ARM
NEUTRAL
$115.75
Live
Arm Holdings plc · NASDAQ
Target $148.48
(+28.3%)
$80.0
52W Range
$183.16
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Mar 14, 2026
Market cap
$122.93B
P/E
154.33
ROE
11.3%
Profit margin
17.1%
Debt/Equity
0.06
Dividend yield
N/A
AI Analysis
AI-powered fundamental assessment
Confidence
82%
ARM exhibits strong financial health with a Piotroski F-Score of 8/9, indicating robust operational efficiency and profitability, though the absence of an Altman Z-Score prevents definitive distress risk assessment. The stock trades at a premium valuation (P/E 154.33, Forward P/E 54.10) relative to its intrinsic value estimates ($5.25 intrinsic, $11.13 Graham), suggesting high growth expectations are priced in. Despite a recent earnings decline (YoY -12.3%), revenue growth remains strong at 26.3%, supported by consistent earnings surprises in the last four quarters. However, the lack of dividend, weak technical trend, and elevated valuation pose near-term risks. Analysts remain bullish with a buy consensus and target price above current levels.
Key Strengths
Piotroski F-Score of 8/9 indicates strong financial health and operational efficiency
High gross margin (97.50%) and solid operating margin (15.38%) reflect strong pricing power and cost control
Robust revenue growth of 26.3% YoY, outpacing sector average
Extremely low debt/equity (0.06) and high liquidity (current ratio 5.43) signal strong balance sheet strength
Consistent earnings beat history with average surprise of +7.49% over last 4 quarters
Key Risks
Extremely high P/E ratio (154.33) and forward P/E (54.10) suggest overvaluation relative to current earnings
Negative year-over-year earnings growth (-12.3%) despite revenue growth, indicating margin pressure or one-time costs
No dividend and zero payout ratio limit income appeal for conservative investors
Technical trend is bearish (0/100), with 6-month decline of -23.2% and 1-month drop of -7.6%
Intrinsic value estimate ($5.25) is significantly below current price ($115.75), indicating a large valuation gap
AI Fair Value Estimate
Based on comprehensive analysis
$11.13
-90.4% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
59
Moderate
45
78
82
90
0
AI Verdict
neutral
Key drivers: Strong Piotroski F-Score and low leverage support financial health, High growth and margin resilience are positive, Overvaluation and negative earnings growth are headwinds, Lack of dividend and weak technicals reduce appeal
Confidence
85%
Value
45/100
Stock trades at a significant premium to both Graham Number and intrinsic value, implying valuation is driven by growth expectations rather than fundamentals.
Positives
- Graham Number of $11.13 provides a defensive floor
- Strong profitability and low debt support long-term value
Watchpoints
- Current price ($115.75) is over 10x the Graham Number
- Forward P/E of 54.10 is high relative to sector and historical norms
- Intrinsic value estimate ($5.25) is far below current price
Future
78/100
Growth remains strong, but earnings quality is mixed, with revenue expanding while profits contracted.
Positives
- 26.3% YoY revenue growth is strong and above sector average
- Consistent earnings surprises (avg +7.49%) suggest earnings quality
- Forward P/E of 54.10 implies market expects continued growth
Watchpoints
- Earnings declined -12.3% YoY despite revenue growth
- Q/Q earnings growth of -11.5% indicates near-term pressure
- No PEG ratio available limits growth-adjusted valuation analysis
Past
82/100
Historical performance is excellent, but recent deterioration in earnings growth raises concern.
Positives
- Piotroski F-Score of 8/9 reflects strong historical performance
- Consistent earnings beats over 11 quarters, including multiple +15%+ surprises
- High gross margin (97.50%) has been sustained over time
Watchpoints
- Recent earnings decline (-12.3% YoY) breaks a positive trend
- Q/Q earnings dropped -11.5%, signaling potential cyclical or operational issues
Health
90/100
Financial health is excellent based on Piotroski, but lack of Altman Z-Score prevents full distress risk evaluation.
Positives
- Piotroski F-Score of 8/9 indicates strong financial health
- Debt/Equity of 0.06 is exceptionally low
- Current and quick ratios (5.43 and 5.25) indicate strong liquidity
Watchpoints
- No Altman Z-Score available, so distress risk cannot be quantified
- Absence of EV/EBITDA and FCF data limits cash flow health assessment
Dividend
0/100
ARM does not pay dividends, making it unsuitable for income-focused strategies.
Positives
No standout positives identified.
Watchpoints
- No dividend yield or payout ratio
- Dividend strength score of 0/100 reflects no income generation
- Zero payout ratio limits appeal for income investors
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$115.75
Analyst Target
$148.48
Upside/Downside
+28.3%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for ARM and closest competitors.
Updated 2026-03-13
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
ARM
Arm Holdings plc
Primary
|
+82.0% | +82.0% | +3.3% | -23.2% | -7.6% | +1.2% |
|
ACN
Accenture plc
Peer
|
-20.8% | -19.4% | -39.2% | -19.1% | -11.2% | -3.1% |
|
INTU
Intuit Inc.
Peer
|
+12.9% | -1.1% | -29.1% | -36.5% | +3.2% | -0.0% |
|
PANW
Palo Alto Networks, Inc.
Peer
|
+193.2% | +60.5% | -6.0% | -21.3% | +6.8% | +2.0% |
|
STX
Seagate Technology Holdings plc
Peer
|
+631.5% | +998.1% | +634.6% | +159.8% | +56.8% | +10.4% |
ARM
Arm Holdings plc
Primary
5Y
+82.0%
3Y
+82.0%
1Y
+3.3%
6M
-23.2%
1M
-7.6%
1W
+1.2%
ACN
Accenture plc
Peer
5Y
-20.8%
3Y
-19.4%
1Y
-39.2%
6M
-19.1%
1M
-11.2%
1W
-3.1%
INT
Intuit Inc.
Peer
5Y
+12.9%
3Y
-1.1%
1Y
-29.1%
6M
-36.5%
1M
+3.2%
1W
-0.0%
PAN
Palo Alto Networks, Inc.
Peer
5Y
+193.2%
3Y
+60.5%
1Y
-6.0%
6M
-21.3%
1M
+6.8%
1W
+2.0%
STX
Seagate Technology Holdings plc
Peer
5Y
+631.5%
3Y
+998.1%
1Y
+634.6%
6M
+159.8%
1M
+56.8%
1W
+10.4%
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
154.33
Forward P/E
54.1
PEG Ratio
N/A
P/B Ratio
15.76
P/S Ratio
26.32
EV/Revenue
25.66
EV/EBITDA
110.58
Market Cap
$122.93B
Profitability
Profit margins and return metrics
Profit Margin
17.15%
Operating Margin
15.38%
Gross Margin
97.5%
ROE
11.27%
ROA
5.88%
Growth
Revenue and earnings growth rates
Revenue Growth
+26.3%
Earnings Growth
-12.3%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
-11.5%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.06
Low debt
Current Ratio
5.43
Strong
Quick Ratio
5.25
Excellent
Cash/Share
$3.33
Quarterly Earnings History
EPS performance vs analyst estimates
2026-05-06
$N/A
2026-02-04
$0.43
+5.1% surprise
2025-11-05
$0.39
+17.7% surprise
2025-07-30
$0.35
-0.3% surprise
Technology Sector Comparison
Comparing ARM against 565 companies in the Technology sector
(45 bullish, 197 neutral, 323 bearish)
P/E Ratio
154.33
This Stock
vs
82.88
Sector Avg
+86.2%
(Expensive)
Return on Equity (ROE)
11.27%
This Stock
vs
-33.47%
Sector Avg
-133.7%
(Below Avg)
Profit Margin
17.15%
This Stock
vs
-11.75%
Sector Avg
-246.0%
(Weaker)
Debt to Equity
0.06
This Stock
vs
0.74
Sector Avg
-92.1%
(Less Debt)
Revenue Growth
26.3%
This Stock
vs
4383.21%
Sector Avg
-99.4%
(Slower)
Current Ratio
5.43
This Stock
vs
3.59
Sector Avg
+51.4%
(Stronger)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
ARM
Arm Holdings plc
|
NEUTRAL | $122.93B | 154.33 | 11.3% | 17.1% | $115.75 | |
|
ACN
Accenture plc
|
NEUTRAL | $121.02B | 16.13 | 25.0% | 10.8% | $195.15 | Compare |
|
INTU
Intuit Inc.
|
NEUTRAL | $120.32B | 28.15 | 23.5% | 21.6% | $432.38 | Compare |
|
PANW
Palo Alto Networks, Inc.
|
NEUTRAL | $130.82B | 89.07 | 16.3% | 13.0% | $160.32 | Compare |
|
STX
Seagate Technology Holdings plc
|
NEUTRAL | $133.49B | 67.1 | -% | 19.6% | $595.86 | Compare |
ARM
Arm Holdings plc
NEUTRAL
Mkt Cap
$122.9B
P/E
154.3
ROE
11.3%
Price
$115.75
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
34 analysts
JP Morgan
2026-02-05
Overweight
Overweight
TD Cowen
2026-02-05
Buy
Buy
UBS
2026-02-05
Buy
Buy
RBC Capital
2026-02-05
Outperform
Outperform
Wells Fargo
2026-02-05
Overweight
Overweight
Evercore ISI Group
2026-02-05
Outperform
Outperform
Mizuho
2026-02-05
Outperform
Outperform
Rosenblatt
2026-02-05
Buy
Buy
Benchmark
2026-02-05
Hold
Hold
UBS
2026-01-26
Buy
Buy
Past News Coverage
Recent headlines mentioning ARM from our newsroom.
Newest → oldest
No matching news yet.