51.93 USD
-0.01 (-0.02%)
51.93 USD
0 (0%)
Taking everything into account, ALRM scores 5 out of 10 in our fundamental rating. ALRM was compared to 276 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 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.
Each year in the past 5 years ALRM had a positive operating cash flow.
1.2 Ratios
ALRM's Return On Assets of 6.04% is fine compared to the rest of the industry. ALRM outperforms 74.28% of its industry peers.
Looking at the Return On Equity, with a value of 15.49%, ALRM belongs to the top of the industry, outperforming 82.97% of the companies in the same industry.
ALRM has a Return On Invested Capital of 7.43%. This is in the better half of the industry: ALRM outperforms 76.81% 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 10.78%.
The 3 year average ROIC (4.36%) for ALRM is below the current ROIC(7.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.04% | ||
| ROE | 15.49% | ||
| ROIC | 7.43% |
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
The Profit Margin of ALRM (12.92%) is better than 73.55% of its industry peers.
ALRM's Profit Margin has improved in the last couple of years.
ALRM has a better Operating Margin (13.06%) than 78.62% of its industry peers.
In the last couple of years the Operating Margin of ALRM has grown nicely.
The Gross Margin of ALRM (66.03%) 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 | 13.06% | ||
| PM (TTM) | 12.92% | ||
| GM | 66.03% |
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.
Compared to 1 year ago, ALRM has less shares outstanding
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 2.58. 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 (2.58) is comparable to the rest of the industry.
The Debt to FCF ratio of ALRM is 6.46, which is on the high side as it means it would take ALRM, 6.46 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.46, ALRM perfoms like the industry average, outperforming 53.62% of the companies in the same industry.
ALRM has a Debt/Equity ratio of 0.59. This is a neutral value indicating ALRM is somewhat dependend on debt financing.
The Debt to Equity ratio of ALRM (0.59) is worse than 67.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 6.46 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.75
WACC9.94%
2.3 Liquidity
A Current Ratio of 2.06 indicates that ALRM has no problem at all paying its short term obligations.
ALRM has a better Current ratio (2.06) than 60.14% of its industry peers.
ALRM has a Quick Ratio of 1.92. This is a normal value and indicates that ALRM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.92, ALRM is in line with its industry, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.90% over the past year.
The Earnings Per Share has been growing by 8.16% 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 7.35% in the last year.
Measured over the past years, ALRM shows a quite strong growth in Revenue. The Revenue has been growing by 13.34% on average per year.
EPS 1Y (TTM)6.9%
EPS 3Y4.46%
EPS 5Y8.16%
EPS Q2Q%22.58%
Revenue 1Y (TTM)7.35%
Revenue growth 3Y7.86%
Revenue growth 5Y13.34%
Sales Q2Q%6.61%
3.2 Future
ALRM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.93% yearly.
ALRM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.96% yearly.
EPS Next Y13.16%
EPS Next 2Y9.75%
EPS Next 3Y7.93%
EPS Next 5YN/A
Revenue Next Year6.95%
Revenue Next 2Y5.52%
Revenue Next 3Y5%
Revenue Next 5Y3.96%
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 stable.
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 20.94, which indicates a rather expensive current valuation of ALRM.
Based on the Price/Earnings ratio, ALRM is valued a bit cheaper than 74.64% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, ALRM is valued a bit cheaper.
A Price/Forward Earnings ratio of 18.91 indicates a rather expensive valuation of ALRM.
Based on the Price/Forward Earnings ratio, ALRM is valued a bit cheaper than 76.45% of the companies in the same industry.
ALRM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.94 | ||
| Fwd PE | 18.91 |
4.2 Price Multiples
ALRM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALRM is cheaper than 82.61% of the companies in the same industry.
82.97% 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 | 16.93 | ||
| EV/EBITDA | 15.72 |
4.3 Compensation for Growth
ALRM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ALRM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.59
PEG (5Y)2.56
EPS Next 2Y9.75%
EPS Next 3Y7.93%
5. Dividend
5.1 Amount
ALRM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
51.93
-0.01 (-0.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.64%
Inst Owner Change0.3%
Ins Owners2.67%
Ins Owner Change-0.58%
Market Cap2.59B
Revenue(TTM)991.77M
Net Income(TTM)128.17M
Analysts78.57
Price Target70.04 (34.87%)
Short Float %4.6%
Short Ratio5.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)18.69%
Min EPS beat(2)15.54%
Max EPS beat(2)21.85%
EPS beat(4)4
Avg EPS beat(4)13.95%
Min EPS beat(4)6.37%
Max EPS beat(4)21.85%
EPS beat(8)8
Avg EPS beat(8)15.58%
EPS beat(12)12
Avg EPS beat(12)20.74%
EPS beat(16)16
Avg EPS beat(16)20.04%
Revenue beat(2)2
Avg Revenue beat(2)1.17%
Min Revenue beat(2)0.14%
Max Revenue beat(2)2.2%
Revenue beat(4)3
Avg Revenue beat(4)0.59%
Min Revenue beat(4)-0.02%
Max Revenue beat(4)2.2%
Revenue beat(8)5
Avg Revenue beat(8)0.44%
Revenue beat(12)6
Avg Revenue beat(12)0.03%
Revenue beat(16)10
Avg Revenue beat(16)0.97%
PT rev (1m)0%
PT rev (3m)-3.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.93%
EPS NY rev (1m)0.01%
EPS NY rev (3m)6.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.94 | ||
| Fwd PE | 18.91 | ||
| P/S | 2.61 | ||
| P/FCF | 16.93 | ||
| P/OCF | 14.92 | ||
| P/B | 3.13 | ||
| P/tB | 4.51 | ||
| EV/EBITDA | 15.72 |
EPS(TTM)2.48
EY4.78%
EPS(NY)2.75
Fwd EY5.29%
FCF(TTM)3.07
FCFY5.91%
OCF(TTM)3.48
OCFY6.7%
SpS19.88
BVpS16.58
TBVpS11.51
PEG (NY)1.59
PEG (5Y)2.56
Graham Number30.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.04% | ||
| ROE | 15.49% | ||
| ROCE | 8.82% | ||
| ROIC | 7.43% | ||
| ROICexc | 27.09% | ||
| ROICexgc | 72.74% | ||
| OM | 13.06% | ||
| PM (TTM) | 12.92% | ||
| GM | 66.03% | ||
| FCFM | 15.43% |
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%
ROICexgc growth 3Y-6.99%
ROICexgc 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-Score6
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 6.46 | ||
| Debt/EBITDA | 3.06 | ||
| Cap/Depr | 68.32% | ||
| Cap/Sales | 2.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 108.72% | ||
| Profit Quality | 119.41% | ||
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.92 | ||
| Altman-Z | 2.58 |
F-Score6
WACC9.94%
ROIC/WACC0.75
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)6.9%
EPS 3Y4.46%
EPS 5Y8.16%
EPS Q2Q%22.58%
EPS Next Y13.16%
EPS Next 2Y9.75%
EPS Next 3Y7.93%
EPS Next 5YN/A
Revenue 1Y (TTM)7.35%
Revenue growth 3Y7.86%
Revenue growth 5Y13.34%
Sales Q2Q%6.61%
Revenue Next Year6.95%
Revenue Next 2Y5.52%
Revenue Next 3Y5%
Revenue Next 5Y3.96%
EBIT growth 1Y25.32%
EBIT growth 3Y20.79%
EBIT growth 5Y16.58%
EBIT Next Year21.87%
EBIT Next 3Y11.66%
EBIT Next 5Y13.18%
FCF growth 1Y29.26%
FCF growth 3Y30.07%
FCF growth 5Y48.34%
OCF growth 1Y33.07%
OCF growth 3Y25.99%
OCF growth 5Y34.38%
ALARM.COM HOLDINGS INC / ALRM FAQ
What is the ChartMill fundamental rating of ALARM.COM HOLDINGS INC (ALRM) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ALRM.
Can you provide the valuation status for ALARM.COM HOLDINGS INC?
ChartMill assigns a valuation rating of 5 / 10 to ALARM.COM HOLDINGS INC (ALRM). This can be considered as Fairly Valued.
Can you provide the profitability details for ALARM.COM HOLDINGS INC?
ALARM.COM HOLDINGS INC (ALRM) has a profitability rating of 7 / 10.
What is the valuation of ALARM.COM HOLDINGS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ALARM.COM HOLDINGS INC (ALRM) is 20.94 and the Price/Book (PB) ratio is 3.13.
How financially healthy is ALARM.COM HOLDINGS INC?
The financial health rating of ALARM.COM HOLDINGS INC (ALRM) is 4 / 10.