Arrow FinancialAROW -1.85%69 Return-on-Tangible-Equity is 13.14% as of Mar. 2026, which is 4% below its 10-year median of 13.70. GuruFocus rates AROW with a GF Score™ of 69/100 and a GF Value™ of $35.85 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,523 Banks companies, Arrow Financial ranks better than 60.87% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Arrow Financial's annualized net income for the quarter that ended in Mar. 2026 was $53.9 Mil. Arrow Financial's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $410.5 Mil. Therefore, Arrow Financial's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 13.14%.
The historical rank and industry rank for Arrow Financial's Return-on-Tangible-Equity or its related term are showing as below:
AROW'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 8.12 Med: 13.7 Max: 15.4
Current: 12.95
During the past 13 years, Arrow Financial's highest Return-on-Tangible-Equity was 15.40%. The lowest was 8.12%. And the median was 13.70%.
AROW's Return-on-Tangible-Equity is ranked better than 60.87% of 1523
companies
in the Banks industry
Industry Median: 11.19
vs AROW: 12.95
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Arrow Financial Return-on-Tangible-Equity Related Terms
Arrow Financial Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Arrow Financial's Return-on-Tangible-Equity 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 TCBX, HIFS, PFIS: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Arrow Financial's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Arrow Financial's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Arrow Financial's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 13.14% mean?
Arrow Financial (AROW) has a Return-on-Tangible-Equity of 13.14% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Arrow Financial and its competitors. This is near median its historical median of 13.70. Over the past decade, Arrow Financial's Return-on-Tangible-Equity has ranged from 8.12 to 15.40. According to the industry distribution chart, Arrow Financial ranks #596 out of 1523 companies in the Banks industry, placing it in the top 39.1%.
Is Arrow Financial's Return-on-Tangible-Equity too high?
Arrow Financial's current Return-on-Tangible-Equity of 13.14% is near median its 10-year median of 13.70. Over the past 10 years, this metric has ranged from a low of 8.12 to a high of 15.40. The Banks industry median Return-on-Tangible-Equity is 11.19. Arrow Financial's value of 13.14% is 17.4% above this industry median. Based on the distribution chart, Arrow Financial ranks #596 out of 1523 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 Return-on-Tangible-Equity compare to TCBX and HIFS?
According to the Banks industry distribution chart, Arrow Financial ranks #596 out of 1523 companies for Return-on-Tangible-Equity. This puts Arrow Financial in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.19. Arrow Financial's value of 13.14% is 17.4% above this benchmark. Historically, Arrow Financial's own Return-on-Tangible-Equity has ranged from 8.12 to 15.40 over the past decade. While the company's 10-year median is 13.70 vs. the industry median of 11.19, 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 Return-on-Tangible-Equity for a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.19, based on 1,523 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arrow Financial's current Return-on-Tangible-Equity of 13.14% is 17.4% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Arrow Financial and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arrow Financial's current Return-on-Tangible-Equity is 13.14%, which is near median its own 10-year median of 13.70. 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 $35.85, compared to a current price of $41.29 — trading 15.2% above its estimated fair value. The current Return-on-Tangible-Equity is 13.14%, which is near median its 10-year median of 13.70 and 17.4% above the Banks industry median of 11.19. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Arrow Financial (AROW), the current Return-on-Tangible-Equity is 13.14% 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 $41.29 is trading 15.2% above its estimated GF Value™ of $35.85.
GuruFocus considers Arrow Financial to be Modestly Overvalued.
Key valuation signals for AROW:
Return-on-Tangible-Equity: 13.14% (near median its 10-year median of 13.70)
GF Value™: $35.85 vs. price of $41.29 (15.2% above fair value)
Industry Position: 17.4% above the Banks median (#596 of 1523)
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
Get the complete analysis for AROW
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
AROW has been successfully added to your 
