Arm Holdings (ARM) Stock Analysis

November 11, 2026

This is a peer-relative look at Arm Holdings (ARM): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Semiconductors & Semiconductor Equipment peers, so every number reads in context rather than in isolation.

Company Profile

Arm Holdings (ARM) trades as an ADR rather than ordinary local shares — read it with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile fields for Arm Holdings (ARM)
Profile Item	ARM
Name	Arm Holdings plc ADR
Country/Region	United Kingdom
GICS Sector	Information Technology
GICS Industry Group	Semiconductors & Semiconductor Equipment
GICS Industry	Semiconductors & Semiconductor Equipment
GICS Sub-Industry	Semiconductors
Market Capitalization	186.84 billion USD
Currency	USD
Exchange	Nasdaq
Listing Date	September 14, 2023
Security Type	ADR

Price Performance

Cumulative Growth

ARM

GSPC

Arm Holdings (ARM) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Arm Holdings (ARM) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Arm Holdings (ARM) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Arm Holdings (ARM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: ARM	Industry group median
Total Return (1Y)	23.60%	35.06%
Total Return (3Y, Annualized)	53.99%	22.14%
Total Return (5Y, Annualized)	--	7.43%

Risk Profile

Drawdown History

ARM

GSPC

Arm Holdings (ARM) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Arm Holdings (ARM) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Arm Holdings (ARM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: ARM	Industry group median
Volatility (1Y, Annualized)	82.24%	73.97%
Beta (5Y)	3.92	1.84
Max Drawdown (5Y)	-62.06%	-64.62%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. ARM is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Arm Holdings (ARM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: ARM	Industry group median
Sharpe Ratio (1Y)	0.23	0.42
Sortino Ratio (1Y)	0.38	0.61

Profitability

ROE (TTM)

Arm Holdings (ARM) posts ROE of 11.35%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

ARM

Semiconductors & Semiconductor Equipment industry group

11.35%

Group distribution

Max: 52.82%
Q3: 22.26%
ARM: 11.35%
Median: 10.58%
Q1: 1.29%
Min: -16.89%

Largest peers

NVDA: 117.21%
SKHY: 92.54%
MU: 88.26%
AVGO: 44.25%
TSM: 41.86%
AMD: 11.96%
ARM: 11.35%

Where Arm Holdings (ARM) stands on ROE within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Arm Holdings (ARM) keeps 17.13% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

ARM

Semiconductors & Semiconductor Equipment industry group

17.13%

Group distribution

Max: 63.80%
Q3: 28.36%
ARM: 17.13%
Median: 11.44%
Q1: 0.90%
Min: -37.77%

Largest peers

SKHY: 70.27%
MU: 63.80%
NVDA: 63.66%
TSM: 51.12%
AVGO: 42.94%
ARM: 17.13%
AMD: 16.77%

Where Arm Holdings (ARM) stands on net margin within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Arm Holdings (ARM) turns 13.93% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

ARM

Semiconductors & Semiconductor Equipment industry group

13.93%

Group distribution

Max: 58.66%
Q3: 30.23%
Median: 15.91%
ARM: 13.93%
Q1: 7.54%
Min: -25.74%

Largest peers

MU: 80.68%
SKHY: 79.66%
NVDA: 66.24%
TSM: 58.66%
AVGO: 54.31%
AMD: 21.17%
ARM: 13.93%

Where Arm Holdings (ARM) stands on operating margin within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Arm Holdings (ARM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: ARM	Industry group median
ROE (TTM)	11.35%	10.58%
ROA (TTM)	5.50%	4.85%
Net Margin (TTM)	17.13%	11.44%
Operating Margin (TTM)	13.93%	15.91%
Gross Margin (TTM)	97.44%	49.36%

Growth

Revenue Growth

Arm Holdings (ARM) grew revenue 22.79%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

Arm Holdings (ARM): Revenue Growth across different time periods, set against Semiconductors & Semiconductor Equipment industry-group medians.

EPS Growth

Arm Holdings (ARM) grew earnings per share 13.33%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

Arm Holdings (ARM): EPS Growth across different time periods, set against Semiconductors & Semiconductor Equipment industry-group medians.

Growth Metrics

Arm Holdings (ARM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: ARM	Industry group median
Revenue Growth (YoY)	22.79%	9.64%
Revenue Growth (3Y CAGR)	22.46%	0.00%
EPS Growth (YoY)	13.33%	4.90%
EPS Growth (3Y CAGR)	18.51%	-7.71%

Financial Strength

Current Ratio (MRQ)

Arm Holdings (ARM) has current ratio of 6.35, above the industry’s typical middle range. Liquidity looks ample versus peers, though an unusually high cushion can also mean idle current assets or inefficient working capital.

ARM

Semiconductors & Semiconductor Equipment industry group

6.35

Group distribution

Max: 10.33
ARM: 6.35
Q3: 5.62
Median: 3.33
Q1: 2.35
Min: 1.03

Largest peers

SKHY: 26.88
ARM: 6.35
NVDA: 4.59
MU: 3.31
AMD: 2.73
TSM: 2.51
AVGO: 2.50

Where Arm Holdings (ARM) stands on current ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Arm Holdings (ARM) has debt-to-equity ratio of 0.06, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

ARM

Semiconductors & Semiconductor Equipment industry group

0.06

Group distribution

Max: 1.46
Q3: 0.65
Median: 0.27
ARM: 0.06
Q1: 0.04
Min: 0.00

Largest peers

AVGO: 0.60
NVDA: 0.17
AMD: 0.13
TSM: 0.12
ARM: 0.06
SKHY: 0.05
MU: 0.04

Where Arm Holdings (ARM) stands on debt-to-equity ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Arm Holdings (ARM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: ARM	Industry group median
Current Ratio (MRQ)	6.35	3.33
Debt / Equity (MRQ)	0.06	0.27
Net Debt / EBITDA	-2.77	-0.36

Dividends

Dividend Yield (TTM)

Arm Holdings (ARM) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.

ARM

Semiconductors & Semiconductor Equipment industry group

0.00%

Group distribution

Max: 1.37%
Q3: 0.65%
ARM: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

SKHY: 2,118.64%
TSM: 1.70%
AVGO: 0.89%
NVDA: 0.15%
MU: 0.09%
ARM: 0.00%
AMD: 0.00%

Where Arm Holdings (ARM) stands on dividend yield within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Arm Holdings (ARM) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.

ARM

Semiconductors & Semiconductor Equipment industry group

0.00%

Group distribution

Max: 49.64%
Q3: 21.71%
ARM: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

AVGO: 32.44%
TSM: 24.46%
NVDA: 3.54%
MU: 0.71%
ARM: 0.00%
SKHY: 0.00%
AMD: 0.00%

Where Arm Holdings (ARM) stands on payout ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Arm Holdings (ARM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: ARM	Industry group median
Dividend Yield (TTM)	0.00%	0.00%
Dividend Payout Ratio (TTM)	0.00%	0.00%

Valuation

P/E Ratio (TTM)

Arm Holdings (ARM) trades at P/E ratio of 200.71, above the peer range for its industry. The market is paying unusually heavily for TTM earnings relative to comparable companies.

ARM

Semiconductors & Semiconductor Equipment industry group

200.71

Group distribution

ARM: 200.71
Max: 110.34
Q3: 66.81
Median: 37.02
Q1: 23.96
Min: 8.12

Largest peers

ARM: 200.71
AMD: 95.95
AVGO: 37.51
TSM: 24.33
NVDA: 23.60
MU: 9.28
SKHY: 8.12

Where Arm Holdings (ARM) stands on P/E ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Arm Holdings (ARM) trades at 34.20 on P/S ratio, above the industry benchmark range. The stock is being valued at an unusually rich price per dollar of trailing revenue.

ARM

Semiconductors & Semiconductor Equipment industry group

34.20

Group distribution

ARM: 34.20
Max: 21.42
Q3: 12.27
Median: 5.76
Q1: 2.73
Min: 0.00

Largest peers

ARM: 34.20
AMD: 16.21
AVGO: 15.73
NVDA: 14.88
MU: 5.86
TSM: 0.39
SKHY: 0.00

Where Arm Holdings (ARM) stands on P/S ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Arm Holdings (ARM) trades at 20.56 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

ARM

Semiconductors & Semiconductor Equipment industry group

20.56

Group distribution

ARM: 20.56
Max: 14.06
Q3: 7.44
Median: 4.29
Q1: 2.30
Min: 0.20

Largest peers

TSM: 71.65
ARM: 20.56
NVDA: 19.68
AVGO: 14.06
AMD: 10.77
MU: 5.64
SKHY: 3.95

Where Arm Holdings (ARM) stands on P/B ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Arm Holdings (ARM) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: ARM	Industry group median
P/E Ratio (TTM)	200.71	37.02
P/S Ratio (TTM)	34.20	5.76
P/B Ratio (MRQ)	20.56	4.29
Free Cash Flow Yield (TTM)	0.61%	1.46%