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ARM HOLDINGS PLC-ADR (ARM) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:ARM - US0420682058 - ADR

107.17 USD
+1.39 (+1.31%)
Last: 1/20/2026, 8:00:01 PM
107.68 USD
+0.51 (+0.48%)
After Hours: 1/20/2026, 8:00:01 PM
Fundamental Rating

7

Overall ARM gets a fundamental rating of 7 out of 10. We evaluated ARM against 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. 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.
  • ARM had a positive operating cash flow in the past year.
  • 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

  • ARM has a better Return On Assets (8.55%) than 77.88% of its industry peers.
  • The Return On Equity of ARM (11.21%) is better than 74.34% of its industry peers.
  • ARM has a better Return On Invested Capital (7.78%) than 76.11% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ARM 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

  • With a decent Profit Margin value of 18.81%, ARM is doing good in 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.
  • 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.
  • ARM's Operating Margin has declined in the last couple of years.
  • The Gross Margin of ARM (97.39%) is better than 100.00% of its industry peers.
  • In the last couple of years the Gross Margin of ARM has remained more or less at the same level.
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

More info and screens

8

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARM 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

  • ARM has an Altman-Z score of 31.43. This indicates that ARM is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of ARM (31.43) is better than 92.04% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0.02
Altman-Z 31.43
ROIC/WACC0.64
WACC12.15%
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.
  • The Current ratio of ARM (5.59) is better than 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.
  • 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 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.
  • The Earnings Per Share has been growing by 12.27% on average over the past years. This is quite good.
  • Looking at the last year, ARM shows a very strong growth in Revenue. The Revenue has grown by 24.81%.
  • The Revenue has been growing by 14.02% on average over the past years. This is quite good.
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

  • The Earnings Per Share is expected to grow by 20.00% on average over the next years. This is quite good.
  • ARM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.28% yearly.
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.
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

  • A Price/Earnings ratio of 63.79 indicates a quite expensive valuation of ARM.
  • The rest of the industry has a similar Price/Earnings ratio as ARM.
  • Compared to an average S&P500 Price/Earnings ratio of 26.94, ARM is valued quite expensively.
  • The Price/Forward Earnings ratio is 46.42, 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 23.94, ARM is valued quite expensively.
Industry RankSector Rank
PE 63.79
Fwd PE 46.42
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as ARM.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARM is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 99.76
EV/EBITDA 102.09
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.
  • A more expensive valuation may be justified as ARM's earnings are expected to grow with 22.03% in the coming years.
PEG (NY)10.63
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%

More info and screens

ARM HOLDINGS PLC-ADR

NASDAQ:ARM (1/20/2026, 8:00:01 PM)

After market: 107.68 +0.51 (+0.48%)

107.17

+1.39 (+1.31%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)11-05
Earnings (Next)02-05
Inst Owners7.63%
Inst Owner Change0.15%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap113.52B
Revenue(TTM)4.41B
Net Income(TTM)830.00M
Analysts73.17
Price Target164.04 (53.07%)
Short Float %11.39%
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)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 RankSector Rank
PE 63.79
Fwd PE 46.42
P/S 25.73
P/FCF 99.76
P/OCF 71.85
P/B 15.33
P/tB 20.5
EV/EBITDA 102.09
EPS(TTM)1.68
EY1.57%
EPS(NY)2.31
Fwd EY2.15%
FCF(TTM)1.07
FCFY1%
OCF(TTM)1.49
OCFY1.39%
SpS4.17
BVpS6.99
TBVpS5.23
PEG (NY)10.63
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 31.43
F-Score8
WACC12.15%
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.