ARM HoldingsMEX:ARMN -1.19%61 ROA % is 12.00% as of Mar. 2026, which is 42% above its 10-year median of 8.43. 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 1,028 Semiconductors companies, ARM Holdings ranks better than 79.57% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. ARM Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN22,577 Mil.
ARM Holdings's average Total Assets over the quarter that ended in Mar. 2026 was MXN188,115 Mil. Therefore, ARM Holdings's annualized ROA % for the quarter that ended in Mar. 2026 was 12.00%.
The historical rank and industry rank for ARM Holdings's ROA % or its related term are showing as below:
MEX:ARMN'
s ROA % Range Over the Past 10 Years
Min: 4.14 Med: 8.43 Max: 9.4
Current: 9.24
During the past 6 years, ARM Holdings's highest ROA % was 9.40%. The lowest was 4.14%. And the median was 8.43%.
MEX:ARMN's ROA % is ranked better than 79.57% of 1028
companies
in the Semiconductors industry
Industry Median: 2.45
vs MEX:ARMN: 9.24
ARM Holdings (MEX:ARMN) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
ARM Holdings ROA % Related Terms
ARM Holdings ROA % Historical Data
* Premium members only.
The historical data trend for ARM Holdings's ROA % 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.
For the Semiconductors subindustry, ARM Holdings's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where ARM Holdings's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
ARM Holdings (MEX:ARMN) has a ROA % of 12.00% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on ARM Holdings and its competitors. This is 42% above median its historical median of 8.43. Over the past decade, ARM Holdings' ROA % has ranged from 4.14 to 9.40. According to the industry distribution chart, ARM Holdings ranks #210 out of 1028 companies in the Semiconductors industry, placing it in the top 20.4%.
Is ARM Holdings' ROA % too high?
ARM Holdings' current ROA % of 12.00% is 42% above median its 10-year median of 8.43. Over the past 10 years, this metric has ranged from a low of 4.14 to a high of 9.40. The Semiconductors industry median ROA % is 2.45. ARM Holdings' value of 12.00% is 389.8% above this industry median. Based on the distribution chart, ARM Holdings ranks #210 out of 1028 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' ROA % compare to TXN and QCOM?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #210 out of 1028 companies for ROA %. This places ARM Holdings in the top 20% of its industry — outperforming the majority of peers. The industry median ROA % is 2.45. ARM Holdings' value of 12.00% is 389.8% above this benchmark. Historically, ARM Holdings' own ROA % has ranged from 4.14 to 9.40 over the past decade. While the company's 10-year median is 8.43 vs. the industry median of 2.45, 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 ROA % for a Semiconductors company?
The median ROA % among Semiconductors companies is 2.45, based on 1,028 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARM Holdings's current ROA % of 12.00% is 389.8% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on ARM Holdings and its competitors. For the Semiconductors industry, the median ROA % is 2.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current ROA % is 12.00%, which is 42% above median its own 10-year median of 8.43. 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 ROA % is 12.00%, which is 42% above median its 10-year median of 8.43 and 389.8% above the Semiconductors industry median of 2.45. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For ARM Holdings (MEX:ARMN), the current ROA % is 12.00% 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:
ROA %: 12.00% (42% above median its 10-year median of 8.43)
GF Value™: MXN3,132.07 vs. price of MXN6,331.50 (102.2% above fair value)
Industry Position: 389.8% above the Semiconductors median (#210 of 1028)
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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