Is ARW a high-quality business?

AlphaMadera's AlphaQuality grade scores Arrow Electronics, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how ARW compares to a Buffett-style quality bar.

What is Arrow Electronics, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to ARW based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes ARW a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

ARW - Arrow Electronics, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $208.33 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

C- 50.3 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

C 56.7

5yr Avg ROIC 11.5% 68/100
Operating Margin Trend -0.58 pp/yr 31/100

Capital Efficiency

Weight: 15%

A- 83.5

5yr Avg ROE 13.4% 75/100
5yr Share-Count CAGR -8.1% 100/100

Growth Quality

Weight: 15%

F 20.1

5yr Revenue CAGR -2.7% 15/100
5yr EPS CAGR -7.8% 4/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 15%

C- 47.4

5yr FCF Margin 1.2% 31/100
5yr FCF/NI Conversion 0.70x 67/100

Balance Sheet

Weight: 20%

C 52.0

Net Debt / EBITDA 2.59x 58/100
Interest Coverage (EBIT/Int) 4.34x 58/100
Altman Z-Score 1.74 33/100

Stability

Weight: 15%

D+ 39.8

EPS Volatility (σ/μ) 0.56 25/100
Piotroski F-Score 4 44/100
Negative-Revenue Years (5) 2/5 60/100

2 of 4 gurus held; 1 added; 1 trimmed; 2 full exits.

Holders: 2 -2
Avg Δ position: +9.8%
New buys: 0
Full exits: 2

Dalio sold -100%
Laffont sold -100%
Greenblatt increased +61%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.