ALARM.COM HOLDINGS INC (ALRM) Stock Fundamental Analysis

NASDAQ:ALRM • US0116421050

45.59 USD
+0.39 (+0.86%)
At close: Feb 20, 2026
45.59 USD
0 (0%)
After Hours: 2/20/2026, 8:16:42 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall ALRM gets a fundamental rating of 5 out of 10. We evaluated ALRM against 276 industry peers in the Software industry. While ALRM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ALRM has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • ALRM had positive earnings in the past year.
  • In the past year ALRM had a positive cash flow from operations.
  • Of the past 5 years ALRM 4 years were profitable.
  • Of the past 5 years ALRM 4 years had a positive operating cash flow.
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 50M 100M 150M 200M

1.2 Ratios

  • ALRM has a Return On Assets of 6.04%. This is in the better half of the industry: ALRM outperforms 73.91% of its industry peers.
  • The Return On Equity of ALRM (15.49%) is better than 82.97% of its industry peers.
  • ALRM has a better Return On Invested Capital (7.43%) than 76.81% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ALRM is significantly below the industry average of 10.64%.
  • The last Return On Invested Capital (7.43%) for ALRM is above the 3 year average (4.36%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.04%
ROE 15.49%
ROIC 7.43%
ROA(3y)5.32%
ROA(5y)6.17%
ROE(3y)12.75%
ROE(5y)12.69%
ROIC(3y)4.36%
ROIC(5y)5.04%
ALRM Yearly ROA, ROE, ROICALRM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • With a decent Profit Margin value of 12.92%, ALRM is doing good in the industry, outperforming 73.91% of the companies in the same industry.
  • ALRM's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 13.06%, ALRM is in the better half of the industry, outperforming 77.90% of the companies in the same industry.
  • ALRM's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 66.03%, ALRM is in line with its industry, outperforming 44.57% of the companies in the same industry.
  • ALRM's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 13.06%
PM (TTM) 12.92%
GM 66.03%
OM growth 3Y11.98%
OM growth 5Y2.86%
PM growth 3Y23.67%
PM growth 5Y4.4%
GM growth 3Y3.35%
GM growth 5Y0.57%
ALRM Yearly Profit, Operating, Gross MarginsALRM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALRM is destroying value.
  • There is no outstanding debt for ALRM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
ALRM Yearly Shares OutstandingALRM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 500M 1B 1.5B 2B

2.2 Solvency

  • ALRM has an Altman-Z score of 2.42. 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's Altman-Z score of 2.42 is fine compared to the rest of the industry. ALRM outperforms 61.23% of its industry peers.
  • ALRM has a debt to FCF ratio of 6.46. This is a slightly negative value and a sign of low solvency as ALRM would need 6.46 years to pay back of all of its debts.
  • ALRM has a Debt to FCF ratio of 6.46. This is comparable to the rest of the industry: ALRM outperforms 53.26% of its industry peers.
  • A Debt/Equity ratio of 0.59 indicates that ALRM is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.59, ALRM is doing worse than 68.48% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.59
Debt/FCF 6.46
Altman-Z 2.42
ROIC/WACC0.75
WACC9.9%
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 200M 400M 600M 800M

2.3 Liquidity

  • ALRM has a Current Ratio of 2.06. This indicates that ALRM is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 2.06, ALRM is in the better half of the industry, outperforming 60.14% of the companies in the same industry.
  • ALRM has a Quick 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 Quick ratio (1.92) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.06
Quick Ratio 1.92
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 500M 1B

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

3

3. Growth

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.
  • ALRM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.16% yearly.
EPS 1Y (TTM)14.91%
EPS 3Y10.16%
EPS 5Y8.16%
EPS Q2Q%24.14%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%8.02%

3.2 Future

  • ALRM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.59% yearly.
  • The Revenue is expected to grow by 2.98% on average over the next years.
EPS Next Y4.51%
EPS Next 2Y4.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.12%
Revenue Next 2Y4.04%
Revenue Next 3Y2.98%
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 0.5 1 1.5 2 2.5

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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 17.40 indicates a rather expensive valuation of ALRM.
  • 74.64% of the companies in the same industry are more expensive than ALRM, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 26.99. ALRM is valued slightly cheaper when compared to this.
  • ALRM is valuated correctly with a Price/Forward Earnings ratio of 16.65.
  • Based on the Price/Forward Earnings ratio, ALRM is valued a bit cheaper than 71.38% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of ALRM to the average of the S&P500 Index (28.06), we can say ALRM is valued slightly cheaper.
Industry RankSector Rank
PE 17.4
Fwd PE 16.65
ALRM Price Earnings VS Forward Price EarningsALRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ALRM is valued cheaper than 81.52% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ALRM is valued cheaper than 80.80% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.86
EV/EBITDA 13.62
ALRM Per share dataALRM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ALRM does not grow enough to justify the current Price/Earnings ratio.
  • ALRM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.86
PEG (5Y)2.13
EPS Next 2Y4.59%
EPS Next 3YN/A

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

0

5. Dividend

5.1 Amount

  • No dividends for ALRM!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

ALARM.COM HOLDINGS INC

NASDAQ:ALRM (2/20/2026, 8:16:42 PM)

After market: 45.59 0 (0%)

45.59

+0.39 (+0.86%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-19
Earnings (Next)05-06
Inst Owners98.64%
Inst Owner Change5.98%
Ins Owners2.67%
Ins Owner Change-0.58%
Market Cap2.27B
Revenue(TTM)N/A
Net Income(TTM)128.17M
Analysts76.92
Price Target69.97 (53.48%)
Short Float %4.67%
Short Ratio5.67
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)18.69%
Min EPS beat(2)15.54%
Max EPS beat(2)21.85%
EPS beat(4)4
Avg EPS beat(4)13.95%
Min EPS beat(4)6.37%
Max EPS beat(4)21.85%
EPS beat(8)8
Avg EPS beat(8)15.58%
EPS beat(12)12
Avg EPS beat(12)20.74%
EPS beat(16)16
Avg EPS beat(16)20.04%
Revenue beat(2)2
Avg Revenue beat(2)1.17%
Min Revenue beat(2)0.14%
Max Revenue beat(2)2.2%
Revenue beat(4)3
Avg Revenue beat(4)0.59%
Min Revenue beat(4)-0.02%
Max Revenue beat(4)2.2%
Revenue beat(8)5
Avg Revenue beat(8)0.44%
Revenue beat(12)6
Avg Revenue beat(12)0.03%
Revenue beat(16)10
Avg Revenue beat(16)0.97%
PT rev (1m)-0.1%
PT rev (3m)-3.38%
EPS NQ rev (1m)0.81%
EPS NQ rev (3m)-0.33%
EPS NY rev (1m)0%
EPS NY rev (3m)6.09%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.59%
Valuation
Industry RankSector Rank
PE 17.4
Fwd PE 16.65
P/S 2.29
P/FCF 14.86
P/OCF 13.09
P/B 2.75
P/tB 3.96
EV/EBITDA 13.62
EPS(TTM)2.62
EY5.75%
EPS(NY)2.74
Fwd EY6.01%
FCF(TTM)3.07
FCFY6.73%
OCF(TTM)3.48
OCFY7.64%
SpS19.88
BVpS16.58
TBVpS11.51
PEG (NY)3.86
PEG (5Y)2.13
Graham Number31.27
Profitability
Industry RankSector Rank
ROA 6.04%
ROE 15.49%
ROCE 8.82%
ROIC 7.43%
ROICexc 27.09%
ROICexgc 72.74%
OM 13.06%
PM (TTM) 12.92%
GM 66.03%
FCFM 15.43%
ROA(3y)5.32%
ROA(5y)6.17%
ROE(3y)12.75%
ROE(5y)12.69%
ROIC(3y)4.36%
ROIC(5y)5.04%
ROICexc(3y)10.8%
ROICexc(5y)11.57%
ROICexgc(3y)17.63%
ROICexgc(5y)21.62%
ROCE(3y)5.18%
ROCE(5y)5.98%
ROICexgc growth 3Y-6.99%
ROICexgc growth 5Y-4.21%
ROICexc growth 3Y3.2%
ROICexc growth 5Y4.42%
OM growth 3Y11.98%
OM growth 5Y2.86%
PM growth 3Y23.67%
PM growth 5Y4.4%
GM growth 3Y3.35%
GM growth 5Y0.57%
F-Score6
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0.59
Debt/FCF 6.46
Debt/EBITDA 3.06
Cap/Depr 68.32%
Cap/Sales 2.08%
Interest Coverage 250
Cash Conversion 108.72%
Profit Quality 119.41%
Current Ratio 2.06
Quick Ratio 1.92
Altman-Z 2.42
F-Score6
WACC9.9%
ROIC/WACC0.75
Cap/Depr(3y)58.68%
Cap/Depr(5y)59.61%
Cap/Sales(3y)2.14%
Cap/Sales(5y)2.36%
Profit Quality(3y)118.74%
Profit Quality(5y)125.77%
High Growth Momentum
Growth
EPS 1Y (TTM)14.91%
EPS 3Y10.16%
EPS 5Y8.16%
EPS Q2Q%24.14%
EPS Next Y4.51%
EPS Next 2Y4.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%8.02%
Revenue Next Year4.12%
Revenue Next 2Y4.04%
Revenue Next 3Y2.98%
Revenue Next 5YN/A
EBIT growth 1Y25.32%
EBIT growth 3Y20.79%
EBIT growth 5Y16.58%
EBIT Next Year21.93%
EBIT Next 3Y11.66%
EBIT Next 5Y13.18%
FCF growth 1Y29.26%
FCF growth 3Y30.07%
FCF growth 5Y48.34%
OCF growth 1Y33.07%
OCF growth 3Y25.99%
OCF growth 5Y34.38%

ALARM.COM HOLDINGS INC / ALRM 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.


Can you provide the profitability details for ALARM.COM HOLDINGS INC?

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


What is the valuation of ALARM.COM HOLDINGS INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ALARM.COM HOLDINGS INC (ALRM) is 17.4 and the Price/Book (PB) ratio is 2.75.


How financially healthy is ALARM.COM HOLDINGS INC?

The financial health rating of ALARM.COM HOLDINGS INC (ALRM) is 4 / 10.