ARM Holdings (MEX:ARMN) ROCE %: 18.75% (As of Mar. 2026)

What is ARM Holdings ROCE %?

ARM Holdings MEX:ARMN -1.19% 61 ROCE % is 18.75% as of Mar. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. ARM Holdings's annualized ROCE % for the quarter that ended in Mar. 2026 was 18.75%.

ARM Holdings (MEX:ARMN) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

ARM Holdings ROCE % Related Terms

ARM Holdings ROCE % Historical Data

* Premium members only.

The historical data trend for ARM Holdings's ROCE % 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.

ARM Holdings ROCE % Chart

ARM Holdings Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

Mar25

Mar26

ROCE %

Get a 7-Day Free Trial

13.29

12.16

1.89

12.58

9.69

ARM Holdings Quarterly Data
	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial												20.79	5.35	7.52	8.47	18.75

61GF Score

ARM Holdings PLC MEX:ARMN

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

View Full Analysis

ARM Holdings ROCE % Calculation

ARM Holdings's annualized ROCE % for the fiscal year that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2026 )		(A: Mar. 2025 )		(A: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2026 )		(A: Mar. 2025 )		(A: Mar. 2026 )
	=	16373.692	/	( ( (182732.643 - 19005.668)	+	(193003.988 - 18754.008) )	/ 2 )
	=	16373.692	/	( (163726.975	+	174249.98)	/ 2 )
	=	16373.692	/	168988.4775
	=	9.69 %

ARM Holdings's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	31737.552	/	( ( (183226.003 - 19032.025)	+	(193003.988 - 18754.008) )	/ 2 )
	=	31737.552	/	( ( 164193.978	+	174249.98 )	/ 2 )
	=	31737.552	/	169221.979
	=	18.75 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 18.75% mean?

ARM Holdings (MEX:ARMN) has a ROCE % of 18.75% as of Mar. 2026.

Is ARM Holdings' ROCE % too high?

ARM Holdings' current ROCE % is 18.75%. The Semiconductors industry median ROCE % is 4.81. ARM Holdings' value of 18.75% is 290.2% above this industry median. 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' ROCE % compare to TXN and QCOM?

ARM Holdings' ROCE % of 18.75% can be compared against companies in the Semiconductors industry. The industry median ROCE % is 4.81. ARM Holdings' value of 18.75% is 290.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Semiconductors company?

The median ROCE % among Semiconductors companies is 4.81, based on 1,018 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARM Holdings's current ROCE % of 18.75% is 290.2% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Semiconductors industry, the median ROCE % is 4.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current ROCE % is 18.75%. 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 ROCE % is 18.75% and 290.2% above the Semiconductors industry median of 4.81. 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 ROCE % calculated?

ROCE % is calculated from a company's financial statements. For ARM Holdings (MEX:ARMN), the current ROCE % is 18.75% 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:

ROCE %: 18.75%
GF Value™: MXN3,132.07 vs. price of MXN6,331.50 (102.2% above fair value)
GF Score™: 61/100 with 1 warning sign
Industry Position: 290.2% above the Semiconductors median

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 Business Description

Industry Technology Semiconductors

Comparable Companies TXN QCOM ADI MRVL INTC NXPI MPWR ALAB CBRS MCHP NVDA AVGO TPE:2330 XKRX:000660 MU AMD TSE:285A TPE:2454 XTER:IFX SHSE:688256

Other Exchanges ARM:USA O9T:Germany

Address 110 Fulbourn Road, Cambridge, GBR, CB1 9NJ

Website https://www.arm.com

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

Get the complete analysis for MEX:ARMN

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN6,331.50

Price

MXN3,132.07

GF Value

View MEX:ARMN Analysis

See ROCE % data for all stocks →