ARM HOLDINGS PLC-ADR (ARM) Stock Fundamental Analysis

NASDAQ:ARM • US0420682058

126.34 USD
+4.15 (+3.4%)
Last: Feb 13, 2026, 01:30 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to ARM. ARM was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making ARM a very profitable company, without any liquidiy or solvency issues. ARM shows excellent growth, but is valued quite expensive already. These ratings would make ARM suitable for growth and quality investing!


Dividend Valuation Growth Profitability Health

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.
  • In the past 5 years ARM always reported a positive cash flow from operatings.
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's Return On Assets of 7.87% is fine compared to the rest of the industry. ARM outperforms 75.22% of its industry peers.
  • Looking at the Return On Equity, with a value of 10.27%, ARM is in the better half of the industry, outperforming 70.80% of the companies in the same industry.
  • The Return On Invested Capital of ARM (7.61%) is better than 76.11% 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 10.76%.
  • The last Return On Invested Capital (7.61%) for ARM is above the 3 year average (6.46%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.87%
ROE 10.27%
ROIC 7.61%
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

  • ARM has a better Profit Margin (17.15%) than 77.88% of its industry peers.
  • ARM's Profit Margin has been stable in the last couple of years.
  • ARM's Operating Margin of 18.80% is fine compared to the rest of the industry. ARM outperforms 77.88% of its industry peers.
  • ARM's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 97.50%, ARM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ARM has remained more or less at the same level.
Industry RankSector Rank
OM 18.8%
PM (TTM) 17.15%
GM 97.5%
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

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

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.
  • Compared to 1 year ago, ARM has a worse debt to assets ratio.
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

  • An Altman-Z score of 34.52 indicates that ARM is not in any danger for bankruptcy at the moment.
  • ARM has a Altman-Z score of 34.52. This is amongst the best in the industry. ARM outperforms 92.04% 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 0.03
Altman-Z 34.52
ROIC/WACC0.59
WACC12.82%
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 5.43 indicates that ARM has no problem at all paying its short term obligations.
  • ARM has a Current ratio of 5.43. This is in the better half of the industry: ARM outperforms 77.88% of its industry peers.
  • A Quick Ratio of 5.43 indicates that ARM has no problem at all paying its short term obligations.
  • With an excellent Quick ratio value of 5.43, ARM belongs to the best of the industry, outperforming 82.30% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 5.43
Quick Ratio 5.43
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

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

9

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 18.62% 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 26.45%.
  • 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)18.62%
EPS 3Y12.27%
EPS 5YN/A
EPS Q2Q%10.26%
Revenue 1Y (TTM)26.45%
Revenue growth 3Y14.02%
Revenue growth 5YN/A
Sales Q2Q%26.35%

3.2 Future

  • Based on estimates for the next years, ARM will show a very strong growth in Earnings Per Share. The EPS will grow by 22.43% on average per year.
  • ARM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.31% yearly.
EPS Next Y5.23%
EPS Next 2Y18.46%
EPS Next 3Y22.12%
EPS Next 5Y22.43%
Revenue Next Year21.22%
Revenue Next 2Y21.79%
Revenue Next 3Y21.07%
Revenue Next 5Y21.31%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • 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 2033 5B 10B 15B
ARM Yearly EPS VS EstimatesARM Yearly EPS VS EstimatesYearly EPS VS Estimates 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2 4 6

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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 73.45, the valuation of ARM can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of ARM is on the same level as its industry peers.
  • When comparing the Price/Earnings ratio of ARM to the average of the S&P500 Index (27.67), we can say ARM is valued expensively.
  • With a Price/Forward Earnings ratio of 54.90, ARM can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ARM is on the same level as its industry peers.
  • The average S&P500 Price/Forward Earnings ratio is at 27.69. ARM is valued rather expensively when compared to this.
Industry RankSector Rank
PE 73.45
Fwd PE 54.9
ARM Price Earnings VS Forward Price EarningsARM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARM is on the same level as its industry peers.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as ARM.
Industry RankSector Rank
P/FCF 139.55
EV/EBITDA 113.28
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.
  • ARM has a very decent profitability rating, which may justify a higher PE ratio.
  • ARM's earnings are expected to grow with 22.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)14.04
PEG (5Y)N/A
EPS Next 2Y18.46%
EPS Next 3Y22.12%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • No dividends for ARM!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

ARM HOLDINGS PLC-ADR

NASDAQ:ARM (2/13/2026, 1:30:09 PM)

126.34

+4.15 (+3.4%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-04
Earnings (Next)05-06
Inst Owners7.63%
Inst Owner Change1.13%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap133.83B
Revenue(TTM)4.67B
Net Income(TTM)801.00M
Analysts72.73
Price Target158.6 (25.53%)
Short Float %12.74%
Short Ratio3.41
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)10.12%
Min EPS beat(2)4.57%
Max EPS beat(2)15.67%
EPS beat(4)3
Avg EPS beat(4)5.56%
Min EPS beat(4)-1.76%
Max EPS beat(4)15.67%
EPS beat(8)7
Avg EPS beat(8)10.45%
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)2
Avg Revenue beat(2)3.22%
Min Revenue beat(2)0.57%
Max Revenue beat(2)5.88%
Revenue beat(4)2
Avg Revenue beat(4)1.22%
Min Revenue beat(4)-1.31%
Max Revenue beat(4)5.88%
Revenue beat(8)6
Avg Revenue beat(8)2.36%
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)-4.78%
PT rev (3m)0.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.64%
EPS NY rev (1m)-0.72%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.72%
Valuation
Industry RankSector Rank
PE 73.45
Fwd PE 54.9
P/S 28.65
P/FCF 139.55
P/OCF 87.93
P/B 17.16
P/tB 22.56
EV/EBITDA 113.28
EPS(TTM)1.72
EY1.36%
EPS(NY)2.3
Fwd EY1.82%
FCF(TTM)0.91
FCFY0.72%
OCF(TTM)1.44
OCFY1.14%
SpS4.41
BVpS7.36
TBVpS5.6
PEG (NY)14.04
PEG (5Y)N/A
Graham Number16.88
Profitability
Industry RankSector Rank
ROA 7.87%
ROE 10.27%
ROCE 9.63%
ROIC 7.61%
ROICexc 12.44%
ROICexgc 18.69%
OM 18.8%
PM (TTM) 17.15%
GM 97.5%
FCFM 20.53%
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-Score7
Asset Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.03
Debt/EBITDA 0
Cap/Depr 248.02%
Cap/Sales 12.05%
Interest Coverage 250
Cash Conversion 137.74%
Profit Quality 119.73%
Current Ratio 5.43
Quick Ratio 5.43
Altman-Z 34.52
F-Score7
WACC12.82%
ROIC/WACC0.59
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)18.62%
EPS 3Y12.27%
EPS 5YN/A
EPS Q2Q%10.26%
EPS Next Y5.23%
EPS Next 2Y18.46%
EPS Next 3Y22.12%
EPS Next 5Y22.43%
Revenue 1Y (TTM)26.45%
Revenue growth 3Y14.02%
Revenue growth 5YN/A
Sales Q2Q%26.35%
Revenue Next Year21.22%
Revenue Next 2Y21.79%
Revenue Next 3Y21.07%
Revenue Next 5Y21.31%
EBIT growth 1Y98.19%
EBIT growth 3Y6.91%
EBIT growth 5YN/A
EBIT Next Year23.49%
EBIT Next 3Y27.3%
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 for ARM stock?

ChartMill assigns a valuation rating of 2 / 10 to ARM HOLDINGS PLC-ADR (ARM). This can be considered as Overvalued.


Can you provide the profitability details for ARM HOLDINGS PLC-ADR?

ARM HOLDINGS PLC-ADR (ARM) has a profitability rating of 7 / 10.


Can you provide the financial health for ARM stock?

The financial health rating of ARM HOLDINGS PLC-ADR (ARM) is 8 / 10.