About Arm Holdings plc
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.
Arm Holdings plc (ARM) is a Technology company in the Semiconductors industry with a market capitalisation of $282.8B. The stock trades at 270.19x trailing earnings.
- Sector
- Technology
- Industry
- Semiconductors
- Market cap
- $282.8B
- P/E ratio
- 270.19
- Forward P/E
- 86.65
- EPS (TTM)
- $0.98
- Revenue (TTM)
- $5.2B
- Free cash flow
- $1.3B
- Profit margin
- 20.2%
- Beta
- 3.89
- Shares outstanding
- 1.1B
Financial health: Strong7.9/10
5 strengths, 1 concern. Weakest points: peg ratio.
- Return on equity: 13.4% (Watch, benchmark > 15%) — Earns 13.4% on shareholder equity, short of the > 15% mark.
- Gross margin: 97.5% (Strong, benchmark > 40%) — Keeps 97.5% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 20.2% (Strong, benchmark > 10%) — Turns 20.2% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $979.0M (Strong, benchmark positive) — Generated $979.0M of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 22.4% (Strong, benchmark > 10%) — Revenue changed 22.4% year on year, comfortably past the > 10% mark.
- Earnings growth: 108.3% (Strong, benchmark > 10%) — Earnings changed 108.3% year on year, comfortably past the > 10% mark.
- PEG ratio: 2.17 (Concern, benchmark < 1) — At 2.17, the price looks expensive relative to expected growth — Lynch treated 1.0 as fair value.