ALARM.COM HOLDINGS INC (ALRM) Fundamental Analysis & Valuation
NASDAQ:ALRM • US0116421050
47.71 USD
-1.15 (-2.35%)
Last: Mar 12, 2026, 02:20 PM
This ALRM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall ALRM gets a fundamental rating of 5 out of 10. We evaluated ALRM against 277 industry peers in the Software industry. ALRM scores excellent on profitability, but there are some minor concerns on its financial health. ALRM has a decent growth rate and is not valued too expensively.
1. ALRM Profitability Analysis
1.1 Basic Checks
- ALRM had positive earnings in the past year.
- In the past year ALRM had a positive cash flow from operations.
- In the past 5 years ALRM has always been profitable.
- Each year in the past 5 years ALRM had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 6.20%, ALRM is doing good in the industry, outperforming 76.17% of the companies in the same industry.
- ALRM has a Return On Equity of 15.63%. This is amongst the best in the industry. ALRM outperforms 82.67% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.43%, ALRM is in the better half of the industry, outperforming 78.34% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ALRM is significantly below the industry average of 10.89%.
- 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
- The Profit Margin of ALRM (13.11%) is better than 76.90% of its industry peers.
- ALRM's Profit Margin has been stable in the last couple of years.
- The Operating Margin of ALRM (13.22%) is better than 79.78% of its industry peers.
- In the last couple of years the Operating Margin of ALRM has grown nicely.
- ALRM has a Gross Margin (66.15%) which is in line with its industry peers.
- 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. ALRM Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
- ALRM has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.49 indicates that ALRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ALRM's Altman-Z score of 2.49 is fine compared to the rest of the industry. ALRM outperforms 61.37% 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 (7.29) which is in line with 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.
- The Debt to Equity ratio of ALRM (0.58) is worse than 67.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 7.29 | ||
| Altman-Z | 2.49 |
ROIC/WACC0.77
WACC9.62%
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.
- The Current ratio of ALRM (1.92) is comparable to the rest of the industry.
- 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 of 1.78. This is comparable to the rest of the industry: ALRM outperforms 53.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.78 |
3. ALRM Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 14.91% 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 8.16% yearly.
- The Revenue has been growing slightly by 7.59% in the past year.
- ALRM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.35% yearly.
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
- Based on estimates for the next years, ALRM will show a small growth in Earnings Per Share. The EPS will grow by 6.70% on average per year.
- Based on estimates for the next years, ALRM will show a small growth in Revenue. The Revenue will grow by 4.92% on average per year.
EPS Next Y8.57%
EPS Next 2Y8.63%
EPS Next 3Y6.7%
EPS Next 5YN/A
Revenue Next Year6.08%
Revenue Next 2Y5.3%
Revenue Next 3Y4.92%
Revenue Next 5YN/A
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. ALRM Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 18.21 indicates a rather expensive valuation of ALRM.
- ALRM's Price/Earnings ratio is a bit cheaper when compared to the industry. ALRM is cheaper than 74.01% of the companies in the same industry.
- ALRM is valuated rather cheaply when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 16.77, which indicates a correct valuation of ALRM.
- Based on the Price/Forward Earnings ratio, ALRM is valued a bit cheaper than the industry average as 70.76% of the companies are valued more expensively.
- ALRM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.21 | ||
| Fwd PE | 16.77 |
4.2 Price Multiples
- ALRM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALRM is cheaper than 81.23% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ALRM is valued a bit cheaper than 77.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.46 | ||
| EV/EBITDA | 14.93 |
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)2.13
PEG (5Y)2.23
EPS Next 2Y8.63%
EPS Next 3Y6.7%
5. ALRM Dividend Analysis
5.1 Amount
- No dividends for ALRM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ALRM Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:ALRM (3/12/2026, 2:20:49 PM)
47.71
-1.15 (-2.35%)
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 Owners98.74%
Inst Owner Change5.39%
Ins Owners2.68%
Ins Owner Change-0.58%
Market Cap2.37B
Revenue(TTM)1.01B
Net Income(TTM)132.57M
Analysts76.92
Price Target62.83 (31.69%)
Short Float %5.37%
Short Ratio5.81
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)-10.2%
PT rev (3m)-10.29%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)0.92%
EPS NY rev (1m)3.88%
EPS NY rev (3m)3.55%
Revenue NQ rev (1m)0.66%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)1.88%
Revenue NY rev (3m)1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.21 | ||
| Fwd PE | 16.77 | ||
| P/S | 2.34 | ||
| P/FCF | 17.46 | ||
| P/OCF | 15.46 | ||
| P/B | 2.79 | ||
| P/tB | 4.52 | ||
| EV/EBITDA | 14.93 |
EPS(TTM)2.62
EY5.49%
EPS(NY)2.84
Fwd EY5.96%
FCF(TTM)2.73
FCFY5.73%
OCF(TTM)3.09
OCFY6.47%
SpS20.36
BVpS17.08
TBVpS10.55
PEG (NY)2.13
PEG (5Y)2.23
Graham Number31.73
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 | 2.49 |
F-Score8
WACC9.62%
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 Y8.57%
EPS Next 2Y8.63%
EPS Next 3Y6.7%
EPS Next 5YN/A
Revenue 1Y (TTM)7.59%
Revenue growth 3Y6.27%
Revenue growth 5Y10.35%
Sales Q2Q%8.02%
Revenue Next Year6.08%
Revenue Next 2Y5.3%
Revenue Next 3Y4.92%
Revenue Next 5YN/A
EBIT growth 1Y23.11%
EBIT growth 3Y37.86%
EBIT growth 5Y18.87%
EBIT Next Year21.58%
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 18.21 and the Price/Book (PB) ratio is 2.79.
How financially healthy is ALARM.COM HOLDINGS INC?
The financial health rating of ALARM.COM HOLDINGS INC (ALRM) is 4 / 10.