NasdaqGS:ALRM

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Alarm.com Holdings, Inc. provides cloud-based software platform solutions for smart residential and commercial properties in the United States and internationally. More Details


Snowflake Analysis

Excellent balance sheet with solid track record.


Similar Companies

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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ALRM's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-2.9%

ALRM

0.4%

US Software

-0.06%

US Market


1 Year Return

58.4%

ALRM

44.0%

US Software

19.0%

US Market

Return vs Industry: ALRM exceeded the US Software industry which returned 44% over the past year.

Return vs Market: ALRM exceeded the US Market which returned 19% over the past year.


Shareholder returns

ALRMIndustryMarket
7 Day-2.9%0.4%-0.06%
30 Day13.1%-0.7%4.4%
90 Day14.4%4.1%6.3%
1 Year58.4%58.4%44.9%44.0%21.7%19.0%
3 Year52.1%52.1%133.8%126.4%46.4%36.7%
5 Year288.0%288.0%212.8%196.5%91.0%69.9%

Long-Term 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

Valuation

Is Alarm.com Holdings undervalued compared to its fair value and its price relative to the market?

44.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ALRM ($68.21) is trading above our estimate of fair value ($37.57)

Significantly Below Fair Value: ALRM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ALRM is good value based on its PE Ratio (44.4x) compared to the US Software industry average (56.9x).

PE vs Market: ALRM is poor value based on its PE Ratio (44.4x) compared to the US market (19.5x).


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 good value based on its PB Ratio (7.6x) compared to the US Software industry average (7.8x).


Next Steps

Future Growth

How is Alarm.com Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-15.7%

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 (-15.7% per year).

Earnings vs Market: ALRM's earnings are forecast to decline over the next 3 years (-15.7% per year).

High Growth Earnings: ALRM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ALRM's revenue (7.1% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: ALRM's revenue (7.1% 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


Next Steps

Past Performance

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

46.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALRM has high quality earnings.

Growing Profit Margin: ALRM's current net profit margins (12.6%) are higher than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: ALRM has become profitable over the past 5 years, growing earnings by 46.9% per year.

Accelerating Growth: ALRM's earnings growth over the past year (54.5%) exceeds its 5-year average (46.9% per year).

Earnings vs Industry: ALRM earnings growth over the past year (54.5%) exceeded the Software industry 8.9%.


Return on Equity

High ROE: ALRM's Return on Equity (16.4%) is considered low.


Next Steps

Financial Health

How is Alarm.com Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ALRM's short term assets ($387.1M) exceed its short term liabilities ($82.8M).

Long Term Liabilities: ALRM's short term assets ($387.1M) exceed its long term liabilities ($165.8M).


Debt to Equity History and Analysis

Debt Level: ALRM's debt to equity ratio (24.7%) is considered satisfactory.

Reducing Debt: ALRM's debt to equity ratio has increased from 4% to 24.7% over the past 5 years.

Debt Coverage: ALRM's debt is well covered by operating cash flow (81%).

Interest Coverage: ALRM's interest payments on its debt are well covered by EBIT (52.4x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ALRM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ALRM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure


CEO

Steve Trundle (51 yo)

17.5yrs

Tenure

US$3,020,414

Compensation

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 ($USD3.02M) is below average for companies of similar size in the US market ($USD5.19M).

Compensation vs Earnings: Steve's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Trundle
President17.5yrsUS$3.02m4.59%
$ 153.7m
Steve Valenzuela
Chief Financial Officer4yrsUS$1.72m0.068%
$ 2.3m
Jeffrey Bedell
Chief Strategy & Innovation Officer7.58yrsUS$1.51m0.87%
$ 29.0m
David Hutz
Chief Systems Architect14.75yrsUS$1.85m0.17%
$ 5.6m
Daniel Kerzner
Chief Product Officer6.92yrsUS$1.98m0.011%
$ 367.6k
Jean-Paul Martin
Co-Founder & CTOno dataUS$285.50k0.13%
$ 4.3m
Alison Slavin
Co-Founder & Senior VP of Creation Lab6.75yrsno datano data
Allan Gollinger
Principal Accounting Officer and Controller4.58yrsno datano data
David Trone
Vice President of Investor Relationsno datano datano data
Daniel Ramos
Senior VP of Corporate Development & Corporate Secretary13.42yrsUS$962.27k0.0062%
$ 207.4k
Donald Natale
Senior Vice President of Sales6.33yrsno datano data
Anne Ferguson
Vice President of Marketing2.83yrsno datano data

6.8yrs

Average Tenure

51yo

Average Age

Experienced Management: ALRM's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Trundle
President17.5yrsUS$3.02m4.59%
$ 153.7m
Timothy McAdam
Independent Chairman5.58yrsUS$209.98k0.20%
$ 6.8m
Hugh Panero
Independent Director10.25yrsUS$199.98k0%
$ 0
Donald Clarke
Independent Director6.5yrsUS$204.98k0.020%
$ 673.5k
Darius Nevin
Independent Director4.58yrsUS$214.98k0.026%
$ 867.2k
Mayo Shattuck
Independent Director6.5yrsUS$189.98k0.11%
$ 3.7m
Simone Wu
Independent Director0.75yrno datano data

6.5yrs

Average Tenure

60yo

Average Age

Experienced Board: ALRM's board of directors are considered experienced (6.5 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Alarm.com Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alarm.com Holdings, Inc.
  • Ticker: ALRM
  • Exchange: NasdaqGS
  • Founded: 2000
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$3.351b
  • Shares outstanding: 49.11m
  • Website: https://www.alarm.com

Number of Employees


Location

  • Alarm.com Holdings, Inc.
  • 8281 Greensboro Drive
  • Suite 100
  • Tysons
  • Virginia
  • 22102
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALRMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2015
3RLDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2015
0HC2LSE (London Stock Exchange)YesCommon StockGBUSDJun 2015

Biography

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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 00:11
End of Day Share Price2020/11/23 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.