Arrow Financial Corporation (AROW) Financial Ratios
30 years of historical data (1996–2025) · Financial Services · Banks - Regional
EV/EBITDA
↑
11.57
↑+52% vs avg
5yr avg: 7.60
30Y Low2.5·High19.1
P/FCF
↑
17.70
+1% vs avg
5yr avg: 17.57
30Y Low7.9·High35.3
P/B Ratio
↓
1.48
+10% vs avg
5yr avg: 1.35
30Y Low1.2·High3.0
ROE
↓
10.6%
-2% vs avg
5yr avg: 10.8%
30Y Low8%·High29%
Debt/EBITDA
↓
0.53
↓-51% vs avg
5yr avg: 1.08
30Y Low0.5·High11.7
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
AROW Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Arrow Financial Corporation trades at 14.6x earnings, 10% above its 5-year average of 13.3x, sitting at the 63rd percentile of its historical range. Compared to the Financial Services sector median P/E of 13.6x, the stock trades at a premium of 8%. On a free-cash-flow basis, the stock trades at 17.7x P/FCF, roughly in line with the 5-year average of 17.6x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $641M | $519M | $481M | $476M | $561M | $566M | $463M | $566M | $450M | $461M | $530M |
| Enterprise Value | $641M | $519M | $360M | $405M | $604M | $179M | $170M | $862M | $954M | $738M | $829M |
| P/E Ratio → | 14.64 | 11.85 | 16.22 | 15.79 | 11.51 | 11.37 | 11.36 | 15.13 | 12.44 | 15.71 | 19.96 |
| P/S Ratio | 2.64 | 2.14 | 2.16 | 2.48 | 3.50 | 3.83 | 3.20 | 4.09 | 3.59 | 4.10 | 5.06 |
| P/B Ratio | 1.48 | 1.20 | 1.20 | 1.25 | 1.59 | 1.53 | 1.38 | 1.88 | 1.67 | 1.85 | 2.28 |
| P/FCF | 17.70 | 14.33 | 16.65 | 35.26 | 12.35 | 9.27 | 12.45 | 15.66 | 12.21 | 13.09 | 15.93 |
| P/OCF | 15.52 | 12.56 | 13.95 | 23.13 | 9.40 | 8.30 | 10.94 | 12.89 | 10.73 | 12.19 | 15.27 |
P/E links to full P/E history page with 30-year chart
AROW EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Arrow Financial Corporation's enterprise value stands at 11.6x EBITDA, 52% above its 5-year average of 7.6x. This is roughly in line with the Financial Services sector median of 11.4x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.14 | 1.61 | 2.11 | 3.76 | 1.21 | 1.17 | 6.24 | 7.60 | 6.57 | 7.92 |
| EV / EBITDA | 11.57 | 9.36 | 8.42 | 9.16 | 8.57 | 2.48 | 2.89 | 16.40 | 19.05 | 16.31 | 18.98 |
| EV / EBIT | 11.57 | 9.36 | 9.63 | 10.80 | 9.60 | 2.78 | 3.27 | 18.32 | 21.05 | 18.52 | 21.97 |
| EV / FCF | — | 14.33 | 12.46 | 30.01 | 13.28 | 2.93 | 4.56 | 23.85 | 25.87 | 20.95 | 24.94 |
AROW Profitability
Margins and return-on-capital ratios measuring operating efficiency
Arrow Financial Corporation earns an operating margin of 22.8%, above the Financial Services sector average of 20.3%. Operating margins have expanded from 19.6% to 22.8% over the past 3 years, signaling improving operational efficiency. ROE of 10.6% is modest. ROIC of 9.3% represents adequate returns on invested capital versus a sector median of 5.5%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 65.3% | 65.3% | 60.4% | 68.1% | 90.0% | 96.3% | 84.8% | 82.8% | 88.0% | 91.3% | 92.9% |
| Operating Margin | 22.8% | 22.8% | 16.7% | 19.6% | 39.2% | 43.5% | 35.9% | 34.0% | 36.1% | 35.5% | 36.0% |
| Net Profit Margin | 18.1% | 18.1% | 13.3% | 15.7% | 30.4% | 33.7% | 28.2% | 27.1% | 28.9% | 26.1% | 25.3% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.6% | 10.6% | 7.6% | 8.2% | 13.5% | 14.1% | 12.8% | 13.1% | 14.0% | 12.2% | 11.9% |
| ROA | 1.0% | 1.0% | 0.7% | 0.7% | 1.2% | 1.3% | 1.2% | 1.2% | 1.3% | 1.1% | 1.1% |
| ROIC | 9.3% | 9.3% | 6.3% | 6.2% | 10.5% | 11.2% | 7.1% | 4.6% | 4.7% | 5.0% | 5.3% |
| ROCE | 2.6% | 2.6% | 7.9% | 8.3% | 13.7% | 14.1% | 12.6% | 12.7% | 13.0% | 11.8% | 11.8% |
AROW Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Arrow Financial Corporation carries a Debt/EBITDA ratio of 0.5x, which is very conservative (88% below the sector average of 4.3x). Net debt stands at $62000 ($29M total debt minus $29M cash). Interest coverage of just 0.7x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.07 | 0.07 | 0.08 | 0.19 | 0.30 | 0.19 | 0.26 | 1.21 | 2.18 | 1.40 | 1.53 |
| Debt / EBITDA | 0.53 | 0.53 | 0.79 | 1.62 | 1.52 | 0.97 | 1.49 | 6.97 | 11.74 | 7.73 | 8.17 |
| Net Debt / Equity | — | 0.00 | -0.30 | -0.19 | 0.12 | -1.04 | -0.88 | 0.98 | 1.87 | 1.11 | 1.29 |
| Net Debt / EBITDA | 0.00 | 0.00 | -2.83 | -1.60 | 0.60 | -5.37 | -4.99 | 5.63 | 10.06 | 6.12 | 6.85 |
| Debt / FCF | — | 0.00 | -4.19 | -5.26 | 0.93 | -6.35 | -7.89 | 8.19 | 13.65 | 7.87 | 9.01 |
| Interest Coverage | 0.72 | 0.72 | 0.45 | 0.65 | 5.56 | 12.40 | 4.09 | 2.17 | 3.63 | 5.69 | 7.05 |
AROW Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.04x is below 1.0, meaning current liabilities exceed current assets. The current ratio has declined from 0.17x to 0.04x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.04 | 0.04 | 0.16 | 0.17 | 0.18 | 0.29 | 0.23 | 0.15 | 0.15 | 0.15 | 0.18 |
| Quick Ratio | 0.04 | 0.04 | 0.16 | 0.17 | 0.18 | 0.29 | 0.23 | 0.15 | 0.15 | 0.15 | 0.18 |
| Cash Ratio | 0.04 | 0.04 | 0.04 | 0.04 | 0.02 | 0.13 | 0.12 | 0.03 | 0.03 | 0.03 | 0.03 |
| Asset Turnover | — | 0.05 | 0.05 | 0.05 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
AROW Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Arrow Financial Corporation returns 4.5% to shareholders annually — split between a 2.9% dividend yield and 1.6% buyback yield. A payout ratio of 43.0% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 6.8% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.9% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 43.0% | 43.0% | 61.6% | 59.8% | 35.7% | 32.7% | 38.6% | 40.6% | 39.7% | 46.4% | 49.3% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.8% | 8.4% | 6.2% | 6.3% | 8.7% | 8.8% | 8.8% | 6.6% | 8.0% | 6.4% | 5.0% |
| FCF Yield | 5.6% | 7.0% | 6.0% | 2.8% | 8.1% | 10.8% | 8.0% | 6.4% | 8.2% | 7.6% | 6.3% |
| Buyback Yield | 1.6% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 4.5% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $17M | $17M | $17M | $17M | $17M | $17M | $17M | $16M | $16M | $16M |
Peer Comparison
Compare AROW with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 AROWYou | $641M | 14.6 | 11.6 | 17.7 | 65.3% | 22.8% | 10.6% | 9.3% | 0.5 |
 CZWI | $205M | 14.6 | 15.6 | 19.8 | 54.7% | 7.0% | 7.9% | 2.0% | 5.8 |
 FUNC | $277M | 11.3 | 8.0 | 18.0 | 70.2% | 27.3% | 12.8% | 7.1% | 3.5 |
 NECB | $356M | 7.9 | 5.5 | 7.0 | 66.1% | 39.6% | 13.3% | 12.5% | 1.2 |
 TRST | $925M | 16.1 | 11.9 | 20.2 | 67.1% | 29.2% | 9.0% | 7.2% | 2.1 |
 CHMG | $341M | 22.7 | 14.3 | 7.7 | 64.2% | 14.2% | 6.4% | 5.0% | 0.2 |
 FISI | $735M | 10.3 | 10.5 | 54.1 | 61.7% | 24.2% | 12.5% | 7.7% | 3.7 |
 NBTB | $2B | 14.0 | 10.7 | 11.1 | 72.1% | 25.3% | 9.9% | 7.9% | 1.4 |
 STBA | $2B | 13.4 | 10.6 | 13.3 | 69.4% | 29.5% | 9.4% | 7.4% | 1.8 |
 CNOB | $2B | 21.9 | 24.0 | 16.2 | 44.2% | 18.6% | 5.7% | 3.5% | 10.4 |
 EGBN | $842M | -6.6 | — | 40.5 | 3.2% | -26.9% | -10.8% | -8.2% | — |
| Financial Services Median | — | 13.6 | 11.4 | 11.1 | 64.1% | 20.3% | 9.0% | 5.5% | 4.3 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Includes 30+ ratios · 30 years · Updated daily
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AROW — Frequently Asked Questions
Quick answers to the most common questions about buying AROW stock.
What is Arrow Financial Corporation's P/E ratio?
Arrow Financial Corporation's current P/E ratio is 14.6x. The historical average is 14.0x. This places it at the 63th percentile of its historical range.
What is Arrow Financial Corporation's EV/EBITDA?
Arrow Financial Corporation's current EV/EBITDA is 11.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.2x.
What is Arrow Financial Corporation's ROE?
Arrow Financial Corporation's return on equity (ROE) is 10.6%. The historical average is 14.6%.
Is AROW stock overvalued?
Based on historical data, Arrow Financial Corporation is trading at a P/E of 14.6x. This is at the 63th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Arrow Financial Corporation's dividend yield?
Arrow Financial Corporation's current dividend yield is 2.95% with a payout ratio of 43.0%.
What are Arrow Financial Corporation's profit margins?
Arrow Financial Corporation has 65.3% gross margin and 22.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Arrow Financial Corporation have?
Arrow Financial Corporation's Debt/EBITDA ratio is 0.5x, indicating low leverage. A ratio below 2x is generally considered financially healthy.