ALARM.COM HOLDINGS INC (ALRM)
US0116421050 - Common Stock
ALRM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 280 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
ALRM had positive earnings in the past year.
ALRM had a positive operating cash flow in the past year.
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's Return On Assets of 6.35% is fine compared to the rest of the industry. ALRM outperforms 79.93% of its industry peers.
Looking at the Return On Equity, with a value of 18.12%, ALRM belongs to the top of the industry, outperforming 86.38% of the companies in the same industry.
The Return On Invested Capital of ALRM (5.16%) is better than 74.91% of its industry peers.
ALRM had an Average Return On Invested Capital over the past 3 years of 4.58%. This is significantly below the industry average of 12.22%.
The last Return On Invested Capital (5.16%) for ALRM is above the 3 year average (4.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.35% | ||
| ROE | 18.12% | ||
| ROIC | 5.16% |
ROA(3y)4.7%
ROA(5y)6.87%
ROE(3y)9.9%
ROE(5y)12.28%
ROIC(3y)4.58%
ROIC(5y)6.22%
1.3 Margins
With an excellent Profit Margin value of 13.54%, ALRM belongs to the best of the industry, outperforming 81.72% of the companies in the same industry.
In the last couple of years the Profit Margin of ALRM has grown nicely.
Looking at the Operating Margin, with a value of 11.19%, ALRM is in the better half of the industry, outperforming 78.85% of the companies in the same industry.
ALRM's Operating Margin has improved in the last couple of years.
ALRM has a Gross Margin (64.95%) 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 | 11.19% | ||
| PM (TTM) | 13.54% | ||
| GM | 64.95% |
OM growth 3Y-5.95%
OM growth 5Y21.17%
PM growth 3Y-9.99%
PM growth 5Y12.45%
GM growth 3Y-0.04%
GM growth 5Y-0.69%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALRM is destroying value.
ALRM has more shares outstanding than it did 1 year ago.
ALRM has more shares outstanding than it did 5 years ago.
ALRM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.10 indicates that ALRM is not in any danger for bankruptcy at the moment.
The Altman-Z score of ALRM (3.10) is comparable to the rest of the industry.
ALRM has a debt to FCF ratio of 5.50. This is a neutral value as ALRM would need 5.50 years to pay back of all of its debts.
ALRM has a Debt to FCF ratio (5.50) which is in line with its industry peers.
A Debt/Equity ratio of 1.42 is on the high side and indicates that ALRM has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.42, ALRM is doing worse than 82.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 3.1 |
ROIC/WACC0.46
WACC11.11%
2.3 Liquidity
A Current Ratio of 8.66 indicates that ALRM has no problem at all paying its short term obligations.
The Current ratio of ALRM (8.66) is better than 96.42% of its industry peers.
A Quick Ratio of 8.20 indicates that ALRM has no problem at all paying its short term obligations.
ALRM has a better Quick ratio (8.20) than 95.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.66 | ||
| Quick Ratio | 8.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.58% over the past year.
ALRM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.36% yearly.
The Revenue has been growing slightly by 6.97% in the past year.
The Revenue has been growing by 15.96% on average over the past years. This is quite good.
EPS 1Y (TTM)16.58%
EPS 3Y5.53%
EPS 5Y9.36%
EPS Q2Q%10.71%
Revenue 1Y (TTM)6.97%
Revenue growth 3Y12.57%
Revenue growth 5Y15.96%
Sales Q2Q%8.4%
3.2 Future
ALRM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.29% yearly.
ALRM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.42% yearly.
EPS Next Y9.42%
EPS Next 2Y5.59%
EPS Next 3Y5.29%
EPS Next 5YN/A
Revenue Next Year6.26%
Revenue Next 2Y5.42%
Revenue Next 3Y4.9%
Revenue Next 5Y4.42%
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
With a Price/Earnings ratio of 26.85, ALRM can be considered very expensive at the moment.
74.91% of the companies in the same industry are more expensive than ALRM, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.54. ALRM is around the same levels.
ALRM is valuated quite expensively with a Price/Forward Earnings ratio of 26.86.
Based on the Price/Forward Earnings ratio, ALRM is valued a bit cheaper than 72.04% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.99. ALRM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.85 | ||
| Fwd PE | 26.86 |
4.2 Price Multiples
81.36% 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 89.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.26 | ||
| EV/EBITDA | 21.54 |
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.
ALRM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.85
PEG (5Y)2.87
EPS Next 2Y5.59%
EPS Next 3Y5.29%
5. Dividend
5.1 Amount
ALRM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALARM.COM HOLDINGS INC
NASDAQ:ALRM (12/24/2024, 7:55:05 PM)
After market: 62.3 0 (0%)62.3
+0.99 (+1.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.21%
Inst Owner Change-2.9%
Ins Owners2.68%
Ins Owner Change-0.55%
Market Cap3.08B
Analysts78.67
Price Target74.08 (18.91%)
Short Float %4.69%
Short Ratio5.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)19.96%
Min EPS beat(2)15.68%
Max EPS beat(2)24.25%
EPS beat(4)4
Avg EPS beat(4)17.2%
Min EPS beat(4)0.48%
Max EPS beat(4)28.39%
EPS beat(8)8
Avg EPS beat(8)24.13%
EPS beat(12)12
Avg EPS beat(12)22.06%
EPS beat(16)16
Avg EPS beat(16)26.92%
Revenue beat(2)2
Avg Revenue beat(2)1.37%
Min Revenue beat(2)0.87%
Max Revenue beat(2)1.88%
Revenue beat(4)2
Avg Revenue beat(4)0.28%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)1.88%
Revenue beat(8)3
Avg Revenue beat(8)-0.25%
Revenue beat(12)7
Avg Revenue beat(12)1.1%
Revenue beat(16)11
Avg Revenue beat(16)3.43%
PT rev (1m)-4.8%
PT rev (3m)-10.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.61%
EPS NY rev (1m)6.72%
EPS NY rev (3m)7.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)0.82%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.85 | ||
| Fwd PE | 26.86 | ||
| P/S | 3.33 | ||
| P/FCF | 17.26 | ||
| P/OCF | 16.21 | ||
| P/B | 4.46 | ||
| P/tB | 6.56 | ||
| EV/EBITDA | 21.54 |
EPS(TTM)2.32
EY3.72%
EPS(NY)2.32
Fwd EY3.72%
FCF(TTM)3.61
FCFY5.79%
OCF(TTM)3.84
OCFY6.17%
SpS18.69
BVpS13.97
TBVpS9.5
PEG (NY)2.85
PEG (5Y)2.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.35% | ||
| ROE | 18.12% | ||
| ROCE | 5.72% | ||
| ROIC | 5.16% | ||
| ROICexc | 14.63% | ||
| ROICexgc | 22.38% | ||
| OM | 11.19% | ||
| PM (TTM) | 13.54% | ||
| GM | 64.95% | ||
| FCFM | 19.31% |
ROA(3y)4.7%
ROA(5y)6.87%
ROE(3y)9.9%
ROE(5y)12.28%
ROIC(3y)4.58%
ROIC(5y)6.22%
ROICexc(3y)11.09%
ROICexc(5y)11.78%
ROICexgc(3y)20.79%
ROICexgc(5y)24.28%
ROCE(3y)5.08%
ROCE(5y)6.9%
ROICexcg growth 3Y-15.16%
ROICexcg growth 5Y4.74%
ROICexc growth 3Y-6.71%
ROICexc growth 5Y16.22%
OM growth 3Y-5.95%
OM growth 5Y21.17%
PM growth 3Y-9.99%
PM growth 5Y12.45%
GM growth 3Y-0.04%
GM growth 5Y-0.69%
F-Score7
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 5.5 | ||
| Debt/EBITDA | 7.32 | ||
| Cap/Depr | 37.68% | ||
| Cap/Sales | 1.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 141.6% | ||
| Profit Quality | 142.62% | ||
| Current Ratio | 8.66 | ||
| Quick Ratio | 8.2 | ||
| Altman-Z | 3.1 |
F-Score7
WACC11.11%
ROIC/WACC0.46
Cap/Depr(3y)60.61%
Cap/Depr(5y)68.52%
Cap/Sales(3y)2.35%
Cap/Sales(5y)2.88%
Profit Quality(3y)122.81%
Profit Quality(5y)104.69%
High Growth Momentum
Growth
EPS 1Y (TTM)16.58%
EPS 3Y5.53%
EPS 5Y9.36%
EPS Q2Q%10.71%
EPS Next Y9.42%
EPS Next 2Y5.59%
EPS Next 3Y5.29%
EPS Next 5YN/A
Revenue 1Y (TTM)6.97%
Revenue growth 3Y12.57%
Revenue growth 5Y15.96%
Sales Q2Q%8.4%
Revenue Next Year6.26%
Revenue Next 2Y5.42%
Revenue Next 3Y4.9%
Revenue Next 5Y4.42%
EBIT growth 1Y85.59%
EBIT growth 3Y5.88%
EBIT growth 5Y40.51%
EBIT Next Year42.13%
EBIT Next 3Y18.87%
EBIT Next 5Y16.89%
FCF growth 1Y2158.28%
FCF growth 3Y14.28%
FCF growth 5Y20.17%
OCF growth 1Y347.1%
OCF growth 3Y10.02%
OCF growth 5Y17.5%