ARM HoldingsMEX:ARMN -1.19%61 OCF Margin % is 17.45% as of Mar. 2026, which is 40% below its 10-year median of 29.28. GuruFocus rates MEX:ARMN with a GF Score™ of 61/100 and a GF Value™ of MXN3,132.07 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,023 Semiconductors companies, ARM Holdings ranks better than 89.15% on this metric.
The historical rank and industry rank for ARM Holdings's OCF Margin % or its related term are showing as below:
MEX:ARMN'
s OCF Margin % Range Over the Past 10 Years
Min: 9.91 Med: 29.28 Max: 60.83
Current: 31.15
During the past 6 years, the highest OCF Margin % of ARM Holdings was 60.83%. The lowest was 9.91%. And the median was 29.28%.
MEX:ARMN's OCF Margin % is ranked better than 89.15% of 1023
companies
in the Semiconductors industry
Industry Median: 9.39
vs MEX:ARMN: 31.15
ARM Holdings OCF Margin % Related Terms
ARM Holdings OCF Margin % Historical Data
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The historical data trend for ARM Holdings's OCF Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:ARMN vs TXN, QCOM, ADI: OCF Margin % Comparison
For the Semiconductors subindustry, ARM Holdings's OCF Margin %, along with its competitors' market caps and OCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
ARM Holdings OCF Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's OCF Margin % distribution charts can be found below:
* The bar in red indicates where ARM Holdings's OCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ARM Holdings (MEX:ARMN) has a OCF Margin % of 17.45% as of Mar. 2026. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on ARM Holdings and its competitors. This is 40% below median its historical median of 29.28. Over the past decade, ARM Holdings' OCF Margin % has ranged from 9.91 to 60.83. According to the industry distribution chart, ARM Holdings ranks #111 out of 1023 companies in the Semiconductors industry, placing it in the top 10.9%.
Is ARM Holdings' OCF Margin % too high?
ARM Holdings' current OCF Margin % of 17.45% is 40% below median its 10-year median of 29.28. Over the past 10 years, this metric has ranged from a low of 9.91 to a high of 60.83. The Semiconductors industry median OCF Margin % is 9.39. ARM Holdings' value of 17.45% is 85.8% above this industry median. Based on the distribution chart, ARM Holdings ranks #111 out of 1023 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, ARM Holdings has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ARM Holdings' OCF Margin % compare to TXN and QCOM?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #111 out of 1023 companies for OCF Margin %. This places ARM Holdings in the top 11% of its industry — outperforming the majority of peers. The industry median OCF Margin % is 9.39. ARM Holdings' value of 17.45% is 85.8% above this benchmark. Historically, ARM Holdings' own OCF Margin % has ranged from 9.91 to 60.83 over the past decade. While the company's 10-year median is 29.28 vs. the industry median of 9.39, ARM Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good OCF Margin % for a Semiconductors company?
The median OCF Margin % among Semiconductors companies is 9.39, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a OCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, OCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARM Holdings's current OCF Margin % of 17.45% is 85.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high OCF Margin % mean?
A high OCF Margin % can signal that a stock is expensive relative to its fundamentals. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on ARM Holdings and its competitors. For the Semiconductors industry, the median OCF Margin % is 9.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current OCF Margin % is 17.45%, which is 40% below median its own 10-year median of 29.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ARM Holdings stock overvalued right now?
Based on GuruFocus' analysis, ARM Holdings (MEX:ARMN) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN3,132.07, compared to a current price of MXN6,331.50 — trading 102.2% above its estimated fair value. The current OCF Margin % is 17.45%, which is 40% below median its 10-year median of 29.28 and 85.8% above the Semiconductors industry median of 9.39. ARM Holdings' overall GF Score™ is 61/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is OCF Margin % calculated?
OCF Margin % is calculated from a company's financial statements. For ARM Holdings (MEX:ARMN), the current OCF Margin % is 17.45% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is ARM Holdings (MEX:ARMN) Overvalued in 2026?
Based on GuruFocus' analysis, ARM Holdings stock appears to be overvalued.
The current stock price of MXN6,331.50 is trading 102.2% above its estimated GF Value™ of MXN3,132.07.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for MEX:ARMN:
OCF Margin %: 17.45% (40% below median its 10-year median of 29.28)
GF Value™: MXN3,132.07 vs. price of MXN6,331.50 (102.2% above fair value)
Industry Position: 85.8% above the Semiconductors median (#111 of 1023)
No single metric tells the full story. See the MEX:ARMN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arm Holdings is the IP owner and developer of the Arm architecture, which is used in 99% of the world's smartphone CPU cores. It also has high market share in other battery-powered devices like wearables, tablets, and sensors. Arm licenses its architecture for a fee, offering different types of licenses depending on the flexibility the customer needs. Customers like Apple or Qualcomm buy architectural licenses, which allow them to modify the architecture and add or delete instructions to tailor the chips to their specific needs. Other clients directly buy off-the-shelf designs from Arm. Both off-the-shelf and architectural customers pay a royalty fee per chip shipped. In 2026, Arm announced the launch of its own CPU products on top of its existing royalty business.
61GF Score
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OCF Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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