Arrow Electronics
Centennial, Colorado, United States
Industry: Technology/Electronics
Region: US 🇺🇸
Year Founded: 1935
IPO Date: 03-25-1972
Market Cap: $5.5 billion
Number of Employees: Approx. 18,800
Revenue: $28.6 billion (2020)
Net Income: $384 million (2020)
Arrow Electronics, Inc.
Arrow Electronics IPO
Arrow Electronics went public on April 11, 1961.
The company’s initial public offering (IPO) marked a significant milestone in its history, providing it with the capital and visibility needed to expand its operations and solidify its position as a leading distributor of electronic components and enterprise computing solutions.
Arrow Electronics IPO Prospectus
A prospectus is a formal document required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public. You can find Arrow Electronics’ Prospectus here.
Company Overview & History
Arrow Electronics is a global provider of technology solutions, specializing in the distribution and value-added services of electronic components and enterprise computing products.
The company was founded in 1935 by Maurice (“Mickey”) Cayton and Robert (“Bob”) Greenberg, originally operating as a radio equipment retail store.
Over the years, Arrow Electronics has grown through strategic acquisitions and partnerships, broadening its product portfolio and geographical presence.
Today, the company serves as a vital link between technology manufacturers and a diverse range of customers, including original equipment manufacturers (OEMs), contract manufacturers, and commercial customers.
Financial Performance
| Year | Revenue($B) | Net Income($B) | EBITDA($B) | Operational Cash Flow($B) |
|---|---|---|---|---|
| 2022 | 34.4 | 1.1 | 1.5 | 1.5 |
| 2021 | 30.9 | 1.0 | 1.4 | 1.4 |
| 2020 | 28.7 | 0.8 | 1.2 | 1.2 |
| 2019 | 29.2 | 0.5 | 0.9 | 0.9 |
| 2018 | 30.4 | 0.8 | 1.1 | 1.1 |
| 2017 | 26.6 | 0.6 | 0.9 | 0.9 |
| 2016 | 23.8 | 0.5 | 0.8 | 0.8 |
| 2015 | 23.3 | 0.5 | 0.7 | 0.7 |
| 2014 | 22.8 | 0.5 | 0.7 | 0.7 |
| 2013 | 21.4 | 0.5 | 0.6 | 0.6 |
Business Model
Arrow Electronics operates under a business model focused on delivering value-added services, comprehensive product offerings, and global supply chain solutions.
The company works closely with its network of suppliers and customers to provide innovative solutions that address complex technological challenges and drive business growth.
Arrow’s business model encompasses various key elements, such as demand creation, supply chain optimization, and technical support.
By leveraging its extensive product portfolio and technical expertise, the company helps customers navigate the fast-paced world of technology, enabling them to accelerate time-to-market and maximize their competitive advantage.
Market Cap Over the Years
| Year | Market Cap($B) |
|---|---|
| 2023 | 8.07 |
| 2022 | 8.07 |
| 2021 | 5.28 |
| 2020 | 5.08 |
| 2019 | 4.81 |
Risk Factors
Arrow Electronics is a prominent player in the technology distribution industry, but it faces several risk factors that could affect its business and financial performance.
One of these risks is market volatility, as the industry is characterized by rapid technological advancements and shifting market demands.
Changes in customer preferences or disruptions in the supply chain have the potential to impact the company’s revenue and profitability.
In addition to market volatility, Arrow also contends with intense competition in the technology distribution sector.
With numerous players vying for market share, including both established companies and emerging startups, the company faces pressure on its pricing, market position, and customer relationships.
Arrow’s business is further influenced by global economic conditions.
Fluctuations in currency exchange rates, trade policies, and overall economic stability all play a role in shaping the company’s performance. Economic downturns or geopolitical uncertainties can have adverse effects on Arrow’s financial results.
Lastly, Arrow relies on a complex global supply chain to deliver its products and services.
Disruptions in the supply chain, such as natural disasters, transportation constraints, or component shortages, have the potential to impact the company’s ability to fulfill customer orders and meet demand.
These risk factors collectively pose challenges for Arrow Electronics, necessitating careful strategic planning and management to navigate the dynamic technology distribution landscape.
Market Opportunity
Arrow Electronics operates in a market that presents significant growth opportunities driven by technological advancements and increasing global connectivity.
The proliferation of Internet of Things (IoT) devices, the rise of artificial intelligence (AI), and the expansion of cloud computing are just a few examples of trends shaping the market.
As businesses and consumers increasingly rely on innovative technologies, Arrow Electronics is well-positioned to capitalize on this growing market opportunity.
The company’s extensive product portfolio, global reach, and value-added services enable it to cater to a diverse range of industries, including automotive, industrial, aerospace, defense, and telecommunications.
Competitors
- Avnet
- Tech Data Corporation
- WESCO International
- Synnex Corporation
- Future Electronics
- Digi-Key Electronics
- Mouser Electronics
- Premier Farnell (element14)
Key/Fun Company Facts
- Arrow Electronics is headquartered in Centennial, Colorado, United States.
- The company operates in more than 80 countries worldwide.
- In 2020, Arrow Electronics reported annual revenues of over $26 billion.
- Arrow has a strong commitment to corporate social responsibility, implementing initiatives to minimize its environmental impact and support local communities.
- The company has received numerous accolades for its efforts in sustainability, diversity and inclusion, and corporate governance.
- Arrow Electronics actively supports STEM education programs and initiatives, aiming to inspire the next generation of innovators and technologists.