CluenexArrow Electronics ARW
Arrow Electronics scores weak on business quality (3.8 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Arrow Electronics does
Arrow Electronics distributes electronic components and enterprise computing solutions, connecting global manufacturers with commercial customers. The company relies on its massive supply chain network to monetize hardware delivery across diverse technology markets.
- What it does best
Arrow excels at broad component distribution, posting a gross margin of 11.3% that outpaces peer Ingram Micro at 6.7%. This scale gives it deep supplier access that smaller distributors struggle to match.
- The main risk
Thin margins leave little room for error if demand slows. An operating margin of 3.8% means minor cost spikes or pricing pressure can quickly erase operating profits.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin of 3.8% and FCF margin of 2.3% reflect very thin conversion. Profitability sits in the bottom quartile of the sector, showing scaling does not yield thick margins.
The company operates in the bottom quartile for gross margins at 4%, limiting its structural pricing power. Scale prevents easy replication by newcomers, but low barriers keep competition fierce.
Revenue grew 10.5% to $35.9 billion, rebounding from prior yearly declines. This growth rate sits in the middle of the pack relative to its sector.
Total debt sits at $3.1 billion with interest coverage at 5.2x, meaning earnings barely cover interest costs. Free cash flow recovered to $825 million, though leverage remains heavy.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 sold $210K outside pre-planned sales.
Our sealed record on ARW
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Arrow Electronics scores weak on the Cluenex quality check (3.8 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: 1 sold $210K outside pre-planned sales.
Oct 29, 2026.
See ARW today
- Today's verdict on ARW, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Arrow Electronics (ARW)”, https://cluenex.com/stocks/arw/, data as of Oct 10, 2026.