Arm Holdings plc American Depositary Shares

ARM

Semiconductors · Technology

Price

$267.19

+5.18 (+1.98%)

Market Cap

$284.29B

Exchange

NASDAQ

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Share count rising — dilution

+4.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 1.03B (2022) → 1.07B (2026)

Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products. It offers microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services. Its products are used in various markets, such as automotive, computing infrastructure, consumer technologies, and Inter

Winston Score History

Politician Trades

3 trades / 12mo

1 Congressional buy and 2 sells on ARM in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+33.7% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

-9.1% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$2.8B/ year

↑ Rising (+38% vs prior year)

56.4% of revenue

3.8x the sector average (15%)

Investing heavily in future products and technology

Insider Activity

0.5%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$2.1B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Arm Holdings plc American Depositary Shares grew revenue 34% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

95.8%

Premium pricing power — 95.8% gross margin

Operating Margin

33.0%

Excellent — 33.0% operating margin

ROCE

6.0%

Weak — 6.0% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+26.4%

Fast-growing sales (26.4% YoY)

EPS YoY

-2.6%

Earnings shrinking (-2.6% YoY)

Slight earnings drop. Typical near a cyclical low.

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

190%

Turns 190% of profit into real cash

FCF Margin

20.8%

Converts sales into free cash efficiently (20.8%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

0.01

Conservative — low debt load (0.01)

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

356.3x

Expensive — P/E 356.3

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+273.0

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (356.3 → 83.2)

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Dividends

Not applicable for this business.

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