120.085 USD
+6.16 (+5.41%)
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. ARM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ARM shows excellent growth, but is valued quite expensive already. These ratings would make ARM suitable 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.
- 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.
1.2 Ratios
- The Return On Assets of ARM (8.55%) is better than 77.88% of its industry peers.
- Looking at the Return On Equity, with a value of 11.21%, ARM is in the better half of the industry, outperforming 74.34% of the companies in the same industry.
- With a decent Return On Invested Capital value of 7.78%, ARM is doing good in the industry, outperforming 76.11% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ARM is below the industry average of 10.75%.
- The 3 year average ROIC (6.46%) for ARM is below the current ROIC(7.78%), indicating increased profibility in the last year.
| 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's Profit Margin of 18.81% is fine compared to the rest of the industry. ARM outperforms 79.65% of its industry peers.
- ARM's Profit Margin has been stable in the last couple of years.
- With a decent Operating Margin value of 19.54%, ARM is doing good in the industry, outperforming 78.76% of the companies in the same industry.
- In the last couple of years the Operating Margin of ARM has declined.
- ARM has a Gross Margin of 97.39%. This is amongst the best in the industry. ARM outperforms 100.00% of its industry peers.
- 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.
- ARM has a worse debt/assets ratio than last year.
2.2 Solvency
- ARM has an Altman-Z score of 33.29. This indicates that ARM is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 33.29, ARM belongs to the best of the industry, outperforming 92.04% of the companies in the same industry.
- ARM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 33.29 |
ROIC/WACC0.64
WACC12.16%
2.3 Liquidity
- ARM has a Current Ratio of 5.59. This indicates that ARM is financially healthy and has no problem in meeting 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.
- Looking at the Quick ratio, with a value of 5.59, ARM belongs to the top of the industry, outperforming 84.96% of the companies in the same industry.
| 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.
- ARM shows a strong growth in Revenue. In the last year, 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
- ARM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.00% yearly.
- 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 2Y21.8%
Revenue Next 3Y20.81%
Revenue Next 5Y24.28%
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 71.48 indicates a quite expensive valuation of ARM.
- ARM's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, ARM is valued quite expensively.
- With a Price/Forward Earnings ratio of 52.02, 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.
- When comparing the Price/Forward Earnings ratio of ARM to the average of the S&P500 Index (24.30), we can say ARM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.48 | ||
| Fwd PE | 52.02 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as ARM.
- ARM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 111.78 | ||
| EV/EBITDA | 108.75 |
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.
- 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 22.03% in the coming years.
PEG (NY)11.91
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% |
NASDAQ:ARM (1/22/2026, 2:48:02 PM)
120.085
+6.16 (+5.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)11-05 2025-11-05/amc
Earnings (Next)02-05 2026-02-05/amc
Inst Owners7.63%
Inst Owner Change0.15%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap127.20B
Revenue(TTM)4.41B
Net Income(TTM)830.00M
Analysts73.17
Price Target164.04 (36.6%)
Short Float %11.39%
Short Ratio3.41
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)-3.42%
PT rev (3m)6.19%
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)-0.08%
Revenue NQ rev (3m)10.47%
Revenue NY rev (1m)-0.69%
Revenue NY rev (3m)1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.48 | ||
| Fwd PE | 52.02 | ||
| P/S | 28.83 | ||
| P/FCF | 111.78 | ||
| P/OCF | 80.51 | ||
| P/B | 17.17 | ||
| P/tB | 22.97 | ||
| EV/EBITDA | 108.75 |
EPS(TTM)1.68
EY1.4%
EPS(NY)2.31
Fwd EY1.92%
FCF(TTM)1.07
FCFY0.89%
OCF(TTM)1.49
OCFY1.24%
SpS4.17
BVpS6.99
TBVpS5.23
PEG (NY)11.91
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 | 33.29 |
F-Score8
WACC12.16%
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 2Y21.8%
Revenue Next 3Y20.81%
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.