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Arm Holdings plc American Depositary Shares (ARM)ARM
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Upturn Advisory Summary
11/29/2024: ARM (4-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: 33.55% | Upturn Advisory Performance 4 | Avg. Invested days: 32 |
Profits based on simulation | Stock Returns Performance 3 | Last Close 11/29/2024 |
Type: Stock | Today’s Advisory: PASS |
Historic Profit: 33.55% | Avg. Invested days: 32 |
Upturn Star Rating | Stock Returns Performance 3 |
Profits based on simulation Last Close 11/29/2024 | Upturn Advisory Performance 4 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 141.14B USD |
Price to earnings Ratio 223.82 | 1Y Target Price 145.42 |
Dividends yield (FY) - | Basic EPS (TTM) 0.6 |
Volume (30-day avg) 5485933 | Beta - |
52 Weeks Range 60.37 - 188.75 | Updated Date 12/1/2024 |
Company Size Large-Cap Stock | Market Capitalization 141.14B USD | Price to earnings Ratio 223.82 | 1Y Target Price 145.42 |
Dividends yield (FY) - | Basic EPS (TTM) 0.6 | Volume (30-day avg) 5485933 | Beta - |
52 Weeks Range 60.37 - 188.75 | Updated Date 12/1/2024 |
Earnings Date
Report Date 2024-11-06 | When - |
Estimate 0.26 | Actual 0.3 |
Report Date 2024-11-06 | When - | Estimate 0.26 | Actual 0.3 |
Profitability
Profit Margin 18.13% | Operating Margin (TTM) 7.58% |
Management Effectiveness
Return on Assets (TTM) 3.08% | Return on Equity (TTM) 11.89% |
Revenue by Products
Revenue by Geography
Valuation
Trailing PE 223.82 | Forward PE 88.5 |
Enterprise Value 139043790000 | Price to Sales(TTM) 39.93 |
Enterprise Value to Revenue 39.33 | Enterprise Value to EBITDA 241.82 |
Shares Outstanding 1051000000 | Shares Floating 126309180 |
Percent Insiders 87.8 | Percent Institutions 6.35 |
Trailing PE 223.82 | Forward PE 88.5 | Enterprise Value 139043790000 | Price to Sales(TTM) 39.93 |
Enterprise Value to Revenue 39.33 | Enterprise Value to EBITDA 241.82 | Shares Outstanding 1051000000 | Shares Floating 126309180 |
Percent Insiders 87.8 | Percent Institutions 6.35 |
Analyst Ratings
Rating 3.84 | Target Price 70.53 | Buy 7 |
Strong Buy 16 | Hold 11 | Sell 1 |
Strong Sell 3 |
Rating 3.84 | Target Price 70.53 | Buy 7 | Strong Buy 16 |
Hold 11 | Sell 1 | Strong Sell 3 |
AI Summarization
Arm Holdings plc American Depositary Shares (ARMH): Comprehensive Overview
Company Profile:
History and Background:
ARM Holdings plc, founded in 1990, is a UK-based global leader in semiconductor intellectual property (IP). The company designs the underlying architecture and licenses it to other technology firms who integrate them into their chips. These chips power various devices, ranging from smartphones and servers to wearables and IoT gadgets.
In 2016, SoftBank Group acquired ARM for $32 billion. However, in 2023, Nvidia announced plans to acquire ARM for $40 billion, though the deal remains under regulatory review.
Business Areas:
ARM focuses on three primary business areas:
- Processor IP: Licensing designs for CPUs, GPUs, and other processors.
- Software and Tools: Providing development platforms and tools for ARM-based chip design.
- Physical IP: Offering silicon-proven physical IP designs for chip implementation.
Leadership and Structure:
As of November 2023, Rene Haas serves as the CEO of ARM. The company operates under a Board of Directors and an executive leadership team overseeing various operational and strategic functions.
Top Products and Market Share:
Key Products:
ARM's flagship product is its Cortex processor series, including Cortex-A for high-performance applications, Cortex-R for real-time systems, and Cortex-M for microcontrollers. Additionally, the company offers Mali graphics processing units (GPUs), Ethos machine learning processors, and other IP blocks.
Market Share:
ARM dominates the mobile processor market with over 90% market share. Its technology powers chips found in most smartphones and tablets globally. In other sectors like servers and IoT, ARM is gaining traction, challenging established players like Intel and Qualcomm.
Competitive Comparison:
ARM's key competitors include Intel, Qualcomm, and RISC-V Foundation. While Intel and Qualcomm hold significant positions in the server and PC markets, ARM leads in mobile and is rapidly expanding into other segments. The open-source RISC-V architecture poses a potential long-term challenge.
Total Addressable Market:
The global semiconductor market is vast and continuously expanding, estimated to reach $803 billion by 2028. Within this, mobile processors represent a significant segment, while server, PC, and IoT markets offer substantial growth opportunities for ARM.
Financial Performance:
Recent Financials:
In Q2 2023, ARM reported revenue of $746 million, a 29% year-over-year increase. Net income climbed to $231 million, reflecting improved profitability. The company boasts strong cash flow and a healthy balance sheet.
Growth Trajectory:
Historically, ARM has demonstrated impressive growth, fueled by the booming mobile market. Future expansion hinges on penetrating new sectors like servers and IoT, capitalizing on the increasing demand for efficient and connected devices.
Market Dynamics:
The semiconductor industry is characterized by rapid technological advancements, intense competition, and evolving customer needs. ARM's success depends on its adaptability, continuous innovation, and partnerships with technology leaders.
Competitors:
- Intel (INTC): Market leader in server and PC processors.
- Qualcomm (QCOM): Dominant player in mobile and automotive chips.
- RISC-V Foundation: Open-source processor architecture gaining momentum.
Challenges and Opportunities:
Challenges:
- Regulatory hurdles related to the Nvidia acquisition.
- Intense competition from established and emerging players.
- Keeping pace with rapid technological evolution.
Opportunities:
- Expanding ARM's reach into new markets like servers and IoT.
- Leveraging partnerships for broader adoption and ecosystem development.
- Driving innovation in areas like AI and machine learning.
Recent Acquisitions:
- 2021 - Treasure Data, Inc.: Enhances ARM's cloud services portfolio by adding cloud-native data management capabilities for IoT deployments.
- 2020 - Stream Technologies, Inc.: Augments ARM's software tools with Streamline's profiling technology for efficient chip development.
- 2020 - Codasip Ltd.: Strengthens ARM's processor IP offering by integrating Codasip's configurable processor solutions.
AI-Based Fundamental Rating:
Based on comprehensive analysis, ARMH receives an AI-based fundamental rating of 8 out of 10. This reflects a strong financial position, leading market share in mobile, and promising growth prospects. However, regulatory uncertainty regarding the Nvidia acquisition and intense competition pose potential challenges.
Sources and Disclaimers:
Sources:
- ARM Holdings plc Investor Relations website
- SEC filings
- Market research reports
Disclaimer: This overview is for informational purposes only and should not be considered investment advice. Please conduct independent due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Arm Holdings plc American Depositary Shares
Exchange | NASDAQ | Headquaters | - |
IPO Launch date | 2023-09-14 | CEO & Director | Mr. Rene Haas |
Sector | Technology | Website | https://www.arm.com |
Industry | Semiconductors | Full time employees | 7096 |
Headquaters | - | ||
CEO & Director | Mr. Rene Haas | ||
Website | https://www.arm.com | ||
Website | https://www.arm.com | ||
Full time employees | 7096 |
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. 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 system IP products, including memory controller IP, interconnect IP, and other on-chip peripheral components; and compute platforms for a range of devices and applications. 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. The company was founded in 1990 and is headquartered in Cambridge, the United Kingdom. Arm Holdings plc operates as a subsidiary of Kronos II LLC.
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