Stock Analysis
Arm Holdings plc American Depositary SharesARM
P/E 269.13×· not meaningful — TTM earnings temporarily depressed
Sector: Technology
AnalystsBuy45 analystsPrice is 37% of the way from the year's low to its high.
Cash covers 802% of debt · FY 2026.
PMP Verdict
High quality, but expensive
Strengths
- Financial Health93
- Growth85
Risks
- Valuation17
Excellent business. Weak entry price.
Market context
-6.9% today· Z 1.3σ
Bull Case
- ✓Piotroski F-Score 7/9 — high earnings quality
- ✓Altman Z 58.3 — safe-zone balance sheet
- ✓Revenue CAGR 16.2% — durable top-line growth
What's happening with ARM
Profile
Strong financial health, moat, growth and earnings quality; valuation lags behind.
How is each axis scored?
- Valuation17/100 · Weak
- P/E vs own history (53th pct)12/25
- FCF yield (0.6%)5/25
- P/S (49.1x)0/25
- EV/EBIT (262.4x)0/25
- Growth85/100 · Strong
- Revenue CAGR (16.2%)20/25
- Net income CAGR (13.3%)20/25
- EPS CAGR 5Y (12.1%)20/25
- Fwd implied growth (110.2%)25/25
- Profitability64/100 · Moderate
- ROIC (13.7%)12/25
- ROE (10.5%)12/25
- Net margin (18.4%)20/25
- Operating margin (18.5%)20/25
- Financial Health93/100 · Strong
- Altman Z (58.35)25/25
- Current ratio (5.25)25/25
- Interest coverage (7.0x)18/25
- Net cash / debt (Net cash)25/25
- Quality84/100 · Strong
- Piotroski F (7/9)22/25
- Beneish M (-2.92)25/25
- FCF conversion (167%)25/25
- Margin stability (σ 8.7%)12/25
- Moat88/100 · Strong
- ROIC >12% years (4/5 yrs)20/25
- Median gross margin (96.0%)25/25
- FCF-positive years (5/5 yrs)25/25
- Worst-year net margin (worst 9.5%)18/25
Risk Flags
- ⚠SBC 23.5% of revenue — real dilution cost
About Arm Holdings plc American Depositary Shares
Arm Holdings is the IP owner and developer of the Arm architecture, which is used in 99% of the world's smartphone CPU cores. Show more
It also has high market share in other battery-powered devices like wearables, tablets, and sensors. Arm licenses its architecture for a fee, offering different types of licenses depending on the flexibility the customer needs. Customers like Apple or Qualcomm buy architectural licenses, which allow them to modify the architecture and add or delete instructions to tailor the chips to their specific needs. Other clients directly buy off-the-shelf designs from Arm. Both off-the-shelf and architectural customers pay a royalty fee per chip shipped. In 2026, Arm announced the launch of its own CPU products on top of its existing royalty business.
Employees: 9,584 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
17EP/E (TTM)267xC
Grade C: DistortedTTM earnings are temporarily depressed — this multiple overstates expensiveness. Forward P/E is a better guide — vs own 3Y history: 95.0x–643.8x · 53rd pct
P/FCF172.7xD
Grade D: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield0.6%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 3Y history: 0.1%–2.0% · 53rd pct
P/S (TTM)49.11xD
Grade D: ExpensivePrice / TTM Revenue (own statements) — vs own 3Y history: 18.6x–95.4x · 76th pct
EV/EBIT262.4xD
Grade D: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 3Y history: 66.1x–2543.1x · 54th pct
EV/Sales48.7xD
Grade D: Very expensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E127.2xD
Grade D: ExpensivePrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio28.00xD
Grade D: Very expensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio11.26D
Grade D: ExpensiveFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield—
TTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio—
Dividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
64BROIC13.7%C
Grade C: AverageNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE10.5%C
Grade C: AverageReturn on Equity. Neg. equity = heavy buybacks
ROA10.0%C
Grade C: AverageReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin18.4%A
Grade A: HighNet Income / Revenue
Operating Margin18.5%C
Grade C: AverageTTM EBIT / TTM Revenue
Gross Margin97.5%A
Grade A: PremiumGross Profit / Revenue
FCF Margin30.6%A
Grade A: HighFCF / Revenue
True FCF Margin7.2%C
Grade C: AverageTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
85ARevenue CAGR16.2%A
Grade A: HighCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR13.3%C
Grade C: OkCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)12.1%C
Grade C: OkCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth110.2%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)—
Share count change over 5Y
SBC / Net Income127.7%D
Grade D: HighStock-based comp/Net income. >30% = dilution risk
SBC / Revenue23.5%D
Grade D: HighTTM stock-based comp / TTM Revenue
Financial Health
93A+Altman Z-Score58.35A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio5.25xA
Grade A: HighCurrent Assets/Liabilities
Quick Ratio4.96xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage7.0xC
Grade C: OkEBIT/Interest. >10 Strong
Debt RepaymentNet CashA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBITNet CashA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity0.06xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt8.02xA
Grade A: CoveredCash covers how much of total debt. >1 = could repay all debt from cash
Quality
84APiotroski F-Score7/9A
Grade A: StrongFinancial strength 0–9. >7 Strong
Beneish M-Score-2.92A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion166.6%A
Grade A: StrongFCF / Net Income
Margin Stability8.7%C
Grade C: AverageEBIT margin std deviation. Lower = stable
Capex / Revenue12.0%C
Grade C: AverageTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.49xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Child Jason Filed | Child Jason | SellOpen market sale | -10400 | |
Abbey William Filed | Abbey William | Grant / award | +17.3K | |
Haas Rene A. Filed | Haas Rene A. | Grant / award | +425.0K | |
Haas Rene A. Filed | Haas Rene A. | Grant / award | +64 | |
Child Jason Filed | Child Jason | SellOpen market sale | -10400 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Bartels Laura Kathleen Filed | Bartels Laura Kathleen | Option exercise | -819 | |
Bartels Laura Kathleen Filed | Bartels Laura Kathleen | Option exercise | -862 | |
Bartels Laura Kathleen Filed | Bartels Laura Kathleen | Tax withholding | -856 |
Option exercise (M) rows report a derivative leg, not an open-market sale — a paired negative entry is the option position being consumed.
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
88AROIC >12% Years4/5 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)96.0%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years5/5 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor9.5%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$0.85
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$3.64
Cash & short-term investments per share (Finnhub)
Book Value / Share$8.08
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$485.00M
Total debt obligations (short + long term)
Cash & Equiv.$3.89B
Cash and short-term investments
Net Debt$-3.40BA
Grade A: Net CashTotal Debt minus Cash. Negative = Net Cash position
Total Equity$8.63B
Shareholders' equity (book value)
Asset / Liability4.36xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$241.63B
Current Market Capitalization
Beta3.81D
Grade D: High volatilityPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Mar 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Arm Holdings plc American Depositary Shares (ARM)
ARM is down 6.94% at the last close. Arm Holdings plc American Depositary Shares meets 7 of 9 Piotroski F-Score criteria, placing its fundamental strength in the top tier of US-listed stocks. Altman Z-Score of 58.35 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -2.92 suggests a low likelihood of earnings manipulation.
- Revenue has compounded at roughly 16% annually, with net income growing about 13% per year — a strong growth profile.
- Arm Holdings plc American Depositary Shares converts about 31% of revenue into free cash flow — strong cash generation.
- Company is effectively debt-free after netting cash.
- At a valuation score of 17/100, ARM trades at a premium to its historical multiples (P/E 267.3).
See how ARM ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all ARM moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Sep 21 | Regular | 322.16 | +16.89% | 3.61 |
| Sep 21 | After-hours | 326.96 | +18.63% | 3.97 |
| Sep 17 | Regular | 263.44 | +7.98% | 2.12 |
Frequently Asked Questions about ARM
What is the current Arm Holdings plc American Depositary Shares (ARM) stock price?
ARM is trading at $227.80 at the last market close, down 6.94% on the session. PreMarketPrice tracks ARM pre-market, intraday and after-hours prices.
Is ARM stock a buy right now?
PreMarketPrice's quantitative model rates Arm Holdings plc American Depositary Shares's financial health at 93/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is ARM stock overvalued?
Arm Holdings plc American Depositary Shares trades at a trailing P/E of 267.3 and our valuation score rates it 17/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Arm Holdings plc American Depositary Shares report earnings?
No confirmed earnings date is currently scheduled for ARM. The Earnings section lists recent reports and updates as dates are announced.
What sector does Arm Holdings plc American Depositary Shares operate in?
Arm Holdings plc American Depositary Shares operates in the Technology sector. The Related Stocks section lists sector peers for comparison.
What does Arm Holdings plc American Depositary Shares do?
Arm Holdings is the IP owner and developer of the Arm architecture, which is used in 99% of the world's smartphone CPU cores.
About Arm Holdings plc American Depositary Shares (ARM) Stock
Arm Holdings plc American Depositary Shares (ARM) is a US-listed stock operating in the Technology sector. As of the latest update, Arm Holdings plc American Depositary Shares is trading at $227.80, down 6.94% on the day with a market capitalization of $241.6 billion. The financial health score for ARM is 93/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for ARM stock.
ARM Stock Analysis & Key Metrics
On PreMarketPrice, you can track Arm Holdings plc American Depositary Shares (ARM) across multiple dimensions:
- Pre-market price & movement: Real-time ARM stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for ARM with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Arm Holdings plc American Depositary Shares across multiple reporting periods.
- Financial health score: A composite score of 93/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for ARM.
- Sector peers: Compare ARM against 4 other technology stocks on key financial metrics.
Is ARM a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Arm Holdings plc American Depositary Shares (ARM) as an investment. The financial health score of 93/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Arm Holdings plc American Depositary Shares (ARM) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.