Morningstar Rating

Stock Research and Analysis

by Simran Kaur

Bulls Say

Diverse product and end-market exposure results in lower exposure to economic and technology cycles.
About 60% of shipments today require some degree of services along with delivery. This increases the engineering content in its revenue stream and leads to high margins.
The distribution model generates very strong cash flow throughout the industry cycle, even when volumes slip. Read more 

Bears Say

Broadline distributors are aggressively expanding into value-added services, resulting in increased competition for Arrow.
Arrow’s computing solutions business is not present in Asia. The firm may be late to the game if Asia’s technology market develops more quickly than expected.
The ITAD business is a strain on margins, and Arrow can alternatively invest in another profitable venture. 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 distributor of electronic components and enterprise computing solutions. The firm uses a network of 38 distribution centers in about 60 countries to cater   Read more 

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