AYI

Acuity

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Industrials

industry

Electrical Equipment & Parts

Exchange

NYSE

County of HQ

United States

Next Earnings Date

06/25/26

Business Summary

Arrow Electronics operates as a global intermediary between semiconductor manufacturers, enterprise hardware vendors, and OEM customers, monetizing scale, logistics expertise, and embedded supply chain relationships. The company generates cash by purchasing components in bulk, managing inventory risk, and distributing to thousands of customers who rely on just-in-time delivery and technical support. Its moat is not intellectual property but network density: vendor certifications, procurement systems, and customer integration create switching friction. Over time, consistent cash flow is driven by working capital discipline, margin management, and the ability to finance and turn high volumes of product efficiently.

VALUATION

P/E

20.4

Market Cap ($M USD)

$8,441

Forward P/E

13

PEG

1.2

PRICE TO SALES

1.9

PRICE TO BOOK

3

EV / EBITDA

12.1

5-Year Average P/E

DIVIDEND

Yield

0.30%

Annual Payout

$0.74

Payout Ratio

5.10%

Consecutive Years of Dividend Growth

2

5-Year Dividend Growth Rate

9.00%

Financial Health & Profitability

Earnings Per Share

$13.99

Next Year EPS Growth Estimate

$21.35

Next Year Revenue Growth Estimate

5.40%

Return on Equity (ROE)

15.10%

Operating Margin

14.20%

Debt-to-Equity

0.3

Piotroski F-Score

8

Altman Z-Score

6

Return on Invested Capital (ROIC)

13.00%%

Current Ratio

2.1

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 14.5x earnings and just 10.5x forward earnings, ARW screens as a statistically cheap technology distributor with embedded growth optionality. The 0.4 forward PEG ratio implies the market is materially discounting its earnings trajectory, especially with EPS expected to rise from 10.1 to 11.03 next year. However, the Altman Z-Score of 2 places the company in a grey zone of balance sheet risk, not distress but not comfort either, and the 4.50% ROE suggests capital is not being compounded at elite rates. This is a classic low-multiple, moderate-quality operator where valuation is compensating for balance sheet leverage and cyclical exposure.

AI Exposure / Tech Reliance

As a player in Electronics & Computer Distribution, ARW sits directly in the hardware and component supply chain that underpins AI infrastructure, cloud hardware, and edge computing deployments. Distribution businesses benefit from volume expansion when AI-driven hardware demand accelerates, even if they lack proprietary IP. The firm’s ability to adapt hinges on supply chain efficiency and vendor relationships rather than breakthrough innovation.

The Bull Case

A disciplined GARP investor could justify buying ARW on pure valuation asymmetry. A forward P/E of 10.5 combined with a PEG of 0.4 implies growth is being priced at a steep discount, and EPS is projected to increase to 11.03 from 10.1. Operating margin of 8.70% in a distribution-heavy business is respectable, and an ROIC of 8.00% exceeds many capital-light intermediaries in commoditized channels. The Piotroski F-Score of 5 signals middling but stable financial health rather than deterioration, and a Price/Sales ratio of 0.3 suggests the market is applying a severe revenue discount. If execution merely remains steady and leverage is controlled, multiple expansion alone could drive equity upside.

The Bear Case

The capital structure is the glaring problem: a Debt/Equity ratio of 3.00 is aggressive for a low-margin distributor, especially with an Altman Z-Score of 2 signaling balance sheet vulnerability. ROE at just 4.50% indicates leverage is not translating into high shareholder returns, which raises concerns about capital allocation efficiency. A Current Ratio of 1.4 provides only modest liquidity cushion in a cyclical industry exposed to inventory swings. With a Piotroski F-Score of 5 and no meaningful dividend support (0.5 TTM yield, 0 five-year average), investors are being asked to underwrite leverage risk without premium profitability metrics.

Market Sentiment & Smart Money

Short Interest %

2.70%

Analyst Consensus

1.89

Average Analyst Price Target

$359.29

Institutional Ownership %

98.90%

1-Year Beta

1.33

Insider Buying % (6 Mo)

0.40%%

Distance to 52-Week High

73.20%%

Distance to 52-Week Low

123.40%%