Arrow FinancialAROW +2.09%69 Pretax Margin % is 38.75% as of Mar. 2026, which is 0% above its 10-year median of 38.66. GuruFocus rates AROW with a GF Score™ of 69/100 and a GF Value™ of $35.64 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,527 Banks companies, Arrow Financial ranks better than 57.04% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Arrow Financial Pretax Margin % Related Terms
Arrow Financial Pretax Margin % Historical Data
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The historical data trend for Arrow Financial's Pretax Margin % 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.
AROW vs CARE, BCAL, RRBI: Pretax Margin % Comparison
For the Banks - Regional subindustry, Arrow Financial's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Financial Pretax Margin % vs Banks Industry
For the Banks industry and Financial Services sector, Arrow Financial's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Arrow Financial's Pretax Margin % falls into.
* 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 Financial (AROW) has a Pretax Margin % of 38.75% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Arrow Financial and its competitors. This is near median its historical median of 38.66. Over the past decade, Arrow Financial's Pretax Margin % has ranged from 26.72 to 45.12. According to the industry distribution chart, Arrow Financial ranks #656 out of 1527 companies in the Banks industry, placing it in the top 43%.
Is Arrow Financial's Pretax Margin % too high?
Arrow Financial's current Pretax Margin % of 38.75% is near median its 10-year median of 38.66. Over the past 10 years, this metric has ranged from a low of 26.72 to a high of 45.12. The Banks industry median Pretax Margin % is 34.88. Arrow Financial's value of 38.75% is 11.1% above this industry median. Based on the distribution chart, Arrow Financial ranks #656 out of 1527 companies in the Banks industry, which is above the industry midpoint. Overall, Arrow Financial has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arrow Financial's Pretax Margin % compare to CARE and BCAL?
According to the Banks industry distribution chart, Arrow Financial ranks #656 out of 1527 companies for Pretax Margin %. This puts Arrow Financial in the upper half of its industry. The industry median Pretax Margin % is 34.88. Arrow Financial's value of 38.75% is 11.1% above this benchmark. Historically, Arrow Financial's own Pretax Margin % has ranged from 26.72 to 45.12 over the past decade. While the company's 10-year median is 38.66 vs. the industry median of 34.88, Arrow Financial has consistently been above 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 Pretax Margin % for a Banks company?
The median Pretax Margin % among Banks companies is 34.88, based on 1,527 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arrow Financial's current Pretax Margin % of 38.75% is 11.1% above 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Arrow Financial and its competitors. For the Banks industry, the median Pretax Margin % is 34.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arrow Financial's current Pretax Margin % is 38.75%, which is near median its own 10-year median of 38.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arrow Financial stock overvalued right now?
Based on GuruFocus' analysis, Arrow Financial (AROW) is currently considered Modestly Overvalued. The stock's GF Value™ is $35.64, compared to a current price of $40.96 — trading 14.9% above its estimated fair value. The current Pretax Margin % is 38.75%, which is near median its 10-year median of 38.66 and 11.1% above the Banks industry median of 34.88. Arrow Financial's overall GF Score™ is 69/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Arrow Financial (AROW), the current Pretax Margin % is 38.75% 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 Financial (AROW) Overvalued in 2026?
Based on GuruFocus' analysis, Arrow Financial stock appears to be overvalued.
The current stock price of $40.96 is trading 14.9% above its estimated GF Value™ of $35.64.
GuruFocus considers Arrow Financial to be Modestly Overvalued.
Key valuation signals for AROW:
Pretax Margin %: 38.75% (near median its 10-year median of 38.66)
GF Value™: $35.64 vs. price of $40.96 (14.9% above fair value)
Industry Position: 11.1% above the Banks median (#656 of 1527)
No single metric tells the full story. See the AROW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arrow Financial Corp is a holding company. It provides various advisory and administrative services and coordinates the general policies and operations of the banks. It provides financial products, including online and mobile banking, mortgages, commercial loans, investments, and others. The company also provides lending services, including commercial and industrial lending to small and mid-sized companies; mortgage lending for residential and commercial properties; and consumer installment and home equity financing. The key source of the company's revenue is interest income, fees, commission earned through its subsidiaries.
69GF Score
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