings?
Official SEC filings for Arrow Electronics, Inc.. (CIK: 0000007536) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ARW's EPS?
Arrow Electronics, Inc.. has a diluted EPS of $4.55.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ARW's fundamental grade?
Based on our AI fundamental analysis in June 2026, Arrow Electronics, Inc.. has a B grade with 73% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ARW stock overvalued or undervalued?
Valuation metrics for ARW: ROE of 3.5% (sector avg: 22%), net margin of 2.5% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is ARW's AI grade for 2026?
Our dual AI analysis gives Arrow Electronics, Inc.. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ARW's free cash flow?
Arrow Electronics, Inc..'s operating cash flow is $699.8M, with capital expenditures of $32.1M. FCF margin is 7.0%.
How does ARW compare to other Technology stocks?
Vs Technology sector averages: Net margin 2.5% (avg: 18%), ROE 3.5% (avg: 22%), current ratio 1.24 (avg: 2.5).