ALARM.COM HOLDINGS INC (ALRM)
US0116421050 - Common Stock
We assign a fundamental rating of 5 out of 10 to ALRM. ALRM was compared to 280 industry peers in the Software industry. ALRM scores excellent on profitability, 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
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.
In the past 5 years ALRM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.35%, ALRM belongs to the top of the industry, outperforming 80.71% of the companies in the same industry.
ALRM has a better Return On Equity (18.12%) than 87.14% of its industry peers.
ALRM's Return On Invested Capital of 5.16% is fine compared to the rest of the industry. ALRM outperforms 74.64% of its industry peers.
ALRM had an Average Return On Invested Capital over the past 3 years of 4.58%. This is significantly below the industry average of 11.80%.
The 3 year average ROIC (4.58%) for ALRM is below the current ROIC(5.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.35% | ||
| ROE | 18.12% | ||
| ROIC | 5.16% |
ROA(3y)4.7%
ROA(5y)6.87%
ROE(3y)9.9%
ROE(5y)12.28%
ROIC(3y)4.58%
ROIC(5y)6.22%
1.3 Margins
The Profit Margin of ALRM (13.54%) is better than 82.14% of its industry peers.
In the last couple of years the Profit Margin of ALRM has grown nicely.
ALRM has a Operating Margin of 11.19%. This is in the better half of the industry: ALRM outperforms 78.93% of its industry peers.
In the last couple of years the Operating Margin of ALRM has grown nicely.
ALRM has a Gross Margin of 64.95%. This is comparable to the rest of the industry: ALRM outperforms 44.64% of its industry peers.
ALRM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.19% | ||
| PM (TTM) | 13.54% | ||
| GM | 64.95% |
OM growth 3Y-5.95%
OM growth 5Y21.17%
PM growth 3Y-9.99%
PM growth 5Y12.45%
GM growth 3Y-0.04%
GM growth 5Y-0.69%
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.
The number of shares outstanding for ALRM has been increased 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.
2.2 Solvency
An Altman-Z score of 3.10 indicates that ALRM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.10, ALRM is in line with its industry, outperforming 52.14% of the companies in the same industry.
ALRM has a debt to FCF ratio of 5.50. This is a neutral value as ALRM would need 5.50 years to pay back of all of its debts.
ALRM has a Debt to FCF ratio (5.50) which is in line with its industry peers.
A Debt/Equity ratio of 1.42 is on the high side and indicates that ALRM has dependencies on debt financing.
ALRM's Debt to Equity ratio of 1.42 is on the low side compared to the rest of the industry. ALRM is outperformed by 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 3.1 |
ROIC/WACC0.46
WACC11.21%
2.3 Liquidity
A Current Ratio of 8.66 indicates that ALRM has no problem at all paying its short term obligations.
ALRM's Current ratio of 8.66 is amongst the best of the industry. ALRM outperforms 95.71% of its industry peers.
A Quick Ratio of 8.20 indicates that ALRM has no problem at all paying its short term obligations.
ALRM has a better Quick ratio (8.20) than 94.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.66 | ||
| Quick Ratio | 8.2 |
3. Growth
3.1 Past
ALRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.58%, which is quite good.
The Earnings Per Share has been growing by 9.36% 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 6.97% in the last year.
ALRM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.96% yearly.
EPS 1Y (TTM)16.58%
EPS 3Y5.53%
EPS 5Y9.36%
EPS Q2Q%10.71%
Revenue 1Y (TTM)6.97%
Revenue growth 3Y12.57%
Revenue growth 5Y15.96%
Sales Q2Q%8.4%
3.2 Future
ALRM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.23% yearly.
ALRM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.42% yearly.
EPS Next Y2.53%
EPS Next 2Y4.28%
EPS Next 3Y5.23%
EPS Next 5YN/A
Revenue Next Year5.4%
Revenue Next 2Y5.29%
Revenue Next 3Y4.97%
Revenue Next 5Y4.42%
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 decreasing.
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
With a Price/Earnings ratio of 26.86, ALRM can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ALRM is valued a bit cheaper than the industry average as 76.43% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ALRM to the average of the S&P500 Index (29.20), we can say ALRM is valued inline with the index average.
With a Price/Forward Earnings ratio of 27.55, ALRM can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, ALRM is valued a bit cheaper than the industry average as 72.50% of the companies are valued more expensively.
ALRM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.00, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.86 | ||
| Fwd PE | 27.55 |
4.2 Price Multiples
81.07% of the companies in the same industry are more expensive than ALRM, based on the Enterprise Value to EBITDA ratio.
ALRM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALRM is cheaper than 90.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.27 | ||
| EV/EBITDA | 21.55 |
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 excellent profitability rating of ALRM may justify a higher PE ratio.
PEG (NY)10.63
PEG (5Y)2.87
EPS Next 2Y4.28%
EPS Next 3Y5.23%
5. Dividend
5.1 Amount
No dividends for ALRM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALARM.COM HOLDINGS INC
NASDAQ:ALRM (11/22/2024, 8:22:51 PM)
After market: 62.25 -0.07 (-0.11%)62.32
+1.54 (+2.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.08B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.86 | ||
| Fwd PE | 27.55 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)10.63
PEG (5Y)2.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.35% | ||
| ROE | 18.12% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.19% | ||
| PM (TTM) | 13.54% | ||
| GM | 64.95% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 8.66 | ||
| Quick Ratio | 8.2 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)16.58%
EPS 3Y5.53%
EPS 5Y
EPS Q2Q%
EPS Next Y2.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.97%
Revenue growth 3Y12.57%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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EBIT Next 3Y
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