Alarm.com Holdings, Inc. provides cloud-based software platform solutions for smart residential and commercial properties in the United States and internationally.
Solid track record with excellent balance sheet.
Share Price & News
How has Alarm.com Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ALRM has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: ALRM underperformed the US Software industry which returned 43.7% over the past year.
Return vs Market: ALRM underperformed the US Market which returned 19.4% over the past year.
Price Volatility Vs. Market
How volatile is Alarm.com Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall StHow Does Investing In Alarm.com Holdings, Inc. (NASDAQ:ALRM) Impact The Volatility Of Your Portfolio?
3 weeks ago | Simply Wall StDoes Alarm.com Holdings, Inc.'s (NASDAQ:ALRM) P/E Ratio Signal A Buying Opportunity?
1 month ago | Simply Wall StHere's Why Alarm.com Holdings (NASDAQ:ALRM) Can Manage Its Debt Responsibly
Is Alarm.com Holdings undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ALRM ($47.28) is trading below our estimate of fair value ($50.21)
Significantly Below Fair Value: ALRM is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: ALRM is good value based on its PE Ratio (47.1x) compared to the Software industry average (49.8x).
PE vs Market: ALRM is poor value based on its PE Ratio (47.1x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: ALRM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: ALRM is overvalued based on its PB Ratio (6.8x) compared to the US Software industry average (6x).
How is Alarm.com Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ALRM's earnings are forecast to decline over the next 3 years (-11.6% per year).
Earnings vs Market: ALRM's earnings are forecast to decline over the next 3 years (-11.6% per year).
High Growth Earnings: ALRM's earnings are forecast to decline over the next 3 years.
Revenue vs Market: ALRM's revenue (8% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: ALRM's revenue (8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if ALRM's Return on Equity is forecast to be high in 3 years time
How has Alarm.com Holdings performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ALRM has high quality earnings.
Growing Profit Margin: ALRM's current net profit margins (10.2%) are higher than last year (3.5%).
Past Earnings Growth Analysis
Earnings Trend: ALRM's earnings have grown significantly by 50.9% per year over the past 5 years.
Accelerating Growth: ALRM's earnings growth over the past year (248%) exceeds its 5-year average (50.9% per year).
Earnings vs Industry: ALRM earnings growth over the past year (248%) exceeded the Software industry 18.4%.
Return on Equity
High ROE: ALRM's Return on Equity (14.4%) is considered low.
Return on Assets
Return on Capital Employed
How is Alarm.com Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: ALRM's short term assets ($263.7M) exceed its short term liabilities ($56.7M).
Long Term Liabilities: ALRM's short term assets ($263.7M) exceed its long term liabilities ($108.1M).
Debt to Equity History and Analysis
Debt Level: ALRM's debt to equity ratio (19%) is considered satisfactory.
Reducing Debt: ALRM's debt to equity ratio has increased from 8.8% to 19% over the past 5 years.
Debt Coverage: ALRM's debt is well covered by operating cash flow (77.5%).
Interest Coverage: ALRM earns more interest than it pays, so coverage of interest payments is not a concern.
Inventory Level: ALRM has a low level of unsold assets or inventory.
Debt Coverage by Assets: ALRM's debt is covered by short term assets (assets are 4.1x debt).
What is Alarm.com Holdings's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate ALRM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate ALRM's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ALRM's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ALRM's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ALRM's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Steve Trundle (50yo)
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 Al ...
CEO Compensation Analysis
Compensation vs Market: Steve's total compensation ($USD1.94M) is below average for companies of similar size in the US market ($USD3.81M).
Compensation vs Earnings: Steve's compensation has increased by more than 20% in the past year.
|Chief Financial Officer||3.3yrs||US$759.52k||0.081% $1.9m|
|Chief Strategy & Innovation Officer||6.8yrs||US$1.11m||0.87% $20.0m|
|Chief Systems Architect||14yrs||US$1.12m||0.15% $3.4m|
|Chief Product Officer||6.2yrs||US$1.24m||0.013% $288.7k|
|Co-Founder & CTO||0yrs||US$285.50k||0.13% $3.0m|
|Co-Founder & Senior VP of Creation Lab||6yrs||no data||no data|
|Principal Accounting Officer and Controller||3.8yrs||no data||no data|
|Vice President of Investor Relations||0yrs||no data||no data|
|Senior VP of Corporate Development & Corporate Secretary||12.7yrs||US$962.27k||0.012% $276.5k|
Experienced Management: ALRM's management team is seasoned and experienced (6.5 years average tenure).
|Independent Director||9.5yrs||US$199.99k||0.010% $228.5k|
|Independent Director||5.8yrs||US$204.99k||0.015% $338.5k|
|Independent Director||3.8yrs||US$76.52k||0.021% $472.8k|
|Independent Director||5.8yrs||US$189.99k||0.066% $1.5m|
Experienced Board: ALRM's board of directors are considered experienced (5.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ALRM insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Alarm.com Holdings, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Alarm.com Holdings, Inc.
- Ticker: ALRM
- Exchange: NasdaqGS
- Founded: 2000
- Industry: Application Software
- Sector: Software
- Market Cap: US$2.297b
- Shares outstanding: 48.57m
- Website: https://www.alarm.com
Number of Employees
- Alarm.com Holdings, Inc.
- 8281 Greensboro Drive
- Suite 100
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|ALRM||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Jun 2015|
|3RL||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jun 2015|
|0HC2||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jun 2015|
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.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/19 01:26|
|End of Day Share Price||2020/02/18 00:00|
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.