Arrow Financial currently holds 47.8
M in liabilities with Debt to Equity (D/E) ratio of 0.09, which may suggest Arrow Financial is not taking enough advantage from borrowing. Debt can assist Arrow Financial until it has trouble settling it off, either with new capital or with free cash flow. So, Arrow Financial's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Arrow Financial sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Arrow to invest in growth at high rates of return. When we think about Arrow Financial's use of debt, we should always consider it together with cash and equity.
Our trade advice tool can cross-verify current
analyst consensus on Arrow Financial and to analyze the company potential to grow in the current economic cycle.
We determine the current worth of Arrow Financial using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Arrow Financial based exclusively on its
fundamental and basic
technical indicators. By analyzing Arrow Financial's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Arrow Financial's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Arrow Financial. We calculate exposure to Arrow Financial's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Arrow Financial's related companies.
Arrow Financial Investment Alerts
Arrow investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Arrow Financial performance across your portfolios.Please check all
investment alerts for Arrow
Arrow Financial Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Arrow value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Arrow Financial competition to find
correlations between indicators driving the intrinsic value of Arrow.
Arrow Financial Gross Profit
Arrow Financial Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Arrow Financial previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Arrow Financial Gross Profit growth over the last 10 years. Please check Arrow Financial's
gross profit and other
fundamental indicators for more details.
A Deeper look at Arrow
The big decline in price over the last few months for Arrow Financial could raise concerns from sophisticated investors as the firm is trading at a share price of
19.27 on
16,066 in volume. The company directors and management failed to add value to investors and position the firm supply of money to exploit
market volatility in
April. However, diversifying your holdings with Arrow Financial or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.54. The current volatility is consistent with the ongoing market swings in
April 2023 as well as with Arrow Financial unsystematic, company-specific events.
| 2020 | 2021 | 2022 | 2023 (projected) |
Net Income | 40.83 M | 49.86 M | 57.34 M | 48.26 M | Gross Profit | 122.54 M | 142.45 M | 163.82 M | 146.3 M |
Margins Breakdown
Arrow profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Arrow Financial itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Arrow Financial profit margins.
| EBITDA Margin | 0.58 |
| Gross Margin | 0.89 |
| Profit Margin | 0.38 |
Arrow Financial Revenue Per Employee is fairly stable at the moment. Also, Arrow Financial Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years.
Price may slide back for Arrow in June
Arrow Financial latest mean deviation rises over 1.79.
Arrow Financial exhibits very low volatility with skewness of 0.81 and kurtosis of 3.58. However, we advise investors to further study Arrow Financial technical indicators to ensure that all market info is available and is reliable. Understanding different
market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Arrow Financial's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact
Arrow Financial's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
While some firms in the banks—regional industry are either recovering or due for a correction, Arrow Financial may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 26th of May 2023, we see that Arrow Financial actively responds to the market. The venture is
undervalued with
very low probability of distress within the next 24 months. Our concluding 90 days buy-hold-sell advice on the venture is
Hold.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Arrow Financial. Please refer to our
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