52.66 USD
-0.46 (-0.87%)
52.66 USD
0 (0%)
Taking everything into account, ALRM scores 5 out of 10 in our fundamental rating. ALRM was compared to 281 industry peers in the Software industry. While ALRM has a great profitability rating, there are some minor concerns on its financial health. ALRM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ALRM was profitable.
In the past year ALRM had a positive cash flow from operations.
In the past 5 years ALRM has always been profitable.
ALRM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ALRM has a Return On Assets of 6.04%. This is in the better half of the industry: ALRM outperforms 75.44% of its industry peers.
ALRM has a Return On Equity of 15.49%. This is amongst the best in the industry. ALRM outperforms 83.63% of its industry peers.
ALRM has a Return On Invested Capital of 7.43%. This is in the better half of the industry: ALRM outperforms 76.87% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALRM is significantly below the industry average of 10.73%.
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 75.09% of its industry peers.
ALRM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.06%, ALRM is in the better half of the industry, outperforming 78.29% of the companies in the same industry.
In the last couple of years the Operating Margin of ALRM has grown nicely.
ALRM has a Gross Margin of 66.03%. This is comparable to the rest of the industry: ALRM outperforms 45.91% of 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.
The number of shares outstanding for ALRM has been increased compared to 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 2.60. 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's Altman-Z score of 2.60 is in line compared to the rest of the industry. ALRM outperforms 56.58% 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.
Looking at the Debt to FCF ratio, with a value of 6.46, ALRM is in line with its industry, outperforming 54.45% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that ALRM is somewhat dependend on debt financing.
ALRM's Debt to Equity ratio of 0.59 is on the low side compared to the rest of the industry. ALRM is outperformed by 67.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 6.46 | ||
| Altman-Z | 2.6 |
ROIC/WACC0.75
WACC9.89%
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.
The Current ratio of ALRM (2.06) is better than 60.85% of its industry peers.
A Quick Ratio of 1.92 indicates that ALRM should not have too much problems paying 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
ALRM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.90%.
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
ALRM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.82% yearly.
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 Y13.15%
EPS Next 2Y9.76%
EPS Next 3Y7.82%
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.
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. Valuation
4.1 Price/Earnings Ratio
ALRM is valuated rather expensively with a Price/Earnings ratio of 21.23.
Compared to the rest of the industry, the Price/Earnings ratio of ALRM indicates a somewhat cheap valuation: ALRM is cheaper than 73.31% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ALRM to the average of the S&P500 Index (26.38), we can say ALRM is valued inline with the index average.
ALRM is valuated rather expensively with a Price/Forward Earnings ratio of 19.17.
ALRM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALRM is cheaper than 74.73% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.83, ALRM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.23 | ||
| Fwd PE | 19.17 |
4.2 Price Multiples
83.99% of the companies in the same industry are more expensive than ALRM, based on the Enterprise Value to EBITDA ratio.
83.63% 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 | 17.16 | ||
| EV/EBITDA | 15.95 |
4.3 Compensation for Growth
The 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)1.61
PEG (5Y)2.6
EPS Next 2Y9.76%
EPS Next 3Y7.82%
5. Dividend
5.1 Amount
No dividends for ALRM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
52.66
-0.46 (-0.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.48%
Inst Owner Change-0.18%
Ins Owners2.67%
Ins Owner Change-0.57%
Market Cap2.63B
Revenue(TTM)991.77M
Net Income(TTM)128.17M
Analysts78.57
Price Target70.04 (33%)
Short Float %4.63%
Short Ratio5.73
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)-3.29%
PT rev (3m)-3.29%
EPS NQ rev (1m)-1.46%
EPS NQ rev (3m)-0.93%
EPS NY rev (1m)6.08%
EPS NY rev (3m)7.82%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.23 | ||
| Fwd PE | 19.17 | ||
| P/S | 2.65 | ||
| P/FCF | 17.16 | ||
| P/OCF | 15.13 | ||
| P/B | 3.18 | ||
| P/tB | 4.57 | ||
| EV/EBITDA | 15.95 |
EPS(TTM)2.48
EY4.71%
EPS(NY)2.75
Fwd EY5.22%
FCF(TTM)3.07
FCFY5.83%
OCF(TTM)3.48
OCFY6.61%
SpS19.88
BVpS16.58
TBVpS11.51
PEG (NY)1.61
PEG (5Y)2.6
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 | 2.6 |
F-Score6
WACC9.89%
ROIC/WACC0.75
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 Y13.15%
EPS Next 2Y9.76%
EPS Next 3Y7.82%
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
Can you provide the ChartMill fundamental rating for ALARM.COM HOLDINGS INC?
ChartMill assigns a fundamental rating of 5 / 10 to ALRM.
What is the valuation status of ALARM.COM HOLDINGS INC (ALRM) stock?
ChartMill assigns a valuation rating of 5 / 10 to ALARM.COM HOLDINGS INC (ALRM). This can be considered as Fairly Valued.
What is the profitability of ALRM stock?
ALARM.COM HOLDINGS INC (ALRM) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for ALRM stock?
The Price/Earnings (PE) ratio for ALARM.COM HOLDINGS INC (ALRM) is 21.23 and the Price/Book (PB) ratio is 3.18.
What is the expected EPS growth for ALARM.COM HOLDINGS INC (ALRM) stock?
The Earnings per Share (EPS) of ALARM.COM HOLDINGS INC (ALRM) is expected to grow by 13.15% in the next year.