ALARM.COM HOLDINGS INC (ALRM) Stock Fundamental Analysis
USA - NASDAQ:ALRM - US0116421050 - Common Stock
51.29 USD
-0.67 (-1.29%)
51.29 USD
0 (0%)
ALRM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 279 industry peers in the Software industry. ALRM has an excellent profitability rating, but there are 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
ALRM had positive earnings in the past year.
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's Return On Assets of 6.17% is fine compared to the rest of the industry. ALRM outperforms 74.91% of its industry peers.
ALRM has a better Return On Equity (16.24%) than 83.51% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.38%, ALRM is in the better half of the industry, outperforming 77.78% 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 11.86%.
The 3 year average ROIC (4.36%) for ALRM is below the current ROIC(7.38%), indicating increased profibility in the last year.
| 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's Profit Margin of 13.27% is fine compared to the rest of the industry. ALRM outperforms 76.34% of its industry peers.
ALRM's Profit Margin has improved in the last couple of years.
The Operating Margin of ALRM (12.88%) is better than 78.14% of its industry peers.
In the last couple of years the Operating Margin of ALRM has grown nicely.
ALRM has a Gross Margin of 65.77%. This is comparable to the rest of the industry: ALRM outperforms 44.44% 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 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.
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
Compared to 1 year ago, ALRM has a worse debt to assets ratio.
2.2 Solvency
ALRM has an Altman-Z score of 2.52. This is not the best score and indicates that ALRM is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of ALRM (2.52) is comparable to the rest of the 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 55.91% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that ALRM is somewhat dependend on debt financing.
ALRM's Debt to Equity ratio of 0.61 is on the low side compared to the rest of the industry. ALRM is outperformed by 68.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 2.52 |
ROIC/WACC0.71
WACC10.34%
2.3 Liquidity
A Current Ratio of 1.95 indicates that ALRM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.95, ALRM is in the better half of the industry, outperforming 60.57% 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.
The Quick ratio of ALRM (1.82) 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%.
ALRM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.16% yearly.
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 8.03% on average over the next years. This is quite good.
ALRM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.96% yearly.
EPS Next Y4.94%
EPS Next 2Y6.13%
EPS Next 3Y8.03%
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
Based on the Price/Earnings ratio of 21.92, the valuation of ALRM can be described as rather expensive.
ALRM's Price/Earnings ratio is a bit cheaper when compared to the industry. ALRM is cheaper than 73.84% of the companies in the same industry.
ALRM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.97, ALRM is valued on the expensive side.
74.55% of the companies in the same industry are more expensive than ALRM, based on the Price/Forward Earnings ratio.
ALRM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.92 | ||
| Fwd PE | 19.97 |
4.2 Price Multiples
ALRM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALRM is cheaper than 84.23% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ALRM is valued cheaper than 87.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.85 | ||
| EV/EBITDA | 16.4 |
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)4.44
PEG (5Y)2.68
EPS Next 2Y6.13%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
ALRM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
51.29
-0.67 (-1.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.34%
Inst Owner Change-0.52%
Ins Owners2.73%
Ins Owner Change1.18%
Market Cap2.56B
Analysts78.57
Price Target72.42 (41.2%)
Short Float %5.16%
Short Ratio7.19
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)5.3%
PT rev (3m)5.3%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-2.56%
EPS NY rev (1m)0%
EPS NY rev (3m)2.11%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.92 | ||
| Fwd PE | 19.97 | ||
| P/S | 2.62 | ||
| P/FCF | 15.85 | ||
| P/OCF | 14.19 | ||
| P/B | 3.21 | ||
| P/tB | 4.63 | ||
| EV/EBITDA | 16.4 |
EPS(TTM)2.34
EY4.56%
EPS(NY)2.57
Fwd EY5.01%
FCF(TTM)3.24
FCFY6.31%
OCF(TTM)3.61
OCFY7.05%
SpS19.55
BVpS15.98
TBVpS11.07
PEG (NY)4.44
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 | 2.52 |
F-Score7
WACC10.34%
ROIC/WACC0.71
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 Y4.94%
EPS Next 2Y6.13%
EPS Next 3Y8.03%
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 Year17.23%
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%