Arm Holdings PLC
NASDAQ:ARM

Watchlist Manager
Arm Holdings PLC Logo
Arm Holdings PLC
NASDAQ:ARM
Watchlist
Price: 143.1018 USD 0.21%
Market Cap: 150.4B USD
Have any thoughts about
Arm Holdings PLC?
Write Note

Operating Margin
Arm Holdings PLC

11.4%
Current
6%
Average
4.5%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
11.4%
=
Operating Profit
402m
/
Revenue
3.5B

Operating Margin Across Competitors

Country UK
Market Cap 150.1B USD
Operating Margin
11%
Country US
Market Cap 3.2T USD
Operating Margin
63%
Country US
Market Cap 1.1T USD
Operating Margin
30%
Country TW
Market Cap 28.1T TWD
Operating Margin
44%
Country US
Market Cap 202.3B USD
Operating Margin
5%
Country US
Market Cap 175.8B USD
Operating Margin
26%
Country US
Market Cap 171.6B USD
Operating Margin
35%
Country US
Market Cap 120.4B USD
Operating Margin
4%
Country US
Market Cap 106.1B USD
Operating Margin
22%
Country US
Market Cap 97.1B USD
Operating Margin
-11%
Country US
Market Cap 88.1B USD
Operating Margin
-7%
No Stocks Found

Arm Holdings PLC
Glance View

Market Cap
150.4B USD
Industry
Semiconductors

Arm Holdings PLC, nestled in the heart of Cambridge, England, is a formidable player in the semiconductor industry without actually creating chips themselves. The magic of Arm lies in its intellectual property: they are architects crafting the blueprints for the microprocessors that power a substantial percentage of the world's digital devices. Instead of manufacturing chips, Arm specializes in designing cutting-edge processor architectures and licensing these designs to a vast array of technology companies. These include giants like Apple and Samsung, who use Arm's designs as the foundational building blocks for their own products. This approach allows Arm to operate with a unique business model that does not require heavy capital investments in manufacturing facilities, yet enables them to have a significant global reach. In the ecosystem of digital innovation, Arm's strength is its ability to create highly efficient, low-power designs that are ideal for mobile devices, embedded systems, and increasingly for high-performance computing and data centers. The company's revenue streams are primarily driven by licensing fees from its partners, who pay to access Arm's extensive portfolio of designs, and royalties from the sales of end products utilizing these designs. With each smartphone, tablet, or digital gadget that rolls off global assembly lines bearing its intellectual fingerprint, Arm earns a fraction of the resultant sales. This model not only provides Arm with profitability tied to the growth of the tech sector but also aligns their success with the broader industry's advancements and consumer trends.

ARM Intrinsic Value
40.7616 USD
Overvaluation 72%
Intrinsic Value
Price

See Also

Discover More
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
11.4%
=
Operating Profit
402m
/
Revenue
3.5B
What is the Operating Margin of Arm Holdings PLC?

Based on Arm Holdings PLC's most recent financial statements, the company has Operating Margin of 11.4%.