Arrow Electronics ARW
United StatesTechnology · Electronics & Computer DistributionUSD
235.00 USD (+1.3%)
4 analysts
Trading 2120.30 €Open account ↗
Lightyear0.90 €Open account ↗
N260.90 €Open account ↗
XTB1.00 €★ featured · affiliateOpen account ↗Trading 2120.30 €Open account ↗Lightyear0.90 €Open account ↗XTB1.00 €★ featured · affiliateOpen account ↗200.00 € order · cheapest cheapest available in your country iCompare all 22 brokers →What does it do?
Arrow Electronics is a global distributor of electronic components and IT solutions, acting as an intermediary between semiconductor manufacturers and companies that design and produce electronic products.
Key points
from its scores- ✓Good share-price trend9.8
- ✓Strong growth9.1
- ✓Attractive valuation8.2
- ✕Little or no dividend1.5
- !Average business quality5.0
AI analysis
bottom line, main risk, context and newsGrowth and valuation are solid, but the low operating margin requires monitoring of execution.
Arrow Electronics shows exceptional growth (revenue +31.8%, earnings +46.5%) with an attractive valuation (P/E 14.83, FCF yield 6.21%), although its operating profitability is low (operating margin 3.95%) and it pays no dividend.
The operating margin of only 3.95% leaves the company vulnerable to any margin compression in a low-value-added distribution business.
Context and risks
No relevant recent news. The rising rate environment in the US has a limited effect: net debt/EBITDA of 1.31 is moderate and the P/E of 14.83 does not reflect a long-duration valuation. The electronic components distribution business has no direct exposure to commodities or critical shipping routes.
Is Arrow Electronics stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 53% below the Technology median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 14.8 | 31.3 | −53% |
| EV / EBITDA | 9.4 | 20.4 | −54% |
| Price / book | 1.7 | 6.3 | −73% |
| Price / sales | 0.3 | 5.3 | −94% |
Sector: median of the 283 Technology companies analysed. In bold, the multiples used for the comparison.
Valuation score: 8.2 out of 10 (median for Technology: 5.3).
Average analyst target: 235.00 USD, +1.3% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 5.5 (sector 6.9), Growth 9.1 (sector 7.5).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Technology medianValuation
- P/E
- 14.8
- Forward P/E
- 9.7
- EV / EBITDA
- 9.4
- Price / book
- 1.7
- Price / sales
- 0.3
- PEG
- 0.95
- Market cap
- 11.8B USD
- Enterprise value
- 13.8B USD
Profitability
- ROE
- 12.0%
- ROA
- 2.7%
- ROIC (approx.)
- 15.5%
- Gross margin
- 11.3%
- Operating margin
- 4.0%
- Net margin
- 2.3%
- Free cash flow
- 732.9M USD
- FCF yield
- 6.2%
- Cash conversion
- 50%
Solvency
- Total debt
- 2.2B USD
- Net debt
- 1.9B USD
- Cash
- 244.6M USD
- EBITDA
- 1.5B USD
- Net debt / EBITDA
- 1.31
- Debt / equity
- 30.66
- Current ratio
- 1.22
- Quick ratio
- 0.98
Growth
- Revenue growth
- +31.8%
- Earnings growth
- +46.5%
- EPS (TTM)
- 15.64 USD
- EPS (forward)
- 23.93 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 1.17
- Analyst consensus
- none (4)
- Target price
- 235.00 USD
- 52-week range
- 101.79 – 249.43
Recent news
All ARW news →Compare it with its sector
All 283 in Technology →Frequently asked questions about Arrow Electronics
Is Arrow Electronics stock cheap or expensive?
On P/E and EV / EBITDA, it trades 53% below the Technology median on average. Valuation score: 8.2 out of 10 (median for Technology: 5.3). Average analyst target: 235.00 USD, +1.3% versus the price. This is not investment advice.
What score does Arrow Electronics get on MeridIAn Screener?
It scores 6.8 out of 10, rank 305 of 2,130 (better than 83% of the companies analysed). Its strongest category is Momentum (9.8) and its weakest, Dividend (1.5). Analysis of 08/10/2026.
What is Arrow Electronics's P/E ratio?
Its P/E is 14.8: the share price equals 14.8 times earnings per share over the last 12 months. The Technology median is 31.3. Based on the earnings analysts expect, the forward P/E is 9.7.
How much is Arrow Electronics worth on the stock market?
Its market capitalisation is 11.8B USD and its enterprise value, debt included, is 13.8B USD.
How much debt does Arrow Electronics have?
Its net debt (debt minus cash) is 1.9B USD. That is 1.31 times its EBITDA; the Technology median is 0.20.
Does Arrow Electronics pay a dividend?
It pays no dividend, or almost none.
How has Arrow Electronics stock performed over the last year?
It has risen 104.4% over the last year, excluding dividends. Over the last 52 weeks it has traded between 101.79 and 249.43 USD. Past performance does not guarantee future results.
What do analysts think of Arrow Electronics?
4 analysts cover it; their average recommendation is “none” and their average target is 235.00 USD (+1.3% versus the price). It is an estimate, not market data.