ALARM.COM HOLDINGS INC (ALRM) Stock Fundamental Analysis

NASDAQ:ALRM • US0116421050

48.69 USD
+1.61 (+3.42%)
At close: Feb 26, 2026
48.69 USD
0 (0%)
After Hours: 2/26/2026, 8:10:11 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall ALRM gets a fundamental rating of 5 out of 10. We evaluated ALRM against 274 industry peers in the Software industry. While ALRM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ALRM is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

7

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.
ALRM Yearly Net Income VS EBIT VS OCF VS FCFALRM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M

1.2 Ratios

  • ALRM has a Return On Assets of 6.20%. This is in the better half of the industry: ALRM outperforms 74.09% of its industry peers.
  • With an excellent Return On Equity value of 15.63%, ALRM belongs to the best of the industry, outperforming 82.85% 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 77.01% 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 10.79%.
  • The 3 year average ROIC (5.52%) for ALRM is below the current ROIC(7.43%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.2%
ROE 15.63%
ROIC 7.43%
ROA(3y)5.97%
ROA(5y)5.28%
ROE(3y)14.83%
ROE(5y)12.48%
ROIC(3y)5.52%
ROIC(5y)4.95%
ALRM Yearly ROA, ROE, ROICALRM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • ALRM has a Profit Margin of 13.11%. This is in the better half of the industry: ALRM outperforms 74.82% of its industry peers.
  • ALRM's Profit Margin has been stable in the last couple of years.
  • ALRM's Operating Margin of 13.22% is fine compared to the rest of the industry. ALRM outperforms 78.47% of its industry peers.
  • In the last couple of years the Operating Margin of ALRM has grown nicely.
  • ALRM's Gross Margin of 66.15% is in line compared to the rest of the industry. ALRM outperforms 44.53% 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 RankSector Rank
OM 13.22%
PM (TTM) 13.11%
GM 66.15%
OM growth 3Y29.73%
OM growth 5Y7.72%
PM growth 3Y25.19%
PM growth 5Y0.79%
GM growth 3Y3.69%
GM growth 5Y0.92%
ALRM Yearly Profit, Operating, Gross MarginsALRM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALRM is destroying value.
  • The number of shares outstanding for ALRM remains at a similar level compared to 1 year ago.
  • Compared to 5 years ago, ALRM has more shares outstanding
  • ALRM has a better debt/assets ratio than last year.
ALRM Yearly Shares OutstandingALRM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M
ALRM Yearly Total Debt VS Total AssetsALRM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

2.2 Solvency

  • An Altman-Z score of 2.46 indicates that ALRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • ALRM's Altman-Z score of 2.46 is fine compared to the rest of the industry. ALRM outperforms 60.95% of its industry peers.
  • ALRM has a debt to FCF ratio of 7.29. This is a slightly negative value and a sign of low solvency as ALRM would need 7.29 years to pay back of all of its debts.
  • ALRM has a Debt to FCF ratio of 7.29. This is comparable to the rest of the industry: ALRM outperforms 51.09% of its industry peers.
  • A Debt/Equity ratio of 0.58 indicates that ALRM is somewhat dependend on debt financing.
  • ALRM has a Debt to Equity ratio of 0.58. This is in the lower half of the industry: ALRM underperforms 68.25% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF 7.29
Altman-Z 2.46
ROIC/WACC0.77
WACC9.71%
ALRM Yearly LT Debt VS Equity VS FCFALRM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

2.3 Liquidity

  • A Current Ratio of 1.92 indicates that ALRM should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.92, ALRM is in line with its industry, outperforming 58.03% of the companies in the same industry.
  • ALRM has a Quick Ratio of 1.78. 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 (1.78) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.92
Quick Ratio 1.78
ALRM Yearly Current Assets VS Current LiabilitesALRM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 14.91% 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.
  • Looking at the last year, ALRM shows a small growth in Revenue. The Revenue has grown by 7.59% in the last year.
  • ALRM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.35% yearly.
EPS 1Y (TTM)14.91%
EPS 3Y10.16%
EPS 5Y8.16%
EPS Q2Q%24.14%
Revenue 1Y (TTM)7.59%
Revenue growth 3Y6.27%
Revenue growth 5Y10.35%
Sales Q2Q%8.02%

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 4.59% on average per year.
  • ALRM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.98% yearly.
EPS Next Y4.51%
EPS Next 2Y4.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.12%
Revenue Next 2Y4.04%
Revenue Next 3Y2.98%
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less 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.
ALRM Yearly Revenue VS EstimatesALRM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M 1B
ALRM Yearly EPS VS EstimatesALRM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2 2.5

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5

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 18.58, which indicates a rather expensive current valuation of ALRM.
  • ALRM's Price/Earnings ratio is a bit cheaper when compared to the industry. ALRM is cheaper than 73.36% of the companies in the same industry.
  • ALRM is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
  • ALRM is valuated rather expensively with a Price/Forward Earnings ratio of 17.78.
  • ALRM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALRM is cheaper than 70.44% of the companies in the same industry.
  • ALRM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.13.
Industry RankSector Rank
PE 18.58
Fwd PE 17.78
ALRM Price Earnings VS Forward Price EarningsALRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ALRM is valued cheaply inside the industry as 81.02% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALRM indicates a somewhat cheap valuation: ALRM is cheaper than 77.01% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 17.89
EV/EBITDA 14.46
ALRM Per share dataALRM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The decent profitability rating of ALRM may justify a higher PE ratio.
PEG (NY)4.12
PEG (5Y)2.28
EPS Next 2Y4.59%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • No dividends for ALRM!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

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ALARM.COM HOLDINGS INC

NASDAQ:ALRM (2/26/2026, 8:10:11 PM)

After market: 48.69 0 (0%)

48.69

+1.61 (+3.42%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-19
Earnings (Next)05-06
Inst Owners98.64%
Inst Owner Change5.43%
Ins Owners2.67%
Ins Owner Change-0.58%
Market Cap2.43B
Revenue(TTM)1.01B
Net Income(TTM)132.57M
Analysts76.92
Price Target62.83 (29.04%)
Short Float %4.67%
Short Ratio5.67
Dividend
Industry RankSector 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)15.98%
Min EPS beat(2)10.12%
Max EPS beat(2)21.85%
EPS beat(4)4
Avg EPS beat(4)14.89%
Min EPS beat(4)10.12%
Max EPS beat(4)21.85%
EPS beat(8)8
Avg EPS beat(8)13.29%
EPS beat(12)12
Avg EPS beat(12)19.73%
EPS beat(16)16
Avg EPS beat(16)18.75%
Revenue beat(2)2
Avg Revenue beat(2)1.21%
Min Revenue beat(2)0.14%
Max Revenue beat(2)2.28%
Revenue beat(4)3
Avg Revenue beat(4)1.15%
Min Revenue beat(4)-0.02%
Max Revenue beat(4)2.28%
Revenue beat(8)6
Avg Revenue beat(8)0.89%
Revenue beat(12)7
Avg Revenue beat(12)0.35%
Revenue beat(16)10
Avg Revenue beat(16)0.5%
PT rev (1m)-0.1%
PT rev (3m)-0.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.66%
EPS NY rev (1m)0%
EPS NY rev (3m)6.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.59%
Valuation
Industry RankSector Rank
PE 18.58
Fwd PE 17.78
P/S 2.4
P/FCF 17.89
P/OCF 15.84
P/B 2.86
P/tB 4.64
EV/EBITDA 14.46
EPS(TTM)2.62
EY5.38%
EPS(NY)2.74
Fwd EY5.62%
FCF(TTM)2.72
FCFY5.59%
OCF(TTM)3.07
OCFY6.31%
SpS20.27
BVpS17
TBVpS10.5
PEG (NY)4.12
PEG (5Y)2.28
Graham Number31.66
Profitability
Industry RankSector Rank
ROA 6.2%
ROE 15.63%
ROCE 9.07%
ROIC 7.43%
ROICexc 21.34%
ROICexgc 58.06%
OM 13.22%
PM (TTM) 13.11%
GM 66.15%
FCFM 13.42%
ROA(3y)5.97%
ROA(5y)5.28%
ROE(3y)14.83%
ROE(5y)12.48%
ROIC(3y)5.52%
ROIC(5y)4.95%
ROICexc(3y)15.04%
ROICexc(5y)13.14%
ROICexgc(3y)32.02%
ROICexgc(5y)27.27%
ROCE(3y)6.74%
ROCE(5y)6.04%
ROICexgc growth 3Y63%
ROICexgc growth 5Y16.7%
ROICexc growth 3Y40.45%
ROICexc growth 5Y12.42%
OM growth 3Y29.73%
OM growth 5Y7.72%
PM growth 3Y25.19%
PM growth 5Y0.79%
GM growth 3Y3.69%
GM growth 5Y0.92%
F-Score8
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF 7.29
Debt/EBITDA 2.98
Cap/Depr 57.07%
Cap/Sales 1.74%
Interest Coverage 11.88
Cash Conversion 93.23%
Profit Quality 102.39%
Current Ratio 1.92
Quick Ratio 1.78
Altman-Z 2.46
F-Score8
WACC9.71%
ROIC/WACC0.77
Cap/Depr(3y)48.19%
Cap/Depr(5y)56.59%
Cap/Sales(3y)1.58%
Cap/Sales(5y)2.04%
Profit Quality(3y)136.11%
Profit Quality(5y)125.3%
High Growth Momentum
Growth
EPS 1Y (TTM)14.91%
EPS 3Y10.16%
EPS 5Y8.16%
EPS Q2Q%24.14%
EPS Next Y4.51%
EPS Next 2Y4.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.59%
Revenue growth 3Y6.27%
Revenue growth 5Y10.35%
Sales Q2Q%8.02%
Revenue Next Year4.12%
Revenue Next 2Y4.04%
Revenue Next 3Y2.98%
Revenue Next 5YN/A
EBIT growth 1Y23.11%
EBIT growth 3Y37.86%
EBIT growth 5Y18.87%
EBIT Next Year21.07%
EBIT Next 3Y12.51%
EBIT Next 5YN/A
FCF growth 1Y-29.74%
FCF growth 3Y68.65%
FCF growth 5Y10.71%
OCF growth 1Y-25.72%
OCF growth 3Y39.16%
OCF growth 5Y8.47%

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 18.58 and the Price/Book (PB) ratio is 2.86.


How financially healthy is ALARM.COM HOLDINGS INC?

The financial health rating of ALARM.COM HOLDINGS INC (ALRM) is 4 / 10.