ALARM.COM HOLDINGS INC (ALRM) Fundamental Analysis & Valuation

NASDAQ:ALRM • US0116421050

Current stock price

45.79 USD
-0.44 (-0.95%)
Last:

This ALRM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. ALRM Profitability Analysis

1.1 Basic Checks

  • ALRM had positive earnings in the past year.
  • In the past year ALRM had a positive cash flow from operations.
  • Each year in the past 5 years ALRM has been profitable.
  • In the past 5 years ALRM always reported a positive cash flow from operatings.
ALRM Yearly Net Income VS EBIT VS OCF VS FCFALRM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M

1.2 Ratios

  • The Return On Assets of ALRM (6.20%) is better than 76.84% of its industry peers.
  • ALRM's Return On Equity of 15.63% is amongst the best of the industry. ALRM outperforms 81.99% of its industry peers.
  • With a decent Return On Invested Capital value of 7.43%, ALRM is doing good in the industry, outperforming 77.94% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for ALRM is significantly below the industry average of 10.91%.
  • The 3 year average ROIC (5.52%) for ALRM is below the current ROIC(7.43%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.2%
ROE 15.63%
ROIC 7.43%
ROA(3y)5.97%
ROA(5y)5.28%
ROE(3y)14.83%
ROE(5y)12.48%
ROIC(3y)5.52%
ROIC(5y)4.95%
ALRM Yearly ROA, ROE, ROICALRM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • The Profit Margin of ALRM (13.11%) is better than 77.94% of its industry peers.
  • In the last couple of years the Profit Margin of ALRM has remained more or less at the same level.
  • With a decent Operating Margin value of 13.22%, ALRM is doing good in the industry, outperforming 79.78% of the companies in the same industry.
  • ALRM's Operating Margin has improved in the last couple of years.
  • With a Gross Margin value of 66.15%, ALRM perfoms like the industry average, outperforming 44.49% of the companies in the same industry.
  • ALRM's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 13.22%
PM (TTM) 13.11%
GM 66.15%
OM growth 3Y29.73%
OM growth 5Y7.72%
PM growth 3Y25.19%
PM growth 5Y0.79%
GM growth 3Y3.69%
GM growth 5Y0.92%
ALRM Yearly Profit, Operating, Gross MarginsALRM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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3

2. ALRM Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALRM is destroying value.
  • Compared to 1 year ago, ALRM has about the same amount of shares outstanding.
  • Compared to 5 years ago, ALRM has more shares outstanding
  • ALRM has a better debt/assets ratio than last year.
ALRM Yearly Shares OutstandingALRM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M
ALRM Yearly Total Debt VS Total AssetsALRM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

2.2 Solvency

  • ALRM has an Altman-Z score of 2.43. This is not the best score and indicates that ALRM is in the grey zone with still only limited risk for bankruptcy at the moment.
  • ALRM has a Altman-Z score (2.43) which is comparable to the rest of the industry.
  • The Debt to FCF ratio of ALRM is 7.29, which is on the high side as it means it would take ALRM, 7.29 years of fcf income to pay off all of its debts.
  • ALRM has a Debt to FCF ratio (7.29) which is comparable to the rest of the industry.
  • ALRM has a Debt/Equity ratio of 0.58. This is a neutral value indicating ALRM is somewhat dependend on debt financing.
  • ALRM has a Debt to Equity ratio of 0.58. This is in the lower half of the industry: ALRM underperforms 66.91% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF 7.29
Altman-Z 2.43
ROIC/WACC0.8
WACC9.25%
ALRM Yearly LT Debt VS Equity VS FCFALRM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

2.3 Liquidity

  • ALRM has a Current Ratio of 1.92. This is a normal value and indicates that ALRM is financially healthy and should not expect problems in meeting its short term obligations.
  • ALRM has a Current ratio (1.92) which is comparable to the rest of the industry.
  • A Quick Ratio of 1.78 indicates that ALRM should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.78, ALRM perfoms like the industry average, outperforming 53.68% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.92
Quick Ratio 1.78
ALRM Yearly Current Assets VS Current LiabilitesALRM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. ALRM Growth Analysis

3.1 Past

  • ALRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.91%, which is quite good.
  • Measured over the past years, ALRM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.16% on average per year.
  • The Revenue has been growing slightly by 7.59% in the past year.
  • The Revenue has been growing by 10.35% on average over the past years. This is quite good.
EPS 1Y (TTM)14.91%
EPS 3Y10.16%
EPS 5Y8.16%
EPS Q2Q%24.14%
Revenue 1Y (TTM)7.59%
Revenue growth 3Y6.27%
Revenue growth 5Y10.35%
Sales Q2Q%8.02%

3.2 Future

  • Based on estimates for the next years, ALRM will show a small growth in Earnings Per Share. The EPS will grow by 6.70% on average per year.
  • ALRM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.95% yearly.
EPS Next Y8.57%
EPS Next 2Y7.91%
EPS Next 3Y6.7%
EPS Next 5YN/A
Revenue Next Year6.08%
Revenue Next 2Y5.3%
Revenue Next 3Y4.95%
Revenue Next 5YN/A

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
ALRM Yearly Revenue VS EstimatesALRM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M 1B
ALRM Yearly EPS VS EstimatesALRM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3

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5

4. ALRM Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 17.48 indicates a rather expensive valuation of ALRM.
  • 75.37% of the companies in the same industry are more expensive than ALRM, based on the Price/Earnings ratio.
  • ALRM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.95.
  • The Price/Forward Earnings ratio is 16.10, which indicates a correct valuation of ALRM.
  • 73.53% of the companies in the same industry are more expensive than ALRM, based on the Price/Forward Earnings ratio.
  • ALRM is valuated cheaply when we compare the Price/Forward Earnings ratio to 38.68, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 17.48
Fwd PE 16.1
ALRM Price Earnings VS Forward Price EarningsALRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 81.62% of the companies in the same industry are more expensive than ALRM, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, ALRM is valued a bit cheaper than the industry average as 77.94% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 16.76
EV/EBITDA 14.14
ALRM Per share dataALRM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • ALRM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.04
PEG (5Y)2.14
EPS Next 2Y7.91%
EPS Next 3Y6.7%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ALRM Dividend Analysis

5.1 Amount

  • ALRM does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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ALRM Fundamentals: All Metrics, Ratios and Statistics

ALARM.COM HOLDINGS INC

NASDAQ:ALRM (4/21/2026, 2:17:06 PM)

45.79

-0.44 (-0.95%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-19
Earnings (Next)05-07
Inst Owners99.16%
Inst Owner Change0.51%
Ins Owners1.66%
Ins Owner Change1.02%
Market Cap2.27B
Revenue(TTM)1.01B
Net Income(TTM)132.57M
Analysts76.92
Price Target62.83 (37.21%)
Short Float %5.02%
Short Ratio4.84
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.98%
Min EPS beat(2)10.12%
Max EPS beat(2)21.85%
EPS beat(4)4
Avg EPS beat(4)14.89%
Min EPS beat(4)10.12%
Max EPS beat(4)21.85%
EPS beat(8)8
Avg EPS beat(8)13.29%
EPS beat(12)12
Avg EPS beat(12)19.73%
EPS beat(16)16
Avg EPS beat(16)18.75%
Revenue beat(2)2
Avg Revenue beat(2)1.21%
Min Revenue beat(2)0.14%
Max Revenue beat(2)2.28%
Revenue beat(4)3
Avg Revenue beat(4)1.15%
Min Revenue beat(4)-0.02%
Max Revenue beat(4)2.28%
Revenue beat(8)6
Avg Revenue beat(8)0.89%
Revenue beat(12)7
Avg Revenue beat(12)0.35%
Revenue beat(16)10
Avg Revenue beat(16)0.5%
PT rev (1m)0%
PT rev (3m)-10.29%
EPS NQ rev (1m)-1.08%
EPS NQ rev (3m)-0.17%
EPS NY rev (1m)0%
EPS NY rev (3m)3.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.88%
Valuation
Industry RankSector Rank
PE 17.48
Fwd PE 16.1
P/S 2.25
P/FCF 16.76
P/OCF 14.83
P/B 2.68
P/tB 4.34
EV/EBITDA 14.14
EPS(TTM)2.62
EY5.72%
EPS(NY)2.84
Fwd EY6.21%
FCF(TTM)2.73
FCFY5.97%
OCF(TTM)3.09
OCFY6.74%
SpS20.36
BVpS17.08
TBVpS10.55
PEG (NY)2.04
PEG (5Y)2.14
Graham Number31.7274 (-30.71%)
Profitability
Industry RankSector Rank
ROA 6.2%
ROE 15.63%
ROCE 9.07%
ROIC 7.43%
ROICexc 21.34%
ROICexgc 58.06%
OM 13.22%
PM (TTM) 13.11%
GM 66.15%
FCFM 13.42%
ROA(3y)5.97%
ROA(5y)5.28%
ROE(3y)14.83%
ROE(5y)12.48%
ROIC(3y)5.52%
ROIC(5y)4.95%
ROICexc(3y)15.04%
ROICexc(5y)13.14%
ROICexgc(3y)32.02%
ROICexgc(5y)27.27%
ROCE(3y)6.74%
ROCE(5y)6.04%
ROICexgc growth 3Y63%
ROICexgc growth 5Y16.7%
ROICexc growth 3Y40.45%
ROICexc growth 5Y12.42%
OM growth 3Y29.73%
OM growth 5Y7.72%
PM growth 3Y25.19%
PM growth 5Y0.79%
GM growth 3Y3.69%
GM growth 5Y0.92%
F-Score8
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF 7.29
Debt/EBITDA 2.98
Cap/Depr 57.07%
Cap/Sales 1.74%
Interest Coverage 11.88
Cash Conversion 93.23%
Profit Quality 102.39%
Current Ratio 1.92
Quick Ratio 1.78
Altman-Z 2.43
F-Score8
WACC9.25%
ROIC/WACC0.8
Cap/Depr(3y)48.19%
Cap/Depr(5y)56.59%
Cap/Sales(3y)1.58%
Cap/Sales(5y)2.04%
Profit Quality(3y)136.11%
Profit Quality(5y)125.3%
High Growth Momentum
Growth
EPS 1Y (TTM)14.91%
EPS 3Y10.16%
EPS 5Y8.16%
EPS Q2Q%24.14%
EPS Next Y8.57%
EPS Next 2Y7.91%
EPS Next 3Y6.7%
EPS Next 5YN/A
Revenue 1Y (TTM)7.59%
Revenue growth 3Y6.27%
Revenue growth 5Y10.35%
Sales Q2Q%8.02%
Revenue Next Year6.08%
Revenue Next 2Y5.3%
Revenue Next 3Y4.95%
Revenue Next 5YN/A
EBIT growth 1Y23.11%
EBIT growth 3Y37.86%
EBIT growth 5Y18.87%
EBIT Next Year21.58%
EBIT Next 3Y12.51%
EBIT Next 5YN/A
FCF growth 1Y-29.74%
FCF growth 3Y68.65%
FCF growth 5Y10.71%
OCF growth 1Y-25.72%
OCF growth 3Y39.16%
OCF growth 5Y8.47%

ALARM.COM HOLDINGS INC / ALRM Fundamental Analysis FAQ

What is the ChartMill fundamental rating of ALARM.COM HOLDINGS INC (ALRM) stock?

ChartMill assigns a fundamental rating of 5 / 10 to ALRM.


Can you provide the valuation status for ALARM.COM HOLDINGS INC?

ChartMill assigns a valuation rating of 5 / 10 to ALARM.COM HOLDINGS INC (ALRM). This can be considered as Fairly Valued.


How profitable is ALARM.COM HOLDINGS INC (ALRM) stock?

ALARM.COM HOLDINGS INC (ALRM) has a profitability rating of 7 / 10.


Can you provide the expected EPS growth for ALRM stock?

The Earnings per Share (EPS) of ALARM.COM HOLDINGS INC (ALRM) is expected to grow by 8.57% in the next year.


Can you provide the dividend sustainability for ALRM stock?

The dividend rating of ALARM.COM HOLDINGS INC (ALRM) is 0 / 10 and the dividend payout ratio is 0%.