NASDAQ · Technology

Arm Holdings plc

ARM · Semiconductors

$204.29

▼ -6.78 (-3.21%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Arm Holdings plc at $204.29.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability A

Gross Profit Margin 97.0%

Operating Margin 20.7%

Net Income Margin 19.8%

Fin. Health A

Years to Pay Off Debt 0.4 yrs

Working Capital vs Long-Term Debt $3.6B

Working Capital $3.9B

Valuation F

Margin of Safety 0.0%

Price-to-Book 31.72x

Cash Flow B

Free Cash Flow $158M

CapEx % of Net Income 30.2%

Owner Earnings $1.2B

3/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $217.0B

Enterprise Value $221.2B

P/E (TTM) 268.81

Dividend Yield N/A

Exchange NASDAQ

Key Margins

Gross Profit 97.0%

Operating Margin 20.7%

Net Margin 19.8%

Company Info

Sector Technology

Industry Semiconductors

Employees 8330

Country United Kingdom

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Arm Holdings plc at $204.29.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $204.29, the stock trades at a 2073% premium to its Graham Number of $9.40. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Trading at 79.3x NCAV. Expected for most quality businesses — NCAV was designed to find depression-era bargains and rarely applies to modern profitable companies..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About Arm Holdings plc

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. It operates in the United States, the People's Republic of China, Taiwan, the Republic of Korea, and internationally. Arm Holdings plc has a strategic collaboration with International Business Machines Corporation. The company was founded in 1990 and is headquartered in Cambridge, the United Kingdom. Arm Holdings plc operates as a subsidiary of SoftBank Group Corp.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022
Gross Profit %	97.0% ▲	95.2%	96.0%	95.2%
Operating Margin %	20.7% ▲	3.6%	25.3%	25.2%
Net Income %	19.8% ▲	9.5%	19.6%	20.3%
Diluted EPS	0.61 ▲	0.29	0.51	0.54

Balance Sheet Highlights

Metric	2025	2024	2023	2022
Total Assets	$8.9B	$7.9B	$6.9B	$6.5B
Total Debt	$356M ↑	$226M	$221M	$261M
Working Capital	$3.9B ▲	$2.7B	$2.2B	$1.7B
Years to Pay Debt	0.45	0.74	0.42	0.48

Cash Flow Highlights

Metric	2025	2024	2023	2022
Free Cash Flow	$158M ▼	$947M	$646M	$383M
Owner Earnings	$1.2B	$611M	$787M	$809M
CapEx % of Net Income	30.2%	46.7%	17.7%	13.7%

Income Statement

	2025	2024	2023	2022
Tax Effect Of Unusual Items	-49,770	-5,460	-11,440	13,160
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	1,251,000	305,000	900,000	771,000
Total Unusual Items	-237,000	-26,000	-52,000	94,000
Total Unusual Items Excluding Goodwill	-237,000	-26,000	-52,000	94,000
Net Income From Continuing Operation Net Minority Interest	792,000	306,000	524,000	676,000
Reconciled Depreciation	183,000	162,000	170,000	185,000
Reconciled Cost Of Revenue	121,000	154,000	106,000	131,000
EBITDA	1,014,000	279,000	848,000	865,000
EBIT	831,000	117,000	678,000	680,000
Net Interest Income	116,000	110,000	42,000	2,000
Interest Income	116,000	110,000	42,000	2,000
Normalized Income	979,230	326,540	564,560	595,160
Net Income From Continuing And Discontinued Operation	792,000	306,000	524,000	549,000
Total Expenses	3,176,000	3,116,000	2,001,000	2,023,000
Total Operating Income As Reported	831,000	111,000	671,000	633,000
Diluted Average Shares	1,066,000	1,044,497	1,026,055	1,026,055
Basic Average Shares	1,050,000	1,027,443	1,026,055	1,026,055
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	792,000	306,000	524,000	549,000
Net Income Common Stockholders	792,000	306,000	524,000	549,000
Net Income	792,000	306,000	524,000	549,000
Net Income Including Noncontrolling Interests	792,000	306,000	524,000	549,000
Net Income Discontinuous Operations		0	0	-127,000
Net Income Continuous Operations	792,000	306,000	524,000	676,000
Tax Provision	-72,000	-94,000	147,000	110,000
Pretax Income	720,000	212,000	671,000	786,000
Other Income Expense	-227,000	-15,000	-49,000	104,000
Other Non Operating Income Expenses	10,000	11,000	3,000	10,000
Special Income Charges	0	-6,000	-7,000	-47,000
Impairment Of Capital Assets		0	0	21,000
Restructuring And Mergern Acquisition	0	6,000	7,000	26,000
Earnings From Equity Interest		-20,000	-45,000	141,000
Gain On Sale Of Security	-237,000	-20,000	-45,000	141,000
Net Non Operating Interest Income Expense	116,000	110,000	42,000	2,000
Interest Income Non Operating	116,000	110,000	42,000	2,000
Operating Income	831,000	117,000	678,000	680,000
Operating Expense	3,055,000	2,962,000	1,895,000	1,892,000
Research And Development	2,071,000	1,979,000	1,133,000	995,000
Selling General And Administration	984,000	983,000	762,000	897,000
Gross Profit	3,886,000	3,079,000	2,573,000	2,572,000
Cost Of Revenue	121,000	154,000	106,000	131,000
Total Revenue	4,007,000	3,233,000	2,679,000	2,703,000
Operating Revenue	4,007,000	3,233,000	2,679,000	2,703,000

Balance Sheet

	2025	2024	2023	2022
Treasury Shares Number	1
Ordinary Shares Number	1,056,514	1,040,330	1,025,234	1,026,055
Share Issued	1,056,515	1,040,330	1,025,234	1,026,055
Total Debt	356,000	226,000	221,000	261,000
Tangible Book Value	5,068,000	3,518,000	2,293,000	1,707,000
Invested Capital	6,839,000	5,295,000	4,051,000	3,548,000
Working Capital	3,901,000	2,692,000	2,174,000	1,697,000
Net Tangible Assets	5,068,000	3,518,000	2,293,000	1,707,000
Capital Lease Obligations	356,000	226,000	221,000	261,000
Common Stock Equity	6,839,000	5,295,000	4,051,000	3,548,000
Total Capitalization	6,839,000	5,295,000	4,051,000	3,548,000
Total Equity Gross Minority Interest	6,839,000	5,295,000	4,051,000	3,548,000
Stockholders Equity	6,839,000	5,295,000	4,051,000	3,548,000
Gains Losses Not Affecting Retained Earnings	372,000	371,000	376,000	399,000
Other Equity Adjustments	372,000	371,000	376,000	399,000
Retained Earnings	3,543,000	2,751,000	2,457,000	1,933,000
Additional Paid In Capital	2,922,000	2,171,000	1,216,000	1,214,000
Capital Stock	2,000	2,000	2,000	2,000
Common Stock	2,000	2,000	2,000	2,000
Total Liabilities Net Minority Interest	2,093,000	2,632,000	2,815,000	2,962,000
Total Non Current Liabilities Net Minority Interest	1,164,000	1,127,000	1,452,000	1,567,000
Other Non Current Liabilities	79,000	61,000	38,000	108,000
Employee Benefits	26,000	20,000	152,000	158,000
Non Current Accrued Expenses			152,000	158,000
Non Current Deferred Liabilities	743,000	852,000	1,069,000	1,071,000
Non Current Deferred Revenue	702,000	717,000	807,000	792,000
Non Current Deferred Taxes Liabilities	41,000	135,000	262,000	279,000
Long Term Debt And Capital Lease Obligation	316,000	194,000	193,000	230,000
Long Term Capital Lease Obligation	316,000	194,000	193,000	230,000
Current Liabilities	929,000	1,505,000	1,363,000	1,395,000
Other Current Liabilities	47,000	40,000	35,000	76,000
Current Deferred Liabilities	216,000	205,000	300,000	334,000
Current Deferred Revenue	216,000	205,000	300,000	334,000
Current Debt And Capital Lease Obligation	40,000	32,000	28,000	31,000
Current Capital Lease Obligation	40,000	32,000	28,000	31,000
Pensionand Other Post Retirement Benefit Plans Current	128,000	273,000	578,000	642,000
Payables And Accrued Expenses	498,000	955,000	422,000	312,000
Current Accrued Expenses	111,000	108,000	130,000	98,000
Payables	387,000	847,000	292,000	214,000
Dueto Related Parties Current			17,000	28,000
Total Tax Payable	324,000	821,000	210,000	129,000
Accounts Payable	63,000	26,000	82,000	57,000
Total Assets	8,932,000	7,927,000	6,866,000	6,510,000
Total Non Current Assets	4,102,000	3,730,000	3,329,000	3,418,000
Other Non Current Assets	305,000	270,000	202,000	189,000
Non Current Deferred Assets	401,000	282,000	139,000	135,000
Non Current Deferred Taxes Assets	401,000	282,000	139,000	135,000
Non Current Accounts Receivable	346,000	240,000	116,000	100,000
Investments And Advances	565,000	741,000	723,000	736,000
Investmentin Financial Assets	249,000	157,000	122,000	97,000
Available For Sale Securities	151,000	157,000	122,000	97,000
Trading Securities	98,000	0
Long Term Equity Investment	316,000	584,000	601,000	639,000
Investments In Other Ventures Under Equity Method	316,000	584,000	601,000	639,000
Goodwill And Other Intangible Assets	1,771,000	1,777,000	1,758,000	1,841,000
Other Intangible Assets	151,000	152,000	138,000	205,000
Goodwill	1,620,000	1,625,000	1,620,000	1,636,000
Net PPE	714,000	420,000	391,000	417,000
Accumulated Depreciation	-464,000	-391,000	-473,000	-441,000
Gross PPE	1,178,000	811,000	864,000	858,000
Leases	167,000	159,000	162,000	182,000
Construction In Progress	41,000	16,000	0
Other Properties	923,000	593,000	574,000	548,000
Machinery Furniture Equipment	47,000	43,000	53,000	53,000
Buildings And Improvements		0	75,000	75,000
Current Assets	4,830,000	4,197,000	3,537,000	3,092,000
Other Current Assets		157,000	169,000	167,000
Prepaid Assets	107,000	49,000
Receivables	1,898,000	1,225,000	1,153,000	1,290,000
Other Receivables	688,000	376,000	154,000	166,000
Taxes Receivable	103,000	68,000
Accounts Receivable	1,107,000	781,000	999,000	1,124,000
Allowance For Doubtful Accounts Receivable	-20,000	-3,000	-3,000	-40,000
Gross Accounts Receivable	1,127,000	784,000	1,002,000	1,164,000
Cash Cash Equivalents And Short Term Investments	2,825,000	2,923,000	2,215,000	1,635,000
Other Short Term Investments	740,000	1,000,000	661,000	631,000
Cash And Cash Equivalents	2,085,000	1,923,000	1,554,000	1,004,000

Cash Flow

	2025	2024	2023	2022
Free Cash Flow	158,000	947,000	646,000	383,000
Issuance Of Debt		0	0	50,000
Capital Expenditure	-239,000	-143,000	-93,000	-75,000
Interest Paid Supplemental Data		0	0	1,000
Income Tax Paid Supplemental Data	149,000	187,000	157,000	141,000
End Cash Position	2,085,000	1,923,000	1,554,000	1,004,000
Beginning Cash Position	1,923,000	1,554,000	1,004,000	1,214,000
Effect Of Exchange Rate Changes	2,000	3,000	-9,000	-17,000
Changes In Cash	160,000	366,000	559,000	-193,000
Financing Cash Flow	-202,000	-208,000	-42,000	-32,000
Cash Flow From Continuing Financing Activities	-202,000	-208,000	-42,000	-32,000
Net Other Financing Charges	-202,000	-208,000	-42,000	-82,000
Net Issuance Payments Of Debt		0	0	50,000
Net Short Term Debt Issuance		0	0	50,000
Short Term Debt Issuance		0	0	50,000
Investing Cash Flow	-35,000	-516,000	-138,000	-619,000
Cash Flow From Continuing Investing Activities	-35,000	-516,000	-138,000	-619,000
Net Other Investing Changes	1,000	-1,000
Net Investment Purchase And Sale	260,000	-340,000	-30,000	-536,000
Sale Of Investment	940,000	425,000	1,081,000	245,000
Purchase Of Investment	-680,000	-765,000	-1,111,000	-781,000
Net Business Purchase And Sale	-57,000	-32,000	-15,000	-8,000
Purchase Of Business	-57,000	-32,000	-15,000	-8,000
Net Intangibles Purchase And Sale	-20,000	-51,000	-29,000	-41,000
Purchase Of Intangibles	-20,000	-51,000	-29,000	-41,000
Net PPE Purchase And Sale	-219,000	-92,000	-64,000	-34,000
Purchase Of PPE	-219,000	-92,000	-64,000	-34,000
Operating Cash Flow	397,000	1,090,000	739,000	458,000
Cash Flow From Continuing Operating Activities	397,000	1,090,000	739,000	458,000
Change In Working Capital	-1,465,000	-195,000	-73,000	-188,000
Change In Other Working Capital	-4,000	-190,000	-37,000	-51,000
Change In Other Current Liabilities	-420,000	467,000	-55,000	42,000
Change In Payables And Accrued Expense	-158,000	-322,000	-103,000	239,000
Change In Accrued Expense	-152,000	-292,000	-138,000	127,000
Change In Payable	-6,000	-30,000	35,000	112,000
Change In Tax Payable	-6,000	-30,000	35,000	112,000
Change In Income Tax Payable	-6,000	-30,000	35,000	112,000
Change In Prepaid Assets	-140,000	-61,000	-1,000	-41,000
Change In Receivables	-743,000	-89,000	123,000	-377,000
Changes In Account Receivables	-331,000	218,000	125,000	-219,000
Other Non Cash Items	48,000	33,000	28,000	60,000
Stock Based Compensation	820,000	1,037,000	79,000	26,000
Asset Impairment Charge		0	0	43,000
Deferred Tax	-218,000	-273,000	-34,000	-76,000
Deferred Income Tax	-218,000	-273,000	-34,000	-76,000
Depreciation Amortization Depletion	183,000	162,000	170,000	185,000
Depreciation And Amortization	183,000	162,000	170,000	185,000
Amortization Cash Flow	87,000	86,000	93,000
Amortization Of Intangibles	87,000	86,000	93,000
Depreciation	95,900	76,000	77,200
Operating Gains Losses	237,000	20,000	45,000	-141,000
Earnings Losses From Equity Investments	237,000	20,000	45,000	-141,000
Net Income From Continuing Operations	792,000	306,000	524,000	549,000

These metrics estimate what Arm Holdings plc is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$9.40

Margin of Safety

Market Cap ÷ Company Value

1.00

P/B Ratio

31.72

Warren's Owner Earnings

$1.2B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅ Adequate Size

$4.0B

vs > $1.5B revenue

✅ Strong Financial Condition

5.20x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

❌ Dividend Record

No dividend

vs Uninterrupted dividends

❌ Earnings Growth

+14.0% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

268.8x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

31.72x P/B (P/E×P/B: 8527.7)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$2.58

Trading at 79.3x NCAV. Expected for most quality businesses — NCAV was designed to find depression-era bargains and rarely applies to modern profitable companies.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$8.69

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022
Capital Expenditure % of Net Income	30.2%	46.7%	17.7%	13.7%
Repurchase of Capital Stock	N/A	N/A	N/A	N/A
Free Cash Flow	$158M ▼	$947M ▲	$646M ▲	$383M •
Warren's Owner Earnings	$1.2B	$611M	$787M	$809M

Peers & Industry Comparison

Semiconductors — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
ARM	$204.29	$217.0B	268.81	97.0%	19.8%	$4.0B
NVDA NVIDIA Corporation	$198.74	$4,830.4B	40.6	71.1%	55.6%	$215.9B
AMD Advanced Micro Devices, Inc.	$344.39	$561.5B	132.5	52.5%	12.5%	$34.6B
INTC Intel Corporation	$96.43	$484.7B	N/A	37.2%	-5.9%	$53.8B
QCOM QUALCOMM Incorporated	$169.35	$178.5B	18.2	54.8%	22.3%	$44.5B
AVGO Broadcom Inc.	$416.50	$1,972.0B	81.0	76.7%	36.6%	$68.3B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.05%

Low — management has little skin in the game

Return on Equity (ROE)

11.6%

Adequate — returns are moderate

Return on Assets (ROA)

8.9%

Strong — management uses assets efficiently

Debt Trend YoY

+57.5% YoY

Debt is growing — management is leveraging up

Leadership Team

Rene Anthony Andrada Haas

CEO & Director

Age 63

Pay: $3,723,000

0.470% of net income

Jason Child

Executive VP & CFO

Age 56

Eric Hayes

Executive Vice President of Operations

Top Institutional Holders

Institution	% Owned	Shares
Goldman Sachs Group Inc	0.37%	3,873,957
Morgan Stanley	0.36%	3,783,006
Sustainable Growth Advisors, LP	0.25%	2,668,130
Invesco Ltd.	0.23%	2,426,850
Bank of America Corporation	0.22%	2,345,553
Coatue Management LLC	0.22%	2,300,000
Wellington Management Group, LLP	0.20%	2,149,159
Dz Bank Ag Deutsche Zentral Genossenschafts Bank, Frankfurt Am Main	0.20%	2,131,259

⚠️ Very high beta — extreme price volatility

Risk Analysis

Beta (Market Risk)

3.41

High volatility — moves more than the market

Short Interest

11.5% of float

Moderate short interest

Debt-to-Equity

0.06x

Conservative balance sheet — low financial risk

Current Ratio

5.43x

Strong liquidity — Graham approved

52-Week Price Range

Low: $100.02 Current: $204.29 High: $237.68

Currently at 76% of 52-week range

360investing