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Arm Holdings plc - American Quality Score

ARM

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Quality54

Business quality is the primary weakness (avg 35/100). Growth is the relative bright spot.

Broad-market heuristics · Not a buy/sell signal

Valuation and growth

Earnings Multiple
40/100
197.7x

Above 30x, priced for sustained outperformance

Cash Flow Multiple
40/100
140.5x

Above 30x, cash flow yield is thin

Revenue Growth
100/100
17.8%

Above 10% CAGR, strong compounder

Cash Flow Growth
100/100
22.9%

Above 10% CAGR, strong compounder

Business Quality & Capital Allocation

Share Dilution
0/100
5.1%

Heavy dilution above 5%

Margin Trend
0/100
-8.0pp

Contracted >2pp, margin pressure

Capital Structure
100/100
-$3.14B

Net cash position, no leverage concern

2023
$2.21B
$221M
2024
$2.92B
$226M
2025
$2.83B
$356M
2026
$3.60B
$457M
CashDebt
Return on Capital
40/100
8.9%

8–10%, clearing the bar

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Arm Holdings plc - American (ARM) quality: score, margins and returns

Arm Holdings plc - American (ARM) scores 54/100 on Intrinsiqq's quality score (a mixed business), a weighted blend of 8 metrics each scored 0 to 100, on 17.3% operating margins and 8.9% ROIC. Every metric is computed from company filings; this is analysis, not investment advice.

Frequently asked

Is Arm Holdings plc - American (ARM) a high-quality business?+

Arm Holdings plc - American scores 54 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which rates it a mixed business on these measures. Recent figures include a 17.3% operating margin and a 8.9% return on invested capital. Quality and price are separate questions: even a great business can be a poor investment if you overpay, so read this score alongside the valuation. The metric-by-metric breakdown is on this scorecard.

What does Arm Holdings plc - American's quality score measure?+

Intrinsiqq's quality score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, change in share count, and balance-sheet strength, each computed from ARM's company filings rather than opinion or sentiment. A higher score means a more durable, capital-efficient business; it is not a buy or sell signal. Open each metric on this page to see exactly where Arm Holdings plc - American scores well and where it falls behind.

What is Arm Holdings plc - American's return on invested capital (ROIC)?+

Arm Holdings plc - American earns about 8.9% on its invested capital, which is modest. ROIC measures how much profit a company generates per dollar put to work; sustained ROIC above its cost of capital is one of the clearest signs of a real competitive moat. Compare it to ARM's margins and growth on this scorecard to judge durability.

How profitable is Arm Holdings plc - American?+

Arm Holdings plc - American runs an operating margin of about 17.3% and a net margin of about 20.2%. Revenue has grown at roughly 16.2% a year recently. High, stable margins usually point to pricing power and operating discipline. Margins are most telling next to growth and returns on capital, all of which feed this quality score. This is analysis from company filings, not investment advice.

How the market compares: US profitability statistics

Peers

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Held by ETFs

ARM is in 102 US ETFs. The largest of them, with ARM's weight in each:

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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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