Arrow Electronics, Inc. ARW

Competitive advantage analysis · technology

Corporate Default
Overall moat score
52/100
Moderate

About Arrow Electronics, Inc.

Arrow Electronics, Inc. sources and engineers technology for manufacturers, service providers, and users of enterprise computing solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Global Components and Global Enterprise Computing Solutions. The Global Components segment markets and distributes electronic components, including semiconductor products and related services; interconnect, passive, and electromechanical … Full ARW analysis →

Competitive advantage assessment

Key strengths

  • ROIC Sustainably Above Peers ROIC at 64.9th percentile exceeds peers and WACC, demonstrating superior capital allocation.
  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.91), demonstrating pricing resilience across cycles.

Key risks

  • Elevated Debt Risk Debt serviceability is weak (score 0.37), raising refinancing risk.
  • Liquidity Concerns Liquidity is concerning (score 0.20), raising questions about short-term obligations.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
53

Where ARW ranks in Technology: Semiconductors, Hardware & Components

Arrow Electronics, Inc. ranks #132 of 304 scored companies in Technology: Semiconductors, Hardware & Components by moat score — the top 43%. The widest moat in the group is Arista Networks, Inc. (ANET) at 86/100.

Moat scores for companies ranked near ARW in Technology: Semiconductors, Hardware & Components
# Company Moat score Rating
128 ViaSat, Inc. VSAT 53/100 Moderate
129 ChipMOS TECHNOLOGIES INC. IMOS 53/100 Moderate
130 Lattice Semiconductor Corporati LSCC 52/100 Moderate
131 Benchmark Electronics, Inc. BHE 52/100 Moderate
132 Arrow Electronics, Inc. ARW 52/100 Moderate
133 Avnet, Inc. AVT 52/100 Moderate
134 Power Integrations, Inc. POWI 51/100 Moderate
135 Corsair Gaming, Inc. CRSR 51/100 Moderate
136 MIND Technology, Inc. MIND 51/100 Moderate

See every General Corporate company ranked by moat score →

How ARW scores on the Corporate Default defenses

Pricing Power

Score 53 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 72 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 50 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 64 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 32 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 41 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding ARW's moat

What is Arrow Electronics, Inc.'s moat score?

Arrow Electronics, Inc. (ARW) scores 52 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #132 of 304 scored companies in Technology: Semiconductors, Hardware & Components, the top 43%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 303 companies in Technology: Semiconductors, Hardware & Components. Its strongest defense is Cost Advantage (72/100) and its weakest is Resilience (32/100).

How does Arrow Electronics, Inc. compare with other Technology: Semiconductors, Hardware & Components companies?

Arrow Electronics, Inc. ranks #132 of 304 scored companies in Technology: Semiconductors, Hardware & Components by moat score. The widest moat in Technology: Semiconductors, Hardware & Components is Arista Networks, Inc. (ANET) at 86/100. The companies ranked closest are Benchmark Electronics, Inc. (BHE) at 52 just above it and Avnet, Inc. (AVT) at 52 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 303 companies in Technology: Semiconductors, Hardware & Components. The defenses are then weighted to produce the overall score out of 100.

Why is Arrow Electronics, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Arrow Electronics, Inc.?

The Corporate Default template measures 6 defenses, and ARW scores: Pricing Power (53), Cost Advantage (72), Customer Stickiness (50), Capital Efficiency (64), Resilience (32), Scale & Market Position (41). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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