Stock · ARM · Technology
United Kingdom · Large Cap · listed since 2023 · Revenue 12 mo. $5.2B
Price as of 11/06/2026
Arm Holdings plc researches, develops, licenses, and markets central processing unit (CPU) intellectual property (IP), graphics processing unit IP, systems IP, compute subsystems (CSS), and associated software, tools and related services.
Arm Holdings plc researches, develops, licenses, and markets central processing unit (CPU) intellectual property (IP), graphics processing unit IP, systems IP, compute subsystems (CSS), and associated software, tools and related services. The company provides a product portfolio, including CPU IP, GPU and neural processing unit (NPU) accelerators, system IP such as interconnects, compute platform products including pre-integrated CSSs, and development tools and software. The company serves semiconductor companies, original equipment manufacturers (OEMs), cloud service providers (CSPs), and organizations developing chips for end markets such as smartphones, consumer electronics, industrial IoT, embedded systems, cloud data centers, networking, automotive, and robotics. It provides its products and services in the United States, China, Japan, Taiwan, Korea, and internationally. The company was founded in 1990 and is based in Cambridge, United Kingdom. Arm Holdings plc operates as a subsidiary of SoftBank Group Corp.
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Summary
46.7 of 100
Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.
Analysis
What the price requires
If free cash flow stays at €878.6M (2026), it supports €9.8B. The remaining €152.9B of the market value assume it grows more than 30% a year for 10 years and not at all afterwards.
Required FCF growth per year
over 30%
no growth afterwards
Price to operating cash flow 89.9×, below its usual range.
Middle half of 12 quarters: 93.5× to 184.3×, median 142.1×.
Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.
with respect to the priced-in expectation
with respect to the priced-in expectation
Since the last quarter
Q1 → Q2 2026
4 more unchanged: Revenue, 12 mo., Gross margin, Shares outstanding, Return on equity
Derivation
Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.
Price as of 11/06/2026.
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Return on equity | 10.91% | 14.60% | Rank 38 |
| Return on capital (Greenblatt) | 14.31% | 29.77% | Rank 27 |
| EBIT margin | 18.46% | 17.40% | Rank 53 |
| FCF margin | 19.90% | 18.54% | Rank 56 |
| Gross margin | 92.48% | 48.47% | Rank 100 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Revenue growth, 1 year | 22.79% | 12.70% | Rank 75 |
| Earnings growth, 3 years per year | 18.34% | 9.54% | Rank 69 |
| Earnings growth, 5 years per year | 17.49% | 14.07% | Rank 60 |
| Sustainable growth (ROE × retained earnings) | 11.08% | 2.87% | Rank 85 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Earnings yield | 0.48% | 2.64% | Rank 16 |
| FCF yield | 0.54% | 3.06% | Rank 13 |
| EV/saleslower is better | 36.20 | 5.18 | Rank 4 |
| EV/EBITlower is better | 196.15 | 26.24 | Rank 7 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Share price, 1 year | 0.74% | −0.59% | Rank 52 |
| Share price, 6 months | −17.64% | −4.46% | Rank 35 |
| Share price, 3 months | −33.07% | −5.84% | Rank 10 |
| Distance from 52-week high | −60.26% | −33.23% | Rank 7 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Accruals (Sloan)lower is better | −3.00% | 1.65% | Rank 78 |
| Change in share countlower is better | 0.47% | −0.17% | Rank 27 |
| Dividend streak in years | – | 8 | Rank 18 |
| Price reaction to results, market-adjusted | 5.50% | −1.57% | Rank 81 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Equity ratio | 77.42% | 53.98% | Rank 89 |
| Net debt/EBITDAlower is better | −2.24 | −0.20 | Rank 86 |
| Debt to equitylower is better | 0.06 | 0.33 | Rank 80 |
| Volatility, 1 yearlower is better | 80.42% | 50.37% | Rank 12 |
Ten years in figures
| Year | Revenue, $B | EBIT margin | FCF | Shares | Net debt |
|---|---|---|---|---|---|
| 2021 | 2.0 | 11.9% | $1.1B | 1.03B | – |
| 2022 | 2.7 | 25.2% | $383.0M | 1.03B | −$743.0M |
| 2023 | 2.7 | 25.3% | $646.0M | 1.03B | −$1.3B |
| 2024 | 3.2 | 3.1% | $947.0M | 1.04B | −$1.7B |
| 2025 | 4.0 | 20.6% | $178.0M | 1.06B | −$1.7B |
| 2026 | 4.9 | 18.5% | $979.0M | 1.07B | −$2.3B |
3 of 7 StockScorer Score rules met · How the score is built
Arm Holdings plc American Depositary Shares mainly meets criteria in the Growth category. Result from 18 strategies checked.
Arm Holdings plc American Depositary Shares is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.
3 of 7 rules met
5 of 11 points
Detail data
Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.
With a free account, you can see the match across all strategies checked in one complete overview.
Selected fundamental metrics for Arm Holdings plc American Depositary Shares.
| Metric | Stock | Sector |
|---|---|---|
| P/E ratio | 206.3 | 35.1 |
| P/B ratio | 22.5 | 5.5 |
| Return on equity (ROE) | 10.9% | 14.6% |
| Equity ratio | 77.4% | 54.0% |
| Debt-to-equity (D/E) | 0.06 | 0.33 |
| Dividend yield | 0.0% | 0.9% |
How comparable stocks in the same sector score in the StockScorer model.
| Symbol | Company | Rating |
|---|---|---|
| ARM | Arm Holdings plc American Depositary Sharesthis page | |
| ADI | Analog Devices Inc | High6.4 |
| QCOM | Qualcomm Incorporated | High7.3 |
| 2454.TW | MediaTek Inc | locked |
| MRVL | Marvell Technology Group Ltd | locked |
| KI5.F | Kioxia Holdings Corporation | locked |
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Learn more about the metrics in the metrics glossary or all rated stocks in the stock overview.
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