ALARM.COM HOLDINGS INC (ALRM) Stock Fundamental Analysis
NASDAQ:ALRM - Nasdaq - US0116421050 - Common Stock - Currency: USD
Taking everything into account, ALRM scores 5 out of 10 in our fundamental rating. ALRM was compared to 282 industry peers in the Software industry. ALRM has an excellent profitability rating, but there are some minor 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.
ALRM had a positive operating cash flow in the past year.
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 (6.18%) is better than 77.31% of its industry peers.
The Return On Equity of ALRM (16.91%) is better than 83.69% of its industry peers.
ALRM's Return On Invested Capital of 7.19% is fine compared to the rest of the industry. ALRM outperforms 79.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALRM is significantly below the industry average of 12.28%.
The last Return On Invested Capital (7.19%) for ALRM is above the 3 year average (4.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.18% | ||
| ROE | 16.91% | ||
| ROIC | 7.19% |
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 has a Profit Margin of 13.45%. This is amongst the best in the industry. ALRM outperforms 80.14% of its industry peers.
ALRM's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 12.51%, ALRM is doing good in the industry, outperforming 79.08% of the companies in the same industry.
In the last couple of years the Operating Margin of ALRM has grown nicely.
Looking at the Gross Margin, with a value of 65.68%, ALRM is in line with its industry, outperforming 45.74% 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 | 12.51% | ||
| PM (TTM) | 13.45% | ||
| GM | 65.68% |
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
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.
Compared to 5 years ago, ALRM has more shares outstanding
ALRM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.62 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 2.62, ALRM is in line with its industry, outperforming 54.26% of the companies in the same industry.
The Debt to FCF ratio of ALRM is 5.99, which is a neutral value as it means it would take ALRM, 5.99 years of fcf income to pay off all of its debts.
ALRM has a Debt to FCF ratio (5.99) which is in line with its industry peers.
A Debt/Equity ratio of 0.64 indicates that ALRM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.64, ALRM is doing worse than 68.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.99 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.74
WACC9.73%
2.3 Liquidity
A Current Ratio of 2.14 indicates that ALRM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.14, ALRM is in the better half of the industry, outperforming 64.89% of the companies in the same industry.
A Quick Ratio of 2.01 indicates that ALRM has no problem at all paying its short term obligations.
The Quick ratio of ALRM (2.01) is better than 61.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.14 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
ALRM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.91%.
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 6.71% 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)6.91%
EPS 3Y4.46%
EPS 5Y8.16%
EPS Q2Q%8%
Revenue 1Y (TTM)6.71%
Revenue growth 3Y7.86%
Revenue growth 5Y13.34%
Sales Q2Q%6.96%
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 3.17% 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 Y2.77%
EPS Next 2Y4.47%
EPS Next 3Y3.17%
EPS Next 5YN/A
Revenue Next Year5.37%
Revenue Next 2Y4.83%
Revenue Next 3Y4.9%
Revenue Next 5Y3.96%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 23.27, the valuation of ALRM can be described as rather expensive.
ALRM's Price/Earnings ratio is a bit cheaper when compared to the industry. ALRM is cheaper than 76.60% of the companies in the same industry.
ALRM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 21.69, the valuation of ALRM can be described as rather expensive.
73.05% of the companies in the same industry are more expensive than ALRM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ALRM to the average of the S&P500 Index (35.33), we can say ALRM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.27 | ||
| Fwd PE | 21.69 |
4.2 Price Multiples
ALRM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALRM is cheaper than 85.46% of the companies in the same industry.
87.94% 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 | 16.34 | ||
| EV/EBITDA | 16.87 |
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)8.39
PEG (5Y)2.85
EPS Next 2Y4.47%
EPS Next 3Y3.17%
5. Dividend
5.1 Amount
ALRM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
53.98
-0.62 (-1.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.3%
Inst Owner Change0%
Ins Owners2.72%
Ins Owner Change1.69%
Market Cap2.68B
Analysts78.57
Price Target68.78 (27.42%)
Short Float %4.21%
Short Ratio5.99
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)9.22%
Min EPS beat(2)6.37%
Max EPS beat(2)12.06%
EPS beat(4)4
Avg EPS beat(4)14.59%
Min EPS beat(4)6.37%
Max EPS beat(4)24.25%
EPS beat(8)8
Avg EPS beat(8)19.81%
EPS beat(12)12
Avg EPS beat(12)19.63%
EPS beat(16)16
Avg EPS beat(16)22.2%
Revenue beat(2)1
Avg Revenue beat(2)0.01%
Min Revenue beat(2)-0.02%
Max Revenue beat(2)0.03%
Revenue beat(4)3
Avg Revenue beat(4)0.69%
Min Revenue beat(4)-0.02%
Max Revenue beat(4)1.88%
Revenue beat(8)4
Avg Revenue beat(8)0.07%
Revenue beat(12)6
Avg Revenue beat(12)-0.14%
Revenue beat(16)10
Avg Revenue beat(16)2.13%
PT rev (1m)-1.02%
PT rev (3m)-3.21%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)-7.62%
EPS NY rev (1m)0.45%
EPS NY rev (3m)1.19%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.27 | ||
| Fwd PE | 21.69 | ||
| P/S | 2.81 | ||
| P/FCF | 16.34 | ||
| P/OCF | 14.87 | ||
| P/B | 3.53 | ||
| P/tB | 5.25 | ||
| EV/EBITDA | 16.87 |
EPS(TTM)2.32
EY4.3%
EPS(NY)2.49
Fwd EY4.61%
FCF(TTM)3.3
FCFY6.12%
OCF(TTM)3.63
OCFY6.73%
SpS19.21
BVpS15.27
TBVpS10.28
PEG (NY)8.39
PEG (5Y)2.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.18% | ||
| ROE | 16.91% | ||
| ROCE | 8.53% | ||
| ROIC | 7.19% | ||
| ROICexc | 47.08% | ||
| ROICexgc | N/A | ||
| OM | 12.51% | ||
| PM (TTM) | 13.45% | ||
| GM | 65.68% | ||
| FCFM | 17.2% |
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 Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.99 | ||
| Debt/EBITDA | 3.27 | ||
| Cap/Depr | 54.88% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 121.14% | ||
| Profit Quality | 127.94% | ||
| Current Ratio | 2.14 | ||
| Quick Ratio | 2.01 | ||
| Altman-Z | 2.62 |
F-Score7
WACC9.73%
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)6.91%
EPS 3Y4.46%
EPS 5Y8.16%
EPS Q2Q%8%
EPS Next Y2.77%
EPS Next 2Y4.47%
EPS Next 3Y3.17%
EPS Next 5YN/A
Revenue 1Y (TTM)6.71%
Revenue growth 3Y7.86%
Revenue growth 5Y13.34%
Sales Q2Q%6.96%
Revenue Next Year5.37%
Revenue Next 2Y4.83%
Revenue Next 3Y4.9%
Revenue Next 5Y3.96%
EBIT growth 1Y55.55%
EBIT growth 3Y20.79%
EBIT growth 5Y16.58%
EBIT Next Year17.27%
EBIT Next 3Y12.6%
EBIT Next 5Y13.18%
FCF growth 1Y330.26%
FCF growth 3Y30.07%
FCF growth 5Y48.34%
OCF growth 1Y167.98%
OCF growth 3Y25.99%
OCF growth 5Y34.38%