110.27 USD
-1.28 (-1.15%)
110.28 USD
+0.01 (+0.01%)
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. Both the health and profitability get an excellent rating, making ARM a very profitable company, without any liquidiy or solvency issues. 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.
ARM had a positive operating cash flow in the past year.
Each year in the past 5 years ARM has been profitable.
Each year in the past 5 years ARM had a positive operating cash flow.
1.2 Ratios
ARM's Return On Assets of 8.55% is fine compared to the rest of the industry. ARM outperforms 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.
Looking at the Return On Invested Capital, with a value of 7.78%, ARM is in the better half of the industry, outperforming 76.11% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARM is below the industry average of 10.77%.
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 in the better half of the industry: ARM outperforms 79.65% of its industry peers.
ARM's Profit Margin has been stable in the last couple of years.
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.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARM is destroying value.
Compared to 1 year ago, ARM has more shares outstanding
The debt/assets ratio for ARM is higher compared to a year ago.
2.2 Solvency
ARM has an Altman-Z score of 32.64. This indicates that ARM is financially healthy and has little risk of bankruptcy at the moment.
ARM has a better Altman-Z score (32.64) than 92.92% 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 | 32.64 |
ROIC/WACC0.62
WACC12.54%
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 Current ratio of 5.59. This is in the better half of the industry: ARM outperforms 78.76% of its industry peers.
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.
The Earnings Per Share has been growing by 12.27% on average over the past years. This is quite good.
The Revenue has grown by 24.81% in the past year. This is a very strong growth!
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
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 Y7.26%
EPS Next 2Y19.38%
EPS Next 3Y22.1%
EPS Next 5Y20%
Revenue Next Year22.06%
Revenue Next 2Y21.97%
Revenue Next 3Y20.87%
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.
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 65.64 indicates a quite expensive valuation of ARM.
ARM's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.57. ARM is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 47.18, which means the current valuation is very expensive for ARM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARM is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, ARM is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.64 | ||
| Fwd PE | 47.18 |
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 | 102.64 | ||
| EV/EBITDA | 106.41 |
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 22.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)9.05
PEG (5Y)N/A
EPS Next 2Y19.38%
EPS Next 3Y22.1%
5. Dividend
5.1 Amount
ARM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
110.27
-1.28 (-1.15%)
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 Cap116.81B
Revenue(TTM)4.41B
Net Income(TTM)830.00M
Analysts74
Price Target166.56 (51.05%)
Short Float %10.41%
Short Ratio3.1
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)7.66%
PT rev (3m)10.09%
EPS NQ rev (1m)0.68%
EPS NQ rev (3m)14.63%
EPS NY rev (1m)2.35%
EPS NY rev (3m)2.46%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)10.76%
Revenue NY rev (1m)2.43%
Revenue NY rev (3m)2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.64 | ||
| Fwd PE | 47.18 | ||
| P/S | 26.47 | ||
| P/FCF | 102.64 | ||
| P/OCF | 73.93 | ||
| P/B | 15.77 | ||
| P/tB | 21.1 | ||
| EV/EBITDA | 106.41 |
EPS(TTM)1.68
EY1.52%
EPS(NY)2.34
Fwd EY2.12%
FCF(TTM)1.07
FCFY0.97%
OCF(TTM)1.49
OCFY1.35%
SpS4.17
BVpS6.99
TBVpS5.23
PEG (NY)9.05
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 | 32.64 |
F-Score8
WACC12.54%
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 Y7.26%
EPS Next 2Y19.38%
EPS Next 3Y22.1%
EPS Next 5Y20%
Revenue 1Y (TTM)24.81%
Revenue growth 3Y14.02%
Revenue growth 5YN/A
Sales Q2Q%34.48%
Revenue Next Year22.06%
Revenue Next 2Y21.97%
Revenue Next 3Y20.87%
Revenue Next 5Y24.28%
EBIT growth 1Y111.28%
EBIT growth 3Y6.91%
EBIT growth 5YN/A
EBIT Next Year28.45%
EBIT Next 3Y28.08%
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 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 65.64 and the Price/Book (PB) ratio is 15.77.