COMPOSITE RISK SCORE
43
MODERATE
VAL:0/25 · FIN:14/25 · GRO:7/25 · TECH:22/25
📈 P/E RATIO
264.8x
Trailing
📖 P/B RATIO
27.0x
Price to Book
🏛 MARKET CAP
$210.9B
Large Cap
📊 ROE
11.3%
Return on Equity
Overview
Technical
Financials
Analysis
Verdict
🏢 Company Analysis · Arm Holdings plc
💼 BUSINESS MODEL
Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers.. The company is involved in the licensing, marketing, research, and development of microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services.. It also offers arm central processing units, accelerators, system IP products, and compute platform products, as well as development tools and software.. The company's products are used in various markets, such as automotive, computing infrastructure, consumer technologies, and Internet of things.. Operates in Semiconductors within the Technology sector. Workforce of 8,330 employees.
🏰 MOAT & COMPETITION
Mega-cap ($211B) — dominant market position with significant scale advantages. Profit margin of 17.1% — moderate pricing power.
🚀 CATALYSTS
Revenue growing at 26% — strong top-line momentum.
⚖️ ASYMMETRY CHECK
Analyst target range: $95 — $240 (mean $170, 36 analysts). Unfavorable asymmetry — limited upside +21% vs downside -52% (0.4x).P/E of 264.8x — premium valuation , growth must sustain to avoid de-rating risk.
🔭 FUTURE OUTLOOK
Analyst consensus: Buy (36 analysts). Latest quarter earnings declined -12% YoY — watch for recovery signals.
P/E at 265x
P/B at 27.0x
Analyst target: $169.59 (-14.6%)
1Y return: +77.9%
ROE: 11.3%
Profit margin: 17.1%
Revenue growth: 26.3%
Debt/Equity: 6%
Revenue growth: 26.3%
Earnings growth: -12.3%
Beta: 3.34
Sector: Technology
RSI, MACD, MA crossovers
200 DMA & 50 EMA position
Volume trend analysis
Price momentum signals
📈 Price Movement
1D 1W 1M
6M 1Y 3Y 5Y
🕯 Candlestick Chart
1D 1W 1M
6M 1Y 3Y 5Y
🎯 Price Prediction · Analyst Target Cone
📉 Valuation Trends (at current CMP)
P/E P/B MCap/Sales EPS
787.6
659.9
532.2
404.5
276.8
2022
2023
2024
2025
2022: 371.2 2023: 388.9 2024: 684.9 2025: 325.6 325.6
68.4
57.8
47.3
36.8
26.2
2022
2023
2024
2025
2022: 59.5 2023: 52.1 2024: 39.8 2025: 30.8 30.8
90.6
79.1
67.6
56.2
44.7
2022
2023
2024
2025
2022: 78.0 2023: 78.7 2024: 65.2 2025: 52.6 52.6
0.7
0.6
0.5
0.4
0.2
2022
2023
2024
2025
2022: 0.5 2023: 0.5 2024: 0.3 2025: 0.6 0.6
💎 Valuation & Financial Metrics
P/E RATIO
264.8x
Trailing twelve months
P/B RATIO
27.0x
Price to Book value
PROFIT MARGIN
17.1%
Net profit margin
OPM
15.4%
Operating profit margin
ANALYST TARGET
$169.59
Range: $95.00 - $240.00
PEG RATIO
2.39
Price/Earnings to Growth
EV/EBITDA
191.8x
Enterprise value ratio
CURRENT RATIO
5.43
Liquidity measure
DIVIDEND YIELD
N/A
Annual yield
GROSS MARGIN
97.5%
Gross profit margin
SECTOR BENCHMARKS — SEMICONDUCTORS
P/E (fair) 35.0x (sector mid)
P/B (fair) 8.0x (sector mid)
ROE (good) 25% (sector target)
OPM (good) 25% (sector target)
D/E comfort <20 (sector)
📋 Quarterly Performance Trend
Quarter Revenue QoQ % Net Profit QoQ % Op. Cash Flow EBITDA Margin
Q4 '24
$983.0M —
$252.0M —
$423.0M
22.6%
Q1 '25
$1.2B +26.2%
$210.0M -16.7%
$258.0M
37.0%
Q2 '25
$1.1B -15.1%
$130.0M -38.1%
$332.0M
16.5%
Q3 '25
$1.1B +7.8%
$238.0M +83.1%
$567.0M
19.2%
Q4 '25
$1.2B +9.4%
$223.0M -6.3%
$365.0M
20.5%
📊 Year-on-Year Trend
FY Revenue YoY % Net Profit YoY % Op. Cash Flow YoY %
2022
$2.7B —
$549.0M —
$458.0M —
2023
$2.7B -0.9%
$524.0M -4.6%
$739.0M +61.4%
2024
$3.2B +20.7%
$306.0M -41.6%
$1.1B +47.5%
2025
$4.0B +23.9%
$792.0M +158.8%
$397.0M -63.6%
📈 Revenue vs Earnings
Quarterly
Annual
💰 How Arm Holdings plc Makes Its Money
Quarterly
Annual
Revenue
$1.2B
Cost of Revenue
$30M
Gross Profit
$1.2B
R&D
$737M
SG&A
$284M
Operating Inc.
$191M
Other
$8M
Net Income
$223M
(18.0% margin)
Dec 2025 · All values in $ Millions
Revenue
$1.1B
Cost of Revenue
$29M
Gross Profit
$1.1B
R&D
$691M
SG&A
$252M
Operating Inc.
$163M
Tax
$64M
Other
$112M
Net Income
$238M
(21.0% margin)
Sep 2025 · All values in $ Millions
Revenue
$1.1B
Cost of Revenue
$30M
Gross Profit
$1.0B
R&D
$650M
SG&A
$259M
Operating Inc.
$114M
Tax
$16M
Net Income
$130M
(12.3% margin)
Jun 2025 · All values in $ Millions
Revenue
$1.2B
Cost of Revenue
$28M
Gross Profit
$1.2B
R&D
$546M
SG&A
$257M
Operating Inc.
$410M
Other
$293M
Net Income
$210M
(16.9% margin)
Mar 2025 · All values in $ Millions
Revenue
$4.0B
Cost of Revenue
$121M
Gross Profit
$3.9B
R&D
$2.1B
SG&A
$984M
Operating Inc.
$831M
Other
$227M
Net Income
$792M
(19.8% margin)
Mar 2025 · All values in $ Millions
Revenue
$3.2B
Cost of Revenue
$154M
Gross Profit
$3.1B
R&D
$2.0B
SG&A
$983M
Operating Inc.
$117M
Net Income
$306M
(9.5% margin)
Mar 2024 · All values in $ Millions
Revenue
$2.7B
Cost of Revenue
$106M
Gross Profit
$2.6B
R&D
$1.1B
SG&A
$762M
Operating Inc.
$678M
Tax
$147M
Other
$49M
Net Income
$524M
(19.6% margin)
Mar 2023 · All values in $ Millions
Revenue
$2.7B
Cost of Revenue
$131M
Gross Profit
$2.6B
R&D
$995M
SG&A
$897M
Operating Inc.
$680M
Tax
$110M
Other
$104M
Net Income
$549M
(20.3% margin)
Mar 2022 · All values in $ Millions
Dec 2025
Sep 2025
Jun 2025
Mar 2025
🏦 Snapshot of Arm Holdings plc's Balance Sheet
Quarterly
Annual
Total Assets
$10.2B
Cash & Equiv.: $2.8B (27.6%)
Receivables: $984M (9.7%)
Other Current: $1.9B (19.1%)
PP&E: $1.2B (11.7%)
Goodwill: $1.6B (16.0%)
Other Intangibles: $240M (2.4%)
Other Non-Curr.: $1.4B (13.6%)
Liab. + Equity
$10.2B
Current Liab.: $1.1B (10.4%)
Long-Term Debt: $397M (3.9%)
Other Liab.: $924M (9.1%)
Equity: $7.8B (76.6%)
As of Dec 2025 · All values in $ Millions
Total Assets
$9.7B
Cash & Equiv.: $2.5B (25.9%)
Receivables: $1.1B (11.5%)
Other Current: $1.7B (17.8%)
PP&E: $1.0B (10.4%)
Goodwill: $1.6B (16.7%)
Other Intangibles: $245M (2.5%)
Other Non-Curr.: $1.5B (15.0%)
Liab. + Equity
$9.7B
Current Liab.: $960M (9.9%)
Long-Term Debt: $373M (3.8%)
Other Liab.: $970M (10.0%)
Equity: $7.4B (76.3%)
As of Sep 2025 · All values in $ Millions
Total Assets
$9.4B
Cash & Equiv.: $2.0B (20.8%)
Receivables: $1.3B (14.0%)
Other Current: $1.9B (20.2%)
PP&E: $873M (9.3%)
Goodwill: $1.6B (17.3%)
Other Intangibles: $263M (2.8%)
Other Non-Curr.: $1.5B (15.5%)
Liab. + Equity
$9.4B
Current Liab.: $1.0B (11.0%)
Long-Term Debt: $339M (3.6%)
Other Liab.: $1.0B (10.8%)
Equity: $7.0B (74.6%)
As of Jun 2025 · All values in $ Millions
Total Assets
$8.9B
Cash & Equiv.: $2.1B (23.3%)
Receivables: $1.1B (12.4%)
Other Current: $1.6B (18.3%)
PP&E: $714M (8.0%)
Goodwill: $1.6B (18.1%)
Other Intangibles: $151M (1.7%)
Other Non-Curr.: $1.6B (18.1%)
Liab. + Equity
$8.9B
Current Liab.: $929M (10.4%)
Long-Term Debt: $316M (3.5%)
Other Liab.: $848M (9.5%)
Equity: $6.8B (76.6%)
As of Mar 2025 · All values in $ Millions
Total Assets
$8.9B
Cash & Equiv.: $2.1B (23.3%)
Receivables: $1.1B (12.4%)
Other Current: $1.6B (18.3%)
PP&E: $714M (8.0%)
Goodwill: $1.6B (18.1%)
Other Intangibles: $151M (1.7%)
Other Non-Curr.: $1.6B (18.1%)
Liab. + Equity
$8.9B
Current Liab.: $929M (10.4%)
Long-Term Debt: $316M (3.5%)
Other Liab.: $848M (9.5%)
Equity: $6.8B (76.6%)
As of Mar 2025 · All values in $ Millions
Total Assets
$7.9B
Cash & Equiv.: $1.9B (24.3%)
Receivables: $781M (9.9%)
Other Current: $1.5B (18.8%)
PP&E: $420M (5.3%)
Goodwill: $1.6B (20.5%)
Other Intangibles: $152M (1.9%)
Other Non-Curr.: $1.5B (19.3%)
Liab. + Equity
$7.9B
Current Liab.: $1.5B (19.0%)
Long-Term Debt: $194M (2.4%)
Other Liab.: $933M (11.8%)
Equity: $5.3B (66.8%)
As of Mar 2024 · All values in $ Millions
Total Assets
$6.9B
Cash & Equiv.: $1.6B (22.6%)
Receivables: $999M (14.5%)
Other Current: $984M (14.3%)
PP&E: $391M (5.7%)
Goodwill: $1.6B (23.6%)
Other Intangibles: $138M (2.0%)
Other Non-Curr.: $1.2B (17.2%)
Liab. + Equity
$6.9B
Current Liab.: $1.4B (19.9%)
Long-Term Debt: $193M (2.8%)
Other Liab.: $1.3B (18.3%)
Equity: $4.1B (59.0%)
As of Mar 2023 · All values in $ Millions
Total Assets
$6.5B
Cash & Equiv.: $1.0B (15.4%)
Receivables: $1.1B (17.3%)
Other Current: $964M (14.8%)
PP&E: $417M (6.4%)
Goodwill: $1.6B (25.1%)
Other Intangibles: $205M (3.1%)
Other Non-Curr.: $1.2B (17.8%)
Liab. + Equity
$6.5B
Current Liab.: $1.4B (21.4%)
Long-Term Debt: $230M (3.5%)
Other Liab.: $1.3B (20.5%)
Equity: $3.5B (54.5%)
As of Mar 2022 · All values in $ Millions
Dec 2025
Sep 2025
Jun 2025
Mar 2025
💸 Looking into Arm Holdings plc's Cash Flow
Quarterly
Annual
Operating CF
$365M
Capital Exp.
$184M
Free Cash Flow
$181M
Retained / Other
$181M
FY2025 · All values in $ Millions
Operating CF
$567M
Capital Exp.
$140M
Free Cash Flow
$427M
Retained / Other
$427M
FY2025 · All values in $ Millions
Operating CF
$332M
Capital Exp.
$161M
Free Cash Flow
$171M
Retained / Other
$171M
FY2025 · All values in $ Millions
Operating CF
$258M
Capital Exp.
$78M
Free Cash Flow
$180M
Retained / Other
$180M
FY2025 · All values in $ Millions
Operating CF
$397M
Capital Exp.
$239M
Free Cash Flow
$158M
Retained / Other
$158M
FY2025 · All values in $ Millions
Operating CF
$1.1B
Capital Exp.
$143M
Free Cash Flow
$947M
Retained / Other
$947M
FY2024 · All values in $ Millions
Operating CF
$739M
Capital Exp.
$93M
Free Cash Flow
$646M
Retained / Other
$646M
FY2023 · All values in $ Millions
Operating CF
$458M
Capital Exp.
$75M
Free Cash Flow
$383M
Retained / Other
$383M
FY2022 · All values in $ Millions
FY2025
FY2025
FY2025
FY2025
🎯 EPS: Estimate vs Actual
Estimates
Quarterly
Annual
📅 Quarterly Results
Item Dec '25 Sep '25 Jun '25 Mar '25 Dec '24 Total Revenue $1.24B $1.14B $1.05B $1.24B $983.0M Cost of Revenue $30.0M $29.0M $30.0M $28.0M $28.0M Gross Profit $1.21B $1.11B $1.02B $1.21B $955.0M Operating Expense $1.02B $943.0M $909.0M $803.0M $780.0M Operating Income $191.0M $163.0M $114.0M $410.0M $175.0M Interest Expense $29.0M $27.0M $27.0M $27.0M $28.0M Pretax Income $228.0M $302.0M $146.0M $144.0M $268.0M Tax Provision $5.0M $64.0M $16.0M $-66.0M $16.0M Net Income $223.0M $238.0M $130.0M $210.0M $252.0M EBITDA $254.0M $218.0M $174.0M $459.0M $222.0M EPS (Basic) $0.21 $0.22 $0.12 $0.20 $0.24 EPS (Diluted) $0.21 $0.22 $0.12 $0.20 $0.24 Shares Outstanding 1.07B 1.07B 1.06B 1.06B 1.06B
📊 Profit & Loss Statement
Item Mar '25 Mar '24 Mar '23 Mar '22 Total Revenue $4.01B $3.23B $2.68B $2.70B Cost of Revenue $121.0M $154.0M $106.0M $131.0M Gross Profit $3.89B $3.08B $2.57B $2.57B Operating Expense $3.06B $2.96B $1.90B $1.89B Operating Income $831.0M $117.0M $678.0M $680.0M Interest Expense $116.0M $110.0M $42.0M $2.0M Pretax Income $720.0M $212.0M $671.0M $786.0M Tax Provision $-72.0M $-94.0M $147.0M $110.0M Net Income $792.0M $306.0M $524.0M $549.0M EBITDA $1.01B $279.0M $848.0M $865.0M EPS (Basic) $0.62 $0.30 $0.51 $0.54 EPS (Diluted) $0.61 $0.29 $0.51 $0.54 Shares Outstanding 1.07B 1.04B 1.03B 1.03B
🏦 Balance Sheet
Item Mar '25 Mar '24 Mar '23 Mar '22 Total Assets $8.93B $7.93B $6.87B $6.51B Current Assets $4.83B $4.20B $3.54B $3.09B Cash & Equivalents $2.08B $1.92B $1.55B $1.00B Accounts Receivable $1.11B $781.0M $999.0M $1.12B Non-Current Assets $4.10B $3.73B $3.33B $3.42B Property Plant & Equip $714.0M $420.0M $391.0M $417.0M Goodwill $1.62B $1.62B $1.62B $1.64B Intangible Assets $1.77B $1.78B $1.76B $1.84B Total Liabilities $2.09B $2.63B $2.81B $2.96B Current Liabilities $929.0M $1.50B $1.36B $1.40B Accounts Payable $63.0M $26.0M $82.0M $57.0M Short-Term Debt $40.0M $32.0M $28.0M $31.0M Long-Term Debt $316.0M $194.0M $193.0M $230.0M Total Equity $6.84B $5.29B $4.05B $3.55B Retained Earnings $3.54B $2.75B $2.46B $1.93B Book Value/Share 5.07B 3.52B 2.29B 1.71B
💰 Cash Flow Statement
Item Mar '25 Mar '24 Mar '23 Mar '22 Operating Cash Flow $397.0M $1.09B $739.0M $458.0M Depreciation & Amort. $183.0M $162.0M $170.0M $185.0M Change in Working Cap $-1.47B $-195.0M $-73.0M $-188.0M Capital Expenditure $-239.0M $-143.0M $-93.0M $-75.0M Free Cash Flow $158.0M $947.0M $646.0M $383.0M Investing Cash Flow $-35.0M $-516.0M $-138.0M $-619.0M Acquisitions $-57.0M $-32.0M $-15.0M $-8.0M Financing Cash Flow $-202.0M $-208.0M $-42.0M $-32.0M Debt Issued — $0 $0 $50.0M Dividends Paid — — $0 $0 Net Change in Cash $160.0M $366.0M $559.0M $-193.0M
📈 Key Financial Ratios
Ratio FY2025 FY2024 FY2023 FY2022 Gross Margin % 97.0% 95.2% 96.0% 95.2% Operating Margin % 20.7% 3.6% 25.3% 25.2% Net Margin % 19.8% 9.5% 19.6% 20.3% EBITDA Margin % 25.3% 8.6% 31.7% 32.0% ROE % 11.6% 5.8% 12.9% 15.5% ROA % 8.9% 3.9% 7.6% 8.4% Debt/Equity % 5.2% 4.3% 5.5% 7.4% Current Ratio 5.20 2.79 2.60 2.22 FCF Margin % 3.9% 29.3% 24.1% 14.2% Asset Turnover 0.45 0.41 0.39 0.42
🚀 Compounded Growth Rates
Revenue
1-Year +23.9% 3-Year CAGR +22.3%
Net Profit
1-Year +158.8% 3-Year CAGR +22.9%
EPS
1-Year +110.3% 3-Year CAGR +9.3%
🏭 Industry Peers — Semiconductors
Ticker Company Price P/E P/B MCap ROE Margin Rev Growth AAPL Apple Inc. $269.05 34.1 44.9 $3,949.9B 152.0% 27.0% 15.7% MSFT Microsoft Corporation $424.14 26.6 8.1 $3,152.4B 34.4% 39.0% 16.7% GOOGL Alphabet Inc. $350.55 32.4 10.2 $4,240.8B 35.7% 32.8% 18.0% META Meta Platforms, Inc. $672.05 28.6 7.8 $1,705.9B 30.2% 30.1% 23.8% NVDA NVIDIA Corporation $210.41 42.9 32.5 $5,114.0B 101.5% 55.6% 73.2% ORCL Oracle Corporation $162.83 29.2 14.0 $468.3B 57.6% 25.3% 21.7% CRM Salesforce, Inc. $180.30 23.1 2.8 $147.5B 12.4% 18.0% 12.1% ADBE Adobe Inc. $241.55 14.1 8.6 $97.6B 58.8% 29.5% 12.0%
Peers selected from Technology sector · Data from Yahoo Finance
🏛 Shareholding Pattern
TOP HOLDERS
Holder Type Shares % Held Goldman Sachs Group Inc Inst 3,873,957 0.37% Morgan Stanley Inst 3,783,006 0.36% Sustainable Growth Advisors, LP Inst 2,668,130 0.25% Invesco Ltd. Inst 2,426,850 0.23% Bank of America Corporation Inst 2,345,553 0.22% Invesco QQQ Trust, Series 1 MF 2,942,973 0.28% VanEck ETF Trust-VanEck Semiconduct MF 2,091,641 0.20% EuroPacific Growth Fund-EUPAC Fund MF 1,351,825 0.13%
🟢 CATALYSTS
🏆 Positive Revenue Growth: Revenue growing at 26.3% YoY.
💹 Sector Opportunity: Technology / Semiconductors — positioned in growth sector.
🔴 RISKS
📜 High P/E (264.8x): Well above sector expensive threshold of 60x — leaves little room for error.
💰 High P/B (27.0x): Well above sector expensive threshold of 15x.
🔓 High Beta (3.34): More volatile than market — higher swing risk.
⚔ Below Analyst Target: CMP above mean target — limited upside consensus.
🕸 Factor Analysis · Radar
Momentum 8/10: 1M +45.0%, 6M +16.6%, RSI 63, MACD bullish, Above 200DMA Sentiment 4/10: Analyst upside -14.6%, Rec: buy Value 0/10: P/E 264.8, P/B 27.0, PEG 2.39, EV/EBITDA 191.8 Quality 7/10: ROE 11.3%, Margin 17.1%, D/E 6, CR 5.43 Low Volatility 1/10: Beta 3.34, Ann. vol 56% Momentum
8
Sentiment
4
Value
0
Quality
7
Low Vol
1
Momentum 8/10 1M +45.0%, 6M +16.6%, RSI 63, MACD bullish, Above 200DMA
Sentiment 4/10 Analyst upside -14.6%, Rec: buy
Value 0/10 P/E 264.8, P/B 27.0, PEG 2.39, EV/EBITDA 191.8
Quality 7/10 ROE 11.3%, Margin 17.1%, D/E 6, CR 5.43
Low Volatility 1/10 Beta 3.34, Ann. vol 56%
🎯 Decision Matrix — Game Theory
Action If Stock Rises If Stock Falls
BUY Benefit from potential re-rating OPM of 15% provides margin buffer HOLD Retain existing position; wait for better entry Miss further upside if momentum continues; 1M return of +45.0% shows momentum SELL Lock in +77.9% 1Y return Avoid further drawdown
REASONS TO BUY
Revenue growing at 26.3% YoY (sector norm: 12%)
REASONS TO SELL / AVOID
P/E of 264.8x exceeds sector expensive threshold of 60x
1Y return of +77.9% — profit booking opportunity
Trading above analyst target — consensus sees -14.6% downside
Arm Holdings plc trades at $198.62 with a composite risk score of 43/100.
The stock scores 0/25 on valuation, 14/25 on financial health, 7/25 on growth, and 22/25 on technicals.
The company is currently profitable with moderate return on equity.
Bottom Line: Neutral for Technology — wait for better entry or catalyst. The current recommendation is HOLD .
PROFITABLE
STRONG GROWTH
EXPENSIVE
VOLATILE