ALARM.COM HOLDINGS INC (ALRM) Stock Fundamental Analysis

NASDAQ:ALRM • US0116421050

46.38 USD
+0.76 (+1.67%)
At close: Feb 13, 2026
46.38 USD
0 (0%)
After Hours: 2/13/2026, 8:00:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Taking everything into account, ALRM scores 5 out of 10 in our fundamental rating. ALRM was compared to 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 correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year ALRM was profitable.
  • ALRM had a positive operating cash flow in the past year.
  • In the past 5 years ALRM has always been profitable.
  • ALRM had a positive operating cash flow in each of the past 5 years.
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

  • Looking at the Return On Assets, with a value of 6.04%, ALRM is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
  • ALRM's Return On Equity of 15.49% is amongst the best of the industry. ALRM outperforms 82.97% of its industry peers.
  • ALRM's Return On Invested Capital of 7.43% is fine compared to the rest of the industry. ALRM outperforms 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 10.91%.
  • The 3 year average ROIC (4.36%) for ALRM is below the current ROIC(7.43%), indicating increased profibility in the last year.
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

  • ALRM has a better Profit Margin (12.92%) than 73.91% of its industry peers.
  • ALRM's Profit Margin has improved in the last couple of years.
  • With a decent Operating Margin value of 13.06%, ALRM is doing good in the industry, outperforming 77.90% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ALRM has grown nicely.
  • With a Gross Margin value of 66.03%, ALRM perfoms like the industry average, outperforming 44.57% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ALRM has remained more or less at the same level.
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

  • ALRM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for ALRM has been reduced compared to 1 year ago.
  • ALRM has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, ALRM has a worse debt to assets ratio.
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

  • An Altman-Z score of 2.45 indicates that ALRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.45, ALRM is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
  • The Debt to FCF ratio of ALRM is 6.46, which is on the high side as it means it would take ALRM, 6.46 years of fcf income to pay off all of its debts.
  • ALRM's Debt to FCF ratio of 6.46 is in line compared to the rest of the industry. ALRM outperforms 52.90% of its industry peers.
  • A Debt/Equity ratio of 0.59 indicates that ALRM is somewhat dependend on debt financing.
  • The Debt to Equity ratio of ALRM (0.59) is worse than 68.84% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.59
Debt/FCF 6.46
Altman-Z 2.45
ROIC/WACC0.75
WACC9.93%
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

  • A Current Ratio of 2.06 indicates that ALRM has no problem at all paying its short term obligations.
  • ALRM has a Current ratio (2.06) which is in line with its industry peers.
  • 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

4

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 6.90% over the past year.
  • The Earnings Per Share has been growing by 8.16% on average over the past years. This is quite good.
  • The Revenue has been growing slightly by 7.35% in the past year.
  • The Revenue has been growing by 13.34% on average over the past years. This is quite good.
EPS 1Y (TTM)6.9%
EPS 3Y4.46%
EPS 5Y8.16%
EPS Q2Q%22.58%
Revenue 1Y (TTM)7.35%
Revenue growth 3Y7.86%
Revenue growth 5Y13.34%
Sales Q2Q%6.61%

3.2 Future

  • The Earnings Per Share is expected to grow by 7.93% on average over the next years.
  • The Revenue is expected to grow by 3.96% on average over the next years.
EPS Next Y13.16%
EPS Next 2Y9.59%
EPS Next 3Y7.93%
EPS Next 5YN/A
Revenue Next Year6.95%
Revenue Next 2Y5.52%
Revenue Next 3Y5%
Revenue Next 5Y3.96%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • The Revenue 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

More info and screens

Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 18.70 indicates a rather expensive valuation of ALRM.
  • Compared to the rest of the industry, the Price/Earnings ratio of ALRM indicates a somewhat cheap valuation: ALRM is cheaper than 72.83% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.68, ALRM is valued a bit cheaper.
  • With a Price/Forward Earnings ratio of 16.94, ALRM is valued correctly.
  • Based on the Price/Forward Earnings ratio, ALRM is valued a bit cheaper than the industry average as 71.74% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, ALRM is valued a bit cheaper.
Industry RankSector Rank
PE 18.7
Fwd PE 16.94
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALRM indicates a rather cheap valuation: ALRM is cheaper than 81.88% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, ALRM is valued cheaply inside the industry as 80.80% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 15.12
EV/EBITDA 13.99
ALRM Per share dataALRM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • ALRM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • ALRM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.42
PEG (5Y)2.29
EPS Next 2Y9.59%
EPS Next 3Y7.93%

More info and screens

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

0

5. Dividend

5.1 Amount

  • ALRM does not give a dividend.
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 (2/13/2026, 8:00:00 PM)

After market: 46.38 0 (0%)

46.38

+0.76 (+1.67%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-06
Earnings (Next)02-19
Inst Owners98.64%
Inst Owner Change5.98%
Ins Owners2.67%
Ins Owner Change-0.58%
Market Cap2.31B
Revenue(TTM)991.77M
Net Income(TTM)128.17M
Analysts76.92
Price Target69.97 (50.86%)
Short Float %5.11%
Short Ratio6.16
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 18.7
Fwd PE 16.94
P/S 2.33
P/FCF 15.12
P/OCF 13.32
P/B 2.8
P/tB 4.03
EV/EBITDA 13.99
EPS(TTM)2.48
EY5.35%
EPS(NY)2.74
Fwd EY5.9%
FCF(TTM)3.07
FCFY6.62%
OCF(TTM)3.48
OCFY7.51%
SpS19.88
BVpS16.58
TBVpS11.51
PEG (NY)1.42
PEG (5Y)2.29
Graham Number30.42
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 2.45
F-Score6
WACC9.93%
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)6.9%
EPS 3Y4.46%
EPS 5Y8.16%
EPS Q2Q%22.58%
EPS Next Y13.16%
EPS Next 2Y9.59%
EPS Next 3Y7.93%
EPS Next 5YN/A
Revenue 1Y (TTM)7.35%
Revenue growth 3Y7.86%
Revenue growth 5Y13.34%
Sales Q2Q%6.61%
Revenue Next Year6.95%
Revenue Next 2Y5.52%
Revenue Next 3Y5%
Revenue Next 5Y3.96%
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 6 / 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 18.7 and the Price/Book (PB) ratio is 2.8.


How financially healthy is ALARM.COM HOLDINGS INC?

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