Arrow Financial (AROW) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Arrow Financial

NasdaqGS•Financial Services•Banks - Regional

$38.65-0.02(<0.01%)Market open

Market Cap

$626.24M

P/E

12.2x

P/S

2.5x

P/B

1.4x

Arrow Financial Corporation, a bank holding company, provides various commercial and consumer banking, and financial products and services in the United States. The company's deposit products include demand deposits, interest-bearing checking accounts, savings deposits, time deposits, and other time deposits. Its lending activities comprise commercial loans, such as term loans, time notes, and lines of credit; and commercial real estate loans to finance real estate purchases, refinancing, expansions, and enhancement to commercial properties, as well as commercial construction and land development loans to finance projects. The company's lending activities also include consumer installment loans to finance personal expenditures, personal lines of credit, overdraft protection, and automobile loans; and residential real estate loans, fixed home equity loans, and home equity lines of credit for consumers to finance home improvements, debt consolidation, education, and other uses, as well as maintains an indirect lending program. In addition, it provides retirement planning, trust, and estate administration services for individuals, as well as pension, profit-sharing, and employee benefit plan administration services for corporations. Further, the company offers insurance agency services comprising group health care policies and life insurance, and property and casualty insurance products. The company was founded in 1851 and is headquartered in Glens Falls, New York.

How this company scores

WeakMetricSide Score: 80/100

Grade capped at D — Interest coverage below 1× (0.8x) — earnings cannot cover interest. Strongest: Cash & Earnings Quality (23/25); weakest: Balance Sheet & Red Flags (16/25).

Profitability20/25

Growth21/25

Balance Sheet & Red Flags16/25

Cash & Earnings Quality23/25

Strengths

Rising free cash flowStrong marginsRising earningsLow leverage

Grade capped at D

Interest coverage below 1× (0.8x) — earnings cannot cover interest.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 12.2x5y range 8.4x – 16.7x

Currently near its 20-quarter median.

P/S · 2.5x5y range 1.6x – 3.9x

Currently near its 20-quarter median.

P/B · 1.4x5y range 0.8x – 1.7x

Price & Volume

Market Cap $626.24M

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $249.49M
Q. Revenue: $61.87M
TTM EBITDA: $72.90M
TTM Op. Income: $64.60M
Q. Op. Income: $13.90M
TTM Net Income: $51.28M
Q. Net Income: $10.96M
EPS: $0.66
Shares Out.: $16.43M

$249.49M in TTM revenue grew 8.4% YoY, reaching $61.87M last quarter. TTM EBITDA of $72.90M and TTM operating income of $64.60M show growth is flowing through to the bottom line. TTM net income of $51.28M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 71.4%
EBITDA Margin: 24.6%
Op. Margin: 22.5%
Net Margin: 17.7%

Op. margin of 22.5% is down 1.0% YoY — costs are rising relative to revenue. Net margin at 17.7% and gross margin of 71.4% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 4% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 12.2x
P/S Ratio: 2.5x
P/B Ratio: 1.4x

At 12.2x P/E, the stock trades below typical market levels. P/S of 2.5x and P/B of 1.4x provide additional context. P/E sits below typical market levels while revenue is growing. Over the past year, P/E is down 15% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $4.48B
Cash: $186.79M
Long-Term Debt: $20.00M
Book Value: $446.31M
D/E Ratio: 0.0
Debt/EBITDA: 1.3

With $4.48B in assets and $20.00M in long-term debt, D/E is 0.0and book value is $446.31M — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is down 8% — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $15.79M
TTM Free Cash Flow: $44.65M
FCF Margin: 17.9%
FCF / Net Income: 0.9

TTM FCF of $44.65M on $15.79M in operating cash flow. The FCF / Net Income ratio of 0.9x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 5 consecutive quarters — an improving trend.