ARM Stock Analysis: Arm Holdings American | NASDAQ
Semiconductors | NASDAQ, USA | Market Cap: 272.564m USD | 12M Return: 77.5% | US0420682058 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 937M
Qual. Beats: 3
Rev. Trend: 99.6%
Qual. Beats: 2
Warnings
Tailwinds
Seasonality 2.9 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Arm Holdings plc is a Cambridge, UK-based semiconductor intellectual property (IP) company founded in 1990 and operating as a subsidiary of SoftBank Group Corp. It designs and licenses CPU IP, GPU and neural processing unit (NPU) accelerators, system IP such as interconnects, pre-integrated compute subsystems (CSS), and related development tools and software, serving semiconductor firms, OEMs, cloud service providers, and chip developers across markets including smartphones, consumer electronics, industrial IoT, embedded systems, cloud data centers, networking, automotive, and robotics. Arm returned to the public markets via a high-profile NASDAQ IPO on September 14, 2023.
Unlike integrated device manufacturers that fabricate chips, Arm operates a fabless IP-licensing business model, generating revenue primarily through upfront licensing fees and per-unit royalties on chips shipped by its licensees. Its instruction set architecture is the dominant CPU platform in mobile handsets and is increasingly being adopted across data center, automotive, and IoT applications. The company maintains a global footprint, with significant customer and revenue concentration in the United States, China, Japan, Taiwan, and Korea.
- v9 architecture adoption lifts average royalty per chip
- Compute Subsystems and AI chip designs diversify beyond smartphones
- China smartphone demand and export controls threaten royalty revenue
| Net Income: 1.04b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.13 > 0.02 and ΔFCF/TA 6.17 > 1.0 |
| NWC/Revenue: 99.53% < 20% (prev 100.4%; Δ -0.83% < -1%) |
| CFO/TA 0.19 > 3% & CFO 2.09b > Net Income 1.04b |
| Net Debt (-3.40b) to EBITDA (1.37b): -2.48 < 3 |
| Current Ratio: 5.25 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.08b) vs 12m ago 1.22% < -2% |
| Gross Margin: error (current vs previous; cannot be calculated due to missing/invalid data or negative margin) |
| Asset Turnover: 50.08% > 50% (prev 43.86%; Δ 6.22% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.46 (Total Current Assets 6.34b - Total Current Liabilities 1.21b) / Total Assets 11.2b |
| B: 0.42 (Retained Earnings 4.72b / Total Assets 11.2b) |
| C: 0.11 (EBIT TTM 1.11b / Avg Total Assets 10.3b) |
| D: 3.36 (Book Value of Equity 8.63b / Total Liabilities 2.57b) |
| Altman-Z'' = 8.64 = AAA |
| DSRI: 0.74 (Receivables 2.00b/2.15b, Revenue 5.16b/4.12b) |
| GMI: 0.99 (GM 94.71% / 95.35%) |
| AQI: 0.87 (AQ_t 0.31 / AQ_t-1 0.36) |
| SGI: 1.25 (Revenue 5.16b / 4.12b) |
| TATA: -0.09 (NI 1.04b - CFO 2.09b) / TA 11.2b) |
| Beneish M = -3.15 (Cap -4..+1) = AA |
As of September 03, 2026, the stock is trading at USD 234.86 with a total of 2,423,600 shares traded. Over the past week, the price has changed by -6.45%, over one month by -1.76%, over three months by -41.68% and over the past year by +77.47%.
Current recommended Stop Loss: 213.10 (which is 9.3% or 1.2 ATR below the current price).
Arm Holdings American has received a consensus analysts rating of 4.13. Therefore, it is recommended to buy ARM.
- StrongBuy: 21
- Buy: 7
- Hold: 10
- Sell: 0
- StrongSell: 2
| Analysts Target Price | 286.4 | 22% |
P/E Trailing = 260.4184
P/E Forward = 113.6364
P/S = 52.8635
P/B = 31.0697
P/EG = 2.0617
Revenue TTM = 5.16b USD
EBIT TTM = 1.11b USD
EBITDA TTM = 1.37b USD
Long Term Debt = 423.0m USD (estimated: total debt 485.0m - short term 62.0m)
Short Term Debt = 62.0m USD (from shortTermDebt, last quarter)
Debt = 485.0m USD (from shortLongTermDebtTotal, last quarter) (leases 464.0m already included)
Net Debt = -3.40b USD (calculated: Debt 485.0m - CCE 3.89b)
Enterprise Value = 269b USD (273b + Debt 485.0m - CCE 3.89b)
Interest Coverage Ratio = unknown (Ebit TTM 1.11b / Interest Expense TTM 0.0)
EV/FCF = 182.6x (Enterprise Value 269b / FCF TTM 1.47b)
FCF Yield = 0.55% (FCF TTM 1.47b / Enterprise Value 269b)
FCF Margin = 28.59% (FCF TTM 1.47b / Revenue TTM 5.16b)
Net Margin = 20.25% (Net Income TTM 1.04b / Revenue TTM 5.16b)
Gross Margin = unknown ((Revenue TTM 5.16b - Cost of Revenue TTM 240.0m) / Revenue TTM)
Tobins Q-Ratio = 24.04 (Enterprise Value 269b / Total Assets 11.2b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 485.0m)
Taxrate = 17.41% (220.0m / 1.26b)
NOPAT = 916.0m (EBIT 1.11b * (1 - 17.41%))
Current Ratio = 5.25 (Total Current Assets 6.34b / Total Current Liabilities 1.21b)
Debt / Equity = 0.06 (Debt 485.0m / totalStockholderEquity, last quarter 8.63b)
Debt / EBITDA = -2.48 (Net Debt -3.40b / EBITDA 1.37b)
Debt / FCF = -2.31 (Net Debt -3.40b / FCF TTM 1.47b)
Total Stockholder Equity = 8.03b (last 4 quarters mean from totalStockholderEquity)
RoA = 10.14% (Net Income 1.04b / Total Assets 11.2b)
RoE = 13.00% (Net Income TTM 1.04b / Total Stockholder Equity 8.03b)
RoCE = 13.12% (EBIT 1.11b / Capital Employed (Equity 8.03b + L.T.Debt 423.0m))
RoIC = 9.35% (NOPAT 916.0m / Invested Capital 9.79b)
WACC = 15.86% (E(273b)/V(273b) * Re(15.89%) + D(485.0m)/V(273b) * Rd(0.0%) * (1-Tc(0.17)))
Discount Rate = 15.89% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 92.44 | Cagr: 0.86%
[DCF] Terminal Value 57.49% ; FCFF base≈1.15b ; Y1≈1.32b ; Y5≈1.94b
[DCF] Fair Price = 14.77 (EV 12.4b - Net Debt -3.40b = Equity 15.8b / Shares 1.07b; r=15.86% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 1.00 | # QB: 3
Revenue Correlation: 99.63 | Revenue CAGR: 24.19% | SUE: 0.87 | # QB: 2
EPS current Quarter (2026-09-30): EPS=0.47 | Chg30d=+8.09% | Revisions=+81% | Analysts=29
EPS next Quarter (2026-12-31): EPS=0.55 | Chg30d=+0.33% | Revisions=+26% | Analysts=28
EPS current Year (2027-03-31): EPS=2.23 | Chg30d=+2.42% | Revisions=+66% | GrowthEPS=+25.9% | GrowthRev=+22.9%
EPS next Year (2028-03-31): EPS=3.06 | Chg30d=-0.49% | Revisions=-7% | GrowthEPS=+37.3% | GrowthRev=+35.7%
[Analyst] Revisions Ratio: +46% (up=73, down=26)