Logo image of ARM

ARM HOLDINGS PLC-ADR (ARM) Stock Fundamental Analysis

NASDAQ:ARM - Nasdaq - US0420682058 - ADR - Currency: USD

147.65  +3.11 (+2.15%)

Fundamental Rating

6

ARM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 110 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. This makes ARM very considerable for growth and quality investing!


Dividend Valuation Growth Profitability Health

Quickly go to:

7

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.
Each year in the past 5 years ARM had a positive operating cash flow.
ARM Yearly Net Income VS EBIT VS OCF VS FCFARM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

1.2 Ratios

ARM has a Return On Assets of 8.87%. This is in the better half of the industry: ARM outperforms 78.18% of its industry peers.
Looking at the Return On Equity, with a value of 11.58%, ARM is in the better half of the industry, outperforming 73.64% of the companies in the same industry.
The Return On Invested Capital of ARM (8.20%) is better than 75.45% 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 10.58%.
The last Return On Invested Capital (8.20%) for ARM is above the 3 year average (6.46%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 8.87%
ROE 11.58%
ROIC 8.2%
ROA(3y)6.79%
ROA(5y)N/A
ROE(3y)10.1%
ROE(5y)N/A
ROIC(3y)6.46%
ROIC(5y)N/A
ARM Yearly ROA, ROE, ROICARM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

With an excellent Profit Margin value of 19.77%, ARM belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
In the last couple of years the Profit Margin of ARM has remained more or less at the same level.
ARM has a Operating Margin of 20.74%. This is in the better half of the industry: ARM outperforms 79.09% of its industry peers.
In the last couple of years the Operating Margin of ARM has declined.
Looking at the Gross Margin, with a value of 96.98%, ARM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ARM's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 20.74%
PM (TTM) 19.77%
GM 96.98%
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
ARM Yearly Profit, Operating, Gross MarginsARM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2021 2022 2023 2024 2025 20 40 60 80

More info and screens

8

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARM is destroying value.
The number of shares outstanding for ARM has been increased compared to 1 year ago.
ARM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
ARM Yearly Shares OutstandingARM Yearly Shares OutstandingYearly Shares Outstanding 2022 2023 2024 2025 200M 400M 600M 800M 1B
ARM Yearly Total Debt VS Total AssetsARM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2022 2023 2024 2025 2B 4B 6B 8B

2.2 Solvency

ARM has an Altman-Z score of 45.73. This indicates that ARM is financially healthy and has little risk of bankruptcy at the moment.
ARM has a Altman-Z score of 45.73. This is amongst the best in the industry. ARM outperforms 96.36% of its industry peers.
ARM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 45.73
ROIC/WACC0.65
WACC12.55%
ARM Yearly LT Debt VS Equity VS FCFARM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2021 2022 2023 2024 2025 2B 4B 6B

2.3 Liquidity

A Current Ratio of 5.20 indicates that ARM has no problem at all paying its short term obligations.
With a decent Current ratio value of 5.20, ARM is doing good in the industry, outperforming 77.27% of the companies in the same industry.
ARM has a Quick Ratio of 5.20. This indicates that ARM is financially healthy and has no problem in meeting its short term obligations.
ARM's Quick ratio of 5.20 is amongst the best of the industry. ARM outperforms 85.45% of its industry peers.
Industry RankSector Rank
Current Ratio 5.2
Quick Ratio 5.2
ARM Yearly Current Assets VS Current LiabilitesARM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2022 2023 2024 2025 1B 2B 3B 4B

More info and screens

8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 167.86% over the past year.
ARM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.27% yearly.
Looking at the last year, ARM shows a very strong growth in Revenue. The Revenue has grown by 23.94%.
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)167.86%
EPS 3Y12.27%
EPS 5YN/A
EPS Q2Q%52.78%
Revenue 1Y (TTM)23.94%
Revenue growth 3Y14.02%
Revenue growth 5YN/A
Sales Q2Q%33.73%

3.2 Future

Based on estimates for the next years, ARM will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.21% on average per year.
Based on estimates for the next years, ARM will show a quite strong growth in Revenue. The Revenue will grow by 19.37% on average per year.
EPS Next Y10.39%
EPS Next 2Y20.97%
EPS Next 3Y21.6%
EPS Next 5Y19.22%
Revenue Next Year18.7%
Revenue Next 2Y20.35%
Revenue Next 3Y19.97%
Revenue Next 5Y19.37%

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.
ARM Yearly Revenue VS EstimatesARM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 5B 10B
ARM Yearly EPS VS EstimatesARM Yearly EPS VS EstimatesYearly EPS VS Estimates 2024 2025 2026 2027 2028 2029 2030 2031 2032 1 2 3 4 5

More info and screens

2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 90.03, ARM can be considered very expensive at the moment.
ARM's Price/Earnings ratio is in line with the industry average.
ARM is valuated expensively when we compare the Price/Earnings ratio to 27.51, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 81.55, which means the current valuation is very expensive for ARM.
ARM's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ARM is more expensive than 63.64% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.58. ARM is valued rather expensively when compared to this.
Industry RankSector Rank
PE 90.03
Fwd PE 81.55
ARM Price Earnings VS Forward Price EarningsARM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

ARM's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as ARM.
Industry RankSector Rank
P/FCF 989.88
EV/EBITDA 147.48
ARM Per share dataARM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ARM may justify a higher PE ratio.
A more expensive valuation may be justified as ARM's earnings are expected to grow with 21.60% in the coming years.
PEG (NY)8.66
PEG (5Y)N/A
EPS Next 2Y20.97%
EPS Next 3Y21.6%

More info and screens

0

5. Dividend

5.1 Amount

ARM does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

ARM HOLDINGS PLC-ADR

NASDAQ:ARM (7/15/2025, 3:56:10 PM)

147.65

+3.11 (+2.15%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)05-07 2025-05-07/amc
Earnings (Next)N/A N/A
Inst Owners8.29%
Inst Owner Change0.22%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap156.40B
Analysts73.17
Price Target137.07 (-7.17%)
Short Float %13.58%
Short Ratio3.57
Dividend
Industry RankSector 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)2
Avg EPS beat(2)8.64%
Min EPS beat(2)3.74%
Max EPS beat(2)13.54%
EPS beat(4)4
Avg EPS beat(4)12.05%
Min EPS beat(4)3.74%
Max EPS beat(4)16.01%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)1.28%
Min Revenue beat(2)-0.24%
Max Revenue beat(2)2.8%
Revenue beat(4)3
Avg Revenue beat(4)2.2%
Min Revenue beat(4)-0.24%
Max Revenue beat(4)3.37%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)0.37%
PT rev (3m)-16.54%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-15.93%
EPS NY rev (1m)-5.91%
EPS NY rev (3m)-12.26%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)-3.87%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-3.63%
Valuation
Industry RankSector Rank
PE 90.03
Fwd PE 81.55
P/S 39.03
P/FCF 989.88
P/OCF 393.95
P/B 22.87
P/tB 30.86
EV/EBITDA 147.48
EPS(TTM)1.64
EY1.11%
EPS(NY)1.81
Fwd EY1.23%
FCF(TTM)0.15
FCFY0.1%
OCF(TTM)0.37
OCFY0.25%
SpS3.78
BVpS6.46
TBVpS4.78
PEG (NY)8.66
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 8.87%
ROE 11.58%
ROCE 10.38%
ROIC 8.2%
ROICexc 12.68%
ROICexgc 19.27%
OM 20.74%
PM (TTM) 19.77%
GM 96.98%
FCFM 3.94%
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
ROICexcg growth 3Y-16.23%
ROICexcg 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-Score7
Asset Turnover0.45
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 130.6%
Cap/Sales 5.96%
Interest Coverage 250
Cash Conversion 39.15%
Profit Quality 19.95%
Current Ratio 5.2
Quick Ratio 5.2
Altman-Z 45.73
F-Score7
WACC12.55%
ROIC/WACC0.65
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)167.86%
EPS 3Y12.27%
EPS 5YN/A
EPS Q2Q%52.78%
EPS Next Y10.39%
EPS Next 2Y20.97%
EPS Next 3Y21.6%
EPS Next 5Y19.22%
Revenue 1Y (TTM)23.94%
Revenue growth 3Y14.02%
Revenue growth 5YN/A
Sales Q2Q%33.73%
Revenue Next Year18.7%
Revenue Next 2Y20.35%
Revenue Next 3Y19.97%
Revenue Next 5Y19.37%
EBIT growth 1Y610.26%
EBIT growth 3Y6.91%
EBIT growth 5YN/A
EBIT Next Year27.94%
EBIT Next 3Y29.88%
EBIT Next 5Y26.61%
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