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Alarm.com Holdings

Nasdaq:ALRM
Snowflake Description

Excellent balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ALRM
Nasdaq
$3B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Alarm.com Holdings, Inc. provides cloud-based software platform solutions for smart residential and commercial properties in the United States and internationally. The last earnings update was 22 days ago. More info.


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  • Alarm.com Holdings has significant price volatility in the past 3 months.
ALRM Share Price and Events
7 Day Returns
0.2%
NasdaqGS:ALRM
1.4%
US Software
0.4%
US Market
1 Year Returns
61.7%
NasdaqGS:ALRM
26.7%
US Software
3.5%
US Market
ALRM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Alarm.com Holdings (ALRM) 0.2% -4.9% 37.5% 61.7% 177.3% -
US Software 1.4% 5.2% 22.7% 26.7% 110.9% 140.1%
US Market 0.4% 1.6% 16.4% 3.5% 39.4% 44%
1 Year Return vs Industry and Market
  • ALRM outperformed the Software industry which returned 26.7% over the past year.
  • ALRM outperformed the Market in United States of America which returned 3.5% over the past year.
Price Volatility
ALRM
Industry
5yr Volatility vs Market
Related Companies

ALRM Value

 Is Alarm.com Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Alarm.com Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Alarm.com Holdings.

NasdaqGS:ALRM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:ALRM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.141 (1 + (1- 21%) (2.28%))
1.108
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.108 * 5.96%)
9.34%

Discounted Cash Flow Calculation for NasdaqGS:ALRM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Alarm.com Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:ALRM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.34%)
2019 37.30 Analyst x4 34.12
2020 80.50 Analyst x5 67.34
2021 111.05 Analyst x2 84.97
2022 136.33 Analyst x2 95.40
2023 164.71 Analyst x2 105.42
2024 187.81 Est @ 14.03% 109.94
2025 207.79 Est @ 10.64% 111.25
2026 224.97 Est @ 8.27% 110.17
2027 239.83 Est @ 6.61% 107.42
2028 252.88 Est @ 5.44% 103.59
Present value of next 10 years cash flows $929.61
NasdaqGS:ALRM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $252.88 × (1 + 2.73%) ÷ (9.34% – 2.73%)
$3,933.15
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,933.15 ÷ (1 + 9.34%)10
$1,611.19
NasdaqGS:ALRM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $929.61 + $1,611.19
$2,540.80
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,540.80 / 48.18
$52.73
NasdaqGS:ALRM Discount to Share Price
Calculation Result
Value per share (USD) From above. $52.73
Current discount Discount to share price of $61.09
= -1 x ($61.09 - $52.73) / $52.73
-15.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Alarm.com Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Alarm.com Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Alarm.com Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:ALRM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.45
NasdaqGS:ALRM Share Price ** NasdaqGS (2019-03-22) in USD $61.09
United States of America Software Industry PE Ratio Median Figure of 84 Publicly-Listed Software Companies 52.88x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.52x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Alarm.com Holdings.

NasdaqGS:ALRM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ALRM Share Price ÷ EPS (both in USD)

= 61.09 ÷ 0.45

135.21x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alarm.com Holdings is overvalued based on earnings compared to the US Software industry average.
  • Alarm.com Holdings is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Alarm.com Holdings's expected growth come at a high price?
Raw Data
NasdaqGS:ALRM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 135.21x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
29.5%per year
United States of America Software Industry PEG Ratio Median Figure of 66 Publicly-Listed Software Companies 3.6x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NasdaqGS:ALRM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 135.21x ÷ 29.5%

4.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alarm.com Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Alarm.com Holdings's assets?
Raw Data
NasdaqGS:ALRM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $5.77
NasdaqGS:ALRM Share Price * NasdaqGS (2019-03-22) in USD $61.09
United States of America Software Industry PB Ratio Median Figure of 220 Publicly-Listed Software Companies 5.79x
United States of America Market PB Ratio Median Figure of 5,157 Publicly-Listed Companies 1.88x
NasdaqGS:ALRM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ALRM Share Price ÷ Book Value per Share (both in USD)

= 61.09 ÷ 5.77

10.59x

* Primary Listing of Alarm.com Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alarm.com Holdings is overvalued based on assets compared to the US Software industry average.
X
Value checks
We assess Alarm.com Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Alarm.com Holdings has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ALRM Future Performance

 How is Alarm.com Holdings expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
29.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Alarm.com Holdings expected to grow at an attractive rate?
  • Alarm.com Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Alarm.com Holdings's earnings growth is expected to exceed the United States of America market average.
  • Alarm.com Holdings's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:ALRM Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:ALRM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 29.5%
NasdaqGS:ALRM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 7.8%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 16.1%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 10.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:ALRM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:ALRM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 156
2022-12-31 137
2021-12-31 569 121 60 1
2020-12-31 489 94 44 12
2019-12-31 446 49 34 12
NasdaqGS:ALRM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 420 61 22
2018-09-30 398 54 14
2018-06-30 376 48 37
2018-03-31 357 48 36
2017-12-31 339 57 29
2017-09-30 320 50 32
2017-06-30 298 39 19
2017-03-31 276 28 11
2016-12-31 261 23 10
2016-09-30 248 17 10
2016-06-30 234 27 11
2016-03-31 222 31 -8

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Alarm.com Holdings's earnings are expected to grow significantly at over 20% yearly.
  • Alarm.com Holdings's revenue is expected to grow by 7.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:ALRM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Alarm.com Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ALRM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 0.83 0.96 0.64 7.00
2019-12-31 0.64 0.71 0.51 7.00
NasdaqGS:ALRM Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.45
2018-09-30 0.29
2018-06-30 0.78
2018-03-31 0.76
2017-12-31 0.63
2017-09-30 0.69
2017-06-30 0.42
2017-03-31 0.25
2016-12-31 0.22
2016-09-30 0.23
2016-06-30 0.24
2016-03-31 -0.22

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Alarm.com Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Alarm.com Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Alarm.com Holdings has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ALRM Past Performance

  How has Alarm.com Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Alarm.com Holdings's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Alarm.com Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • Alarm.com Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Alarm.com Holdings's 1-year earnings growth is negative, it can't be compared to the US Software industry average.
Earnings and Revenue History
Alarm.com Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Alarm.com Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ALRM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 420.49 21.52 105.92 89.20
2018-09-30 397.89 13.92 97.06 83.68
2018-06-30 376.00 36.66 93.73 80.07
2018-03-31 357.50 35.79 89.24 78.61
2017-12-31 338.94 29.24 85.78 72.76
2017-09-30 319.94 31.89 81.52 65.89
2017-06-30 297.82 19.36 79.52 58.11
2017-03-31 276.26 11.37 74.85 48.82
2016-12-31 261.11 10.14 72.65 44.27
2016-09-30 248.23 10.44 69.83 45.56
2016-06-30 234.39 10.82 66.09 43.92
2016-03-31 221.92 -7.53 64.02 42.22
2015-12-31 208.89 -7.22 60.96 40.00
2015-09-30 197.52 -10.30 58.83 33.39
2015-06-30 186.34 -13.12 58.07 29.65
2015-03-31 176.47 3.46 56.56 26.34
2014-12-31 167.31 0.56 51.89 23.19
2014-09-30 156.59 0.34 48.41 20.21
2014-06-30 148.58 0.20 43.05 17.86
2014-03-31 139.04 2.70 39.08 15.02
2013-12-31 130.22 0.12 34.76 13.09
2012-12-31 96.48 -139.84 27.33 8.94

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Alarm.com Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Alarm.com Holdings used its assets less efficiently than the US Software industry average last year based on Return on Assets.
  • Alarm.com Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Alarm.com Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Alarm.com Holdings has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ALRM Health

 How is Alarm.com Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Alarm.com Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Alarm.com Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Alarm.com Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Alarm.com Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Alarm.com Holdings Company Filings, last reported 2 months ago.

NasdaqGS:ALRM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 277.59 67.00 146.06
2018-09-30 264.74 68.00 124.24
2018-06-30 266.20 69.00 105.96
2018-03-31 250.26 70.00 96.80
2017-12-31 232.83 71.00 96.33
2017-09-30 229.91 72.00 84.64
2017-06-30 211.29 72.70 68.92
2017-03-31 198.41 73.70 63.15
2016-12-31 191.25 6.70 140.63
2016-09-30 184.30 6.70 135.05
2016-06-30 177.58 6.70 134.16
2016-03-31 174.45 6.70 135.85
2015-12-31 170.13 6.70 128.36
2015-09-30 165.80 6.70 126.60
2015-06-30 68.16 6.70 20.88
2015-03-31 64.20 6.70 39.19
2014-12-31 80.61 6.70 42.57
2014-09-30
2014-06-30 71.17 6.70 38.21
2014-03-31 67.95 7.00 40.86
2013-12-31 61.77 7.50 33.58
2012-12-31 55.41 9.00 41.92
  • Alarm.com Holdings's level of debt (24.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (12.1% vs 24.1% today).
  • Debt is well covered by operating cash flow (90.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 115.2x coverage).
X
Financial health checks
We assess Alarm.com Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Alarm.com Holdings has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ALRM Dividends

 What is Alarm.com Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Alarm.com Holdings dividends. Estimated to be 0% next year.
If you bought $2,000 of Alarm.com Holdings shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Alarm.com Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Alarm.com Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:ALRM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2006 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:ALRM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 1.00
2020-12-31 0.00 2.00
2019-12-31 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Alarm.com Holdings has not reported any payouts.
  • Unable to verify if Alarm.com Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Alarm.com Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Alarm.com Holdings has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Alarm.com Holdings's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Alarm.com Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Alarm.com Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Alarm.com Holdings has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ALRM Management

 What is the CEO of Alarm.com Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Steve Trundle
COMPENSATION $1,180,859
AGE 49
TENURE AS CEO 15.8 years
CEO Bio

Mr. Stephen S. Trundle, also known as Steve, has been the President and Chief Executive Officer at Alarm.Com Holdings, Inc. since May 2003. Mr. Trundle serves as Chief Executive Officer and President of Alarm.com Inc. Mr. Trundle has been a Vice President of Technology since July 1997 and served as Director of Technology from 1994 to 1997. From 1992 to 1994, Mr. Trundle served as a Consultant and as a Senior Consultant with MicroStrategy. He served as Vice President of Technology and Chief Technology Officer at MicroStrategy Incorporated. Prior to that, Mr. Trundle served at Bath Iron Works on the Aegis Destroyer program from 1991 to 1992. Mr. Trundle has been a Director at Alarm.Com Holdings, Inc. since October 2003. Mr. Trundle holds an A.B. in Engineering and an A.B. in Government from Dartmouth College.

CEO Compensation
  • Steve's compensation has been consistent with company performance over the past year.
  • Steve's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Alarm.com Holdings management team in years:

5.2
Average Tenure
49
Average Age
  • The average tenure for the Alarm.com Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Steve Trundle

TITLE
CEO, President & Director
COMPENSATION
$1M
AGE
49
TENURE
15.8 yrs

Steve Valenzuela

TITLE
Chief Financial Officer
COMPENSATION
$541K
AGE
61
TENURE
2.3 yrs

Daniel Ramos

TITLE
Senior VP of Corporate Development & Corporate Secretary
COMPENSATION
$962K
AGE
49
TENURE
11.8 yrs

Jeffrey Bedell

TITLE
Chief Strategy & Innovation Officer
COMPENSATION
$1,000K
AGE
49
TENURE
5.9 yrs

Daniel Kerzner

TITLE
Chief Product Officer
COMPENSATION
$991K
AGE
42
TENURE
5.3 yrs

Jean-Paul Martin

TITLE
Co-Founder & CTO
COMPENSATION
$286K
AGE
57

Alison Slavin

TITLE
Co-Founder & Senior VP of Creation Lab
AGE
39
TENURE
5.1 yrs

Allan Gollinger

TITLE
Principal Accounting Officer and Controller
TENURE
2.9 yrs

David Trone

TITLE
Vice President of Investor Relations

Nate Natale

TITLE
Senior Vice President of Sales
TENURE
4.7 yrs
Board of Directors Tenure

Average tenure and age of the Alarm.com Holdings board of directors in years:

4.8
Average Tenure
58
Average Age
  • The tenure for the Alarm.com Holdings board of directors is about average.
Board of Directors

Tim McAdam

TITLE
Chairman
COMPENSATION
$210K
AGE
50
TENURE
3.9 yrs

Steve Trundle

TITLE
CEO, President & Director
COMPENSATION
$1M
AGE
49
TENURE
15.4 yrs

Don Clarke

TITLE
Director
COMPENSATION
$211K
AGE
58
TENURE
4.8 yrs

Darius Nevin

TITLE
Independent Director
COMPENSATION
$70K
AGE
60
TENURE
2.9 yrs

Mayo Shattuck

TITLE
Director
COMPENSATION
$190K
AGE
64
TENURE
4.8 yrs

Hugh Panero

TITLE
Director
COMPENSATION
$115K
AGE
62
TENURE
8.6 yrs

Michelle Lee

TITLE
Director
AGE
52
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
13. Dec 18 Sell Stephen Trundle Individual 10. Dec 18 10. Dec 18 -10,000 $49.68 $-496,800
07. Dec 18 Sell Daniel Ramos Individual 04. Dec 18 04. Dec 18 -2,586 $50.77 $-131,291
06. Dec 18 Sell Steve Valenzuela Individual 04. Dec 18 04. Dec 18 -9,725 $52.18 $-503,971
30. Nov 18 Sell Steve Valenzuela Individual 28. Nov 18 28. Nov 18 -5,000 $49.00 $-245,000
20. Nov 18 Sell Christopher Marshall Individual 15. Nov 18 15. Nov 18 -22,500 $47.82 $-1,075,950
15. Nov 18 Sell Backbone Partners, LLC Company 13. Nov 18 14. Nov 18 -30,000 $47.70 $-1,430,250
18. Sep 18 Sell Jeffrey Bedell Individual 14. Sep 18 14. Sep 18 -400 $56.50 $-22,600
18. Sep 18 Sell Hugh Panero Individual 14. Sep 18 14. Sep 18 -1,115 $56.75 $-63,276
12. Sep 18 Sell Daniel Ramos Individual 10. Sep 18 12. Sep 18 -40,000 $57.00 $-2,263,830
11. Sep 18 Sell Ten 271 Partners B Company 07. Sep 18 07. Sep 18 -31,434 $56.37 $-1,745,177
11. Sep 18 Sell Robert Trudeau Individual 06. Sep 18 07. Sep 18 -82,781 $56.43 $-4,551,523
11. Sep 18 Sell John Drew Individual 07. Sep 18 07. Sep 18 -51,348 $56.37 $-2,850,778
11. Sep 18 Sell Technology Crossover Ventures Company 06. Sep 18 06. Sep 18 -6,469 $56.20 $-353,669
11. Sep 18 Sell Yuan Family Trust Company 06. Sep 18 07. Sep 18 -20,000 $56.56 $-1,129,947
11. Sep 18 Sell Timothy McAdam Individual 06. Sep 18 06. Sep 18 -2,500 $57.29 $-143,225
11. Sep 18 Sell Timothy McAdam Individual 06. Sep 18 06. Sep 18 -7,500 $56.53 $-412,295
18. Jun 18 Sell Hugh Panero Individual 14. Jun 18 14. Jun 18 -10,000 $45.38 $-453,778
14. Jun 18 Sell Yuan Family Trust Company 13. Jun 18 13. Jun 18 -20,407 $44.36 $-905,257
14. Jun 18 Sell Ten 271 Partners B Company 12. Jun 18 12. Jun 18 -20,956 $44.69 $-930,170
14. Jun 18 Sell Robert Trudeau Individual 12. Jun 18 13. Jun 18 -55,187 $45.00 $-2,464,987
14. Jun 18 Sell John Drew Individual 12. Jun 18 12. Jun 18 -34,232 $44.69 $-1,519,449
14. Jun 18 Sell Technology Crossover Ventures Company 12. Jun 18 12. Jun 18 -4,312 $45.06 $-189,683
18. May 18 Sell Hugh Panero Individual 16. May 18 18. May 18 -45,000 $42.26 $-1,848,693
X
Management checks
We assess Alarm.com Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Alarm.com Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ALRM News

Simply Wall St News

Should You Be Worried About Alarm.com Holdings, Inc.'s (NASDAQ:ALRM) 7.8% Return On Equity?

To keep the lesson grounded in practicality, we'll use ROE to better understand Alarm.com Holdings, Inc. … Alarm.com Holdings has a ROE of 7.8%, based on the last twelve months. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Do Analysts See Alarm.com Holdings, Inc. (NASDAQ:ALRM) Performing Over The Next Few Years?

In December 2018, Alarm.com Holdings, Inc. … (NASDAQ:ALRM) released its latest earnings announcement, whicha … revealed

Simply Wall St -

Can You Imagine How Chuffed Alarm.com Holdings's Shareholders Feel About Its 265% Share Price Gain?

(NASDAQ:ALRM) share price has soared 265% in the last three years. … In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. … Alarm.com Holdings was able to grow its EPS at 5.9% per year over three years, sending the share price higher.

Simply Wall St -

Are Insiders Selling Alarm.com Holdings, Inc. (NASDAQ:ALRM) Stock?

We often see insiders buying up shares in companies that perform well over the long term. … So shareholders might well want to know whether insiders have been buying or selling shares in Alarm.com Holdings, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares.

Simply Wall St -

What You Must Know About Alarm.com Holdings, Inc.'s (NASDAQ:ALRM) Financial Health

Stocks with market capitalization between $2B and $10B, such as Alarm.com Holdings, Inc. … This article will examine ALRM’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis.

Simply Wall St -

Is Alarm.com Holdings, Inc.’s (NASDAQ:ALRM) 17% ROCE Any Good?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … The formula for calculating the return on capital employed is:

Simply Wall St -

Should You Be Concerned About Alarmcom Holdings Inc's (NASDAQ:ALRM) ROE?

Alarm.com Holdings has a ROE of 5.3%, based on the last twelve months. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.053. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Despite Its High P/E Ratio, Is Alarmcom Holdings Inc (NASDAQ:ALRM) Still Undervalued?

To keep it practical, we'll show how Alarmcom Holdings Inc's (NASDAQ:ALRM) P/E ratio could help you assess the value on offer. … Alarm.com Holdings has a price to earnings ratio of 54.93, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Is Alarmcom Holdings Inc's (NASDAQ:ALRM) CEO Paid At A Competitive Rate?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Steve Trundle's Compensation Compare With Similar Sized Companies. … According to our data, Alarmcom Holdings Inc has a market capitalization of US$2.1b, and pays its CEO total annual compensation worth US$1m.

Simply Wall St -

Interested In Alarmcom Holdings Inc (NASDAQ:ALRM)? Here's How It Performed Recently

Improvement in profitability and outperformance against the industry can be important characteristics in a stock for some investors. … Below, I will assess Alarmcom Holdings Inc's (NASDAQ:ALRM) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. … View our latest analysis for Alarm.com Holdings?

Simply Wall St -

ALRM Company Info

Description

Alarm.com Holdings, Inc. provides cloud-based software platform solutions for smart residential and commercial properties in the United States and internationally. The company provides interactive security solutions to control and monitor their security systems, as well as connected security devices, including door locks, motion sensors, thermostats, garage doors, and video cameras; and high definition video monitoring solutions, such as live streaming, smart clip capture, secure cloud storage, video alerts, continuous HD recording, and commercial video surveillance solutions. It also offers intelligent automation and energy management solutions, including scenes button, which adjust multiple devices; smart thermostat schedules; responsive savings; precision comfort; energy usage and environmental monitoring; geo-services; and demand response programs. In addition, the company provides commercial solutions, such as daily safeguards, commercial grade video, energy savings, protection for valuables and inventory, access control, operational insights, early problem identification, simple to use, professionally supported, and easy to maintain. Further, it offers service provider solutions, including a permission-based online portal that offers account management, sales, marketing, training, and support tools; installation and support tools; business management services; and sales, marketing, and training services, as well as wellness solutions. The company serves residential and business subscribers. Alarm.com Holdings, Inc. was founded in 2000 and is headquartered in Tysons, Virginia.

Details
Name: Alarm.com Holdings, Inc.
ALRM
Exchange: NasdaqGS
Founded: 2000
$2,943,457,134
48,182,307
Website: http://www.alarm.com
Address: Alarm.com Holdings, Inc.
8281 Greensboro Drive,
Suite 100,
Tysons,
Virginia, 22102,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ALRM Common Stock Nasdaq Global Select US USD 26. Jun 2015
DB 3RL Common Stock Deutsche Boerse AG DE EUR 26. Jun 2015
LSE 0HC2 Common Stock London Stock Exchange GB USD 26. Jun 2015
Number of employees
Current staff
Staff numbers
884
Alarm.com Holdings employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/23 00:32
End of day share price update: 2019/03/22 00:00
Last estimates confirmation: 2019/03/22
Last earnings filing: 2019/03/01
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.