50.115 USD
+0.84 (+1.72%)
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 has a correct valuation and a medium growth rate.
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.
- ALRM had positive earnings in each of the past 5 years.
- In the past 5 years ALRM always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of ALRM (6.04%) is better than 74.37% of its industry peers.
- With an excellent Return On Equity value of 15.49%, ALRM belongs to the best of the industry, outperforming 83.03% of the companies in the same industry.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital for ALRM is significantly below the industry average of 10.78%.
- The 3 year average ROIC (4.36%) for ALRM is below the current ROIC(7.43%), indicating increased profibility in the last year.
| 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 has a better Profit Margin (12.92%) than 73.65% of its industry peers.
- In the last couple of years the Profit Margin of ALRM has grown nicely.
- The Operating Margin of ALRM (13.06%) is better than 78.70% of its industry peers.
- ALRM's Operating Margin has improved in the last couple of years.
- ALRM has a Gross Margin (66.03%) which is comparable to the rest of the 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 | 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.
- ALRM has less shares outstanding than it did 1 year ago.
- ALRM has more shares outstanding than it did 5 years ago.
- ALRM has a worse debt/assets ratio than last year.
2.2 Solvency
- ALRM has an Altman-Z score of 2.52. This is not the best score and indicates that ALRM is in the grey zone with still only limited risk for bankruptcy at the moment.
- ALRM has a Altman-Z score of 2.52. This is comparable to the rest of the industry: ALRM outperforms 56.68% 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.
- With a Debt to FCF ratio value of 6.46, ALRM perfoms like the industry average, outperforming 53.79% of the companies in the same industry.
- A Debt/Equity ratio of 0.59 indicates that 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
WACC10.06%
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.
- Looking at the Current ratio, with a value of 2.06, ALRM is in line with its industry, 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.
- The Quick ratio of ALRM (1.92) is comparable to the rest of the industry.
| 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.
- Measured over the past years, ALRM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.16% on average per year.
- ALRM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.35%.
- The Revenue has been growing by 13.34% on average over the past years. This is quite good.
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
- The Earnings Per Share is expected to grow by 7.93% on average over the next years.
- 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 2Y9.75%
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
- Based on the Price/Earnings ratio of 20.21, 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 74.37% of the companies in the same industry.
- ALRM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.32.
- The Price/Forward Earnings ratio is 18.25, which indicates a rather expensive current valuation of ALRM.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ALRM indicates a somewhat cheap valuation: ALRM is cheaper than 75.09% of the companies listed in the same industry.
- ALRM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.21 | ||
| Fwd PE | 18.25 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALRM indicates a rather cheap valuation: ALRM is cheaper than 83.03% of the companies listed in the same industry.
- 82.31% 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 | 16.33 | ||
| EV/EBITDA | 14.89 |
4.3 Compensation for Growth
- ALRM's 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)1.54
PEG (5Y)2.48
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 (1/22/2026, 2:02:48 PM)
50.115
+0.84 (+1.72%)
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 Cap2.50B
Revenue(TTM)991.77M
Net Income(TTM)128.17M
Analysts78.57
Price Target70.04 (39.76%)
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 | 20.21 | ||
| Fwd PE | 18.25 | ||
| P/S | 2.52 | ||
| P/FCF | 16.33 | ||
| P/OCF | 14.39 | ||
| P/B | 3.02 | ||
| P/tB | 4.35 | ||
| EV/EBITDA | 14.89 |
EPS(TTM)2.48
EY4.95%
EPS(NY)2.75
Fwd EY5.48%
FCF(TTM)3.07
FCFY6.12%
OCF(TTM)3.48
OCFY6.95%
SpS19.88
BVpS16.58
TBVpS11.51
PEG (NY)1.54
PEG (5Y)2.48
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
WACC10.06%
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 20.21 and the Price/Book (PB) ratio is 3.02.
How financially healthy is ALARM.COM HOLDINGS INC?
The financial health rating of ALARM.COM HOLDINGS INC (ALRM) is 4 / 10.