Fundamental analysis · SEC EDGAR · TTM through 04/07/2026

Fundamental analysis of Arrow Electronics, Inc.

ARW · NYSE · Technology

Fundamental quality

DEMANDING

54

out of 100

Arrow Electronics, Inc. earns a fundamental-quality score of 54 out of 100, profiling it as a company with demanding fundamentals. Its score rests mainly on its financial strength (net debt 1.43× EBITDA). Its weakest area is its profitability (net margin 2.3%). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Arrow Electronics is one of the world's great electronic-component distributors: the middleman supplying chips, capacitors and boards to tens of thousands of manufacturers too small to deal with producers directly. The pulse of global hardware passes through its warehouses.

What will shape its future

  • The component cycle: its sales anticipate and amplify electronics' swings.
  • Industry inventories: post-shortage digestion defines its quarters.
  • Distributor margins, thin and dependent on mix and efficiency.

Breakdown by area

I.Growth
58

EPS growth: 14.5% · Revenue growth: 4.2%

II.Profitability
42

Net margin: 2.3% · ROE: 11.6% · ROIC: 10.6%

III.Financial health
63

Net debt/EBITDA: 1.43x · FCF: 2.3%

Source: SEC EDGAR · TTM through 04/07/2026

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its profitability drags it down the most.

Versus its sector

Percentile against the other 100 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 19%
ROEbeats 33%
Growthbeats 17%
Cash generationbeats 10%
Less debtbeats 33%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Arrow Electronics, Inc. strengths

  • Growing earnings per share (14.5% annualized).

Arrow Electronics, Inc. risks and weaknesses

  • Its net debt has grown over the period.
  • Thin margins (net margin of 2.3%), little cushion for setbacks.
  • Erratic free cash flow, with several years in the red.

Arrow Electronics, Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
202028,6735841,2361,883
202134,4771,1083362,405
202237,1241,427-1123,596
202333,1079046223,589
202427,9233921,0382,935
202530,853571-372,779

Between 2020 and 2025, revenue went from $28,673M to $30,853M (+8%) and net income went from $584M to $571M (-2%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended July 4, 2026, versus the half-year ended June 28, 2025 (SEC filings):

  • Revenue+35.2%
  • Net income+89.9%

What changed with the July 4, 2026 results

Compared with the previous close (April 4, 2026), this is what moved in its accounts:

  • Quality score5054
  • FCF margin0.9%2.3%
  • Revenue growth3%4.2%
  • Net debt/EBITDA1.87×1.43×

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

This company doesn't pay a dividend: it reinvests all its earnings back into the business.

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Is Arrow Electronics, Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Arrow Electronics, Inc. a good company to invest in?

In terms of business quality, Arrow Electronics, Inc. scores 54 out of 100 in our analysis, placing it as a company with demanding fundamentals. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Arrow Electronics, Inc. a profitable company?

Arrow Electronics, Inc. is profitable, with a net margin of 2.3%, though a thin one.

Does Arrow Electronics, Inc. have a lot of debt?

Not particularly. Its net debt is 1.43 times its EBITDA, a low level.

Is Arrow Electronics, Inc. growing?

Its revenue has grown 4.2% annualized in recent years and its earnings per share 14.5%.

Does Arrow Electronics, Inc. generate cash?

Yes. It converts about 2.3% of its revenue into free cash flow.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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