Arrow Electronics, Inc. [NYSE:ARW]: Analyst Rating and Earnings
Expert stock traders often make certain they pay attention what leading Wall Street analysts think regarding a potential stock purchase. As it relates to Arrow Electronics, Inc. [ARW] currently, the latest ratings from Wall St. experts that can be seen publicly is related to the fiscal quarter that’s scheduled to end in December. On average, stock market experts give ARW an Outperform rating. Its stock price has been found in the range of 22.87 to 29.33. This is compared to its latest closing price of $81.36.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Arrow Electronics, Inc. [ARW] is sitting at 2.00. This is compared to 1 month ago, when its average rating was 1.78.
For the quarter ending in Dec-18 Arrow Electronics, Inc. [ARW] generated $7.92 billion in sales. That’s 0.31% lower than the average estimate of $7.94 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Pay attention to the next-scheduled financial results for this company to be released, which is slated for Thu 2 May (In 76 Days).
Fundamental Analysis of Arrow Electronics, Inc. [ARW]
Now let’s turn to look at profitability: with a current Operating Margin for Arrow Electronics, Inc. [ARW] sitting at +4.06 and its Gross Margin at +11.82, this company’s Net Margin is now 2.40%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 14.05, and its Return on Invested Capital has reached 10.60%. Its Return on Equity is 13.94, and its Return on Assets is 4.18. These metrics suggest that this Arrow Electronics, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Arrow Electronics, Inc. [ARW] has generated a Total Debt to Total Equity ratio of 65.45. Similarly, its Total Debt to Total Capital is 39.56, while its Total Debt to Total Assets stands at 19.60. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 60.83, and its Long-Term Debt to Total Capital is 36.76. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 6.98 and its Total Debt to EBITDA Value is 2.51. The Enterprise Value to Sales for this firm is now 0.33, and its Total Debt to Enterprise Value stands at 0.38. Arrow Electronics, Inc. [ARW] has a Price to Book Ratio of 1.10, a Price to Cash Flow Ratio of 22.36 and P/E Ratio of 9.97. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Arrow Electronics, Inc. [ARW] earns $1,476,456 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 3.47 and its Total Asset Turnover is 1.73. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.11 and its Current Ratio is 1.55. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Arrow Electronics, Inc. [ARW] has 86.59M shares outstanding, amounting to a total market cap of $7.00B. Its stock price has been found in the range of 62.69 to 83.71. At its current price, it has moved by -3.43% from its 52-week high, and it has moved 28.95% from its 52-week low.
This stock’s Beta value is currently 1.12, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 72.28. This RSI suggests that Arrow Electronics, Inc. is currently Overbought.
Conclusion: Is Arrow Electronics, Inc. [ARW] a Reliable Buy?
Arrow Electronics, Inc. [ARW] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.