141.005 USD
+1.81 (+1.3%)
Taking everything into account, ARM scores 7 out of 10 in our fundamental rating. ARM was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. ARM gets an excellent profitability rating and is at the same time showing great financial health properties. ARM is valued quite expensively, but it does show have an excellent growth rating. With these ratings, ARM could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year ARM was profitable.
In the past year ARM had a positive cash flow from operations.
In the past 5 years ARM has always been profitable.
ARM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.55%, ARM is in the better half of the industry, outperforming 79.46% of the companies in the same industry.
ARM's Return On Equity of 11.21% is fine compared to the rest of the industry. ARM outperforms 75.89% of its industry peers.
ARM has a better Return On Invested Capital (7.78%) than 75.89% of its industry peers.
ARM had an Average Return On Invested Capital over the past 3 years of 6.46%. This is below the industry average of 10.77%.
The last Return On Invested Capital (7.78%) for ARM is above the 3 year average (6.46%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.55% | ||
| ROE | 11.21% | ||
| ROIC | 7.78% |
ROA(3y)6.79%
ROA(5y)N/A
ROE(3y)10.1%
ROE(5y)N/A
ROIC(3y)6.46%
ROIC(5y)N/A
1.3 Margins
ARM's Profit Margin of 18.81% is amongst the best of the industry. ARM outperforms 82.14% of its industry peers.
ARM's Profit Margin has been stable in the last couple of years.
The Operating Margin of ARM (19.54%) is better than 79.46% of its industry peers.
ARM's Operating Margin has declined in the last couple of years.
ARM has a better Gross Margin (97.39%) than 100.00% of its industry peers.
ARM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.54% | ||
| PM (TTM) | 18.81% | ||
| GM | 97.39% |
OM growth 3Y-6.24%
OM growth 5YN/A
PM growth 3Y-0.9%
PM growth 5YN/A
GM growth 3Y0.64%
GM growth 5YN/A
2. Health
2.1 Basic Checks
ARM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ARM has been increased compared to 1 year ago.
The debt/assets ratio for ARM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 40.27 indicates that ARM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 40.27, ARM belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
ARM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 40.27 |
ROIC/WACC0.63
WACC12.42%
2.3 Liquidity
A Current Ratio of 5.59 indicates that ARM has no problem at all paying its short term obligations.
ARM has a better Current ratio (5.59) than 77.68% of its industry peers.
A Quick Ratio of 5.59 indicates that ARM has no problem at all paying its short term obligations.
ARM has a better Quick ratio (5.59) than 84.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.59 | ||
| Quick Ratio | 5.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.44% over the past year.
Measured over the past years, ARM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.27% on average per year.
The Revenue has grown by 24.81% in the past year. This is a very strong growth!
ARM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.02% yearly.
EPS 1Y (TTM)24.44%
EPS 3Y12.27%
EPS 5YN/A
EPS Q2Q%30%
Revenue 1Y (TTM)24.81%
Revenue growth 3Y14.02%
Revenue growth 5YN/A
Sales Q2Q%34.48%
3.2 Future
The Earnings Per Share is expected to grow by 20.00% on average over the next years. This is quite good.
The Revenue is expected to grow by 24.28% on average over the next years. This is a very strong growth
EPS Next Y4.79%
EPS Next 2Y18.13%
EPS Next 3Y20.63%
EPS Next 5Y20%
Revenue Next Year19.17%
Revenue Next 2Y20.29%
Revenue Next 3Y20.53%
Revenue Next 5Y24.28%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 83.93 indicates a quite expensive valuation of ARM.
The rest of the industry has a similar Price/Earnings ratio as ARM.
ARM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.37.
A Price/Forward Earnings ratio of 61.61 indicates a quite expensive valuation of ARM.
ARM's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of ARM to the average of the S&P500 Index (36.20), we can say ARM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.93 | ||
| Fwd PE | 61.61 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ARM.
ARM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 131.25 | ||
| EV/EBITDA | 133.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ARM does not grow enough to justify the current Price/Earnings ratio.
ARM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ARM's earnings are expected to grow with 20.63% in the coming years.
PEG (NY)17.51
PEG (5Y)N/A
EPS Next 2Y18.13%
EPS Next 3Y20.63%
5. Dividend
5.1 Amount
No dividends for ARM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:ARM (12/4/2025, 3:49:05 PM)
141.005
+1.81 (+1.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners8.62%
Inst Owner Change-8.37%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap149.36B
Revenue(TTM)4.41B
Net Income(TTM)830.00M
Analysts74
Price Target169.85 (20.46%)
Short Float %9.74%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.96%
Min EPS beat(2)-1.76%
Max EPS beat(2)15.67%
EPS beat(4)3
Avg EPS beat(4)7.8%
Min EPS beat(4)-1.76%
Max EPS beat(4)15.67%
EPS beat(8)7
Avg EPS beat(8)11.81%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)2.28%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)5.88%
Revenue beat(4)2
Avg Revenue beat(4)1.78%
Min Revenue beat(4)-1.31%
Max Revenue beat(4)5.88%
Revenue beat(8)6
Avg Revenue beat(8)3.18%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)9.96%
PT rev (3m)10.21%
EPS NQ rev (1m)13.86%
EPS NQ rev (3m)12.2%
EPS NY rev (1m)0%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)10.12%
Revenue NQ rev (3m)9.72%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.93 | ||
| Fwd PE | 61.61 | ||
| P/S | 33.85 | ||
| P/FCF | 131.25 | ||
| P/OCF | 94.53 | ||
| P/B | 20.16 | ||
| P/tB | 26.98 | ||
| EV/EBITDA | 133.7 |
EPS(TTM)1.68
EY1.19%
EPS(NY)2.29
Fwd EY1.62%
FCF(TTM)1.07
FCFY0.76%
OCF(TTM)1.49
OCFY1.06%
SpS4.17
BVpS6.99
TBVpS5.23
PEG (NY)17.51
PEG (5Y)N/A
Graham Number16.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.55% | ||
| ROE | 11.21% | ||
| ROCE | 9.85% | ||
| ROIC | 7.78% | ||
| ROICexc | 12.4% | ||
| ROICexgc | 18.8% | ||
| OM | 19.54% | ||
| PM (TTM) | 18.81% | ||
| GM | 97.39% | ||
| FCFM | 25.79% |
ROA(3y)6.79%
ROA(5y)N/A
ROE(3y)10.1%
ROE(5y)N/A
ROIC(3y)6.46%
ROIC(5y)N/A
ROICexc(3y)10.54%
ROICexc(5y)N/A
ROICexgc(3y)19.88%
ROICexgc(5y)N/A
ROCE(3y)8.18%
ROCE(5y)N/A
ROICexgc growth 3Y-16.23%
ROICexgc growth 5YN/A
ROICexc growth 3Y-6.35%
ROICexc growth 5YN/A
OM growth 3Y-6.24%
OM growth 5YN/A
PM growth 3Y-0.9%
PM growth 5YN/A
GM growth 3Y0.64%
GM growth 5YN/A
F-Score8
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 209.48% | ||
| Cap/Sales | 10.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 147.25% | ||
| Profit Quality | 137.11% | ||
| Current Ratio | 5.59 | ||
| Quick Ratio | 5.59 | ||
| Altman-Z | 40.27 |
F-Score8
WACC12.42%
ROIC/WACC0.63
Cap/Depr(3y)91.19%
Cap/Depr(5y)79.24%
Cap/Sales(3y)4.62%
Cap/Sales(5y)4.95%
Profit Quality(3y)150.9%
Profit Quality(5y)159.55%
High Growth Momentum
Growth
EPS 1Y (TTM)24.44%
EPS 3Y12.27%
EPS 5YN/A
EPS Q2Q%30%
EPS Next Y4.79%
EPS Next 2Y18.13%
EPS Next 3Y20.63%
EPS Next 5Y20%
Revenue 1Y (TTM)24.81%
Revenue growth 3Y14.02%
Revenue growth 5YN/A
Sales Q2Q%34.48%
Revenue Next Year19.17%
Revenue Next 2Y20.29%
Revenue Next 3Y20.53%
Revenue Next 5Y24.28%
EBIT growth 1Y111.28%
EBIT growth 3Y6.91%
EBIT growth 5YN/A
EBIT Next Year24.3%
EBIT Next 3Y29.45%
EBIT Next 5Y26.7%
FCF growth 1Y-83.32%
FCF growth 3Y-25.56%
FCF growth 5YN/A
OCF growth 1Y-63.58%
OCF growth 3Y-4.65%
OCF growth 5YN/A
ARM HOLDINGS PLC-ADR / ARM FAQ
What is the fundamental rating for ARM stock?
ChartMill assigns a fundamental rating of 7 / 10 to ARM.
What is the valuation status of ARM HOLDINGS PLC-ADR (ARM) stock?
ChartMill assigns a valuation rating of 2 / 10 to ARM HOLDINGS PLC-ADR (ARM). This can be considered as Overvalued.
What is the profitability of ARM stock?
ARM HOLDINGS PLC-ADR (ARM) has a profitability rating of 7 / 10.
What are the PE and PB ratios of ARM HOLDINGS PLC-ADR (ARM) stock?
The Price/Earnings (PE) ratio for ARM HOLDINGS PLC-ADR (ARM) is 83.93 and the Price/Book (PB) ratio is 20.16.