ALARM.COM HOLDINGS INC (ALRM) Stock Fundamental Analysis
USA - NASDAQ:ALRM - US0116421050 - Common Stock
48.51 USD
-0.56 (-1.14%)
48.51 USD
0 (0%)
ALRM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 284 industry peers in the Software industry. ALRM has an excellent profitability rating, but there are concerns on its financial health. ALRM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ALRM was profitable.
In the past year ALRM had a positive cash flow from operations.
ALRM had positive earnings in each of the past 5 years.
Each year in the past 5 years ALRM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.17%, ALRM is in the better half of the industry, outperforming 75.35% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.24%, ALRM belongs to the top of the industry, outperforming 83.45% of the companies in the same industry.
ALRM has a better Return On Invested Capital (7.38%) than 77.46% of its industry peers.
ALRM had an Average Return On Invested Capital over the past 3 years of 4.36%. This is significantly below the industry average of 11.83%.
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
ALRM's Profit Margin of 13.27% is fine compared to the rest of the industry. ALRM outperforms 75.35% of its industry peers.
In the last couple of years the Profit Margin of ALRM has grown nicely.
ALRM's Operating Margin of 12.88% is fine compared to the rest of the industry. ALRM outperforms 78.17% of its industry peers.
In the last couple of years the Operating Margin of ALRM has grown nicely.
ALRM has a Gross Margin (65.77%) which is in line with its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALRM is destroying value.
Compared to 1 year ago, ALRM has less shares outstanding
The number of shares outstanding for ALRM has been increased compared to 5 years ago.
Compared to 1 year ago, ALRM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.46 indicates that ALRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.46, ALRM perfoms like the industry average, outperforming 53.87% of the companies in the same 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 of 6.11. This is comparable to the rest of the industry: ALRM outperforms 56.69% of 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.
ALRM's Debt to Equity ratio of 0.61 is on the low side compared to the rest of the industry. ALRM is outperformed by 68.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 2.46 |
ROIC/WACC0.74
WACC10.01%
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.
Looking at the Current ratio, with a value of 1.95, ALRM is in line with its industry, outperforming 59.51% of the companies in the same industry.
A Quick Ratio of 1.82 indicates that ALRM should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.82, ALRM perfoms like the industry average, outperforming 57.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
ALRM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.54%.
ALRM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.16% yearly.
The Revenue has been growing slightly by 7.80% in the past year.
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
Based on estimates for the next years, ALRM will show a small growth in Earnings Per Share. The EPS will grow by 7.78% on average per year.
Based on estimates for the next years, ALRM will show a small growth in Revenue. The Revenue will grow by 3.96% on average per year.
EPS Next Y6.67%
EPS Next 2Y6.23%
EPS Next 3Y7.78%
EPS Next 5YN/A
Revenue Next Year6.32%
Revenue Next 2Y5.27%
Revenue Next 3Y4.93%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.73, ALRM is valued on the expensive side.
ALRM's Price/Earnings ratio is a bit cheaper when compared to the industry. ALRM is cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of ALRM to the average of the S&P500 Index (26.03), we can say ALRM is valued slightly cheaper.
The Price/Forward Earnings ratio is 18.85, which indicates a rather expensive current valuation of ALRM.
Based on the Price/Forward Earnings ratio, ALRM is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
ALRM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.73 | ||
| Fwd PE | 18.85 |
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 84.15% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALRM indicates a rather cheap valuation: ALRM is cheaper than 86.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.99 | ||
| EV/EBITDA | 15.48 |
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.
The decent profitability rating of ALRM may justify a higher PE ratio.
PEG (NY)3.11
PEG (5Y)2.54
EPS Next 2Y6.23%
EPS Next 3Y7.78%
5. Dividend
5.1 Amount
No dividends for ALRM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
48.51
-0.56 (-1.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.59%
Inst Owner Change-0.18%
Ins Owners2.72%
Ins Owner Change1.26%
Market Cap2.42B
Revenue(TTM)975.87M
Net Income(TTM)129.51M
Analysts78.57
Price Target72.42 (49.29%)
Short Float %5.23%
Short Ratio6.44
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)0%
PT rev (3m)5.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.92%
EPS NY rev (1m)0%
EPS NY rev (3m)3.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.73 | ||
| Fwd PE | 18.85 | ||
| P/S | 2.48 | ||
| P/FCF | 14.99 | ||
| P/OCF | 13.42 | ||
| P/B | 3.04 | ||
| P/tB | 4.38 | ||
| EV/EBITDA | 15.48 |
EPS(TTM)2.34
EY4.82%
EPS(NY)2.57
Fwd EY5.3%
FCF(TTM)3.24
FCFY6.67%
OCF(TTM)3.61
OCFY7.45%
SpS19.55
BVpS15.98
TBVpS11.07
PEG (NY)3.11
PEG (5Y)2.54
Graham Number29
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%
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-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 | 2.46 |
F-Score7
WACC10.01%
ROIC/WACC0.74
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 Y6.67%
EPS Next 2Y6.23%
EPS Next 3Y7.78%
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 Year19.49%
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%
ALARM.COM HOLDINGS INC / ALRM FAQ
Can you provide the ChartMill fundamental rating for ALARM.COM HOLDINGS INC?
ChartMill assigns a fundamental rating of 4 / 10 to ALRM.
What is the valuation status of ALARM.COM HOLDINGS INC (ALRM) stock?
ChartMill assigns a valuation rating of 5 / 10 to ALARM.COM HOLDINGS INC (ALRM). This can be considered as Fairly Valued.
What is the profitability of ALRM stock?
ALARM.COM HOLDINGS INC (ALRM) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for ALRM stock?
The Price/Earnings (PE) ratio for ALARM.COM HOLDINGS INC (ALRM) is 20.73 and the Price/Book (PB) ratio is 3.04.
What is the expected EPS growth for ALARM.COM HOLDINGS INC (ALRM) stock?
The Earnings per Share (EPS) of ALARM.COM HOLDINGS INC (ALRM) is expected to grow by 6.67% in the next year.