Professional
Added to YB: 2024-06-03
Pitch date: 2024-05-31
ARW [bullish]
Arrow Electronics, Inc.
-14.58%
current return
Author Info
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Company Info
Arrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
Market Cap
$5.4B
Pitch Price
$132.98
Price Target
558.00 (+391%)
Dividend
N/A
EV/EBITDA
7.56
P/E
11.52
EV/Sales
0.28
Sector
Electronic Equipment, Instruments and Components
Category
growth
Bonhoeffer Capital Management Portfolio Holding: Arrow Electronics, Inc.
ARW: World's largest electronics distributor at 15% share. 220K customers, 90% retention. Value-add services drive industry-leading 5.3% margins. 50% buyback in 10yrs. 20-30% FCF ROE. 5 growth levers: market growth, new suppliers, operations, deleveraging, buybacks. Scale economies evident in high margins vs peers. Expects 5% organic growth + buybacks for 14% EPS growth. Low valuation at 7x earnings vs 15x at 5% growth. $256 near-term target, $558 long-term for 23% 5yr IRR.
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