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Arrow Electronics, Inc. (the company or Arrow ) sources and engineers technology for thousands of leading manufacturers, service providers, and users of enterprise computing solutions. The company has one of the world s broadest portfolios of product offerings available from leading electronic components and enterprise computing solutions suppliers.
Operating margin is thin at 2.66%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 10.5%, still solid. Free cash flow declined 104% despite revenue growth, conversion is weakening.
Free cash flow declined 104% versus the prior year, cash generation momentum has weakened. Negative free cash flow of -$37M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$33.51B
▲ +10.5% YoY
Net Income (TTM)
$727M
▲ +45.7% YoY
Op. Margin
3.06%
ROIC
8.77%
Cash Flow & Balance Sheet
FCF (TTM)
$304M
▼ -103.6% YoY
Op. Cash Flow (TTM)
$412M
▼ -94.3% YoY
Net Debt
$2.18B
Cash & Equiv.
$287M
5Y CAGR: +1.5%
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