51.92 USD
-0.19 (-0.36%)
51.92 USD
0 (0%)
Taking everything into account, ALRM scores 4 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 quite some 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
In the past year ALRM was profitable.
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
ALRM's Return On Assets of 6.17% is fine compared to the rest of the industry. ALRM outperforms 74.73% of its industry peers.
Looking at the Return On Equity, with a value of 16.24%, ALRM belongs to the top of the industry, outperforming 82.56% of the companies in the same industry.
The Return On Invested Capital of ALRM (7.38%) is better than 76.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALRM is significantly below the industry average of 12.03%.
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
ALRM has a Profit Margin of 13.27%. This is in the better half of the industry: ALRM outperforms 75.44% of its industry peers.
In the last couple of years the Profit Margin of ALRM has grown nicely.
ALRM has a better Operating Margin (12.88%) than 77.58% of its industry peers.
ALRM's Operating Margin has improved in the last couple of years.
ALRM has a Gross Margin (65.77%) 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALRM 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.
ALRM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.52 indicates that ALRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ALRM (2.52) is comparable to the rest of the industry.
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.
ALRM has a Debt to FCF ratio of 6.11. This is comparable to the rest of the industry: ALRM outperforms 54.45% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that ALRM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.61, ALRM is not doing good in the industry: 67.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 2.52 |
ROIC/WACC0.75
WACC9.83%
2.3 Liquidity
ALRM has a Current Ratio of 1.95. This is a normal value and indicates that ALRM is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.95, ALRM perfoms like the industry average, outperforming 59.07% of the companies in the same industry.
A Quick Ratio of 1.82 indicates that ALRM should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.82, ALRM perfoms like the industry average, outperforming 55.52% of the companies in the same 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 6.90%.
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 6.59% in the last year.
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)6.9%
EPS 3Y4.46%
EPS 5Y8.16%
EPS Q2Q%22.58%
Revenue 1Y (TTM)6.59%
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 7.78% 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 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
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
A Price/Earnings ratio of 20.94 indicates a rather expensive valuation of ALRM.
Based on the Price/Earnings ratio, ALRM is valued a bit cheaper than the industry average as 72.95% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.41. ALRM is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 20.18, which indicates a rather expensive current valuation of ALRM.
Based on the Price/Forward Earnings ratio, ALRM is valued a bit cheaper than 72.95% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ALRM to the average of the S&P500 Index (35.40), we can say ALRM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.94 | ||
| Fwd PE | 20.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALRM is valued cheaper than 81.85% of the companies in the same industry.
84.34% 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 | 16.04 | ||
| EV/EBITDA | 16.44 |
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)3.14
PEG (5Y)2.56
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 |
51.92
-0.19 (-0.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.59%
Inst Owner Change-0.18%
Ins Owners2.72%
Ins Owner Change-0.23%
Market Cap2.59B
Revenue(TTM)939.83M
Net Income(TTM)129.51M
Analysts78.57
Price Target70.04 (34.9%)
Short Float %4.77%
Short Ratio5.35
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)-3.29%
PT rev (3m)-3.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)1.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.94 | ||
| Fwd PE | 20.18 | ||
| P/S | 2.65 | ||
| P/FCF | 16.04 | ||
| P/OCF | 14.36 | ||
| P/B | 3.25 | ||
| P/tB | 4.69 | ||
| EV/EBITDA | 16.44 |
EPS(TTM)2.48
EY4.78%
EPS(NY)2.57
Fwd EY4.96%
FCF(TTM)3.24
FCFY6.24%
OCF(TTM)3.62
OCFY6.96%
SpS19.56
BVpS15.99
TBVpS11.08
PEG (NY)3.14
PEG (5Y)2.56
Graham Number29.87
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%
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-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 | 2.52 |
F-Score7
WACC9.83%
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 Y6.67%
EPS Next 2Y6.23%
EPS Next 3Y7.78%
EPS Next 5YN/A
Revenue 1Y (TTM)6.59%
Revenue growth 3Y7.86%
Revenue growth 5Y13.34%
Sales Q2Q%6.61%
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%
ALARM.COM HOLDINGS INC / ALRM FAQ
Can you provide the ChartMill fundamental rating for ALARM.COM HOLDINGS INC?
ChartMill assigns a fundamental rating of 4 / 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 20.94 and the Price/Book (PB) ratio is 3.25.
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 6.67% in the next year.