ALARM.COM HOLDINGS INC (ALRM) Stock Fundamental Analysis
USA - NASDAQ:ALRM - US0116421050 - Common Stock
55.83 USD
+0.15 (+0.27%)
Overall ALRM gets a fundamental rating of 5 out of 10. We evaluated ALRM against 280 industry peers in the Software industry. ALRM scores excellent on profitability, but there are concerns on its financial health. ALRM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ALRM had positive earnings in the past year.
ALRM had a positive operating cash flow in the past year.
In the past 5 years ALRM has always been profitable.
In the past 5 years ALRM always reported a positive cash flow from operatings.
1.2 Ratios
ALRM has a better Return On Assets (6.17%) than 75.00% of its industry peers.
ALRM has a better Return On Equity (16.24%) than 83.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.38%, ALRM is in the better half of the industry, outperforming 77.86% 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 11.85%.
The last Return On Invested Capital (7.38%) for ALRM is above the 3 year average (4.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.17% | ||
| ROE | 16.24% | ||
| ROIC | 7.38% |
ROA(3y)5.32%
ROA(5y)6.17%
ROE(3y)12.75%
ROE(5y)12.69%
ROIC(3y)4.36%
ROIC(5y)5.04%
1.3 Margins
Looking at the Profit Margin, with a value of 13.27%, ALRM is in the better half of the industry, outperforming 76.43% of the companies in the same industry.
In the last couple of years the Profit Margin of ALRM has grown nicely.
With a decent Operating Margin value of 12.88%, ALRM is doing good in the industry, outperforming 78.21% 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 65.77%, ALRM perfoms like the industry average, outperforming 44.29% of the companies in the same industry.
ALRM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.88% | ||
| PM (TTM) | 13.27% | ||
| GM | 65.77% |
OM growth 3Y11.98%
OM growth 5Y2.86%
PM growth 3Y23.67%
PM growth 5Y4.4%
GM growth 3Y3.35%
GM growth 5Y0.57%
2. Health
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 less shares outstanding
Compared to 5 years ago, ALRM has more shares outstanding
Compared to 1 year ago, ALRM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.61 indicates that ALRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ALRM (2.61) is comparable to the rest of the industry.
ALRM has a debt to FCF ratio of 6.11. This is a slightly negative value and a sign of low solvency as ALRM would need 6.11 years to pay back of all of its debts.
ALRM has a Debt to FCF ratio (6.11) which is in line with its industry peers.
ALRM has a Debt/Equity ratio of 0.61. This is a neutral value indicating ALRM is somewhat dependend on debt financing.
The Debt to Equity ratio of ALRM (0.61) is worse than 68.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 2.61 |
ROIC/WACC0.73
WACC10.05%
2.3 Liquidity
ALRM has a Current Ratio of 1.95. This is a normal value and indicates that ALRM is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.95, ALRM is doing good in the industry, outperforming 60.36% of the companies in the same industry.
ALRM has a Quick Ratio of 1.82. This is a normal value and indicates that ALRM is financially healthy and should not expect problems in meeting its short term obligations.
ALRM's Quick ratio of 1.82 is in line compared to the rest of the industry. ALRM outperforms 57.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.54% over the past year.
ALRM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.16% yearly.
ALRM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.80%.
ALRM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.34% yearly.
EPS 1Y (TTM)3.54%
EPS 3Y4.46%
EPS 5Y8.16%
EPS Q2Q%3.45%
Revenue 1Y (TTM)7.8%
Revenue growth 3Y7.86%
Revenue growth 5Y13.34%
Sales Q2Q%8.77%
3.2 Future
ALRM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.03% yearly.
The Revenue is expected to grow by 3.96% on average over the next years.
EPS Next Y4.94%
EPS Next 2Y6.13%
EPS Next 3Y8.03%
EPS Next 5YN/A
Revenue Next Year6.32%
Revenue Next 2Y5.27%
Revenue Next 3Y4.93%
Revenue Next 5Y3.96%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.86 indicates a rather expensive valuation of ALRM.
Based on the Price/Earnings ratio, ALRM is valued a bit cheaper than the industry average as 71.79% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.30. ALRM is around the same levels.
Based on the Price/Forward Earnings ratio of 21.74, the valuation of ALRM can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ALRM is valued a bit cheaper than 73.93% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, ALRM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.86 | ||
| Fwd PE | 21.74 |
4.2 Price Multiples
83.21% 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 cheaply inside the industry as 85.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.26 | ||
| EV/EBITDA | 17.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ALRM may justify a higher PE ratio.
PEG (NY)4.83
PEG (5Y)2.92
EPS Next 2Y6.13%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
No dividends for ALRM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:ALRM (9/15/2025, 2:12:16 PM)
55.83
+0.15 (+0.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.34%
Inst Owner Change-0.52%
Ins Owners2.73%
Ins Owner Change1.69%
Market Cap2.79B
Analysts78.57
Price Target72.42 (29.72%)
Short Float %4.82%
Short Ratio6.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)13.8%
Min EPS beat(2)12.06%
Max EPS beat(2)15.54%
EPS beat(4)4
Avg EPS beat(4)14.55%
Min EPS beat(4)6.37%
Max EPS beat(4)24.25%
EPS beat(8)8
Avg EPS beat(8)17.63%
EPS beat(12)12
Avg EPS beat(12)19.54%
EPS beat(16)16
Avg EPS beat(16)21%
Revenue beat(2)1
Avg Revenue beat(2)1.09%
Min Revenue beat(2)-0.02%
Max Revenue beat(2)2.2%
Revenue beat(4)3
Avg Revenue beat(4)1.02%
Min Revenue beat(4)-0.02%
Max Revenue beat(4)2.2%
Revenue beat(8)4
Avg Revenue beat(8)0.05%
Revenue beat(12)6
Avg Revenue beat(12)0.03%
Revenue beat(16)10
Avg Revenue beat(16)1.4%
PT rev (1m)5.3%
PT rev (3m)4.22%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-2.56%
EPS NY rev (1m)2.11%
EPS NY rev (3m)2.57%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.9%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.86 | ||
| Fwd PE | 21.74 | ||
| P/S | 2.86 | ||
| P/FCF | 17.26 | ||
| P/OCF | 15.45 | ||
| P/B | 3.49 | ||
| P/tB | 5.04 | ||
| EV/EBITDA | 17.59 |
EPS(TTM)2.34
EY4.19%
EPS(NY)2.57
Fwd EY4.6%
FCF(TTM)3.24
FCFY5.79%
OCF(TTM)3.61
OCFY6.47%
SpS19.55
BVpS15.98
TBVpS11.07
PEG (NY)4.83
PEG (5Y)2.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.17% | ||
| ROE | 16.24% | ||
| ROCE | 8.76% | ||
| ROIC | 7.38% | ||
| ROICexc | 25.78% | ||
| ROICexgc | 63.77% | ||
| OM | 12.88% | ||
| PM (TTM) | 13.27% | ||
| GM | 65.77% | ||
| FCFM | 16.55% |
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%
ROICexcg growth 3Y-6.99%
ROICexcg 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-Score7
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.11 | ||
| Debt/EBITDA | 3.13 | ||
| Cap/Depr | 62.87% | ||
| Cap/Sales | 1.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 115.79% | ||
| Profit Quality | 124.68% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 2.61 |
F-Score7
WACC10.05%
ROIC/WACC0.73
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)3.54%
EPS 3Y4.46%
EPS 5Y8.16%
EPS Q2Q%3.45%
EPS Next Y4.94%
EPS Next 2Y6.13%
EPS Next 3Y8.03%
EPS Next 5YN/A
Revenue 1Y (TTM)7.8%
Revenue growth 3Y7.86%
Revenue growth 5Y13.34%
Sales Q2Q%8.77%
Revenue Next Year6.32%
Revenue Next 2Y5.27%
Revenue Next 3Y4.93%
Revenue Next 5Y3.96%
EBIT growth 1Y45.54%
EBIT growth 3Y20.79%
EBIT growth 5Y16.58%
EBIT Next Year17.23%
EBIT Next 3Y12.6%
EBIT Next 5Y13.18%
FCF growth 1Y143.92%
FCF growth 3Y30.07%
FCF growth 5Y48.34%
OCF growth 1Y131.54%
OCF growth 3Y25.99%
OCF growth 5Y34.38%