ARM Arm Holdings plc - Fundamental Analysis
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ARM Stock | Fundamental Analysis & Investment Insights
NASDAQ
Technology
Semiconductors
Current Price
Live
$115.75
Analyst Target
$148.48
+28.3%
Upside
52W High
$183.16
52W Low
$80.0
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
82%
Analysis Accuracy
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 AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare ARM against industry averages and similar companies
Insider Trading & Analyst Ratings
Track insider transactions and Wall Street analyst recommendations
Past News Coverage
Recent headlines mentioning ARM from our newsroom.
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