Arm's first-quarter results met consensus expectations, but investors were disappointed by the lack of firmer revenue guidance around the Arm AGI CPU and questions looming around Arm’s ability to secure enough supply.
We expect Arm will keep gaining data center market share from x86 architecture, as its chips consume less power and data centers need to minimize energy consumption. We also expect gains in automotive shares, driven by the transition to EVs.
By competing with its own customers, Arm is treading in dangerous territory and creating a conflict of interest.
|
Metric
|
ARM
|
SNPS
|
CDNS
|
|---|---|---|---|
Price/Earnings (Normalized) | 134.78 | 28.27 | 36.63 |
Price/Book Value | 31.20 | 2.42 | 11.75 |
Price/Sales | 52.38 | 7.99 | 13.75 |
Price/Cash Flow | 121.75 | 25.22 | 35.70 |
|
Metric
|
ARM
|
SNPS
|
CDNS
|
|---|---|---|---|
Quick Ratio | 4.88 | 0.99 | 1.36 |
Current Ratio | 5.25 | 1.34 | 1.74 |
Interest Coverage | — | 2.97 | 14.95 |
|
Metric
|
ARM
|
SNPS
|
CDNS
|
|---|---|---|---|
Return on Assets (Normalized) | 19.49% | 5.58% | 15.78% |
Return on Equity (Normalized) | 25.49% | 8.97% | 28.98% |
Return on Invested Capital (Normalized) | 22.99% | 7.42% | 20.31% |
|
1-Day Chart
|
Name
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Price
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Morningstar Rating for Stocks
|
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Economic Moat
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United States