Morningstar Rating

Stock Research and Analysis

by Peter Wahlstrom, CFA

Bulls Say

Asia continues to provide fertile markets for growth. Recent acquisitions have increased Arrow's exposure in the region, and the region is representing a much larger percentage of the company's revenues.
Arrow is well diversified and its success does not hinge on a small number of customers. No customer accounts for more than 3% of sales.
Network management and virtualization should continue to provide opportunities for growth. Read more 

Bears Say

Avnet continues to expand into the same markets as Arrow. Increasing competition could weigh on profitability, particularly if players do not remain rational.
Margins will be under constant pressure in negotiations with the firm's numerous powerful suppliers and customers.
Arrow often enters new markets through acquisitions. Integrating acquisitions can be a costly and time-consuming effort, and may not yield expected revenue or cost synergies. Read more 

Management

Overall we believe Arrow’s stewardship of shareholder capital is standard. Chairman and CEO Michael Long took control of Arrow in May 2009 and has been with the company since 1991. CFO Paul Reilly has been with the firm since 1991 and was promoted to   Read more 

Profile

Arrow is a global IT distributor of semiconductors, storage devices, software, computer products, electrical switches, resistors, and connectors. The company distributes   Read more 

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