- Arrow is a global leader in tech distribution, trading at under 10x earnings.
- Financial results indicate sideways performance at best with growth mostly coming from buybacks.
- Despite cheapness the stock should be avoided based on FX headwinds, weak benefits from acquisitions, and cash flows that don’t justify a long.
Arrow Electronics (NYSE:ARW) is a global leader in the distribution of electronic components and computer solutions. This Fortune 200 company is a supply chain partner for 100,000+ OEMs, has a global network of 460+ locations in 56 countries and employs 16,500 employees worldwide. Along with Avnet (NYSE:AVT), these two companies have a 60% market share.
“Global Components” (semiconductors, passive, electromechanical, connector products, etc) is around 65% of sales while the remaining 35% is under “Enterprise Computing” (IT hardware/software). For a historical breakdown of sales by segment and region please see table below.