45.6 USD
-2.9 (-5.98%)
At close: Feb 3, 2026
45.6 USD
0 (0%)
After Hours: 2/3/2026, 8:00:00 PM
Taking everything into account, ALRM scores 5 out of 10 in our fundamental rating. ALRM was compared to 278 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 decent growth rate and is not valued too expensively.
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.
- Each year in the past 5 years ALRM had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of ALRM (6.04%) is better than 74.10% of its industry peers.
- ALRM has a better Return On Equity (15.49%) than 83.09% of its industry peers.
- With a decent Return On Invested Capital value of 7.43%, ALRM is doing good in the industry, outperforming 76.98% 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 10.74%.
- 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 Rank | Sector 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%
1.3 Margins
- ALRM's Profit Margin of 12.92% is fine compared to the rest of the industry. ALRM outperforms 73.74% of its industry peers.
- In the last couple of years the Profit Margin of ALRM has grown nicely.
- ALRM's Operating Margin of 13.06% is fine compared to the rest of the industry. ALRM outperforms 78.42% of its industry peers.
- In the last couple of years the Operating Margin of ALRM has grown nicely.
- ALRM has a Gross Margin of 66.03%. This is comparable to the rest of the industry: ALRM outperforms 44.96% of its industry peers.
- ALRM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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
- ALRM has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ALRM has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.43 indicates that ALRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of ALRM (2.43) is comparable to the rest of the industry.
- 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.
- The Debt to FCF ratio of ALRM (6.46) is comparable to the rest of the industry.
- ALRM has a Debt/Equity ratio of 0.59. This is a neutral value indicating ALRM is somewhat dependend on debt financing.
- ALRM has a worse Debt to Equity ratio (0.59) than 67.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 6.46 | ||
| Altman-Z | 2.43 |
ROIC/WACC0.74
WACC10%
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 of 2.06. This is in the better half of the industry: ALRM outperforms 60.07% of 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.
- With a Quick ratio value of 1.92, ALRM perfoms like the industry average, outperforming 58.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
- ALRM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.90%.
- 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 7.35% 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)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
- Based on estimates for the next years, ALRM will show a small growth in Earnings Per Share. The EPS will grow by 7.93% 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 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.
- 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
- With a Price/Earnings ratio of 18.39, ALRM is valued on the expensive side.
- Based on the Price/Earnings ratio, ALRM is valued a bit cheaper than the industry average as 74.10% of the companies are valued more expensively.
- ALRM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.18.
- Based on the Price/Forward Earnings ratio of 16.65, the valuation of ALRM can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ALRM indicates a somewhat cheap valuation: ALRM is cheaper than 74.46% of the companies listed in the same industry.
- ALRM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.39 | ||
| Fwd PE | 16.65 |
4.2 Price Multiples
- 82.73% of the companies in the same industry are more expensive than ALRM, based on the Enterprise Value to EBITDA ratio.
- ALRM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALRM is cheaper than 82.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.86 | ||
| EV/EBITDA | 13.75 |
4.3 Compensation for Growth
- The 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)1.4
PEG (5Y)2.25
EPS Next 2Y9.59%
EPS Next 3Y7.93%
5. Dividend
5.1 Amount
- No dividends for ALRM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
45.6
-2.9 (-5.98%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-19 2026-02-19/amc
Inst Owners98.64%
Inst Owner Change-1.38%
Ins Owners2.67%
Ins Owner Change-0.58%
Market Cap2.27B
Revenue(TTM)991.77M
Net Income(TTM)128.17M
Analysts78.57
Price Target70.04 (53.6%)
Short Float %5.11%
Short Ratio6.16
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)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%
PT rev (3m)-3.29%
EPS NQ rev (1m)0.81%
EPS NQ rev (3m)-0.14%
EPS NY rev (1m)0%
EPS NY rev (3m)6.09%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.39 | ||
| Fwd PE | 16.65 | ||
| P/S | 2.29 | ||
| P/FCF | 14.86 | ||
| P/OCF | 13.1 | ||
| P/B | 2.75 | ||
| P/tB | 3.96 | ||
| EV/EBITDA | 13.75 |
EPS(TTM)2.48
EY5.44%
EPS(NY)2.74
Fwd EY6%
FCF(TTM)3.07
FCFY6.73%
OCF(TTM)3.48
OCFY7.64%
SpS19.88
BVpS16.58
TBVpS11.51
PEG (NY)1.4
PEG (5Y)2.25
Graham Number30.42
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.43 |
F-Score6
WACC10%
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)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 18.39 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.