Arrow Financial Corporation (AROW) AI Stock Analysis

Established in 1851 and headquartered in Glens Falls, New York, Arrow Financial Corporation is a bank holding company operating primarily in northeastern New York State. The company provides commercial and consumer banking services, offering deposit products such as demand deposits and time deposits, alongside commercial loans, residential mortgages, and consumer installment loans. In addition to core banking, Arrow Financial provides retirement planning, trust and estate administration, insurance agency offerings, and investment advisory services. The institution has also integrated cryptocurrency offerings into its financial product lineup to serve evolving demand for digital asset services.

From FY2021 to FY2025, Arrow Financial expanded revenue from $147.9M to $242.6M, achieving a 5-year revenue CAGR of 10.9%. Annual net income moved from $49.9M in FY2021 to $29.7M in FY2024 before rising to $44.0M in FY2025, when net margin reached 18.1%. Operating margin was 22.8% in FY2025, compared to 43.5% in FY2021. For the trailing twelve months ended June 30, 2026, revenue stood at $170.2M with an operating margin of 34.7% and EPS of $3.10. In the latest quarter ended June 30, 2026, quarterly revenue grew 4.6% year-over-year while quarterly earnings rose 1.5%.

As of June 30, 2026, Arrow Financial held $30.9M in cash and short-term investments against total assets of $4.48B. Total debt stood at $335.1M, resulting in net debt of $304.2M and a debt-to-equity ratio of 0.75 relative to $446.3M in shareholders' equity. The current ratio was 0.01. During FY2025, operating cash flow was $41.3M and free cash flow reached $36.2M. Capital deployment in FY2025 included $5.1M for capital expenditures, $10.2M for share buybacks, and $18.9M in dividends paid.

Arrow Financial trades at a trailing P/E of 11.9x, slightly below the 12.1x median of its US-listed Financial Services peers. Its forward P/E of 13.0x sits above the peer median of 10.8x, and its price-to-sales ratio of 4.0x is higher than the peer median of 3.2x. The stock carries a price-to-book ratio of 1.6x and a PEG ratio of 2.84. Over the past year, AROW gained 46.4%, outperforming the S&P 500 return of 16.8%, but its 5-year return of 32.6% lagged the S&P 500 gain of 83.0%.

Arrow Financial pays a forward annual dividend of $1.20 per share, resulting in a dividend yield of 3.25% based on its last close of $36.85. The company distributes payments quarterly and has maintained 42 consecutive years of dividend payments. Its payout ratio is 37.3%, and its 5-year annualized dividend growth rate is 4.1%. The last ex-dividend date was August 11, 2026.

Wall Street analyst coverage consists of 2 Buy ratings and 2 Hold ratings, with 0 Sell or Strong Sell ratings. The mean price target is $43.50, indicating an 18.0% premium over the last close of $36.85. For the fiscal year ending December 31, 2026, consensus forecasts estimate revenue of $206.3M and EPS of $3.51, representing 28.0% EPS growth. The company beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is October 29, 2026.

This page is an AI-written research summary of Arrow Financial Corporation (AROW). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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