A Business at a Glance
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ARROW ELECTRONICS, INC.
ARW
$11.1B
Mkt Cap
$212.27
-1.32%
ARROW ELECTRONICS, INC. (ARW) has a current P/E ratio of 19.4, compared to its historical median P/E of 10.4. The stock is currently considered Expensive based on its historical valuation range.
ARROW ELECTRONICS, INC. (ARW) has a 5-year average return on invested capital (ROIC) of 12.3%. This indicates solid capital allocation.
ARROW ELECTRONICS, INC. (ARW) has a market capitalization of $11.9B. It is classified as a large-cap stock.
ARROW ELECTRONICS, INC. (ARW) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 1.14%.
Based on historical P/E analysis, ARROW ELECTRONICS, INC. (ARW) appears expensive. The current P/E of 19.4 is 87% above its historical median of 10.4. The estimated fair value CAGR (P/E method) is 21.6%.
ARROW ELECTRONICS, INC. (ARW) operates in the Wholesale-Electronic Parts & Equipment, Nec industry, within the Consumer Cyclical sector.
ARROW ELECTRONICS, INC. (ARW) reported annual revenue of $30.9 billion in its most recent fiscal year, based on SEC EDGAR filings.
Arrow Electronics is a global technology distributor and solutions provider that sources and engineers technology for thousands of manufacturers, service providers, and commercial customers across industrial, automotive, computing, and communications sectors. The company operates two reportable segments: Global Components, which distributes electronic components (semiconductors, IP&E products, computing and memory) to OEMs and EMS providers through a network of over 140 sales facilities and 39 distribution centers across 85 countries, and Global ECS, which provides enterprise computing solutions including datacenter, cloud, security, and analytics offerings to VARs and MSPs. Arrow's business model combines product distribution with high-margin value-added services including supply chain management (procurement, logistics, warehousing, financial management, and data analytics), engineering and design services (software development, product design, integrated circuit design), and integration services spanning prototyping through volume production. The company differentiates through its ability to aggregate disparate sources of components and infrastructure software, engineer complete solutions on behalf of suppliers, and provide customers with access to multiple technologies from a single source with flexible delivery options. Arrow's customer base is diverse and geographically distributed across the Americas, EMEA, and Asia/Pacific regions, with approximately 70% of 2025 sales from Global Components and 30% from Global ECS.
【Gradual cyclical recovery underway】 Management expects a measured recovery in 2026 with continued momentum in backlog and lead time extension across both segments, supported by broad-based demand recovery in mass market customers and strength in industrial, aerospace, defense, and transportation verticals. The company anticipates meaningful operating leverage from its cost structure improvements and disciplined capital allocation, while continuing to shift toward higher-margin value-added offerings including supply chain services, engineering services, and integration services that are expected to drive margin accretion over time. Global ECS is positioned for continued growth driven by ongoing AI data center build-out and multi-year recurring revenue contracts, with backlog at all-time highs and over 75% year-over-year growth. Arrow remains focused on deploying capital to achieve the highest long-term risk-adjusted returns while preserving an investment-grade credit profile and maintaining flexibility to invest through market cycles.
| Metric | Target | Period |
|---|---|---|
| Sales | $7.95 billion–$8.55 billion | Q1 FY2026 |
| Global Components sales | $5.75 billion–$6.15 billion | Q1 FY2026 |
| Global ECS sales | $2.2 billion–$2.4 billion | Q1 FY2026 |
| Non-GAAP diluted EPS | $2.70–$2.90 | Q1 FY2026 |
Sales (Q1 FY2026): “We expect sales for the first quarter to be between $7.95 billion-$8.55 billion, representing an increase of 21% year-over-year at the midpoint of the range.”
Global Components sales (Q1 FY2026): “We expect Global Components sales to be between $5.75 billion-$6.15 billion, representing sequential growth of 1% at the midpoint.”
Global ECS sales (Q1 FY2026): “In Enterprise Computing Solutions, we expect sales to be between $2.2 billion-$2.4 billion, which is up approximately 13% at the midpoint year-over-year.”
Non-GAAP diluted EPS (Q1 FY2026): “Our non-GAAP diluted earnings per share is expected to be between $2.70 and $2.90.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 33.5B | 30.9B | 27.9B | 33.1B | 37.1B | 34.5B |
| Net Income | 727M | 571M | 392M | 904M | 1.4B | 1.1B |
| EPS | $13.00 | $10.93 | $7.29 | $15.84 | $21.80 | $15.10 |
| Free Cash Flow | 304M | -37M | 1.0B | 622M | -112M | 336M |
| ROIC | 9.0% | 7.2% | 6.8% | 12.3% | 18.7% | 16.4% |
| Gross Margin | 11.3% | 11.2% | 11.8% | 12.5% | 13.0% | 12.2% |
| Debt/Equity | 0.37 | 0.47 | 0.54 | 0.66 | 0.69 | 0.50 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 1.0B | 822M | 769M | 1.5B | 2.1B | 1.6B |
| Operating Margin | 3.1% | 2.7% | 2.8% | 4.4% | 5.6% | 4.5% |
| ROE | 10.8% | 9.3% | 6.8% | 15.9% | 26.4% | 21.4% |
| Shares Outstanding | 56M | 52M | 54M | 57M | 65M | 73M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 22.8B | 23.3B | 23.5B | 26.6B | 29.7B | 28.9B | 28.7B | 34.5B | 37.1B | 33.1B | 27.9B | 30.9B | 33.5B |
| Gross Margin | 13.2% | 13.0% | 13.4% | 12.6% | 12.5% | 11.4% | 11.1% | 12.2% | 13.0% | 12.5% | 11.8% | 11.2% | 11.3% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 2.0B | 2.0B | 2.0B | 2.2B | 2.3B | 2.2B | 2.1B | 2.4B | 2.6B | 2.4B | 2.2B | 2.4B | 2.5B |
| EBIT | 762M | 824M | 877M | 946M | 1.1B | 108M | 895M | 1.6B | 2.1B | 1.5B | 769M | 822M | 1.0B |
| Op. Margin | 3.3% | 3.5% | 3.7% | 3.6% | 3.9% | 0.4% | 3.1% | 4.5% | 5.6% | 4.4% | 2.8% | 2.7% | 3.1% |
| Net Income | 498M | 498M | 523M | 402M | 716M | -204M | 584M | 1.1B | 1.4B | 904M | 392M | 571M | 727M |
| Net Margin | 2.2% | 2.1% | 2.2% | 1.5% | 2.4% | -0.7% | 2.0% | 3.2% | 3.8% | 2.7% | 1.4% | 1.9% | 2.2% |
| Non-Recurring | 118M | 69M | 61M | 62M | 57M | 767M | 28M | 21M | 8.2M | 8.9M | 143M | 116M | 135M |
| Returns on Capital | |||||||||||||
| ROIC | 7.7% | 8.2% | 8.1% | 8.0% | 10.6% | 1.4% | 9.2% | 16.4% | 18.7% | 12.3% | 6.8% | 7.2% | 9.0% |
| ROE | 12.0% | 12.0% | 12.2% | 8.6% | 13.9% | -4.0% | 11.8% | 21.4% | 26.4% | 15.9% | 6.8% | 9.3% | 10.8% |
| ROA | 4.1% | 3.9% | 3.8% | 2.6% | 4.2% | -1.2% | 3.5% | 6.1% | 6.9% | 4.2% | 1.8% | 2.2% | 2.0% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 673M | 660M | 360M | 125M | 273M | 858M | 1.4B | 419M | -33M | 705M | 1.1B | 64M | 412M |
| Free Cash Flow | 551M | 505M | 195M | -79M | 137M | 715M | 1.2B | 336M | -112M | 622M | 1.0B | -37M | 304M |
| Owner Earnings | 475M | 457M | 161M | -68M | 40M | 627M | 1.1B | 188M | -263M | 483M | 933M | -102M | 255M |
| CapEx | 123M | 155M | 165M | 204M | 135M | 143M | 124M | 83M | 79M | 83M | 93M | 101M | 108M |
| Maint. CapEx | 156M | 156M | 159M | 154M | 186M | 190M | 189M | 195M | 187M | 181M | 163M | 138M | 138M |
| Growth CapEx | 0 | 0 | 5.5M | 50M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 156M | 156M | 159M | 154M | 186M | 190M | 189M | 195M | 187M | 181M | 163M | 138M | 138M |
| CapEx/OCF | 18.2% | 23.6% | 45.8% | 163.7% | 49.6% | 16.7% | 9.1% | 19.8% | N/A | 11.8% | 8.2% | 158.1% | 26.3% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 305M | 356M | 216M | 174M | 243M | 404M | 484M | 912M | 1.0B | 770M | 265M | 162M | 136M |
| Buyback Yield | 5.2% | 6.7% | 3.3% | 2.4% | 4.0% | 5.7% | 6.3% | 9.2% | 15.8% | 10.9% | 4.3% | 2.7% | 1.1% |
| Stock-Based Comp | 42M | 47M | 40M | 39M | 46M | 41M | 35M | 36M | 43M | 42M | 35M | 28M | 19M |
| Debt Repayment | 13M | 47M | 49M | 41M | 307M | 405M | 411M | 687K | 1.2B | 1.0B | 470M | 303M | 303M |
| Balance Sheet | |||||||||||||
| Net Debt | 1.7B | 2.1B | 2.3B | 2.5B | 3.2B | 2.6B | 1.9B | 2.4B | 3.6B | 3.6B | 2.9B | 2.8B | 2.2B |
| Cash & Equiv. | 400M | 273M | 534M | 730M | 509M | 300M | 374M | 222M | 177M | 218M | 189M | 306M | 287M |
| Long-Term Debt | 2.1B | 2.4B | 2.7B | 2.9B | 3.2B | 2.6B | 2.1B | 2.2B | 3.2B | 2.2B | 2.8B | 3.1B | 2.4B |
| Debt/Equity | 0.50 | 0.57 | 0.64 | 0.66 | 0.69 | 0.59 | 0.44 | 0.50 | 0.69 | 0.66 | 0.54 | 0.47 | 0.37 |
| Interest Coverage | 6.6 | 6.1 | 5.8 | 5.7 | 5.3 | 0.5 | 6.5 | 11.8 | 11.1 | 4.5 | 2.8 | 3.8 | 3.8 |
| Equity | 4.2B | 4.1B | 4.4B | 4.9B | 5.3B | 4.8B | 5.1B | 5.3B | 5.5B | 5.8B | 5.8B | 6.6B | 6.7B |
| Total Assets | 12.4B | 13.0B | 14.2B | 16.5B | 17.8B | 16.4B | 17.1B | 19.5B | 21.8B | 21.7B | 21.8B | 29.1B | 36.0B |
| Total Liabilities | 8.3B | 8.8B | 9.7B | 11.5B | 12.4B | 11.5B | 11.9B | 14.2B | 16.2B | 15.8B | 15.9B | 22.4B | 6.9M |
| Intangibles | 336M | 389M | 337M | 286M | 373M | 272M | 234M | 195M | 159M | 127M | 97M | 77M | 72M |
| Retained Earnings | 4.2B | 4.7B | 5.2B | 5.6B | 6.3B | 6.1B | 6.7B | 7.8B | 9.2B | 5.8B | 6.0B | 6.6B | 6.8B |
| Working Capital | 3.2B | 3.1B | 3.6B | 4.5B | 4.8B | 4.3B | 4.0B | 4.6B | 6.0B | 5.1B | 5.8B | 6.8B | 6.3B |
| Current Assets | 9.0B | 9.2B | 10.3B | 12.4B | 13.6B | 12.5B | 13.2B | 15.9B | 18.3B | 18.3B | 18.4B | 25.7B | 32.6B |
| Current Liabilities | 5.8B | 6.1B | 6.7B | 8.0B | 8.8B | 8.3B | 9.1B | 11.3B | 12.4B | 13.2B | 12.6B | 18.8B | 26.3B |
| Per Share Data | |||||||||||||
| EPS | 4.98 | 5.20 | 5.68 | 4.48 | 8.10 | -2.44 | 7.43 | 15.10 | 21.80 | 15.84 | 7.29 | 10.93 | 13.00 |
| Owner EPS | 4.75 | 4.77 | 1.75 | -0.76 | 0.45 | 7.50 | 14.44 | 2.56 | -4.02 | 8.46 | 17.34 | -1.94 | 4.56 |
| Book Value | 41.54 | 43.28 | 47.95 | 55.13 | 60.22 | 57.53 | 64.70 | 71.98 | 84.74 | 101.78 | 107.12 | 125.98 | 120.37 |
| Cash Flow/Share | 6.73 | 6.90 | 3.91 | 1.39 | 3.08 | 10.26 | 17.29 | 5.71 | -0.51 | 12.37 | 21.02 | 1.23 | 15.44 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 100.0M | 95.7M | 92.0M | 89.8M | 88.4M | 83.6M | 78.7M | 73.4M | 65.5M | 57.0M | 53.8M | 52.3M | 56.0M |
| Valuation | |||||||||||||
| P/E Ratio | 11.8 | 10.7 | 12.7 | 18.0 | 8.4 | N/A | 13.1 | 9.0 | 4.7 | 7.8 | 15.6 | 10.4 | 16.3 |
| P/FCF | 10.7 | 10.5 | 34.0 | N/A | 43.9 | 9.9 | 6.2 | 29.5 | N/A | 11.3 | 5.9 | N/A | 39.1 |
| EV/EBIT | 9.4 | 8.8 | 9.8 | 10.0 | 7.6 | 90.7 | 10.4 | 8.0 | 5.2 | 8.2 | 12.0 | 10.2 | 13.7 |
| Price/Book | 1.4 | 1.3 | 1.5 | 1.5 | 1.1 | 1.5 | 1.5 | 1.9 | 1.2 | 1.2 | 1.1 | 0.9 | 1.8 |
| Price/Sales | 0.3 | 0.2 | 0.2 | 0.3 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.4 |
| FCF Yield | 9.4% | 9.5% | 2.9% | -1.1% | 2.3% | 10.1% | 16.1% | 3.4% | -1.7% | 8.8% | 16.9% | -0.6% | 2.6% |
| Market Cap | 5.9B | 5.3B | 6.6B | 7.2B | 6.0B | 7.1B | 7.7B | 9.9B | 6.6B | 7.0B | 6.1B | 5.9B | 11.9B |
| Avg. Price | 57.14 | 58.21 | 62.34 | 76.76 | 76.31 | 75.03 | 74.02 | 114.44 | 113.92 | 123.71 | 123.91 | 116.25 | 212.27 |
| Year-End Price | 58.79 | 55.44 | 72.00 | 80.50 | 68.24 | 84.52 | 97.51 | 135.20 | 101.56 | 123.41 | 113.97 | 113.39 | 212.27 |
ARROW ELECTRONICS, INC. passes 4 of 9 quality checks, suggesting mixed fundamentals.
ARROW ELECTRONICS, INC. trades at 19.4x trailing earnings, compared to its 15-year median P/E of 10.4x, suggesting it is currently Expensive relative to its historical range. The company's 5-year average ROIC is 12.3% with a gross margin of 12.2%. Total shareholder yield (buybacks) is 1.1%. At current prices, the estimated annualized return to fair value is +8.0%.
ARROW ELECTRONICS, INC. (ARW) has a net profit margin of 1.9%. This is a modest margin.
ARROW ELECTRONICS, INC. (ARW) generated $-37 million in free cash flow in its most recent fiscal year. Negative free cash flow may indicate heavy investment or operational challenges.
ARROW ELECTRONICS, INC. (ARW) has a debt-to-equity ratio of 0.47. This indicates a conservatively financed balance sheet.
ARROW ELECTRONICS, INC. (ARW) reported earnings per share (EPS) of $10.93 in its most recent fiscal year.
ARROW ELECTRONICS, INC. (ARW) has a return on equity (ROE) of 9.3%. This indicates moderate shareholder returns.
ARROW ELECTRONICS, INC. (ARW) has a 5-year average gross margin of 12.2%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 16 years of financial data for ARROW ELECTRONICS, INC. (ARW), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
ARROW ELECTRONICS, INC. (ARW) has a book value per share of $125.98, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects a measured recovery in 2026 with continued momentum in backlog and lead time extension across both segments, supported by broad-based demand recovery in mass market customers and strength in industrial, aerospace, defense, and transportation verticals. The company anticipates meaningful operating leverage from its cost structure improvements and disciplined capital allocation, while continuing to shift toward higher-margin value-added offerings including supply chain services, engineering services, and integration services that are expected to drive margin accretion over time. Global ECS is positioned for continued growth driven by ongoing AI data center build-out and multi-year recurring revenue contracts, with backlog at all-time highs and over 75% year-over-year growth. Arrow remains focused on deploying capital to achieve the highest long-term risk-adjusted returns while preserving an investment-grade credit profile and maintaining flexibility to invest through market cycles.
Based on recent SEC filings and earnings calls, ARROW ELECTRONICS, INC. (ARW) has provided the following forward guidance: Sales: $7.95 billion–$8.55 billion (Q1 FY2026); Global Components sales: $5.75 billion–$6.15 billion (Q1 FY2026); Global ECS sales: $2.2 billion–$2.4 billion (Q1 FY2026); Non-GAAP diluted EPS: $2.70–$2.90 (Q1 FY2026).