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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Arrow ElectronicsSTU:ARW +6.70%83 ROE % is 14.20% as of Mar. 2026, which is 18% above its 10-year median of 12.02. 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 2,428 Hardware companies, Arrow Electronics ranks better than 74.26% on this metric.
The historical rank and industry rank for Arrow Electronics's ROE % or its related term are showing as below:
STU:ARW'
s ROE % Range Over the Past 10 Years
Min: -4.03 Med: 12.02 Max: 26.35
Current: 11.36
During the past 13 years, Arrow Electronics's highest ROE % was 26.35%. The lowest was -4.03%. And the median was 12.02%.
STU:ARW's ROE % is ranked better than 74.26% of 2428
companies
in the Hardware industry
Industry Median: 4.675
vs STU:ARW: 11.36
Arrow Electronics (STU:ARW) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Arrow Electronics ROE % Related Terms
Arrow Electronics ROE % Historical Data
* Premium members only.
The historical data trend for Arrow Electronics's ROE % 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.
For the Electronics & Computer Distribution subindustry, Arrow Electronics's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Hardware Industry
For the Hardware industry and Technology sector, Arrow Electronics's ROE % distribution charts can be found below:
* The bar in red indicates where Arrow Electronics's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Arrow Electronics (STU:ARW) has a ROE % of 14.20% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Arrow Electronics and its competitors. This is 18% above median its historical median of 12.02. According to the industry distribution chart, Arrow Electronics ranks #625 out of 2428 companies in the Hardware industry, placing it in the top 25.7%.
Is Arrow Electronics' ROE % too high?
Arrow Electronics' current ROE % of 14.20% is 18% above median its 10-year median of 12.02. The Hardware industry median ROE % is 4.68. Arrow Electronics' value of 14.20% is 203.7% above this industry median. Based on the distribution chart, Arrow Electronics ranks #625 out of 2428 companies in the Hardware industry, which is above 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' ROE % compare to AVT and NSIT?
According to the Hardware industry distribution chart, Arrow Electronics ranks #625 out of 2428 companies for ROE %. This puts Arrow Electronics in the upper half of its industry. The industry median ROE % is 4.68. Arrow Electronics' value of 14.20% is 203.7% above this benchmark. While the company's 10-year median is 12.02 vs. the industry median of 4.68, Arrow Electronics 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 ROE % for a Hardware company?
The median ROE % among Hardware companies is 4.68, based on 2,428 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arrow Electronics's current ROE % of 14.20% is 203.7% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Arrow Electronics and its competitors. For the Hardware industry, the median ROE % is 4.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arrow Electronics's current ROE % is 14.20%, which is 18% above median its own 10-year median of 12.02. 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 ROE % is 14.20%, which is 18% above median its 10-year median of 12.02 and 203.7% above the Hardware industry median of 4.68. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Arrow Electronics (STU:ARW), the current ROE % is 14.20% 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:
ROE %: 14.20% (18% above median its 10-year median of 12.02)
GF Value™: €133.24 vs. price of €191.00 (43.4% above fair value)
Industry Position: 203.7% above the Hardware median (#625 of 2428)
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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