Arrow Electronics Inc. (ARW) — RQD Stock Rating Cockpit

Per the Roarable RQD rating, ARW carries an RQD score of 43 out of 100, a letter grade of D-, and the verdict label "Roarable Sell — Vulnerable Balance Sheet & Flow." The five pillars are scored as follows:

• Fundamental Cash Engine: 5 / 20. The pillar reflects ROIC of 6.9% and FCF yield of -0.33%. For a prospective investor, the weakness here is that the business is not currently converting capital into free cash returned to shareholders on a yield basis, which removes a common valuation floor.
• Whale 13F Flow: 14 / 20. The pillar is labeled as reflecting institutional accumulation and options positioning. This is the strongest pillar relative to its maximum, suggesting institutional interest is comparatively supportive, though the underlying holder detail is not provided in source data.
• Insider Conviction: 8 / 20. The pillar reflects SEC Form 4 and Congressional PTR cluster flow. The below-midpoint score signals that insider and congressional activity does not provide strong confirmation of conviction.
• Macro Regime Fit: 7 / 20. The pillar cites a Beta of 1.34 and sector sensitivity. For a prospective investor, this implies the stock has historically amplified market moves relative to the broader market, which increases exposure to a risk-off environment.
• Forensic Balance Sheet: 9 / 20. The pillar draws on Altman Z of 2.23, Piotroski F of 6/9, and Debt/Equity of 0.47. The Altman reading and moderate leverage are not distressed, but the score reflects that balance-sheet strength is only partially supportive.

Taken together, the rating indicates that the most supportive evidence is institutional positioning and a moderate balance sheet, while the weakest evidence is cash generation and macro fit. A prospective investor evaluating the stock today would be weighing a valuation of 19.7x trailing earnings and 18.3x forward earnings against a negative FCF yield, meaning the earnings multiple is not currently backed by free cash generation. The 52-week range of $101.79 to $249.43 places the current price of $220.92 near the upper portion of that range, so price momentum has been strong over the period, which the rating's negative cash and forensic signals call into question.

Per the SEC financials, revenue moved from $33107.1M in FY 2023 to $27923.3M in FY 2024 and then to $30852.9M in FY 2025, while net income moved from $903.5M to $392.1M and then to $571.3M. Free cash flow was negative in FY 2023 and FY 2025 and positive in FY 2024. Per the market data, gross margin is 11.2%, operating margin 2.7%, and net margin 1.9%, with ROIC of 6.9%. The Altman Z-Score is 2.23 and the Piotroski F-Score is 6/9, per the Roarable RQD rating's forensic balance sheet pillar. Debt-to-equity is 0.47 per the same source. Reported debt in the financials declined from $9296.5M in FY 2023 to $2773.8M in FY 2024 before rising to $3084.7M in FY 2025.

Per the recent news and catalysts feed, six items reference ARW. Four are rated YELLOW under the market-wire label, one is rated GREEN as a catalyst (ChartMill, describing high growth momentum with a breakout setup), and one is YELLOW as market wire from Yahoo Finance noting a 4.5% move higher. A GuruFocus item notes the stock down 3.5% and describes it as still overvalued with a GF Score of 79/100. The Trefis item asks whether the stock is engineered to make money, and a StockInvest.us item covers a price forecast. These headlines are summaries of third-party coverage; the source data does not provide the underlying article text.

Per the Butterfly Supply-Chain Graph, a proprietary ACCOUNTING_MIRAGE signal is labeled ACCRUAL & WORKING CAPITAL WATCH with a severity score of 80 and a BEARISH direction. The signal reports net income growth of +45.7% alongside operating cash flow growth of -94.3%, a cash conversion gap of +140.0%, and a +28.7% expansion in non-cash current assets and receivables relative to revenue growth. The signal recommends monitoring the upcoming 10-Q for cash realization.

Risk watch items per the sources: the accounting divergence above, negative FCF yield, and the stock's 52-week range position. Catalysts per the sources: strong momentum headlines and institutional positioning references, though specific upcoming corporate events are not provided in source data.

• What specific products, end markets, and customers drive the revenue base, given that the source data provides no business description beyond sector and industry?
• What explains the divergence between net income growth of +45.7% and operating cash flow decline of -94.3%, and does the working-capital build reverse in the next 10-Q?
• What are the institutional and options positioning details behind the 14/20 whale pillar, since no 13F or holder data is provided?
• Why is EPS reported as N/A across all three financial periods, given that TTM EPS is listed as 11.22?
• What is the Cash balance for FY 2023, and how was the reported debt level of $9296.5M reduced by FY 2024?