ScoreWhy is Arrow Electronics, Inc. ?
1
High Management Efficiency with a high ROCE of 16.64%
2
Company has a low Debt to Equity ratio (avg) at times
3
The company has declared Negative results for the last 11 consecutive quarters
- NET PROFIT(9M) At USD 329.56 MM has Grown at -30.65%
- RAW MATERIAL COST(Y) Grown by 8.9% (YoY)
- DEBTORS TURNOVER RATIO(HY) Lowest at 2.18 times
4
With ROCE of 10.01%, it has a very expensive valuation with a 1.84 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -6.39%, its profits have fallen by -40.7%
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -6.39% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Arrow Electronics, Inc. should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Arrow Electronics, Inc. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Arrow Electronics, Inc.
88.44%
-0.44
30.49%
S&P 500
25.41%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
1.48%
EBIT Growth (5y)
0.66%
EBIT to Interest (avg)
6.58
Debt to EBITDA (avg)
1.90
Net Debt to Equity (avg)
0.44
Sales to Capital Employed (avg)
3.24
Tax Ratio
19.93%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
16.64%
ROE (avg)
16.90%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
Price to Book Value
2.26
EV to EBIT
18.88
EV to EBITDA
16.47
EV to Capital Employed
1.88
EV to Sales
0.57
PEG Ratio
1.78
Dividend Yield
NA
ROCE (Latest)
9.94%
ROE (Latest)
8.65%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Bullish
Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend33What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 614
NET SALES(Q)
Highest at USD 9,473.55 MM
PRE-TAX PROFIT(Q)
Highest at USD 348.46 MM
NET PROFIT(Q)
Highest at USD 266.76 MM
RAW MATERIAL COST(Y)
Fallen by -3.05% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 32.33 %
INVENTORY TURNOVER RATIO(HY)
Highest at 5.68 times
OPERATING PROFIT(Q)
Highest at USD 434.32 MM
OPERATING PROFIT MARGIN(Q)
Highest at 4.58 %
EPS(Q)
Highest at USD 4.55
-7What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 412.12 MM
DEBTORS TURNOVER RATIO(HY)
Lowest at 1.75 times
INTEREST(Q)
Highest at USD 70.74 MM
Here's what is working for Arrow Electronics, Inc.
Interest Coverage Ratio
Highest at 614 and Grown
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales
Highest at USD 9,473.55 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Pre-Tax Profit
Highest at USD 348.46 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 348.46 MM has Grown at 94%
over average net sales of the previous four periods of USD 179.62 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 266.76 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Net Profit
At USD 266.76 MM has Grown at 86.82%
over average net sales of the previous four periods of USD 142.79 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Net Sales
At USD 9,473.55 MM has Grown at 22.82%
over average net sales of the previous four periods of USD 7,713.23 MMMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 434.32 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 4.58 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
EPS
Highest at USD 4.55
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Lowest at 32.33 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 5.68 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -3.05% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 36.05 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Arrow Electronics, Inc.
Interest
At USD 70.74 MM has Grown at 11.56%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debtors Turnover Ratio
Lowest at 1.75 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Operating Cash Flow
Lowest at USD 412.12 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Interest
Highest at USD 70.74 MM
in the last five periods and Increased by 11.56% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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