109.31 USD
-1.55 (-1.4%)
109.49 USD
+0.18 (+0.16%)
Taking everything into account, ARM scores 7 out of 10 in our fundamental rating. ARM was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. ARM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ARM shows excellent growth, but is valued quite expensive already. These ratings could make ARM a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year ARM was profitable.
ARM had a positive operating cash flow in the past year.
ARM had positive earnings in each of the past 5 years.
ARM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ARM (8.55%) is better than 77.88% of its industry peers.
ARM's Return On Equity of 11.21% is fine compared to the rest of the industry. ARM outperforms 74.34% of its industry peers.
The Return On Invested Capital of ARM (7.78%) 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 10.75%.
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
Looking at the Profit Margin, with a value of 18.81%, ARM is in the better half of the industry, outperforming 79.65% of the companies in the same industry.
ARM's Profit Margin has been stable in the last couple of years.
ARM has a Operating Margin of 19.54%. This is in the better half of the industry: ARM outperforms 78.76% 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 97.39%, 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 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARM 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
ARM has an Altman-Z score of 32.45. This indicates that ARM is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 32.45, ARM belongs to the best of the industry, outperforming 92.92% of the companies in the same industry.
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 | 32.45 |
ROIC/WACC0.62
WACC12.52%
2.3 Liquidity
A Current Ratio of 5.59 indicates that ARM has no problem at all paying its short term obligations.
With a decent Current ratio value of 5.59, ARM is doing good in the industry, outperforming 78.76% of the companies in the same industry.
A Quick Ratio of 5.59 indicates that ARM has no problem at all paying its short term obligations.
ARM has a Quick ratio of 5.59. This is amongst the best in the industry. ARM outperforms 84.96% 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
Based on estimates for the next years, ARM will show a quite strong growth in Earnings Per Share. The EPS will grow by 20.00% on average per year.
The Revenue is expected to grow by 24.28% on average over the next years. This is a very strong growth
EPS Next Y6%
EPS Next 2Y18.65%
EPS Next 3Y22.03%
EPS Next 5Y20%
Revenue Next Year21.22%
Revenue Next 2Y21.52%
Revenue Next 3Y20.84%
Revenue Next 5Y24.28%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 65.07, which means the current valuation is very expensive for ARM.
ARM's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.51. ARM is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 47.35, ARM can be considered very expensive at the moment.
ARM's Price/Forward Earnings ratio is in line with the industry average.
ARM is valuated expensively when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.07 | ||
| Fwd PE | 47.35 |
4.2 Price Multiples
ARM's Enterprise Value to EBITDA is on the same level as the industry average.
ARM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 101.75 | ||
| EV/EBITDA | 105.73 |
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.
A more expensive valuation may be justified as ARM's earnings are expected to grow with 22.03% in the coming years.
PEG (NY)10.84
PEG (5Y)N/A
EPS Next 2Y18.65%
EPS Next 3Y22.03%
5. Dividend
5.1 Amount
No dividends for ARM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
109.31
-1.55 (-1.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners7.58%
Inst Owner Change-8.36%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap115.79B
Revenue(TTM)4.41B
Net Income(TTM)830.00M
Analysts74
Price Target166.56 (52.37%)
Short Float %10.23%
Short Ratio3.36
Dividend
| Industry Rank | Sector 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)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)-1.94%
PT rev (3m)7.96%
EPS NQ rev (1m)0.68%
EPS NQ rev (3m)14.63%
EPS NY rev (1m)1.15%
EPS NY rev (3m)1.17%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)10.76%
Revenue NY rev (1m)1.72%
Revenue NY rev (3m)1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.07 | ||
| Fwd PE | 47.35 | ||
| P/S | 26.24 | ||
| P/FCF | 101.75 | ||
| P/OCF | 73.28 | ||
| P/B | 15.63 | ||
| P/tB | 20.91 | ||
| EV/EBITDA | 105.73 |
EPS(TTM)1.68
EY1.54%
EPS(NY)2.31
Fwd EY2.11%
FCF(TTM)1.07
FCFY0.98%
OCF(TTM)1.49
OCFY1.36%
SpS4.17
BVpS6.99
TBVpS5.23
PEG (NY)10.84
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 | 32.45 |
F-Score8
WACC12.52%
ROIC/WACC0.62
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 Y6%
EPS Next 2Y18.65%
EPS Next 3Y22.03%
EPS Next 5Y20%
Revenue 1Y (TTM)24.81%
Revenue growth 3Y14.02%
Revenue growth 5YN/A
Sales Q2Q%34.48%
Revenue Next Year21.22%
Revenue Next 2Y21.52%
Revenue Next 3Y20.84%
Revenue Next 5Y24.28%
EBIT growth 1Y111.28%
EBIT growth 3Y6.91%
EBIT growth 5YN/A
EBIT Next Year25.75%
EBIT Next 3Y27.96%
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.