GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » ARM Holdings PLC (NAS:ARM) » Definitions » 3-Year FCF Growth Rate

ARM Holdings (ARM Holdings) 3-Year FCF Growth Rate : -1.90% (As of Dec. 2023)


View and export this data going back to 2023. Start your Free Trial

What is ARM Holdings 3-Year FCF Growth Rate?

ARM Holdings's Free Cash Flow per Share for the three months ended in Dec. 2023 was $0.25.

During the past 12 months, ARM Holdings's average Free Cash Flow per Share Growth Rate was 312.30% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was -1.90% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 12.80% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 22.50% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Free Cash Flow per Share growth rate.

During the past 3 years, the highest 3-Year average Free Cash Flow per Share Growth Rate of ARM Holdings was 132.10% per year. The lowest was -2.60% per year. And the median was 17.20% per year.

Competitive Comparison of ARM Holdings's 3-Year FCF Growth Rate

For the Semiconductors subindustry, ARM Holdings's 3-Year FCF Growth Rate, along with its competitors' market caps and 3-Year FCF Growth Rate 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's 3-Year FCF Growth Rate Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, ARM Holdings's 3-Year FCF Growth Rate distribution charts can be found below:

* The bar in red indicates where ARM Holdings's 3-Year FCF Growth Rate falls into.


ARM Holdings 3-Year FCF Growth Rate Calculation

This is the 3-year average growth rate of Free Cash Flow per Share. The growth rate is calculated using exponential compounding based on the latest four year annual data.

Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Free Cash Flow per Share growth rate.

ARM Holdings  (NAS:ARM) 3-Year FCF Growth Rate Explanation

Free Cash Flow per Share is the amount of Free Cash Flow per outstanding share of the company's stock. Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company. It's used in the calculation of Forward Rate of Return (Yacktman) %.

ARM Holdings 3-Year FCF Growth Rate Related Terms

Thank you for viewing the detailed overview of ARM Holdings's 3-Year FCF Growth Rate provided by GuruFocus.com. Please click on the following links to see related term pages.

ARM Holdings (ARM Holdings) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » ARM Holdings PLC (NAS:ARM) » Definitions » 3-Year FCF Growth Rate
Comparable Companies
NXPI MRVL MCHP ON MU GFS ADI MPWR SWKS QRVO NVDA TPE:2330 AVGO AMD INTC TXN QCOM XKRX:000660 TPE:2454 XTER:IFX
Traded in Other Exchanges
ARM:Mexico O9T:Germany O9T:Germany 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 (ARM stands for Acorn RISC Machine), which is used in 99% of the world's smartphone CPU cores, and it also has high market share in other battery-powered devices like wearables, tablets, or 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 allows 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.