ALARM.COM HOLDINGS INC (ALRM) Stock Fundamental Analysis
NASDAQ:ALRM • US0116421050
47.85 USD
-0.84 (-1.73%)
At close: Feb 27, 2026
47.85 USD
0 (0%)
After Hours: 2/27/2026, 8:00:00 PM
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 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.
- 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.
1.2 Ratios
- ALRM has a Return On Assets of 6.20%. This is in the better half of the industry: ALRM outperforms 76.09% of its industry peers.
- ALRM has a Return On Equity of 15.63%. This is amongst the best in the industry. ALRM outperforms 82.25% of its industry peers.
- ALRM has a Return On Invested Capital of 7.43%. This is in the better half of the industry: ALRM outperforms 78.62% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ALRM is significantly below the industry average of 10.73%.
- The last Return On Invested Capital (7.43%) for ALRM is above the 3 year average (5.52%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
- ALRM has a Profit Margin of 13.11%. This is in the better half of the industry: ALRM outperforms 76.45% of its industry peers.
- ALRM's Profit Margin has been stable in the last couple of years.
- ALRM has a better Operating Margin (13.22%) than 79.71% of its industry peers.
- ALRM's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 66.15%, ALRM is in line with its industry, outperforming 44.93% 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 Rank | Sector 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALRM is destroying value.
- The number of shares outstanding for ALRM remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, ALRM has more shares outstanding
- Compared to 1 year ago, ALRM has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.48 indicates that ALRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ALRM's Altman-Z score of 2.48 is fine compared to the rest of the industry. ALRM outperforms 61.96% of its industry peers.
- ALRM has a debt to FCF ratio of 7.29. This is a slightly negative value and a sign of low solvency as ALRM would need 7.29 years to pay back of all of its debts.
- ALRM has a Debt to FCF ratio of 7.29. This is comparable to the rest of the industry: ALRM outperforms 51.09% of its industry peers.
- 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 67.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 7.29 | ||
| Altman-Z | 2.48 |
ROIC/WACC0.77
WACC9.65%
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's Current ratio of 1.92 is in line compared to the rest of the industry. ALRM outperforms 56.88% of its industry peers.
- ALRM has a Quick Ratio of 1.78. 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 (1.78) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.78 |
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.
- ALRM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.59%.
- Measured over the past years, ALRM shows a quite strong growth in Revenue. The Revenue has been growing by 10.35% on average per year.
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
- The Earnings Per Share is expected to grow by 4.59% on average over the next years.
- ALRM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.98% yearly.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 18.26, the valuation of ALRM can be described as rather expensive.
- 74.28% of the companies in the same industry are more expensive than ALRM, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of ALRM to the average of the S&P500 Index (27.07), we can say ALRM is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 17.48, the valuation of ALRM can be described as rather expensive.
- ALRM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALRM is cheaper than 69.57% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ALRM to the average of the S&P500 Index (28.05), we can say ALRM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.26 | ||
| Fwd PE | 17.48 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ALRM is valued cheaply inside the industry as 81.88% of the companies are valued more expensively.
- 77.54% of the companies in the same industry are more expensive than ALRM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.58 | ||
| EV/EBITDA | 14.69 |
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)4.05
PEG (5Y)2.24
EPS Next 2Y4.59%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- No dividends for ALRM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
47.85
-0.84 (-1.73%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-19 2026-02-19/amc
Earnings (Next)05-06 2026-05-06
Inst Owners98.64%
Inst Owner Change5.45%
Ins Owners2.67%
Ins Owner Change-0.58%
Market Cap2.39B
Revenue(TTM)1.01B
Net Income(TTM)132.57M
Analysts76.92
Price Target62.83 (31.31%)
Short Float %4.67%
Short Ratio5.67
Dividend
| Industry Rank | Sector 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)-10.29%
PT rev (3m)-10.29%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)-0.36%
EPS NY rev (1m)0%
EPS NY rev (3m)6.41%
Revenue NQ rev (1m)0.57%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.26 | ||
| Fwd PE | 17.48 | ||
| P/S | 2.36 | ||
| P/FCF | 17.58 | ||
| P/OCF | 15.57 | ||
| P/B | 2.81 | ||
| P/tB | 4.56 | ||
| EV/EBITDA | 14.69 |
EPS(TTM)2.62
EY5.48%
EPS(NY)2.74
Fwd EY5.72%
FCF(TTM)2.72
FCFY5.69%
OCF(TTM)3.07
OCFY6.42%
SpS20.27
BVpS17
TBVpS10.5
PEG (NY)4.05
PEG (5Y)2.24
Graham Number31.66
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.48 |
F-Score8
WACC9.65%
ROIC/WACC0.77
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 Y4.51%
EPS Next 2Y4.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.59%
Revenue growth 3Y6.27%
Revenue growth 5Y10.35%
Sales Q2Q%8.02%
Revenue Next Year4.12%
Revenue Next 2Y4.04%
Revenue Next 3Y2.98%
Revenue Next 5YN/A
EBIT growth 1Y23.11%
EBIT growth 3Y37.86%
EBIT growth 5Y18.87%
EBIT Next Year21.07%
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 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 18.26 and the Price/Book (PB) ratio is 2.81.
How financially healthy is ALARM.COM HOLDINGS INC?
The financial health rating of ALARM.COM HOLDINGS INC (ALRM) is 4 / 10.