134.71 USD
+3.14 (+2.39%)
134.71 USD
0 (0%)
ARM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. ARM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ARM is valued quite expensive, but it does show an excellent growth. With these ratings, ARM could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
ARM had positive earnings in the past year.
In the past year ARM had a positive cash flow from operations.
In the past 5 years ARM has always been profitable.
In the past 5 years ARM always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 8.55%, ARM is doing good in the industry, outperforming 79.46% of the companies in the same industry.
The Return On Equity of ARM (11.21%) is better than 75.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.78%, ARM is in the better half of the industry, outperforming 76.79% of the companies in the same industry.
ARM had an Average Return On Invested Capital over the past 3 years of 6.46%. This is below the industry average of 10.75%.
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 has a Profit Margin of 18.81%. This is amongst the best in the industry. ARM outperforms 82.14% of its industry peers.
ARM's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 19.54%, ARM belongs to the top of the industry, outperforming 80.36% of the companies in the same industry.
ARM's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 97.39%, ARM belongs to the best 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 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.
ARM has more shares outstanding than it did 1 year ago.
The debt/assets ratio for ARM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 38.17 indicates that ARM is not in any danger for bankruptcy at the moment.
The Altman-Z score of ARM (38.17) is better than 93.75% of its industry peers.
There is no outstanding debt for ARM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 38.17 |
ROIC/WACC0.64
WACC12.18%
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.
The Quick ratio of ARM (5.59) is better 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.
The Earnings Per Share has been growing by 12.27% on average over the past years. This is quite good.
ARM shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.81%.
Measured over the past years, ARM shows a quite strong growth in Revenue. The Revenue has been growing by 14.02% on average per year.
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 19.58% on average over the next years. This is quite good.
ARM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.75% yearly.
EPS Next Y4.79%
EPS Next 2Y18.13%
EPS Next 3Y19.3%
EPS Next 5Y19.58%
Revenue Next Year19.17%
Revenue Next 2Y20.29%
Revenue Next 3Y19.81%
Revenue Next 5Y23.75%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 80.18 indicates a quite expensive valuation of ARM.
The rest of the industry has a similar Price/Earnings ratio as ARM.
ARM is valuated expensively when we compare the Price/Earnings ratio to 25.65, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 58.86, the valuation of ARM can be described as expensive.
ARM's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.45, ARM is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.18 | ||
| Fwd PE | 58.86 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ARM.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 125.39 | ||
| EV/EBITDA | 126.18 |
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 19.30% in the coming years.
PEG (NY)16.73
PEG (5Y)N/A
EPS Next 2Y18.13%
EPS Next 3Y19.3%
5. Dividend
5.1 Amount
ARM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
134.71
+3.14 (+2.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners8.62%
Inst Owner Change-8.33%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap142.69B
Revenue(TTM)4.41B
Net Income(TTM)830.00M
Analysts74
Price Target169.85 (26.09%)
Short Float %9.92%
Short Ratio2.59
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)11.12%
EPS NY rev (1m)0%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)10.12%
Revenue NQ rev (3m)9.33%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.18 | ||
| Fwd PE | 58.86 | ||
| P/S | 32.34 | ||
| P/FCF | 125.39 | ||
| P/OCF | 90.31 | ||
| P/B | 19.26 | ||
| P/tB | 25.77 | ||
| EV/EBITDA | 126.18 |
EPS(TTM)1.68
EY1.25%
EPS(NY)2.29
Fwd EY1.7%
FCF(TTM)1.07
FCFY0.8%
OCF(TTM)1.49
OCFY1.11%
SpS4.17
BVpS6.99
TBVpS5.23
PEG (NY)16.73
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 | 38.17 |
F-Score8
WACC12.18%
ROIC/WACC0.64
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 3Y19.3%
EPS Next 5Y19.58%
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 3Y19.81%
Revenue Next 5Y23.75%
EBIT growth 1Y111.28%
EBIT growth 3Y6.91%
EBIT growth 5YN/A
EBIT Next Year24.3%
EBIT Next 3Y28.9%
EBIT Next 5Y26.58%
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 80.18 and the Price/Book (PB) ratio is 19.26.