ALARM.COM HOLDINGS INC (ALRM) Stock Fundamental Analysis
USA - NASDAQ:ALRM - US0116421050 - Common Stock
50.59 USD
-0.55 (-1.08%)
50.59 USD
0 (0%)
ALRM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 282 industry peers in the Software industry. ALRM scores excellent on profitability, but there are concerns on its financial health. ALRM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ALRM was profitable.
ALRM had a positive operating cash flow in the past year.
ALRM had positive earnings in each of the past 5 years.
ALRM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ALRM has a better Return On Assets (6.17%) than 74.82% of its industry peers.
The Return On Equity of ALRM (16.24%) is better than 83.69% of its industry peers.
ALRM has a better Return On Invested Capital (7.38%) than 77.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALRM is significantly below the industry average of 11.88%.
The last Return On Invested Capital (7.38%) for ALRM is above the 3 year average (4.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.17% | ||
| ROE | 16.24% | ||
| ROIC | 7.38% |
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
The Profit Margin of ALRM (13.27%) is better than 75.89% of its industry peers.
ALRM's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 12.88%, ALRM is doing good in the industry, outperforming 78.01% of the companies in the same industry.
In the last couple of years the Operating Margin of ALRM has grown nicely.
With a Gross Margin value of 65.77%, ALRM perfoms like the industry average, outperforming 45.04% 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 | 12.88% | ||
| PM (TTM) | 13.27% | ||
| GM | 65.77% |
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.
Compared to 1 year ago, ALRM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.50 indicates that ALRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
ALRM has a Altman-Z score of 2.50. This is comparable to the rest of the industry: ALRM outperforms 52.84% of its industry peers.
The Debt to FCF ratio of ALRM is 6.11, which is on the high side as it means it would take ALRM, 6.11 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.11, ALRM is in line with its industry, outperforming 56.03% of the companies in the same industry.
ALRM has a Debt/Equity ratio of 0.61. This is a neutral value indicating ALRM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.61, ALRM is doing worse than 68.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 2.5 |
ROIC/WACC0.72
WACC10.25%
2.3 Liquidity
A Current Ratio of 1.95 indicates that ALRM should not have too much problems paying its short term obligations.
ALRM has a Current ratio (1.95) which is in line with its industry peers.
ALRM has a Quick Ratio of 1.82. 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 (1.82) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
ALRM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.54%.
The Earnings Per Share has been growing by 8.16% on average over the past years. This is quite good.
ALRM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.80%.
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)3.54%
EPS 3Y4.46%
EPS 5Y8.16%
EPS Q2Q%3.45%
Revenue 1Y (TTM)7.8%
Revenue growth 3Y7.86%
Revenue growth 5Y13.34%
Sales Q2Q%8.77%
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 7.78% on average per year.
The Revenue is expected to grow by 3.96% on average over the next years.
EPS Next Y6.67%
EPS Next 2Y6.23%
EPS Next 3Y7.78%
EPS Next 5YN/A
Revenue Next Year6.32%
Revenue Next 2Y5.27%
Revenue Next 3Y4.93%
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.
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
With a Price/Earnings ratio of 21.62, ALRM is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of ALRM indicates a somewhat cheap valuation: ALRM is cheaper than 75.53% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.31. ALRM is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 19.66, the valuation of ALRM can be described as rather expensive.
ALRM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALRM is cheaper than 75.89% of the companies in the same industry.
ALRM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 19.66 |
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 83.69% of the companies listed in the same industry.
ALRM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALRM is cheaper than 85.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.64 | ||
| EV/EBITDA | 16.14 |
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)3.24
PEG (5Y)2.65
EPS Next 2Y6.23%
EPS Next 3Y7.78%
5. Dividend
5.1 Amount
No dividends for ALRM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
50.59
-0.55 (-1.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.59%
Inst Owner Change-0.03%
Ins Owners2.72%
Ins Owner Change1.26%
Market Cap2.52B
Analysts78.57
Price Target72.42 (43.15%)
Short Float %5.16%
Short Ratio6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)13.8%
Min EPS beat(2)12.06%
Max EPS beat(2)15.54%
EPS beat(4)4
Avg EPS beat(4)14.55%
Min EPS beat(4)6.37%
Max EPS beat(4)24.25%
EPS beat(8)8
Avg EPS beat(8)17.63%
EPS beat(12)12
Avg EPS beat(12)19.54%
EPS beat(16)16
Avg EPS beat(16)21%
Revenue beat(2)1
Avg Revenue beat(2)1.09%
Min Revenue beat(2)-0.02%
Max Revenue beat(2)2.2%
Revenue beat(4)3
Avg Revenue beat(4)1.02%
Min Revenue beat(4)-0.02%
Max Revenue beat(4)2.2%
Revenue beat(8)4
Avg Revenue beat(8)0.05%
Revenue beat(12)6
Avg Revenue beat(12)0.03%
Revenue beat(16)10
Avg Revenue beat(16)1.4%
PT rev (1m)0%
PT rev (3m)5.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.92%
EPS NY rev (1m)1.64%
EPS NY rev (3m)3.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 19.66 | ||
| P/S | 2.59 | ||
| P/FCF | 15.64 | ||
| P/OCF | 14 | ||
| P/B | 3.17 | ||
| P/tB | 4.57 | ||
| EV/EBITDA | 16.14 |
EPS(TTM)2.34
EY4.63%
EPS(NY)2.57
Fwd EY5.09%
FCF(TTM)3.24
FCFY6.4%
OCF(TTM)3.61
OCFY7.14%
SpS19.55
BVpS15.98
TBVpS11.07
PEG (NY)3.24
PEG (5Y)2.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.17% | ||
| ROE | 16.24% | ||
| ROCE | 8.76% | ||
| ROIC | 7.38% | ||
| ROICexc | 25.78% | ||
| ROICexgc | 63.77% | ||
| OM | 12.88% | ||
| PM (TTM) | 13.27% | ||
| GM | 65.77% | ||
| FCFM | 16.55% |
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%
ROICexcg growth 3Y-6.99%
ROICexcg 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-Score7
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.11 | ||
| Debt/EBITDA | 3.13 | ||
| Cap/Depr | 62.87% | ||
| Cap/Sales | 1.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 115.79% | ||
| Profit Quality | 124.68% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 2.5 |
F-Score7
WACC10.25%
ROIC/WACC0.72
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)3.54%
EPS 3Y4.46%
EPS 5Y8.16%
EPS Q2Q%3.45%
EPS Next Y6.67%
EPS Next 2Y6.23%
EPS Next 3Y7.78%
EPS Next 5YN/A
Revenue 1Y (TTM)7.8%
Revenue growth 3Y7.86%
Revenue growth 5Y13.34%
Sales Q2Q%8.77%
Revenue Next Year6.32%
Revenue Next 2Y5.27%
Revenue Next 3Y4.93%
Revenue Next 5Y3.96%
EBIT growth 1Y45.54%
EBIT growth 3Y20.79%
EBIT growth 5Y16.58%
EBIT Next Year19.49%
EBIT Next 3Y12.6%
EBIT Next 5Y13.18%
FCF growth 1Y143.92%
FCF growth 3Y30.07%
FCF growth 5Y48.34%
OCF growth 1Y131.54%
OCF growth 3Y25.99%
OCF growth 5Y34.38%