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Arrow Electronics Inc - Stock Quote ARW

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Morningstar's Arrow Electronics Inc Stock Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Arrow's Basking in Current Macro Environment, but We Don't See It Lasting Long Term; $129 FVE

Analyst Note

| William Kerwin |

We maintain our $129 fair value estimate for narrow-moat Arrow Electronics after the company reported strong first-quarter results. Our long-term view is unchanged, and we view the shares as fairly valued. Arrow is benefiting from high-flying electronics demand across end markets and geographies, while limited supply is allowing it to pass on supplier pricing increases and boost profitability, but we view both dynamics as finite. While the near term is stronger than we forecast, we maintain our expectations for Arrow’s performance over the course of a cycle, which we think can lead to swings in growth and profits. Though we maintain our view of Arrow as the best operator in its peer group, we still expect it to be vulnerable to cyclical dynamics, and our expectations for its results through a full cycle are unchanged.

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Arrow Electronics Inc's Company Profile

Business Description

Arrow Electronics is a global distributor of electronics, connecting suppliers of semiconductors, components, and IT solutions to more than 180,000 small and midsize customers in 85 countries. Arrow is the second- largest semiconductor distributor in the world, and the largest for North American chip distribution, partnering with a third of global chipmakers.

Contact
9201 East Dry Creek Road
Centennial, CO, 80112
T +1 303 824-4000
Sector Technology
Industry Electronics & Computer Distribution
Most Recent Earnings Mar 31, 2022
Fiscal Year End Dec 31, 2022
Stock Type Cyclical
Employees 20,700