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Fundamental analysis: Arrow Electronics, Inc. (ARW)

Awarener score: 7.5

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 4.0

• Business has been shrinking at a fast pace. It's been last-in-rank when measured against peer companies.
• Arrow Electronics, Inc. business trend stability is run-of-the-mill. The higher the stability, the lower the risk. It looks slightly better than rivals.

Margins score: 4.7

• ARW profit margins -on goods and services sold- are usually extremely poor. They stand somewhat worse than rival companies.
• Business profit on sales tends to be hardly sufficient. It's encouraging in relation to competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually meagre. They remain a slight improvement compared to peers.
• Earnings -before income taxes and interests on loans taken- tend to be hardly sufficient in relation to total revenues. They're still somewhat better than similar companies.
• Profits -before income taxes- are usually sufficient considering total sales, and remain encouraging in relation to rivals.
• Total net profit tends to be sufficient when confronted to sales. Company stands encouraging in relation to comparable firms.

Growth score: 5.1

• Arrow Electronics, Inc. profit growth -on goods and services sold- has been almost stagnant. It's been in a weak position compared to competitors.
• In recent years, earnings -on operations- have been growing at an extremely fast step, which has been well ranked against comparable firms.
• Profits -available to repay debt and purchase properties- have been growing at an extremely fast pace, which compares great when measured against peer enterprises.
• Earnings -before income taxes and interests on loans taken- have been growing at an extremely fast tempo. It turns to be in good shape compared to similar stocks.
• In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
• In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
• The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 4.0

• ARW had to pay substantial income taxes in relation to profits made in the past years. It's been slightly worse than peers.
• The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
• We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 8.0

• Arrow Electronics, Inc. usually gets very good returns on the resources it controls. It proves almost average when measured against peer firms.
• The company normally gets excellent proceeds -on the resources directly invested in the business-. They remain rather normal in relation to similar companies.
• There's usually abundant profitability -in relation to owned resources-. It ranks more than average in relation to competitors.
• In the past, got good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's similar to comparable enterprises.

Usage of Funds score: 6.2

• ARW usually uses a modest portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments isn't too high. It stands similar to rival firms.
• The company is usually replacing some proportion of the property, plant, and equipment that gets old, saving part of the funds for something else, which is more than average in relation to industry peers.
• In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
• The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
• As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
• The company usually significantly reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains impressive in relation to peer enterprises.
• Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands excellent in relation to rivals.
• The company uses a significant portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn sour. It still looks weak when measured against competitors.

Balance Sheet score: 5.4

• Arrow Electronics, Inc. intangible assets (like brands and goodwill) represent some portion of resources controlled, according to accounting books. There could be some difficulties in liquidating them if the company ever gets in financial distress. It happens to be below average when measured against peer companies.
• The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be lacking compared to similar firms.
• Roughly a tenth of resources controlled were provided for with financial debt. Creditors have minor claims on the company, and financial position is safe. It remains somewhat worse than rival firms.
• Resources controlled can be quickly made into cash, which is very good for liquidity and risk. It looks encouraging in relation to rivals.
• For every dollar of short-term obligations, the company has roughly another of cash and short-term receivables. It's close to average when compared to peer firms.
• For every dollar of short-term obligations, the company has extremely few cents of cash and equivalents, which is bottom tier against similar enterprises.
• Usually, sales are on somewhat more than three months credit. It still ranks last-in-rank when measured against peers.
• Normally has approximately three months of sales worth in inventory. It comes up as close to average when compared to competitors.
• On average, it takes a lot of months from the purchase to charging customers. It happens to be worse than most peers.
• On average pays suppliers approximately four months or higher after the purchase. It ranks top tier when measured against industry peers.
• The company pays its suppliers roughly three months before charging its customers, so there's sufficient money invested in working capital. It's lacking compared to similar companies.
• Net interest expenses consume a minor portion of usual business earnings, and are easily bearable. It stands well ranked against rival firms.
• Business earnings have usually been good when measured against loans taken. Cutting back reinvesting in the business, it could take less than three years to repay the obligations with current profitability. It ranks similar to comparable enterprises.
• Revenues are huge in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks close to average when compared to similar firms.
• Resource exploitation is excellent when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still somewhat worse than peer companies.

Valuation score: 8.0

• Arrow Electronics, Inc. looks very cheap in relation to profits and financial position. It happens to be great when measured against competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a weak position compared to peers.
• In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands somewhat better than similar companies.
• The company usually generates much more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be very interesting. It's still more than average in relation to industry firms.
• In the past twelve months, the company has significantly rewarded investors, considering both dividends and share on the pie of earnings. It came up impressive in relation to peer ventures.
• The company is indebted, it should focus on loan repayment. It looks somewhat worse than similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation looks very cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be very attractive. It ranks great when measured against peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a low relationship. One common cause includes profitability being poor. It looks rather normal in relation to rival firms.
• The relation between the stock price and accounting book value might be reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains slightly worse than peer firms.
• In the past twelve months, the operating business earned great money when compared to the current stock price and financial position. It happens to be great when measured against industry peers.
• In an alternate metric of bang for the buck, the company has usually shown an excellent earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be undervalued. It's still in good shape compared to peer companies.

Total score: 5.7

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Awarener score: 7.5

Conclusion

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