Arrow Electronics Inc.
Find Ratings ReportsARROW ELECTRONICS INC's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its subsector. ARROW ELECTRONICS INC has weak liquidity. Currently, the Quick Ratio is 0.94 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.67% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 7849.16 | 9323.02 |
EBITDA ($mil) | 399.51 | 570.91 |
EBIT ($mil) | 356.34 | 525.31 |
Net Income ($mil) | 194.54 | 349.4 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 218.05 | 176.92 |
Total Assets ($mil) | 21726.17 | 21763.18 |
Total Debt ($mil) | 4091.85 | 4069.36 |
Equity ($mil) | 5805.46 | 5546.36 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 12.61 | 12.94 |
EBITDA Margin | 5.08 | 6.12 |
Operating Margin | 4.54 | 5.63 |
Sales Turnover | 1.52 | 1.71 |
Return on Assets | 4.15 | 6.55 |
Return on Equity | 15.56 | 25.73 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.39 | 1.48 |
Debt/Capital | 0.41 | 0.42 |
Interest Expense | 100.85 | 77.12 |
Interest Coverage | 3.53 | 6.81 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 53.81 | 59.25 |
Div / share | 0.0 | 0.0 |
EPS | 3.54 | 5.66 |
Book value / share | 107.89 | 93.61 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 558053.0 | 667620.0 |
BUY. ARROW ELECTRONICS INC's P/E ratio indicates a significant discount compared to an average of 24.06 for the Merchant Wholesalers, Durable Goods subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 1.13 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 6.83. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, ARROW ELECTRONICS INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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ARW 7.72 | Peers 24.06 | ARW 9.29 | Peers 17.73 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. ARW is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. ARW is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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ARW 7.48 | Peers 24.12 | ARW NM | Peers 3.31 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. ARW is trading at a significant discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. ARW's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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ARW 1.13 | Peers 6.83 | ARW -27.51 | Peers -19.81 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. ARW is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, ARW is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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ARW 0.20 | Peers 1.87 | ARW -10.83 | Peers -0.87 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. ARW is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. ARW significantly trails its peers on the basis of sales growth. |
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