(ARM) Arm Holdings American - Overview
Sector: Technology | Industry: Semiconductors | Exchange: NASDAQ (USA) | Market Cap: 341.778m USD | Total Return: 175.8% in 12m
Avg Turnover: 2.49B
Qual. Beats: -1
Rev. Trend: 99.6%
Qual. Beats: 1
Warnings
P/E ratio 382.4
Tailwinds
Supp Ema20, Rs Leader, Idiosyncratic Leader, Tailwind, Confidence
Arm Holdings plc is a semiconductor design and software company headquartered in Cambridge, UK, operating as a subsidiary of SoftBank Group Corp. The company architects and licenses central processing units (CPUs), graphics processing units (GPUs), and systems intellectual property to semiconductor manufacturers and original equipment manufacturers globally.
Unlike traditional chipmakers that manufacture physical hardware, Arm utilizes an IP-licensing business model, earning revenue through up-front licensing fees and ongoing royalties for every chip produced using its architecture. This high-margin approach allows Arms technology to permeate diverse markets, including automotive, mobile devices, and enterprise computing infrastructure.
The company maintains a strategic collaboration with IBM and serves major technology hubs in the United States, China, Taiwan, and South Korea. Given the complexity of semiconductor licensing, investors can use ValueRay to further analyze the companys long-term valuation metrics.
- Transition to Armv9 architecture accelerates royalty revenue growth per chip
- AI data center expansion increases high-margin infrastructure compute licensing
- SoftBank ownership creates stock volatility through potential secondary market offerings
- Geopolitical tensions impact revenue concentration from Arm China joint venture
- Smartphone market saturation limits volume growth in mobile processor segment
| Net Income: 904.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 7.27 > 1.0 |
| NWC/Revenue: 105.6% < 20% (prev 97.35%; Δ 8.26% < -1%) |
| CFO/TA 0.14 > 3% & CFO 1.52b > Net Income 904.0m |
| Net Debt (-2.71b) to EBITDA (1.36b): -1.99 < 3 |
| Current Ratio: 6.00 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.07b) vs 12m ago 0.28% < -2% |
| Gross Margin: 94.63% > 18% (prev 0.95%; Δ 9.37k% > 0.5%) |
| Asset Turnover: 50.11% > 50% (prev 44.86%; Δ 5.25% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBITDA TTM and Interest Expense TTM) |
| A: 0.49 (Total Current Assets 6.24b - Total Current Liabilities 1.04b) / Total Assets 10.7b |
| B: 0.42 (Retained Earnings 4.45b / Total Assets 10.7b) |
| C: 0.11 (EBIT TTM 1.12b / Avg Total Assets 9.82b) |
| D: 1.99 (Book Value of Equity 4.82b / Total Liabilities 2.42b) |
| Altman-Z'' = 7.40 = AAA |
| DSRI: 0.98 (Receivables 2.28b/1.90b, Revenue 4.92b/4.01b) |
| GMI: 1.00 (GM 94.63% / 94.70%) |
| AQI: 0.82 (AQ_t 0.31 / AQ_t-1 0.38) |
| SGI: 1.23 (Revenue 4.92b / 4.01b) |
| TATA: -0.06 (NI 904.0m - CFO 1.52b) / TA 10.7b) |
| Beneish M = -3.05 (Cap -4..+1) = AA |
As of May 30, 2026, the stock is trading at USD 353.29 with a total of 10,389,003 shares traded.
Over the past week, the price has changed by +18.46%,
over one month by +75.16%,
over three months by +177.20% and
over the past year by +175.79%.
Arm Holdings American has received a consensus analysts rating of 3.80. Therefore, it is recommended to hold ARM.
- StrongBuy: 17
- Buy: 5
- Hold: 14
- Sell: 1
- StrongSell: 3
| Analysts Target Price | 232.1 | -34.3% |
P/E Trailing = 382.4048
P/E Forward = 147.0588
P/S = 69.467
P/B = 41.2476
P/EG = 2.7918
Revenue TTM = 4.92b USD
EBIT TTM = 1.12b USD
EBITDA TTM = 1.36b USD
Long Term Debt = 393.0m USD (estimated: total debt 432.0m - short term 39.0m)
Short Term Debt = 39.0m USD (from shortTermDebt, last quarter)
Debt = 889.0m USD (from shortLongTermDebtTotal, last quarter) + Leases 457.0m
Net Debt = -2.71b USD (calculated: Debt 889.0m - CCE 3.60b)
Enterprise Value = 339b USD (342b + Debt 889.0m - CCE 3.60b)
Interest Coverage Ratio = unknown (Ebit TTM 1.12b / Interest Expense TTM 0.0)
EV/FCF = 348.8x (Enterprise Value 339b / FCF TTM 972.0m)
FCF Yield = 0.29% (FCF TTM 972.0m / Enterprise Value 339b)
FCF Margin = 19.76% (FCF TTM 972.0m / Revenue TTM 4.92b)
Net Margin = 18.37% (Net Income TTM 904.0m / Revenue TTM 4.92b)
Gross Margin = 94.63% ((Revenue TTM 4.92b - Cost of Revenue TTM 264.0m) / Revenue TTM)
Gross Margin QoQ = 93.09% (prev 94.20%)
Tobins Q-Ratio = 31.68 (Enterprise Value 339b / Total Assets 10.7b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 889.0m)
Taxrate = 34.93% (168.0m / 481.0m)
NOPAT = 726.2m (EBIT 1.12b * (1 - 34.93%))
Current Ratio = 6.00 (Total Current Assets 6.24b / Total Current Liabilities 1.04b)
Debt / Equity = 0.11 (Debt 889.0m / totalStockholderEquity, last quarter 8.29b)
Debt / EBITDA = -1.99 (Net Debt -2.71b / EBITDA 1.36b)
Debt / FCF = -2.79 (Net Debt -2.71b / FCF TTM 972.0m)
Total Stockholder Equity = 7.62b (last 4 quarters mean from totalStockholderEquity)
RoA = 9.21% (Net Income 904.0m / Total Assets 10.7b)
RoE = 11.86% (Net Income TTM 904.0m / Total Stockholder Equity 7.62b)
RoCE = 13.92% (EBIT 1.12b / Capital Employed (Equity 7.62b + L.T.Debt 393.0m))
RoIC = 7.57% (NOPAT 726.2m / Invested Capital 9.59b)
WACC = 14.75% (E(342b)/V(343b) * Re(14.79%) + D(889.0m)/V(343b) * Rd(0.0%) * (1-Tc(0.35)))
Discount Rate = 14.79% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 88.66 | Cagr: 0.81%
[DCF] Terminal Value 60.08% ; FCFF base≈648.0m ; Y1≈742.8m ; Y5≈1.09b
[DCF] Fair Price = 9.74 (EV 7.65b - Net Debt -2.71b = Equity 10.4b / Shares 1.06b; r=14.75% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -4.0 | # QB: -1
Revenue Correlation: 99.63 | Revenue CAGR: 24.65% | SUE: 0.88 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.40 | Chg30d=+9.28% | Revisions=+60% | Analysts=29
EPS next Quarter (2026-09-30): EPS=0.43 | Chg30d=+1.24% | Revisions=+17% | Analysts=26
EPS current Year (2027-03-31): EPS=2.17 | Chg30d=+1.06% | Revisions=+18% | GrowthEPS=+22.4% | GrowthRev=+21.3%
EPS next Year (2028-03-31): EPS=3.06 | Chg30d=+3.67% | Revisions=+36% | GrowthEPS=+41.0% | GrowthRev=+33.4%
[Analyst] Revisions Ratio: +60%