ALARM.COM HOLDINGS INC (ALRM) Stock Fundamental Analysis
NASDAQ:ALRM - US0116421050 - Common Stock
58.63 USD
-0.12 (-0.2%)
58.63 USD
0 (0%)
Taking everything into account, ALRM scores 5 out of 10 in our fundamental rating. ALRM was compared to 281 industry peers in the Software industry. ALRM scores excellent on profitability, but there are 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.
In the past 5 years ALRM has always been profitable.
ALRM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 6.17%, ALRM is doing good in the industry, outperforming 74.73% of the companies in the same industry.
The Return On Equity of ALRM (16.24%) is better than 82.92% of its industry peers.
ALRM's Return On Invested Capital of 7.38% is fine compared to the rest of the industry. ALRM outperforms 78.29% 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 11.98%.
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 better Profit Margin (13.27%) than 76.16% of its industry peers.
In the last couple of years the Profit Margin of ALRM has grown nicely.
Looking at the Operating Margin, with a value of 12.88%, ALRM is in the better half of the industry, outperforming 78.29% of the companies in the same industry.
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.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALRM is destroying value.
ALRM has less shares outstanding than it did 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
ALRM has an Altman-Z score of 2.68. 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.
With a Altman-Z score value of 2.68, ALRM perfoms like the industry average, outperforming 55.16% 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.
ALRM has a Debt to FCF ratio (6.11) which is comparable to the rest of the 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 67.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 2.68 |
ROIC/WACC0.72
WACC10.29%
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 decent Current ratio value of 1.95, ALRM is doing good in the industry, outperforming 60.85% 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
The Earnings Per Share has been growing slightly by 3.54% over the past year.
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%.
ALRM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.34% yearly.
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
ALRM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.03% 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 Y4.94%
EPS Next 2Y6.13%
EPS Next 3Y8.03%
EPS Next 5YN/A
Revenue Next Year6.11%
Revenue Next 2Y5.22%
Revenue Next 3Y4.87%
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
ALRM is valuated quite expensively with a Price/Earnings ratio of 25.06.
ALRM's Price/Earnings ratio is a bit cheaper when compared to the industry. ALRM is cheaper than 70.46% 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 27.08, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.83 indicates a rather expensive valuation of ALRM.
ALRM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALRM is cheaper than 71.89% of the companies in the same industry.
ALRM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.06 | ||
| Fwd PE | 22.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALRM indicates a rather cheap valuation: ALRM is cheaper than 82.21% of the companies listed in the same industry.
ALRM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALRM is cheaper than 84.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.12 | ||
| EV/EBITDA | 18.54 |
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)5.07
PEG (5Y)3.07
EPS Next 2Y6.13%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
No dividends for ALRM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
58.63
-0.12 (-0.2%)
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 Change1.69%
Market Cap2.93B
Analysts78.57
Price Target72.42 (23.52%)
Short Float %4.51%
Short Ratio6.31
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)9.51%
EPS NQ rev (1m)-1.92%
EPS NQ rev (3m)-1.48%
EPS NY rev (1m)2.11%
EPS NY rev (3m)2.57%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.06 | ||
| Fwd PE | 22.83 | ||
| P/S | 3 | ||
| P/FCF | 18.12 | ||
| P/OCF | 16.22 | ||
| P/B | 3.67 | ||
| P/tB | 5.3 | ||
| EV/EBITDA | 18.54 |
EPS(TTM)2.34
EY3.99%
EPS(NY)2.57
Fwd EY4.38%
FCF(TTM)3.24
FCFY5.52%
OCF(TTM)3.61
OCFY6.16%
SpS19.55
BVpS15.98
TBVpS11.07
PEG (NY)5.07
PEG (5Y)3.07
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 | 2.68 |
F-Score7
WACC10.29%
ROIC/WACC0.72
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 Year6.11%
Revenue Next 2Y5.22%
Revenue Next 3Y4.87%
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%