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Arrow ElectronicsSTU:ARW +6.70%83 Interest Coverage is 8.21 as of Mar. 2026, which is 50% above its 10-year median of 5.47. GuruFocus rates STU:ARW with a GF Score™ of 83/100 and a GF Value™ of €133.24 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,674 Hardware companies, Arrow Electronics ranks worse than 71.33% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Arrow Electronics's
Operating Income
for the
three
months ended in Mar. 2026 was €345 Mil. Arrow Electronics's Interest Expense for the
three
months ended in Mar. 2026 was €-42 Mil.
Arrow Electronics's interest coverage for the quarter that ended in Mar. 2026 was 8.21.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Arrow Electronics's Interest Coverage or its related term are showing as below:
STU:ARW'
s Interest Coverage Range Over the Past 10 Years
Min: 3.38 Med: 5.47 Max: 11.94
Current: 5.6
STU:ARW's Interest Coverage is ranked worse than 71.33% of 1674
companies
in the Hardware industry
Industry Median: 13.715
vs STU:ARW: 5.60
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Arrow Electronics Interest Coverage Related Terms
Arrow Electronics Interest Coverage Historical Data
* Premium members only.
The historical data trend for Arrow Electronics's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
STU:ARW vs AVT, NSIT, CNXN: Interest Coverage Comparison
For the Electronics & Computer Distribution subindustry, Arrow Electronics's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Arrow Electronics Interest Coverage vs Hardware Industry
For the Hardware industry and Technology sector, Arrow Electronics's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Arrow Electronics's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Arrow Electronics (STU:ARW) has a Interest Coverage of 8.21 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Arrow Electronics and its competitors. This is 50% above median its historical median of 5.47. Over the past decade, Arrow Electronics' Interest Coverage has ranged from 3.38 to 11.94. According to the industry distribution chart, Arrow Electronics ranks #1194 out of 1674 companies in the Hardware industry, placing it in the top 71.3%.
Is Arrow Electronics' Interest Coverage too high?
Arrow Electronics' current Interest Coverage of 8.21 is 50% above median its 10-year median of 5.47. Over the past 10 years, this metric has ranged from a low of 3.38 to a high of 11.94. The Hardware industry median Interest Coverage is 13.72. Arrow Electronics' value of 8.21 is 40.1% below this industry median. Based on the distribution chart, Arrow Electronics ranks #1194 out of 1674 companies in the Hardware industry, which is below the industry midpoint. Overall, Arrow Electronics has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arrow Electronics' Interest Coverage compare to AVT and NSIT?
According to the Hardware industry distribution chart, Arrow Electronics ranks #1194 out of 1674 companies for Interest Coverage. This places Arrow Electronics in the lower half of its industry. The industry median Interest Coverage is 13.72. Arrow Electronics' value of 8.21 is 40.1% below this benchmark. Historically, Arrow Electronics' own Interest Coverage has ranged from 3.38 to 11.94 over the past decade. While the company's 10-year median is 5.47 vs. the industry median of 13.72, Arrow Electronics has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Hardware company?
The median Interest Coverage among Hardware companies is 13.72, based on 1,674 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arrow Electronics's current Interest Coverage of 8.21 is 40.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Arrow Electronics and its competitors. For the Hardware industry, the median Interest Coverage is 13.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arrow Electronics's current Interest Coverage is 8.21, which is 50% above median its own 10-year median of 5.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arrow Electronics stock overvalued right now?
Based on GuruFocus' analysis, Arrow Electronics (STU:ARW) is currently considered Significantly Overvalued. The stock's GF Value™ is €133.24, compared to a current price of €191.00 — trading 43.4% above its estimated fair value. The current Interest Coverage is 8.21, which is 50% above median its 10-year median of 5.47 and 40.1% below the Hardware industry median of 13.72. Arrow Electronics' overall GF Score™ is 83/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Arrow Electronics (STU:ARW), the current Interest Coverage is 8.21 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Arrow Electronics (STU:ARW) Overvalued in 2026?
Based on GuruFocus' analysis, Arrow Electronics stock appears to be overvalued.
The current stock price of €191.00 is trading 43.4% above its estimated GF Value™ of €133.24.
GuruFocus considers Arrow Electronics to be Significantly Overvalued.
Key valuation signals for STU:ARW:
Interest Coverage: 8.21 (50% above median its 10-year median of 5.47)
GF Value™: €133.24 vs. price of €191.00 (43.4% above fair value)
Industry Position: 40.1% below the Hardware median (#1194 of 1674)
No single metric tells the full story. See the STU:ARW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arrow Electronics Inc. is a provider of products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions. It has one of the world's broadest portfolios of product offerings available from electronic components and enterprise computing solutions suppliers, coupled with a range of services, solutions, and software, the company helps industrial and commercial customers introduce products, reduce their time to market, and enhance their overall competitiveness. The company has two business segments, the global components business and the global enterprise computing solutions.
83GF Score
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