46.45 USD
+0.85 (+1.86%)
At close: Feb 4, 2026
46.45 USD
0 (0%)
After Hours: 2/4/2026, 8:03:21 PM
ALRM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 278 industry peers in the Software industry. ALRM has an excellent profitability rating, 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.
- Each year in the past 5 years ALRM has been profitable.
- ALRM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 6.04%, ALRM is doing good in the industry, outperforming 74.10% of the companies in the same industry.
- ALRM has a Return On Equity of 15.49%. This is amongst the best in the industry. ALRM outperforms 83.09% of its industry peers.
- ALRM has a better Return On Invested Capital (7.43%) than 76.98% of its industry peers.
- ALRM had an Average Return On Invested Capital over the past 3 years of 4.36%. This 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
- ALRM has a Profit Margin of 12.92%. This is in the better half of the industry: ALRM outperforms 73.74% of its industry peers.
- ALRM's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 13.06%, ALRM is doing good in the industry, outperforming 78.42% 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 66.03%, ALRM is in line with its industry, outperforming 44.96% of the companies in the same industry.
- ALRM's Gross Margin has been stable in the last couple of years.
| 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.
- ALRM has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for ALRM is higher compared to a year ago.
2.2 Solvency
- ALRM has an Altman-Z score of 2.45. 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 (2.45) which is comparable to the rest of the industry.
- 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.
- The Debt to FCF ratio of ALRM (6.46) is comparable to the rest of the 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: 67.63% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 6.46 | ||
| Altman-Z | 2.45 |
ROIC/WACC0.74
WACC9.99%
2.3 Liquidity
- A Current Ratio of 2.06 indicates that ALRM has no problem at all paying its short term obligations.
- ALRM has a Current ratio of 2.06. This is in the better half of the industry: ALRM outperforms 60.07% of its industry peers.
- A Quick Ratio of 1.92 indicates that ALRM should not have too much problems paying 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.
- The Earnings Per Share has been growing by 8.16% on average over the past years. This is quite good.
- Looking at the last year, ALRM shows a small growth in Revenue. The Revenue has grown by 7.35% in the last 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)6.9%
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
- Based on estimates for the next years, ALRM will show a small growth in Earnings Per Share. The EPS will grow by 7.93% on average per year.
- 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 2Y9.59%
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
- The EPS growth rate is stable: in the next years the growth will be about the same 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
- A Price/Earnings ratio of 18.73 indicates a rather expensive valuation of ALRM.
- 72.66% of the companies in the same industry are more expensive than ALRM, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of ALRM to the average of the S&P500 Index (28.25), we can say ALRM is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 16.96, ALRM is valued correctly.
- 74.10% of the companies in the same industry are more expensive than ALRM, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 27.50. ALRM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.73 | ||
| Fwd PE | 16.96 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ALRM is valued cheaply inside the industry as 82.37% of the companies are valued more expensively.
- ALRM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALRM is cheaper than 82.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.14 | ||
| EV/EBITDA | 14.01 |
4.3 Compensation for Growth
- ALRM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of ALRM may justify a higher PE ratio.
PEG (NY)1.42
PEG (5Y)2.29
EPS Next 2Y9.59%
EPS Next 3Y7.93%
5. Dividend
5.1 Amount
- No dividends for ALRM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
46.45
+0.85 (+1.86%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-19 2026-02-19/amc
Inst Owners98.64%
Inst Owner Change-1.38%
Ins Owners2.67%
Ins Owner Change-0.58%
Market Cap2.32B
Revenue(TTM)991.77M
Net Income(TTM)128.17M
Analysts78.57
Price Target70.04 (50.79%)
Short Float %5.11%
Short Ratio6.16
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)0.81%
EPS NQ rev (3m)-0.14%
EPS NY rev (1m)0%
EPS NY rev (3m)6.09%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.73 | ||
| Fwd PE | 16.96 | ||
| P/S | 2.34 | ||
| P/FCF | 15.14 | ||
| P/OCF | 13.34 | ||
| P/B | 2.8 | ||
| P/tB | 4.03 | ||
| EV/EBITDA | 14.01 |
EPS(TTM)2.48
EY5.34%
EPS(NY)2.74
Fwd EY5.89%
FCF(TTM)3.07
FCFY6.61%
OCF(TTM)3.48
OCFY7.5%
SpS19.88
BVpS16.58
TBVpS11.51
PEG (NY)1.42
PEG (5Y)2.29
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 | 2.45 |
F-Score6
WACC9.99%
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 2Y9.59%
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 Year21.93%
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 6 / 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 18.73 and the Price/Book (PB) ratio is 2.8.
How financially healthy is ALARM.COM HOLDINGS INC?
The financial health rating of ALARM.COM HOLDINGS INC (ALRM) is 4 / 10.