ARM HOLDINGS PLC-ADR (ARM) Stock Fundamental Analysis

NASDAQ:ARM • US0420682058

127.45 USD
-1.81 (-1.4%)
At close: Feb 27, 2026
127.05 USD
-0.4 (-0.31%)
After Hours: 2/27/2026, 6:39:39 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

ARM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 114 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!


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.
  • In the past 5 years ARM has always been profitable.
  • Each year in the past 5 years ARM had a positive operating cash flow.
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

  • The Return On Assets of ARM (7.87%) is better than 76.32% of its industry peers.
  • ARM's Return On Equity of 10.27% is fine compared to the rest of the industry. ARM outperforms 71.93% of its industry peers.
  • The Return On Invested Capital of ARM (7.61%) is better than 75.44% 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 10.64%.
  • The last Return On Invested Capital (7.61%) for ARM is above the 3 year average (6.46%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.87%
ROE 10.27%
ROIC 7.61%
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

  • Looking at the Profit Margin, with a value of 17.15%, ARM is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
  • In the last couple of years the Profit Margin of ARM has remained more or less at the same level.
  • With a decent Operating Margin value of 18.80%, ARM is doing good in the industry, outperforming 77.19% of the companies in the same industry.
  • ARM's Operating Margin has declined in the last couple of years.
  • ARM has a better Gross Margin (97.50%) than 99.12% 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 18.8%
PM (TTM) 17.15%
GM 97.5%
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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ROAROEROICOperating and Profit MarginShow most profitable peers

7

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.
  • ARM has more shares outstanding than it did 1 year ago.
  • 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

  • ARM has an Altman-Z score of 36.41. This indicates that ARM is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 36.41, ARM belongs to the best of the industry, outperforming 92.11% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0.03
Altman-Z 36.41
ROIC/WACC0.6
WACC12.72%
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 5.43 indicates that ARM has no problem at all paying its short term obligations.
  • ARM's Current ratio of 5.43 is fine compared to the rest of the industry. ARM outperforms 75.44% of its industry peers.
  • A Quick Ratio of 5.43 indicates that ARM has no problem at all paying its short term obligations.
  • ARM has a better Quick ratio (5.43) than 79.82% of its industry peers.
Industry RankSector Rank
Current Ratio 5.43
Quick Ratio 5.43
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

9

3. Growth

3.1 Past

  • ARM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.62%, which is quite good.
  • ARM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.27% yearly.
  • ARM shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.45%.
  • The Revenue has been growing by 14.02% on average over the past years. This is quite good.
EPS 1Y (TTM)18.62%
EPS 3Y12.27%
EPS 5YN/A
EPS Q2Q%10.26%
Revenue 1Y (TTM)26.45%
Revenue growth 3Y14.02%
Revenue growth 5YN/A
Sales Q2Q%26.35%

3.2 Future

  • ARM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.43% yearly.
  • The Revenue is expected to grow by 21.31% on average over the next years. This is a very strong growth
EPS Next Y5.23%
EPS Next 2Y18.46%
EPS Next 3Y22.12%
EPS Next 5Y22.43%
Revenue Next Year22.58%
Revenue Next 2Y21.58%
Revenue Next 3Y21.26%
Revenue Next 5Y21.31%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 74.10, ARM can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of ARM is on the same level as its industry peers.
  • The average S&P500 Price/Earnings ratio is at 27.10. ARM is valued rather expensively when compared to this.
  • The Price/Forward Earnings ratio is 55.38, which means the current valuation is very expensive for ARM.
  • ARM's Price/Forward Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 28.06. ARM is valued rather expensively when compared to this.
Industry RankSector Rank
PE 74.1
Fwd PE 55.38
ARM Price Earnings VS Forward Price EarningsARM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • ARM's Enterprise Value to EBITDA ratio is in line with the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as ARM.
Industry RankSector Rank
P/FCF 140.77
EV/EBITDA 120.06
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 an expensive valuation of the company.
  • 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 22.12% in the coming years.
PEG (NY)14.16
PEG (5Y)N/A
EPS Next 2Y18.46%
EPS Next 3Y22.12%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • No dividends for ARM!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

ARM HOLDINGS PLC-ADR

NASDAQ:ARM (2/27/2026, 6:39:39 PM)

After market: 127.05 -0.4 (-0.31%)

127.45

-1.81 (-1.4%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-04
Earnings (Next)05-06
Inst Owners7.63%
Inst Owner Change5.28%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap135.00B
Revenue(TTM)4.67B
Net Income(TTM)801.00M
Analysts72.73
Price Target158.6 (24.44%)
Short Float %11.18%
Short Ratio2.45
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)2
Avg EPS beat(2)10.12%
Min EPS beat(2)4.57%
Max EPS beat(2)15.67%
EPS beat(4)3
Avg EPS beat(4)5.56%
Min EPS beat(4)-1.76%
Max EPS beat(4)15.67%
EPS beat(8)7
Avg EPS beat(8)10.45%
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)2
Avg Revenue beat(2)3.22%
Min Revenue beat(2)0.57%
Max Revenue beat(2)5.88%
Revenue beat(4)2
Avg Revenue beat(4)1.22%
Min Revenue beat(4)-1.31%
Max Revenue beat(4)5.88%
Revenue beat(8)6
Avg Revenue beat(8)2.36%
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)-3.31%
PT rev (3m)-6.62%
EPS NQ rev (1m)1.81%
EPS NQ rev (3m)2.12%
EPS NY rev (1m)0%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)1.99%
Revenue NQ rev (3m)1.99%
Revenue NY rev (1m)1.12%
Revenue NY rev (3m)2.86%
Valuation
Industry RankSector Rank
PE 74.1
Fwd PE 55.38
P/S 28.9
P/FCF 140.77
P/OCF 88.7
P/B 17.31
P/tB 22.75
EV/EBITDA 120.06
EPS(TTM)1.72
EY1.35%
EPS(NY)2.3
Fwd EY1.81%
FCF(TTM)0.91
FCFY0.71%
OCF(TTM)1.44
OCFY1.13%
SpS4.41
BVpS7.36
TBVpS5.6
PEG (NY)14.16
PEG (5Y)N/A
Graham Number16.88
Profitability
Industry RankSector Rank
ROA 7.87%
ROE 10.27%
ROCE 9.63%
ROIC 7.61%
ROICexc 12.44%
ROICexgc 18.69%
OM 18.8%
PM (TTM) 17.15%
GM 97.5%
FCFM 20.53%
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-Score7
Asset Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.03
Debt/EBITDA 0
Cap/Depr 248.02%
Cap/Sales 12.05%
Interest Coverage 250
Cash Conversion 137.74%
Profit Quality 119.73%
Current Ratio 5.43
Quick Ratio 5.43
Altman-Z 36.41
F-Score7
WACC12.72%
ROIC/WACC0.6
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)18.62%
EPS 3Y12.27%
EPS 5YN/A
EPS Q2Q%10.26%
EPS Next Y5.23%
EPS Next 2Y18.46%
EPS Next 3Y22.12%
EPS Next 5Y22.43%
Revenue 1Y (TTM)26.45%
Revenue growth 3Y14.02%
Revenue growth 5YN/A
Sales Q2Q%26.35%
Revenue Next Year22.58%
Revenue Next 2Y21.58%
Revenue Next 3Y21.26%
Revenue Next 5Y21.31%
EBIT growth 1Y98.19%
EBIT growth 3Y6.91%
EBIT growth 5YN/A
EBIT Next Year23.49%
EBIT Next 3Y27.3%
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 6 / 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 7 / 10.