Arrow Electronics Inc (ARW) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Arrow Electronics Inc stock (ARW) is currently trading at $146.13. Arrow Electronics Inc PE ratio is 13.20. Arrow Electronics Inc PS ratio (Price-to-Sales) is 0.24. Analyst consensus price target for ARW is $137.50. WallStSmart rates ARW as Moderate Buy.
- ARW PE ratio analysis and historical PE chart
- ARW PS ratio (Price-to-Sales) history and trend
- ARW intrinsic value — DCF, Graham Number, EPV models
- ARW stock price prediction 2025 2026 2027 2028 2029 2030
- ARW fair value vs current price
- ARW insider transactions and insider buying
- Is ARW undervalued or overvalued?
- Arrow Electronics Inc financial analysis — revenue, earnings, cash flow
- ARW Piotroski F-Score and Altman Z-Score
- ARW analyst price target and Smart Rating
Arrow Electronics Inc
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ARW Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Arrow Electronics Inc (ARW)
ARW trades at a significant discount to its Graham intrinsic value of $511.52, offering a 69% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Arrow Electronics Inc (ARW) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, price/sales, price/book. Concerns around return on equity and operating margin. Overall metrics suggest strong investment potential with favorable risk/reward.
Arrow Electronics Inc (ARW) Key Strengths (7)
Growing significantly faster than its price suggests
Paying less than $1 for every $1 of annual revenue
Earnings per share surging 100.50% year-over-year
108.99% of shares held by major funds and institutions
Trading at 1.06x book value, attractively priced
Strong revenue growth at 20.10% annually
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
Arrow Electronics Inc (ARW) Areas to Watch (3)
Near-zero operating margins, business under pressure
Very thin margins, barely profitable
Low profitability relative to shareholder equity
Supporting Valuation Data
Arrow Electronics Inc (ARW) Detailed Analysis Report
Overall Assessment
This company scores 69/100 in our Smart Analysis, earning a B- grade. Out of 10 metrics analyzed, 7 register as strengths (avg 9.0/10) while 3 fall into concern territory (avg 2.0/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on PEG Ratio, Price/Sales, EPS Growth. Valuation metrics including PEG Ratio (0.94), Price/Sales (0.24), Price/Book (1.06) suggest the stock is attractively priced. Growth metrics are encouraging with Revenue Growth at 20.10%, EPS Growth at 100.50%.
The Bear Case
The primary concerns are Operating Margin, Profit Margin, Return on Equity. Profitability pressure is visible in Return on Equity at 9.12%, Operating Margin at 3.71%, Profit Margin at 1.85%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Operating Margin improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 9.12% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 20.10% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (PEG Ratio, Price/Sales) and negatives (Operating Margin, Profit Margin). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
ARW Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
ARW's Price-to-Sales ratio of 0.24x trades 85% above its historical average of 0.13x (99th percentile), historically expensive. The current valuation is 4% below its historical high of 0.25x set in Mar 2026, and 502% above its historical low of 0.04x in Nov 2008.
WallStSmart Analysis Synopsis
Data-driven financial summary for Arrow Electronics Inc (ARW) · TECHNOLOGY › ELECTRONICS & COMPUTER DISTRIBUTION
The Big Picture
Arrow Electronics Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 30.9B with 20% growth year-over-year. Profit margins are thin at 1.8%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
Generating 173M in free cash flow and 200M in operating cash flow. Earnings are translating into actual cash generation.
Profit margin at 1.8% is thin. While this is common for high-growth companies, margins need to expand as growth naturally decelerates.
What to Watch Next
Margin expansion: can Arrow Electronics Inc push profit margins above 15% as the business scales?
Growth sustainability: can Arrow Electronics Inc maintain 20%+ revenue growth, or will competition slow it down?
Debt management: total debt of 3.1B is significantly higher than cash (306M). Monitor refinancing risk.
Sector dynamics: monitor ELECTRONICS & COMPUTER DISTRIBUTION industry trends, competitive moves, and regulatory changes that could impact Arrow Electronics Inc.
Bottom Line
Arrow Electronics Inc offers an attractive blend of growth (20% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(57 last 3 months)
| Insider | Type | Shares |
|---|---|---|
AUSTEN, WILLIAM F. Director, Interim President and CEO | Buy | +3,960 |
| Insider | Type | Shares |
|---|---|---|
MARANO, RICHARD JOHN President, Global Components | Sell | -2,500 |
Data sourced from SEC Form 4 filings
Last updated: 4:27:24 PM
About Arrow Electronics Inc(ARW)
NYSE
TECHNOLOGY
ELECTRONICS & COMPUTER DISTRIB...
USA
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 Asia Pacific. The company is headquartered in Centennial, Colorado.