ARW
TechnologyArrow Electronics, Inc. · Technology Distributors · $11B
What is Arrow Electronics, Inc.?
Arrow Electronics is a global distributor of electronic components and enterprise computing solutions, serving industrial and commercial customers across more than 80 countries. Founded in 1935 and headquartered in Centennial, Colorado, it operates at the intersection of hardware supply chains and technology services.
Arrow operates through two segments. The Global Components segment distributes semiconductors, passive components, connectors, and memory products to manufacturers and contract assemblers. The Global Enterprise Computing Solutions segment provides datacenter, cloud, security, and analytics solutions alongside engineering support, logistics, and authorized training. Revenue is generated primarily through product distribution margins and value-added services, making Arrow a critical link between component makers and the companies that build finished technology products.
Arrow Electronics was founded in 1935 and is headquartered in Centennial, Colorado.
- Semiconductor and passive component distribution
- Enterprise datacenter and cloud solutions
- Warehousing, logistics, and supply chain services
- Engineering integration and technical support
- Authorized hardware and software training
Is ARW a Good Stock to Buy?
UQS Score rates ARW as Below Average overall, reflecting meaningful weaknesses across several key dimensions.
The most constructive signal in Arrow's profile comes from the Valuation pillar, which is rated Attractive — suggesting the market may already be pricing in many of the company's challenges. The Growth pillar sits at Neutral, indicating the business is not in decline but lacks a clear acceleration catalyst.
Quality, Moat, and Risk are all rated Weak, pointing to thin competitive differentiation, limited pricing power typical of distribution businesses, and a balance sheet profile that warrants caution.
See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does ARW pay dividends?
No — Arrow Electronics, Inc. does not currently pay a dividend.
Arrow Electronics does not currently pay a dividend. As a distributor operating on relatively thin margins, the company has historically prioritized capital deployment toward acquisitions, share repurchases, and working capital management rather than shareholder income distributions. Investors seeking yield will need to look elsewhere in the technology distribution sector.
When does ARW report earnings?
Arrow Electronics reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.
Results have reflected the cyclical nature of electronic component demand, with volumes sensitive to inventory corrections across the semiconductor supply chain. Revenue trends have been mixed as the broader components distribution market works through post-pandemic normalization.
For the most recent quarter's results and guidance, visit Arrow Electronics' investor relations page directly.
ARW Price History
+47.9% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Arrow Electronics, Inc.?
Based on Arrow Electronics, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
ARW Long-term Outlook
Arrow's fundamental outlook is shaped by its Neutral Growth profile and Weak Risk rating. The distribution model ties performance closely to semiconductor demand cycles, which remain uneven. The Attractive Valuation label suggests limited downside may already be reflected in the share price, but a re-rating would likely require improvement in Quality or Moat metrics — neither of which shows near-term strength in the current UQS profile.
Growth drivers
- Recovery in global semiconductor demand and component restocking cycles
- Expansion of enterprise cloud and datacenter infrastructure spending
- Cross-selling value-added services alongside core distribution
Key risks
- Persistent margin pressure inherent to the distribution business model
- Inventory glut cycles that compress volumes and pricing
- Elevated financial risk profile flagged by the Weak Risk pillar rating
ARW vs Peers
Arrow competes in a concentrated electronic components and IT distribution market alongside several large global peers.
Avnet is Arrow's closest direct rival in global semiconductor and component distribution, with a similarly broad geographic footprint and comparable segment structure.
TD SYNNEX focuses more heavily on IT products and solutions distribution, with a larger emphasis on the reseller and managed service provider channel.
Insight Enterprises leans toward IT solutions and services for mid-market and enterprise clients, competing more directly with Arrow's computing solutions segment.
Frequently Asked Questions
What does Arrow Electronics do?
Arrow Electronics distributes electronic components — including semiconductors, connectors, and passive parts — and enterprise computing solutions such as cloud, datacenter, and security products. It serves manufacturers, resellers, and contract assemblers worldwide, acting as a supply chain intermediary between component producers and end-market builders.
Does ARW pay dividends?
Arrow Electronics does not pay a dividend. The company has historically directed capital toward acquisitions, buybacks, and working capital rather than income distributions. Investors focused on dividend income should consider this when evaluating ARW against peers.
When does ARW report earnings?
Arrow Electronics follows a standard quarterly earnings cadence. Specific upcoming report dates are not covered by our data source — check Arrow's investor relations page or a financial calendar for the most current schedule.
Is ARW a good stock to buy?
ARW carries a Below Average UQS Score, driven by Weak ratings on Quality, Moat, and Risk. The Valuation pillar is rated Attractive, which may interest contrarian investors. Whether that valuation discount is warranted or represents opportunity depends on how the underlying weaknesses resolve over time.
Is ARW overvalued?
Based on the UQS Valuation pillar, ARW is rated Attractive — meaning the stock does not appear expensive relative to its fundamentals. However, an attractive price alone does not offset the Weak Quality and Moat ratings that also characterize the current profile.
How does ARW compare to its competitors?
Arrow competes directly with Avnet in global component distribution and faces competition from TD SYNNEX and Insight Enterprises in enterprise IT solutions. All operate in a low-margin distribution environment. UQS Score comparisons across these peers are available to Pro members on each ticker's page.
What is ARW's market cap bracket?
Arrow Electronics is classified as a mid-cap company. This places it in a range that typically offers more liquidity than small-caps while remaining more sensitive to sector cycles than mega-cap technology peers.
Who founded Arrow Electronics?
Arrow Electronics was founded in 1935. Detailed founding history, including original founders, is widely available through the company's official corporate history and public records.
Is ARW a long-term quality investment?
As a long-term quality indicator, ARW's UQS profile raises caution. Weak scores on Quality, Moat, and Risk suggest the business lacks the durable competitive advantages and financial resilience typically associated with high-conviction long-term holdings. The Attractive Valuation may partially compensate, but quality fundamentals matter over extended horizons.
What is the main competitive advantage of Arrow Electronics?
Arrow's scale and global logistics network provide some operational advantages, but the UQS Moat pillar rates this as Weak — indicating the company does not demonstrate strong pricing power or structural barriers to competition. Distribution businesses broadly face substitution risk as manufacturers explore direct channels.
What sector does ARW belong to?
Arrow Electronics is classified in the Technology sector, specifically within electronic components and IT distribution. It serves as infrastructure for the broader technology supply chain rather than developing proprietary technology products itself.
Is ARW a growth stock or value stock?
With a Neutral Growth pillar and an Attractive Valuation pillar, ARW sits closer to the value end of the spectrum. It does not exhibit the accelerating revenue or earnings expansion typically associated with growth stocks, but its current price reflects a discounted valuation relative to fundamentals.
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Pro Analysis
ARW — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 23, 2026 | 44.8 | 21.8 | 28.0 | 53.4 | 44.6 | 99.7 | -0.1 |
| May 16, 2026 | 44.9 | 22.1 | 28.0 | 53.4 | 44.6 | 100.0 | +0.7 |
| May 15, 2026 | 44.2 | 22.0 | 28.0 | 51.6 | 44.6 | 98.0 | -0.1 |
| May 14, 2026 | 44.3 | 22.0 | 28.0 | 51.6 | 44.6 | 98.4 | -0.3 |
| May 11, 2026 | 44.6 | 22.5 | 28.0 | 51.6 | 44.6 | 100.0 | +9.1 |
| May 9, 2026 | 35.5 | 23.4 | 28.0 | 6.5 | 42.6 | 100.0 | -6.8 |
| May 8, 2026 | 42.3 | 22.8 | 28.0 | 44.9 | 42.6 | 95.0 | +3.7 |
| May 7, 2026 | 38.6 | 14.0 | 28.0 | 44.9 | 33.1 | 94.6 | -0.2 |
| May 3, 2026 | 38.8 | 14.0 | 28.0 | 44.9 | 33.1 | 95.9 | +0.1 |
| May 2, 2026 | 38.7 | 14.0 | 28.0 | 44.9 | 33.1 | 95.1 | +0.3 |
ARW — Pillar Breakdown
Quality
— 21.8/100 (25%)Arrow Electronics, Inc. currently shows below-average quality metrics, suggesting challenges with profitability.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 53.4/100 (20%)Arrow Electronics, Inc. shows steady but unspectacular growth, typical for mature companies.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 44.6/100 (15%)Arrow Electronics, Inc. has some risk factors including moderate leverage or solvency concerns.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 98.4/100 (15%)Arrow Electronics, Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 28/100 (25%)Arrow Electronics, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for ARW.
Score Composition
Financial Data
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How is the ARW UQS Score Calculated?
The UQS (Unified Quality Score) for Arrow Electronics, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Arrow Electronics, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Arrow Electronics, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.