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ARM HOLDINGS PLC-ADR (ARM) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:ARM - US0420682058 - ADR

105.11 USD
+0.12 (+0.11%)
Last: 1/15/2026, 8:00:01 PM
106.85 USD
+1.74 (+1.66%)
Pre-Market: 1/16/2026, 7:23:50 AM
Fundamental Rating

7

ARM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 113 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

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.
  • Each year in the past 5 years ARM has 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

  • With a decent Return On Assets value of 8.55%, ARM is doing good in the industry, outperforming 77.88% 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 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 RankSector 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
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 Profit Margin of 18.81%. This is in the better half of the industry: ARM outperforms 79.65% of its industry peers.
  • In the last couple of years the Profit Margin of ARM has remained more or less at the same level.
  • The Operating Margin of ARM (19.54%) is better than 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 RankSector 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
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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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.
  • Compared to 1 year ago, ARM has more shares outstanding
  • ARM has a worse debt/assets ratio than last year.
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 30.86 indicates that ARM is not in any danger for bankruptcy at the moment.
  • ARM has a better Altman-Z score (30.86) than 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 0.02
Altman-Z 30.86
ROIC/WACC0.64
WACC12.19%
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 5.59 indicates that ARM has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 5.59, ARM is in the better half of the industry, outperforming 78.76% of the companies in the same industry.
  • ARM has a Quick Ratio of 5.59. This indicates that ARM is financially healthy and has no problem in meeting 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 RankSector Rank
Current Ratio 5.59
Quick Ratio 5.59
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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9

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 24.44% 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 24.81%.
  • 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.
  • Based on estimates for the next years, ARM will show a very strong growth in Revenue. The Revenue will grow by 24.28% on average per year.
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.
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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2

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 62.57, the valuation of ARM can be described as expensive.
  • The rest of the industry has a similar Price/Earnings ratio as ARM.
  • When comparing the Price/Earnings ratio of ARM to the average of the S&P500 Index (27.54), we can say ARM is valued expensively.
  • A Price/Forward Earnings ratio of 45.53 indicates a quite expensive valuation of ARM.
  • 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 24.31. ARM is valued rather expensively when compared to this.
Industry RankSector Rank
PE 62.57
Fwd PE 45.53
ARM Price Earnings VS Forward Price EarningsARM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

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 97.84
EV/EBITDA 100.06
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 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.
  • ARM's earnings are expected to grow with 22.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)10.43
PEG (5Y)N/A
EPS Next 2Y18.65%
EPS Next 3Y22.03%

More info and screens

0

5. Dividend

5.1 Amount

  • ARM does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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ARM HOLDINGS PLC-ADR

NASDAQ:ARM (1/15/2026, 8:00:01 PM)

Premarket: 106.85 +1.74 (+1.66%)

105.11

+0.12 (+0.11%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)11-05
Earnings (Next)02-05
Inst Owners7.63%
Inst Owner Change0.3%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap111.34B
Revenue(TTM)4.41B
Net Income(TTM)830.00M
Analysts73.17
Price Target166.56 (58.46%)
Short Float %10.23%
Short Ratio3.36
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)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)7.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.63%
EPS NY rev (1m)-1.17%
EPS NY rev (3m)1.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.76%
Revenue NY rev (1m)-0.69%
Revenue NY rev (3m)1.55%
Valuation
Industry RankSector Rank
PE 62.57
Fwd PE 45.53
P/S 25.24
P/FCF 97.84
P/OCF 70.47
P/B 15.03
P/tB 20.11
EV/EBITDA 100.06
EPS(TTM)1.68
EY1.6%
EPS(NY)2.31
Fwd EY2.2%
FCF(TTM)1.07
FCFY1.02%
OCF(TTM)1.49
OCFY1.42%
SpS4.17
BVpS6.99
TBVpS5.23
PEG (NY)10.43
PEG (5Y)N/A
Graham Number16.26
Profitability
Industry RankSector 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 RankSector 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 30.86
F-Score8
WACC12.19%
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 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.