Arrow Electronics Inc Stock Research

Market Summary

USD117.41+2.48

Market Closed

2.16%

ARW Alerts

2 major insider sales recently.

ARW Stock Price

ARW RSI Chart

ARW Valuation

Market Cap

7.5B

Price/Earnings (Trailing)

5.28

Price/Sales (Trailing)

0.2

EV/EBITDA

3.9

Price/Free Cashflow

-67.38

ARW Price/Sales (Trailing)

ARW Profitability

Operating Margin

13.03%

EBT Margin

5.08%

Return on Equity

25.73%

Return on Assets

6.56%

Free Cashflow Yield

-1.48%

ARW Fundamentals

ARW Revenue

Revenue (TTM)

37.1B

Revenue Y/Y

3.4%

Revenue Q/Q

0.61%

ARW Earnings

Earnings (TTM)

1.4B

Earnings Y/Y

-5.87%

Earnings Q/Q

2.05%

Price Action

52 Week Range

89.38134.56

(Low)(High)

Last 7 days

-3.4%

Last 30 days

-10.2%

Last 90 days

8.2%

Trailing 12 Months

-6.0%

ARW Financial Health

Current Ratio

1.48

ARW Investor Care

Buy Backs (1Y)

10.38%

Diluted EPS (TTM)

21.8

Peers (Alternatives to Arrow Electronics)

View All Peers In Detail

Name	Mkt Capsorted ascending	Revenue	Price %, 1M	Returns, 1Y	P/E	P/S	Rev 1-Yr	Inc 1-Yr
LARGE-CAP
TEL	39.6B	16.3B	-5.87%	-1.42%	17.53	2.43	7.13%	-7.65%
KEYS	33.7B	5.4B	-16.06%	3.20%	30.02	6.23	9.69%	25.73%
GLW	28.2B	14.2B	-8.02%	-8.18%	21.42	1.99	0.76%	-30.95%
CDW	26.2B	23.7B	-10.68%	10.49%	23.54	1.1	14.06%	12.74%
ZBRA	14.9B	5.8B	-9.79%	-25.66%	30.01	2.57	2.74%	-44.68%
JBL	10.5B	34.5B	-4.28%	43.93%	10.76	0.3	15.08%	32.70%
MID-CAP
SNX	8.7B	62.3B	-13.02%	-17.07%	13.4	0.14	97.20%	64.86%
DLB	7.9B	1.2B	-4.23%	12.59%	42.97	6.37	-0.48%	-28.07%
ARW	7.5B	37.1B	-10.25%	-6.02%	5.28	0.2	7.68%	28.76%
AVT	3.9B	26.3B	-9.48%	-0.84%	4.6	0.15	21.93%	88.67%
SMALL-CAP
SCSC	744.8M	3.8B	-9.08%	-14.54%	7.99	0.2	13.89%	13.53%
WSTG	148.4M	291.0M	9.58%	18.41%	13.27	0.51	4.46%	35.11%
UUU	5.3M	20.5M	11.65%	-36.99%	26.61	0.26	12.52%	166.84%

Financials for Arrow Electronics

* denotes actual numbers (not divided by Millions)
Income Statement (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Revenue	0.8%	37,124	36,817	36,063	35,165	34,477
Cost Of Revenue	0.9%	32,288	31,990	31,348	30,685	30,275
Gross Profit	0.2%	4,837	4,827	4,716	4,480	4,202
S&GA Expenses	0.1%	2,567	2,564	2,556	2,504	2,435
Costs and Expenses	0.0%	2,768	2,769	2,756	2,712	2,646
EBITDA	-1.6%	1,886	1,916	1,836	1,617	-
EBITDA Margin	-2.4%	0.05*	0.05*	0.05*	0.05*	-
Earnings Before Taxes	5.7%	1,884	1,784	1,556	-	-
EBT Margin	-0.8%	0.05*	0.05*	0.05*	0.04*	-
Interest Expenses	-17.4%	-185	-158	-139	-132	-131
Net Income	-1.7%	1,427	1,451	1,399	1,268	1,108
Net Income Margin	-2.5%	0.04*	0.04*	0.04*	0.04*	-
Free Cahsflow	40.9%	-111	-189	-218	141	-

Balance Sheet					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Assets	6.1%	21,763	20,506	19,894	19,513	19,536
Current Assets	7.1%	18,340	17,131	16,424	15,941	15,893
Cash Equivalents	-47.0%	177	334	226	243	222
Inventory	4.6%	5,319	5,083	4,887	4,645	4,202
Net PPE	0.1%	596	596	626	658	683
Goodwill	2.4%	2,028	1,979	2,021	2,067	2,080
Current Liabilities	8.5%	12,390	11,418	11,033	10,672	11,326
LT Debt, Non Current	-0.1%	3,183	3,187	2,856	2,791	2,244
Shareholder's Equity	5.7%	5,546	5,246	5,398	5,429	5,282
Retained Earnings	3.9%	9,215	8,865	8,523	8,153	7,788
Additional Paid-In Capital	0.6%	1,209	1,201	1,199	1,187	1,190
Accumulated Depreciation	3.4%	1,177	1,138	1,094	1,066	1,033
Shares Outstanding	-2.8%	64.00	66.00	68.00	-	-
Minority Interest	14.2%	65.00	57.00	58.00	59.00	59.00

Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Cashflow From Operations	71.0%	-33.08	-113	-140	223	419
Share Based Compensation	3.4%	43.00	42.00	45.00	40.00	36.00
Cashflow From Investing	-6.2%	-57.71	-54.35	-56.88	-61.21	-60.12
Cashflow From Financing	-76.5%	110	467	306	-112	-463
Buy Backs	5.0%	1,049	999	990	1,015	912

Risks for ARW

What is the probability of a big loss on ARW?

60.4%

Probability that Arrow Electronics stock will be more than 20% underwater in next one year

25.8%

Probability that Arrow Electronics stock will be more than 30% underwater in next one year.

18.1%

Probability that Arrow Electronics stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does ARW drawdown profile look like?

Y-axis is the maximum loss one would have experienced if Arrow Electronics was unfortunately bought at previous high price.

Drawdowns

Returns for ARW

Cumulative Returns on ARW

10.7%

10-Year Cumulative Returns

9.3%

7-Year Cumulative Returns

7.0%

5-Year Cumulative Returns

26.5%

3-Year Cumulative Returns

What are the long-term rolling returns for ARW?

FIve years rolling returns for Arrow Electronics.

Annualized Returns

Which funds bought or sold ARW recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-03-10	MATHER GROUP, LLC.	added	7.61	161,309	890,309	0.02%
2023-03-10	VICTORY CAPITAL MANAGEMENT INC	reduced	-32.74	-702,837	2,262,160	-%
2023-03-06	Rockefeller Capital Management L.P.	reduced	-13.73	-2,000	123,000	-%
2023-03-03	TIAA, FSB	new	-	252,432	252,432	-%
2023-02-28	Voya Investment Management LLC	reduced	-3.83	408,346	4,902,350	0.01%
2023-02-24	NATIXIS	added	174	5,270,090	7,759,090	0.04%
2023-02-22	TEACHERS RETIREMENT SYSTEM OF THE STATE OF KENTUCKY	reduced	-10.41	18,000	1,081,000	0.01%
2023-02-22	CVA Family Office, LLC	reduced	-10.00	-294	4,706	-%
2023-02-21	MACQUARIE GROUP LTD	reduced	-4.62	249,448	3,296,450	-%
2023-02-21	NORTHWESTERN MUTUAL INVESTMENT MANAGEMENT COMPANY, LLC	reduced	-38.57	-258,683	595,317	0.02%

Latest Funds Activity

Are funds buying ARW calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own ARW

No. of Funds

ARW Alerts

2 major insider sales recently.

Arrow Electronics News

Schedule 13G FIlings of Arrow Electronics

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 09, 2023	vanguard group inc	11.11%	6,834,048	SC 13G/A
Jan 26, 2023	blackrock inc.	12.6%	7,765,175	SC 13G/A
Jan 20, 2023	blackrock inc.	12.6%	7,765,175	SC 13G/A
Feb 09, 2022	vanguard group inc	10.10%	7,035,801	SC 13G/A
Jan 27, 2022	blackrock inc.	10.9%	7,556,039	SC 13G/A
Jan 25, 2022	blackrock inc.	10.9%	7,556,039	SC 13G/A
Sep 10, 2021	vanguard group inc	10.20%	7,324,241	SC 13G/A
Feb 10, 2021	vanguard group inc	9.36%	7,067,299	SC 13G/A
Jan 27, 2021	blackrock inc.	10.2%	7,675,087	SC 13G/A
Apr 09, 2020	vanguard group inc	10.04%	8,095,560	SC 13G/A

ARW Fair Value

Arrow Electronics fair value in different scenarios

The table shows the Fair Value estimates for Arrow Electronics for various scenarios. Disclaimer: These are just estimations from a model. None of the models are good at predicting the future. Please dont buy or sell stocks based on these outputs.

Fair Value	Very Pessimistic	Pessimistic	Base Case	Optimistic	Very Optimistic
Very Low Inflation	216.53 84.42%	284.63 142.42%	419.93 257.66%	616.83 425.36%	796.66 578.53%
Current Inflation	174.34 48.49%	218.02 85.69%	291.05 147.89%	375.08 219.46%	435.78 271.16%
Very High Inflation	176.43 50.27%	222.41 89.43%	310.48 164.44%	444.71 278.77%	564.51 380.80%

Historical Arrow Electronics Fair Value Estimates

Very Pessimistic Case

Pessimistic Case

Fair Value

Optimistic Case

Very Optimistic Case

Closing Stock Price

Recent SEC filings of Arrow Electronics

View All Filings

Date Filed	Form Type	Document
Mar 16, 2023	144	Notice of Insider Sale Intent
Mar 15, 2023	4	Insider Trading
Mar 14, 2023	144	Notice of Insider Sale Intent
Mar 13, 2023	4	Insider Trading
Mar 07, 2023	4	Insider Trading
Mar 01, 2023	4	Insider Trading
Mar 01, 2023	8-K	Current Report
Feb 28, 2023	424B2	Prospectus Filed
Feb 27, 2023	FWP	Prospectus Filed
Feb 27, 2023	424B5	Prospectus Filed

Latest Insider Trading transactions for ARW

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-03-14	LONG MICHAEL J	sold	-603,163	118	-5,096	executive chairman
2023-03-09	LONG MICHAEL J	sold	-106,080	120	-884	executive chairman
2023-03-06	LONG MICHAEL J	sold	-446,516	120	-3,712	executive chairman
2023-02-28	Russell Kristin Diana	sold	-1,213,040	117	-10,306	president, global ecs
2023-02-28	Russell Kristin Diana	acquired	278,316	80.091	3,475	president, global ecs
2023-02-17	LONG MICHAEL J	sold (taxes)	-1,627,170	123	-13,199	executive chairman
2023-02-17	Jean-Claude Carine Lamercie	sold (taxes)	-23,793	123	-193	svp, clo & secretary
2023-02-17	Zech Gretchen	sold (taxes)	-191,824	123	-1,556	svp, chief gov, sust, hr offr
2023-02-17	Russell Kristin Diana	sold (taxes)	-113,911	123	-924	president, global ecs
2023-02-17	Seidlitz Richard A	sold (taxes)	-21,697	123	-176	vp, corp. controller & pao

About Arrow Electronics

Michael J. Long

www.arrow.com

20700

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 the Asia Pacific. The company operates in two segments, Global Components and Global Enterprise Computing Solutions. The Global Components segment markets and distributes semiconductor products and related services; passive, electro-mechanical, and interconnect products, including capacitors, resistors, potentiometers, power supplies, relays, switches, and connectors; and computing and memory products, as well as other products and services. The Global Enterprise Computing Solutions segment offers computing solutions, such as datacenter, cloud, security, and analytics solutions. This segment provides access to various services, including engineering and integration support, warehousing and logistics, marketing resources, and authorized hardware and software training. The company serves original equipment manufacturers, value-added resellers, managed service providers, contract manufacturers, and other commercial customers. Arrow Electronics, Inc. was founded in 1935 and is based in Centennial, Colorado.

ARW Income Statement

2022-10-01

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

9 Months Ended

Oct. 01, 2022

Oct. 02, 2021

Oct. 01, 2022

Oct. 02, 2021

Sales

$ 9,266,432

$ 8,512,391

$ 27,801,399

$ 25,460,941

Cost of sales

8,079,520

7,436,619

24,170,769

22,454,954

Gross profit

1,186,912

1,075,772

3,630,630

3,005,987

Operating expenses:

Selling, general, and administrative expenses

634,353

625,883

1,931,918

1,802,534

Depreciation and amortization

46,230

48,054

141,787

146,924

Restructuring, integration, and other charges (credits)

3,635

(3,030)

11,027

11,639

Total operating expenses

684,218

670,907

2,084,732

1,961,097

Operating income

502,694

404,865

1,545,898

1,044,890

Equity in earnings of affiliated companies

1,718

1,151

4,726

2,185

Gain (loss) on investments, net

(3,480)

1,386

(11,213)

10,905

Employee benefit plan expense, net

(890)

(1,256)

(2,614)

(3,924)

Interest and other financing expense, net

(50,936)

(32,667)

(123,427)

(97,008)

Income before income taxes

449,106

373,479

1,413,370

957,048

Provision for income taxes

105,500

82,929

332,273

218,068

Consolidated net income

343,606

290,550

1,081,097

738,980

Noncontrolling interests

1,207

523

3,615

1,991

Net income attributable to shareholders

$ 342,399

$ 290,027

$ 1,077,482

$ 736,989

Net income per share:

Basic

$ 5.33

$ 4.05

$ 16.31

$ 10.04

Diluted

^[1]

$ 5.27

$ 4.00

$ 16.12

$ 9.92

Weighted-average shares outstanding:

Basic

64,228

71,671

66,055

73,426

Diluted

64,979

72,571

66,845

74,313

[1]

Stock-based compensation awards for the issuance of 203.0 thousand and 53.2 thousand shares for the third quarter and first nine months of 2022, respectively, and 3.3 thousand and 2.6 thousand shares for the third quarter and first nine months of 2021, respectively, were excluded from the computation of net income per share on a diluted basis as their effect was anti-dilutive.

ARW Balance Sheet

2022-10-01

CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands

Oct. 01, 2022

Dec. 31, 2021

ASSETS

Cash and cash equivalents

$ 333,985

$ 222,194

Accounts receivable, net

11,218,611

11,123,946

Inventories

5,083,378

4,201,965

Other current assets

495,145

345,218

Total current assets

17,131,119

15,893,323

Property, plant, and equipment, at cost:

Land

5,691

5,736

Buildings and improvements

184,091

186,097

Machinery and equipment

1,544,457

1,523,919

Property, plant, and equipment, gross

1,734,239

1,715,752

Less: Accumulated depreciation and amortization

(1,138,372)

(1,032,941)

Property, plant, and equipment, net

595,867

682,811

Investments in affiliated companies

66,358

63,695

Intangible assets, net

166,388

195,029

Goodwill

^[1]

1,979,233

2,080,371

Other assets

566,764

620,311

Total assets

20,505,729

19,535,540

LIABILITIES AND EQUITY

Accounts payable

9,540,449

9,617,084

Accrued expenses

1,273,097

1,326,386

Short-term borrowings, including current portion of long-term debt

604,521

382,619

Total current liabilities

11,418,067

11,326,089

Long-term debt

3,187,025

2,244,443

Other liabilities

597,951

624,162

Commitments and contingencies (Note K)

Equity:

Issued - 125,424 shares in both 2022 and 2021

125,424

Capital in excess of par value

1,201,185

1,189,845

Treasury stock (63,324 and 57,358 shares in 2022 and 2021, respectively), at cost

(4,338,414)

(3,629,265)

Retained earnings

8,865,430

7,787,948

Accumulated other comprehensive loss

(607,878)

(191,657)

Total shareholders’ equity

5,245,747

5,282,295

Noncontrolling interests

56,939

58,551

Total equity

5,302,686

5,340,846

Total liabilities and equity

$ 20,505,729

$ 19,535,540

[1]

The total carrying value of goodwill as of October 1, 2022 and December 31, 2021 in the table above is reflected net of $1.6 billion of accumulated impairment charges, of which $1.3 billion was recorded in the global components business segment and $301.9 million was recorded in the global enterprise computing solutions ("ECS") business segment.