ALARM.COM HOLDINGS INC (ALRM) Stock Fundamental Analysis
USA - NASDAQ:ALRM - US0116421050 - Common Stock
51.16 USD
+0.83 (+1.65%)
51.16 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ALRM. ALRM was compared to 285 industry peers in the Software industry. While ALRM has a great profitability rating, there are quite some 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.
Each year in the past 5 years ALRM has been profitable.
Each year in the past 5 years ALRM had a positive operating cash flow.
1.2 Ratios
ALRM has a better Return On Assets (6.17%) than 75.09% 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 83.86% of the companies in the same industry.
ALRM's Return On Invested Capital of 7.38% is fine compared to the rest of the industry. ALRM outperforms 77.54% of its industry peers.
ALRM had an Average Return On Invested Capital over the past 3 years of 4.36%. This is significantly below the industry average of 11.90%.
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
Looking at the Profit Margin, with a value of 13.27%, ALRM is in the better half of the industry, outperforming 76.14% of the companies in the same industry.
In the last couple of years the Profit Margin of ALRM has grown nicely.
ALRM's Operating Margin of 12.88% is fine compared to the rest of the industry. ALRM outperforms 78.25% of its industry peers.
ALRM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 65.77%, ALRM is in line with its industry, outperforming 45.26% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALRM is destroying value.
The number of shares outstanding for ALRM has been reduced compared to 1 year ago.
Compared to 5 years ago, ALRM has more shares outstanding
ALRM has a worse debt/assets ratio than last year.
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.
With a Altman-Z score value of 2.50, ALRM perfoms like the industry average, outperforming 52.98% of the companies in the same industry.
ALRM has a debt to FCF ratio of 6.11. This is a slightly negative value and a sign of low solvency as ALRM would need 6.11 years to pay back of 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 56.84% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that 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 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 2.5 |
ROIC/WACC0.74
WACC10.02%
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 59.65% of the companies in the same industry.
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 in line with its industry peers.
| 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%.
The Revenue has been growing by 13.34% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 7.78% on average over the next years.
ALRM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.96% yearly.
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.
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
The Price/Earnings ratio is 21.86, which indicates a rather expensive current valuation of ALRM.
Compared to the rest of the industry, the Price/Earnings ratio of ALRM indicates a somewhat cheap valuation: ALRM is cheaper than 75.44% of the companies listed in the same industry.
ALRM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.77.
A Price/Forward Earnings ratio of 19.88 indicates a rather expensive valuation of ALRM.
76.14% of the companies in the same industry are more expensive than ALRM, based on the Price/Forward Earnings ratio.
ALRM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.86 | ||
| Fwd PE | 19.88 |
4.2 Price Multiples
84.56% of the companies in the same industry are more expensive than ALRM, based on the Enterprise Value to EBITDA ratio.
86.32% 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 | 15.81 | ||
| EV/EBITDA | 16.14 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ALRM does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of ALRM may justify a higher PE ratio.
PEG (NY)3.28
PEG (5Y)2.68
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 |
51.16
+0.83 (+1.65%)
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 Cap2.55B
Analysts78.57
Price Target72.42 (41.56%)
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 | 21.86 | ||
| Fwd PE | 19.88 | ||
| P/S | 2.62 | ||
| P/FCF | 15.81 | ||
| P/OCF | 14.16 | ||
| P/B | 3.2 | ||
| P/tB | 4.62 | ||
| EV/EBITDA | 16.14 |
EPS(TTM)2.34
EY4.57%
EPS(NY)2.57
Fwd EY5.03%
FCF(TTM)3.24
FCFY6.32%
OCF(TTM)3.61
OCFY7.06%
SpS19.55
BVpS15.98
TBVpS11.07
PEG (NY)3.28
PEG (5Y)2.68
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
WACC10.02%
ROIC/WACC0.74
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%