📊 ARW Key Takeaways
Is Arrow Electronics, Inc.. (ARW) a Good Investment?
Arrow Electronics shows strong revenue growth and improved EPS, but fundamentals are concerning with negative free cash flow, razor-thin net margins (1.9%), and an unusual 14,443% YoY revenue increase that suggests data anomaly or significant one-time event requiring clarification. The company's capital intensity (CapEx exceeds operating cash flow) and weak profitability metrics indicate operational challenges despite top-line expansion.
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.
Why Buy Arrow Electronics, Inc.. Stock? ARW Key Strengths
- Substantial revenue growth of 14,443% YoY indicates significant market expansion or transformative business event
- EPS improved 49.9% YoY to $10.93, showing earnings leverage
- Moderate leverage with Debt/Equity of 0.47x provides financial flexibility
- Adequate liquidity with Current Ratio of 1.36x and $306.5M cash position
- 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
- Negative free cash flow of -$37.2M despite $64M operating cash flow indicates CapEx ($101.3M) exceeds internal generation capacity
- Extremely thin net margin of 1.9% and operating margin of 2.7% provide minimal earnings buffer for adverse conditions
- The 14,443% revenue spike is highly irregular and likely data anomaly or one-time event; actual normalized revenue trends unclear
- Gross margin of only 11.2% suggests low pricing power or high procurement costs typical of distribution businesses
- ROE of 8.7% and ROA of 2.0% are below acceptable thresholds for capital-intensive wholesale distribution
- 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
- Normalized revenue growth excluding one-time events or accounting adjustments
- Free cash flow conversion and capital expenditure trends
- Operating and net margin trajectory and sustainability
- Debt reduction progress and interest coverage ratio trends
- 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $8.5B | $236.6M | $4.12 |
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 Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 60% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ARW's key strengths?
Claude: Substantial revenue growth of 14,443% YoY indicates significant market expansion or transformative business event. EPS improved 49.9% YoY to $10.93, showing earnings leverage. 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: Negative free cash flow of -$37.2M despite $64M operating cash flow indicates CapEx ($101.3M) exceeds internal generation capacity. Extremely thin net margin of 1.9% and operating margin of 2.7% provide minimal earnings buffer for adverse conditions. 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 $30.9B.
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 $10.93.
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 rating reflects both perspectives for balanced insights.
Is ARW a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Arrow Electronics, Inc.. has a HOLD rating with 60% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ARW stock overvalued or undervalued?
Valuation metrics for ARW: ROE of 8.7% (sector avg: 22%), net margin of 1.9% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy ARW stock in 2026?
Our dual AI analysis gives Arrow Electronics, Inc.. a combined HOLD rating 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 $64.0M, with capital expenditures of $101.3M. FCF margin is -0.1%.
How does ARW compare to other Technology stocks?
Vs Technology sector averages: Net margin 1.9% (avg: 18%), ROE 8.7% (avg: 22%), current ratio 1.36 (avg: 2.5).