48.975 USD
-0.3 (-0.6%)
ALRM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 277 industry peers in the Software industry. ALRM scores excellent on profitability, but 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.
- ALRM had a positive operating cash flow in the past year.
- In the past 5 years ALRM has always been profitable.
- In the past 5 years ALRM always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 6.04%, ALRM is doing good in the industry, outperforming 74.37% of the companies in the same industry.
- ALRM has a better Return On Equity (15.49%) than 83.03% 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 76.90% 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 10.78%.
- 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
- With a decent Profit Margin value of 12.92%, ALRM is doing good in the industry, outperforming 73.65% 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 13.06%, ALRM is in the better half of the industry, outperforming 78.70% of the companies in the same industry.
- ALRM's Operating Margin has improved in the last couple of years.
- ALRM has a Gross Margin (66.03%) 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 | 13.06% | ||
| 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
- ALRM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- ALRM has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ALRM has more shares outstanding
- Compared to 1 year ago, ALRM has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.52 indicates that ALRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ALRM's Altman-Z score of 2.52 is in line compared to the rest of the industry. ALRM outperforms 57.04% of its industry peers.
- 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.
- ALRM has a Debt to FCF ratio of 6.46. This is comparable to the rest of the industry: ALRM outperforms 53.79% of its industry peers.
- ALRM has a Debt/Equity ratio of 0.59. This is a neutral value indicating ALRM is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.59, ALRM is not doing good in the industry: 67.87% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 6.46 | ||
| Altman-Z | 2.52 |
ROIC/WACC0.74
WACC10.04%
2.3 Liquidity
- ALRM has a Current Ratio of 2.06. This indicates that ALRM is financially healthy and has no problem in meeting its short term obligations.
- With a Current ratio value of 2.06, ALRM perfoms like the industry average, outperforming 59.93% of the companies in the same industry.
- 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.
- ALRM has a Quick ratio (1.92) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 6.90% 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.
- ALRM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.35%.
- Measured over the past years, ALRM shows a quite strong growth in Revenue. The Revenue has been growing by 13.34% on average per year.
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
- ALRM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.93% yearly.
- ALRM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.96% yearly.
EPS Next Y13.16%
EPS Next 2Y9.75%
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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
- ALRM is valuated rather expensively with a Price/Earnings ratio of 19.75.
- ALRM's Price/Earnings ratio is a bit cheaper when compared to the industry. ALRM is cheaper than 74.37% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.94. ALRM is valued slightly cheaper when compared to this.
- ALRM is valuated rather expensively with a Price/Forward Earnings ratio of 17.83.
- ALRM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALRM is cheaper than 75.45% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.94, ALRM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.75 | ||
| Fwd PE | 17.83 |
4.2 Price Multiples
- ALRM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALRM is cheaper than 82.67% of the companies in the same industry.
- 81.95% 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 | 15.96 | ||
| EV/EBITDA | 14.89 |
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)1.5
PEG (5Y)2.42
EPS Next 2Y9.75%
EPS Next 3Y7.93%
5. Dividend
5.1 Amount
- ALRM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:ALRM (1/21/2026, 1:36:04 PM)
48.975
-0.3 (-0.6%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-18 2026-02-18/amc
Inst Owners98.64%
Inst Owner Change0.31%
Ins Owners2.67%
Ins Owner Change-0.58%
Market Cap2.44B
Revenue(TTM)991.77M
Net Income(TTM)128.17M
Analysts78.57
Price Target70.04 (43.01%)
Short Float %4.76%
Short Ratio5.68
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%
EPS NQ rev (3m)-0.93%
EPS NY rev (1m)0.01%
EPS NY rev (3m)6.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.75 | ||
| Fwd PE | 17.83 | ||
| P/S | 2.46 | ||
| P/FCF | 15.96 | ||
| P/OCF | 14.07 | ||
| P/B | 2.95 | ||
| P/tB | 4.25 | ||
| EV/EBITDA | 14.89 |
EPS(TTM)2.48
EY5.06%
EPS(NY)2.75
Fwd EY5.61%
FCF(TTM)3.07
FCFY6.26%
OCF(TTM)3.48
OCFY7.11%
SpS19.88
BVpS16.58
TBVpS11.51
PEG (NY)1.5
PEG (5Y)2.42
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 | 2.52 |
F-Score6
WACC10.04%
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 2Y9.75%
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 Year21.87%
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 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 19.75 and the Price/Book (PB) ratio is 2.95.
How financially healthy is ALARM.COM HOLDINGS INC?
The financial health rating of ALARM.COM HOLDINGS INC (ALRM) is 4 / 10.