ALARM.COM HOLDINGS INC (ALRM)

US0116421050 - Common Stock

72.47  -0.47 (-0.64%)

After market: 72.47 0 (0%)

Fundamental Rating

5

Overall ALRM gets a fundamental rating of 5 out of 10. We evaluated ALRM against 279 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 has a decent growth rate and is not valued too expensively.



8

1. Profitability

1.1 Basic Checks

ALRM had positive earnings in the past year.
In the past year ALRM had a positive cash flow from operations.
In the past 5 years ALRM has always 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 (5.63%) than 82.37% of its industry peers.
ALRM has a Return On Equity of 11.76%. This is amongst the best in the industry. ALRM outperforms 86.69% of its industry peers.
ALRM has a Return On Invested Capital of 4.77%. This is in the better half of the industry: ALRM outperforms 79.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALRM is significantly below the industry average of 10.09%.
The last Return On Invested Capital (4.77%) for ALRM is above the 3 year average (4.58%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.63%
ROE 11.76%
ROIC 4.77%
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

ALRM's Profit Margin of 9.19% is amongst the best of the industry. ALRM outperforms 82.01% of its industry peers.
In the last couple of years the Profit Margin of ALRM has grown nicely.
ALRM has a Operating Margin of 7.59%. This is in the better half of the industry: ALRM outperforms 78.06% of its industry peers.
In the last couple of years the Operating Margin of ALRM has grown nicely.
ALRM has a Gross Margin of 63.11%. This is comparable to the rest of the industry: ALRM outperforms 46.40% of its industry peers.
ALRM's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 7.59%
PM (TTM) 9.19%
GM 63.11%
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%

6

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 has been increased compared to 1 year ago.
The number of shares outstanding for ALRM has been increased compared to 5 years ago.
ALRM has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 4.59 indicates that ALRM is not in any danger for bankruptcy at the moment.
ALRM has a better Altman-Z score (4.59) than 66.55% of its industry peers.
ALRM has a debt to FCF ratio of 4.05. This is a neutral value as ALRM would need 4.05 years to pay back of all of its debts.
ALRM's Debt to FCF ratio of 4.05 is fine compared to the rest of the industry. ALRM outperforms 65.47% of its industry peers.
A Debt/Equity ratio of 0.72 indicates that ALRM is somewhat dependend on debt financing.
ALRM's Debt to Equity ratio of 0.72 is on the low side compared to the rest of the industry. ALRM is outperformed by 67.99% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 4.05
Altman-Z 4.59
ROIC/WACC0.54
WACC8.78%

2.3 Liquidity

A Current Ratio of 5.46 indicates that ALRM has no problem at all paying its short term obligations.
ALRM has a better Current ratio (5.46) than 89.57% of its industry peers.
A Quick Ratio of 4.91 indicates that ALRM has no problem at all paying its short term obligations.
ALRM has a better Quick ratio (4.91) than 88.85% of its industry peers.
Industry RankSector Rank
Current Ratio 5.46
Quick Ratio 4.91

4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 6.12% over the past year.
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 4.67% 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)6.12%
EPS 3Y5.53%
EPS 5Y9.36%
EPS growth Q2Q16.98%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y12.57%
Revenue growth 5Y15.96%
Revenue growth Q2Q8.72%

3.2 Future

The Earnings Per Share is expected to grow by 6.74% 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 4.32% yearly.
EPS Next Y4.73%
EPS Next 2Y5.24%
EPS Next 3Y6.74%
EPS Next 5YN/A
Revenue Next Year5.14%
Revenue Next 2Y5.21%
Revenue Next 3Y4.97%
Revenue Next 5Y4.32%

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

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 34.84 indicates a quite expensive valuation of ALRM.
Based on the Price/Earnings ratio, ALRM is valued a bit cheaper than the industry average as 75.18% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.42, ALRM is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 33.27, the valuation of ALRM can be described as expensive.
Based on the Price/Forward Earnings ratio, ALRM is valued a bit cheaper than 69.42% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.74. ALRM is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 34.84
Fwd PE 33.27

4.2 Price Multiples

77.70% of the companies in the same industry are more expensive than ALRM, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ALRM is valued a bit cheaper than 79.14% of the companies in the same industry.
Industry RankSector Rank
P/FCF 29.72
EV/EBITDA 34.57

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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.37
PEG (5Y)3.72
EPS Next 2Y5.24%
EPS Next 3Y6.74%

0

5. Dividend

5.1 Amount

No dividends for ALRM!.
Industry RankSector Rank
Dividend Yield N/A

ALARM.COM HOLDINGS INC

NASDAQ:ALRM (3/28/2024, 5:20:00 PM)

After market: 72.47 0 (0%)

72.47

-0.47 (-0.64%)

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 Cap3.62B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 34.84
Fwd PE 33.27
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)7.37
PEG (5Y)3.72
Profitability
Industry RankSector Rank
ROA 5.63%
ROE 11.76%
ROCE
ROIC
ROICexc
ROICexgc
OM 7.59%
PM (TTM) 9.19%
GM 63.11%
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 Turnover0.61
Health
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 5.46
Quick Ratio 4.91
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)
Growth
EPS 1Y (TTM)6.12%
EPS 3Y5.53%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.73%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.67%
Revenue growth 3Y12.57%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y