Arrow Financial (AROW) AI Stock Analysis

• Market Cap: $485.67M
• Dividend Yield: 4.17%
• Average Volume (3M): 33.81K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.97
• Revenue Growth: 6.86%
• EPS Growth: 6.11%
• Country: US
• Employees: 580
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.77
• Shares Outstanding: 16,469,027
• 10 Day Avg. Volume: 30,861
• 30 Day Avg. Volume: 33,815
• PEG Ratio: 28.63
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 2.15
• P/FCF Ratio: 16.65
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 1.95
• Enterprise Value/Gross Profit: 3.19
• Enterprise Value/Ebitda: 10.14
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: $30.00 ▲(11.86% Upside)

Arrow Financial's overall stock score reflects a strong financial foundation with consistent revenue growth and efficient cost management. The valuation is fair with an attractive dividend yield, although technical indicators suggest a neutral to slightly bearish trend. The absence of earnings call and corporate events data limits further insights.

Arrow Financial Business Overview & Revenue Model

Company Description

Arrow Financial Corporation (AROW) is a diversified financial services holding company based in the United States. The company primarily operates through its subsidiaries which include a commercial bank, a trust company, and an insurance agency. Arrow Financial focuses on providing a range of financial solutions, including personal and commercial banking services, wealth management, and insurance products to individuals and businesses in its regional markets.

How the Company Makes Money

Arrow Financial generates revenue through multiple streams. The primary source of income is interest income derived from loans and advances made through its banking operations, including commercial loans, residential mortgages, and personal loans. Additionally, the company earns non-interest income from fees associated with its wealth management services, such as investment advisory fees and trust services. The insurance agency contributes further revenue through premiums collected from various insurance products. Strategic partnerships with local businesses and institutions also enhance its market presence and drive customer acquisition, thereby contributing to its overall earnings.

Arrow Financial Financial Statement Overview

Summary

Arrow Financial demonstrates a strong financial position with consistent revenue growth and efficient cost management. The balance sheet is robust with low leverage, although profitability metrics have shown slight declines. Cash flow generation remains solid, but there are areas for improvement in cash conversion efficiency. Overall, the company is well-positioned in the regional banking sector, with a stable outlook.

Income Statement

Arrow Financial has shown consistent revenue growth over the years, with a TTM revenue growth rate of 1.48%. The gross profit margin has remained strong at around 61%, indicating efficient cost management. However, the net profit margin has decreased from historical highs, currently at 13.28% TTM, reflecting some pressure on profitability. EBIT and EBITDA margins have also slightly declined, suggesting potential challenges in operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.08 TTM, indicating prudent financial leverage. Return on equity is stable at 7.61% TTM, although it has decreased from previous years, suggesting a slight decline in profitability relative to equity. The equity ratio remains healthy, showcasing a strong capital structure.

Cash Flow

Arrow Financial's cash flow position is stable, with a positive free cash flow growth rate of 2.67% TTM. The operating cash flow to net income ratio is low, indicating potential challenges in converting income into cash. However, the free cash flow to net income ratio is robust at 82.61% TTM, reflecting effective cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	230.09M	223.07M	191.68M	160.55M	147.92M	144.55M
Gross Profit	140.42M	134.63M	130.57M	144.44M	142.45M	122.54M
EBITDA	44.12M	42.72M	44.24M	70.46M	72.23M	58.73M
Net Income	30.56M	29.71M	30.07M	48.80M	49.86M	40.83M
Balance Sheet
Total Assets	4.41B	4.31B	4.17B	3.97B	4.03B	3.69B
Cash, Cash Equivalents and Short-Term Investments	40.98M	617.66M	640.30M	638.15M	1.02B	746.28M
Total Debt	33.57M	33.60M	71.57M	106.92M	70.17M	87.70M
Total Liabilities	4.01B	3.91B	3.79B	3.62B	3.66B	3.35B
Stockholders Equity	408.51M	400.90M	379.77M	353.54M	371.19M	334.39M
Cash Flow
Free Cash Flow	29.23M	28.87M	13.50M	45.46M	61.07M	37.18M
Operating Cash Flow	35.39M	34.47M	20.58M	59.71M	68.21M	42.31M
Investing Cash Flow	-45.77M	-88.95M	-82.65M	-393.06M	-274.60M	-187.32M
Financing Cash Flow	78.64M	66.49M	139.95M	-59.69M	283.10M	455.77M

Arrow Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AROW, the sentiment is Positive. The current price of 26.82 is below the 20-day moving average (MA) of 27.08, below the 50-day MA of 28.22, and above the 200-day MA of 26.50, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 64.70 is Neutral, neither overbought nor oversold. The STOCH value of 79.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AROW.

Arrow Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWB	―	$460.94M	12.71	8.63%	―	13.96%	25.74%
AROW	―	$485.67M	14.26	8.49%	4.17%	6.86%	6.11%
ACNB	―	$474.81M	13.85	9.18%	2.88%	41.96%	-4.72%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
NFBK	―	$425.21M	10.43	5.56%	4.85%	6.08%	52.64%
FFIC	―	$481.00M	-11.96	-5.03%	6.44%	-12.30%	-235.57%
FFWM	―	$448.18M	-2.78	-16.22%	―	-6.47%	-75.82%

Arrow Financial Corporate Events

Arrow Financial Corporation Reports Strong Q3 Earnings

Arrow Financial Corporation, a holding company based in Glens Falls, New York, operates in the financial services sector through its subsidiaries, Arrow Bank and Upstate Agency, LLC, providing banking and insurance services in northeastern New York.

Arrow Financial Reports Strong Q3 2025 Earnings

Arrow Financial Corporation reported a net income of $12.8 million for the third quarter of 2025, with earnings per share of $0.77, marking an increase from the previous quarter. The company declared a quarterly cash dividend of $0.29 per share, payable on November 24, 2025. The quarter saw record net interest income and improvements in net interest margin and return on average assets. The company completed a system conversion and operational merger of its banking subsidiaries in July 2025, incurring non-core unification costs of $600 thousand. With recent Federal Reserve interest rate cuts, Arrow is well-positioned for continued strong performance.

The most recent analyst rating on (AROW) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Arrow Financial stock, see the AROW Stock Forecast page.