|ARM Overview
ARM

ARM HOLDINGS PLC /UK

Technology • CIK: 0001973239

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Market Cap
$149.38B
P/E (TTM)
183.8x
Rev Growth (TTM)
+24.8%
Net Margin (TTM)
18.8%
FCF Yield (TTM)
0.4%
FCF Margin (TTM)
13.2%

LATEST EARNINGS

No earnings in last 90 days

Check back after next 8-K filing

Cash Flow Health

Free Cash Flow6/8 positive
TTM$583M
Q3 '25
$429M+141%
Q2 '25
$178M-3%
FCF Margin
TTM13.2%
Q3 '2537.8%+124%
Sector: 14.5%Below Avg
OCF Margin22.9%
OCF/NI1.22x
CapEx Coverage2.4x
FCF Yield0.4%
FCF Growth (2Y)
Cash Conversion Cycle
92 days
DSO: 92+DIO: 0DPO: 0

Capital Allocation & Returns

Total Shareholder Yield
TTM0.0%
Div Yield0.0%

Insufficient data

Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$583.0M
Capital Return / FCF0.0%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
10.4%
Stable
+0.9% YoY+3.4%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
15.9%
8Q: 10.5%
Asset Turnover
0.49x
8Q: 0.47x
Leverage (1+D/E)
1.00x
D/E: 0.00x
DuPont: 7.8%10.4% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
10.98x
8Q:13.48x
-752.0%
Invested Cap Turn
0.70x
8Q:0.68x
-4.3%
CapEx Intensity
6.8%
8Q:4.2%
CapEx/Depreciation
2.03x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024Q4 2023
Revenue
$4.4B
$1.1B7.8%
$1.1B15.1%
$1.2B26.2%
$983.0M16.5%
$844.0M10.1%
$939.0M1.2%
$928.0M12.6%
$824.0M
Operating Income
$862.0M
$163.0M43.0%
$114.0M72.2%
$410.0M134.3%
$175.0M173.4%
$64.0M64.8%
$182.0M727.3%
$22.0M83.6%
$134.0M
Net Income
$830.0M
$238.0M83.1%
$130.0M38.1%
$210.0M16.7%
$252.0M135.5%
$107.0M52.0%
$223.0M0.4%
$224.0M157.5%
$87.0M
Operating Cash Flow
$1.0B
$567.0M70.8%
$332.0M28.7%
$258.0M277.9%
$-145.0M2316.7%
$-6.0M102.1%
$290.0M56.5%
$667.0M115.2%
$310.0M
Free Cash Flow
$583.0M
$429.0M141.0%
$178.0M3.3%
$184.0M188.5%
$-208.0M252.5%
$-59.0M122.6%
$261.0M60.2%
$656.0M127.0%
$289.0M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
183.8x
Volatile
8Q: 711.1x+2149%
High PEG ratio (6.1x) suggests expensive for growth
Valuation Lenses
Earnings
183.8x
vs sector
Cash Flow
237.2x
EV/FCF vs
Growth-Adj
6.1xPEG
Expensive for growth
Quality-Adj
17.7P/E per %ROIC
ROIC: 10.4%
Shareholder Returns
Dividend
Buyback
Total Yield
Market Cap$149.38B
EV
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
76/100
High Quality

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Above Avg
12.3%
8Q:
Return on Invested Capital (ROIC)Top 25%
10.4%
8Q:
+3.4%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 15.9%
Asset Turnover: 0.49x

Earnings Quality

Cash Conversion

1.22x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin97.4%

Capital Efficiency

Invested Capital Turnover0.70x

Working Capital

Cash Conversion Cycle92 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
70/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
24.8%
OpInc Growth YoY
154.7%
EPS Growth YoY
30.0%
FCF 3Y CAGR
N/A

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
97.4%
Operating
19.5%
Above Avg in sector
Net
18.8%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
-5.6 pts
FCF: 13.2% | Net: 18.8%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $3.26B
Interest Coverage
+Net cash position: $3.26B
Leverage Metrics
Debt-to-Equity
0.00x
Balance sheet risk & solvency analysis