(ARM) Arm Holdings American - Ratings and Ratios
Processor, License, Cpu, Gpu, Ip
ARM EPS (Earnings per Share)
ARM Revenue
Description: ARM Arm Holdings American
Arm Holdings plc is a leading designer and licensor of semiconductor intellectual property (IP), with a broad portfolio of products used in various markets, including automotive, computing infrastructure, consumer technologies, and Internet of Things (IoT). The companys products are integral to the development of a wide range of devices, from smartphones and laptops to servers and automotive systems.
Key performance indicators (KPIs) that highlight Arm Holdings financial and operational health include its revenue growth, driven by increasing demand for its IP in emerging markets such as AI, 5G, and IoT. The companys licensing model, which includes royalties and upfront payments, provides a diversified revenue stream. Additionally, Arms partnerships with major semiconductor companies and original equipment manufacturers (OEMs) are crucial to its success, as they enable the widespread adoption of its IP.
From a competitive standpoint, Arm Holdings operates in a highly competitive market, with major players such as Intel and AMD. However, Arms focus on power-efficient designs and its broad ecosystem of partners have enabled it to maintain a strong position in the market. Key metrics to watch include the companys royalty revenue, which is influenced by the sales of devices using its IP, as well as its research and development (R&D) expenses, which are critical to maintaining its technological edge.
Arm Holdings financials indicate a company with significant growth potential, as evidenced by its market capitalization and forward P/E ratio. The companys return on equity (RoE) of 12.71% suggests a relatively efficient use of shareholder capital. To further evaluate the companys prospects, it is essential to monitor its revenue growth, profit margins, and cash flow generation, as well as its ability to expand its IP portfolio and maintain its competitive position in the market.
ARM Stock Overview
| Market Cap in USD | 163,274m |
| Sub-Industry | Semiconductors |
| IPO / Inception | 2023-09-14 |
ARM Stock Ratings
| Growth Rating | 55.8% |
| Fundamental | 80.1% |
| Dividend Rating | - |
| Return 12m vs S&P 500 | -5.44% |
| Analyst Rating | 3.80 of 5 |
ARM Dividends
Currently no dividends paidARM Growth Ratios
| Growth Correlation 3m | -49.6% |
| Growth Correlation 12m | -5.1% |
| Growth Correlation 5y | 58.2% |
| CAGR 5y | 55.44% |
| CAGR/Max DD 3y | 1.03 |
| CAGR/Mean DD 3y | 2.65 |
| Sharpe Ratio 12m | 0.57 |
| Alpha | 0.08 |
| Beta | 0.722 |
| Volatility | 63.61% |
| Current Volume | 2500k |
| Average Volume 20d | 3202.1k |
| Stop Loss | 147.9 (-3.6%) |
| Signal | 0.93 |
Piotroski VR‑10 (Strict, 0-10) 5.0
| Net Income (699.0m TTM) > 0 and > 6% of Revenue (6% = 247.3m TTM) |
| FCFTA 0.07 (>2.0%) and ΔFCFTA -2.60pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 100.4% (prev 79.35%; Δ 21.01pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.11 (>3.0%) and CFO 1.02b > Net Income 699.0m (YES >=105%, WARN >=100%) |
| Net Debt (-1.56b) to EBITDA (822.0m) ratio: -1.90 <= 3.0 (WARN <= 3.5) |
| Current Ratio 4.99 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (1.06b) change vs 12m ago 0.47% (target <= -2.0% for YES) |
| Gross Margin 94.71% (prev 93.19%; Δ 1.52pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 47.71% (prev 44.38%; Δ 3.33pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| error: Interest Coverage Ratio cannot be calculated (needs EBITDA TTM and Interest Expense TTM) |
Altman Z'' 6.44
| (A) 0.44 = (Total Current Assets 5.17b - Total Current Liabilities 1.04b) / Total Assets 9.39b |
| (B) 0.39 = Retained Earnings (Balance) 3.67b / Total Assets 9.39b |
| (C) 0.07 = EBIT TTM 622.0m / Avg Total Assets 8.64b |
| (D) 1.71 = Book Value of Equity 4.09b / Total Liabilities 2.39b |
| Total Rating: 6.44 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 80.10
| 1. Piotroski 5.0pt = 0.0 |
| 2. FCF Yield 0.41% = 0.20 |
| 3. FCF Margin 16.04% = 4.01 |
| 4. Debt/Equity 0.20 = 2.48 |
| 5. Debt/Ebitda 1.71 = 0.56 |
| 6. ROIC - WACC (= 14.73)% = 12.50 |
| 7. RoE 10.64% = 0.89 |
| 8. Rev. Trend 91.69% = 6.88 |
| 9. EPS Trend 51.63% = 2.58 |
What is the price of ARM shares?
Over the past week, the price has changed by -0.50%, over one month by +8.73%, over three months by +5.98% and over the past year by +12.08%.
Is Arm Holdings American a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of ARM is around 151.35 USD . This means that ARM is currently overvalued and has a potential downside of -1.32%.
Is ARM a buy, sell or hold?
- Strong Buy: 17
- Buy: 5
- Hold: 14
- Sell: 1
- Strong Sell: 3
What are the forecasts/targets for the ARM price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 152.6 | -0.5% |
| Analysts Target Price | 152.6 | -0.5% |
| ValueRay Target Price | 169 | 10.2% |
Last update: 2025-09-12 04:31
ARM Fundamental Data Overview
CCE Cash And Equivalents = 2.91b USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 233.5454
P/E Forward = 88.4956
P/S = 39.6201
P/B = 23.3017
P/EG = 2.7905
Beta = None
Revenue TTM = 4.12b USD
EBIT TTM = 622.0m USD
EBITDA TTM = 822.0m USD
Long Term Debt = 1.35b USD (from nonCurrentLiabilitiesTotal, last quarter)
Short Term Debt = 57.0m USD (from shortTermDebt, last quarter)
Debt = 1.41b USD (Calculated: Short Term 57.0m + Long Term 1.35b)
Net Debt = -1.56b USD (from netDebt column, last quarter)
Enterprise Value = 161.78b USD (163.27b + Debt 1.41b - CCE 2.91b)
Interest Coverage Ratio = unknown (Ebit TTM 622.0m / Interest Expense TTM 0.0)
FCF Yield = 0.41% (FCF TTM 661.0m / Enterprise Value 161.78b)
FCF Margin = 16.04% (FCF TTM 661.0m / Revenue TTM 4.12b)
Net Margin = 16.96% (Net Income TTM 699.0m / Revenue TTM 4.12b)
Gross Margin = 94.71% ((Revenue TTM 4.12b - Cost of Revenue TTM 218.0m) / Revenue TTM)
Tobins Q-Ratio = 39.59 (Enterprise Value 161.78b / Book Value Of Equity 4.09b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 1.41b)
Taxrate = -10.0% (set to none) (-72.0m / 720.0m)
NOPAT = unknown (EBIT/Op.Income or Taxrate missing)
Current Ratio = 4.99 (Total Current Assets 5.17b / Total Current Liabilities 1.04b)
Debt / Equity = 0.20 (Debt 1.41b / last Quarter total Stockholder Equity 7.01b)
Debt / EBITDA = 1.71 (Net Debt -1.56b / EBITDA 822.0m)
Debt / FCF = 2.13 (Debt 1.41b / FCF TTM 661.0m)
Total Stockholder Equity = 6.57b (last 4 quarters mean)
RoA = 7.44% (Net Income 699.0m, Total Assets 9.39b )
RoE = 10.64% (Net Income TTM 699.0m / Total Stockholder Equity 6.57b)
RoCE = 7.85% (Ebit 622.0m / (Equity 6.57b + L.T.Debt 1.35b))
RoIC = 14.73% (Ebit 622.0m / (Assets 9.39b - Current Assets 5.17b))
WACC = unknown (E(163.27b)/V(164.68b) * Re(8.67%)) + (D(1.41b)/V(164.68b) * Rd(0.0%) * (1-Tc(none)))
Shares Correlation 3-Years: 78.16 | Cagr: 0.34%
Discount Rate = 8.67% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 73.75% ; FCFE base≈700.2m ; Y1≈612.2m ; Y5≈496.6m
Fair Price DCF = 7.62 (DCF Value 8.07b / Shares Outstanding 1.06b; 5y FCF grow -15.38% → 3.0% )
EPS Correlation: 51.63 | EPS CAGR: 20.86% | SUE: 0.0 | # QB: 0
Revenue Correlation: 91.69 | Revenue CAGR: 20.54% | SUE: N/A | # QB: None
Additional Sources for ARM Stock
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