ALRM Stock Overview
Alarm.com Holdings, Inc. provides cloud-based solutions for smart residential and commercial properties in the United States and internationally.
Alarm.com Holdings Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$57.31|
|52 Week High||US$94.45|
|52 Week Low||US$54.99|
|1 Month Change||-3.09%|
|3 Month Change||-21.39%|
|1 Year Change||-27.92%|
|3 Year Change||-4.39%|
|5 Year Change||79.09%|
|Change since IPO||239.51%|
Recent News & Updates
Estimating The Intrinsic Value Of Alarm.com Holdings, Inc. (NASDAQ:ALRM)
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Alarm.com Holdings...
|ALRM||US Software||US Market|
Return vs Industry: ALRM underperformed the US Software industry which returned -10.3% over the past year.
Return vs Market: ALRM underperformed the US Market which returned -10.4% over the past year.
|ALRM Average Weekly Movement||5.6%|
|Software Industry Average Movement||11.4%|
|Market Average Movement||7.8%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||2.9%|
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.
About the Company
Alarm.com Holdings, Inc. provides cloud-based solutions for smart residential and commercial properties in the United States and internationally. It operates in two segments, Alarm.com and Other. The company provides interactive security solutions to control and monitor their security systems, as well as connected security devices, including door locks, motion sensors, door locks, garage doors, Internet of Things, thermostats, and video cameras; and video monitoring solutions, such as video analytics, live streaming, video doorbell, video clips, video alerts, continuous high definition recording, and commercial video surveillance solutions.
Alarm.com Holdings Fundamentals Summary
|ALRM fundamental statistics|
Is ALRM overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ALRM income statement (TTM)|
|Cost of Revenue||US$330.22m|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||0.93|
|Net Profit Margin||5.95%|
How did ALRM perform over the long term?See historical performance and comparison
Is Alarm.com Holdings undervalued compared to its fair value and its price relative to the market?
Valuation Score 2/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ALRM ($57.31) is trading below our estimate of fair value ($73.47)
Significantly Below Fair Value: ALRM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ALRM is poor value based on its PE Ratio (61.7x) compared to the US Software industry average (41.9x).
PE vs Market: ALRM is poor value based on its PE Ratio (61.7x) compared to the US market (15.5x).
Price to Earnings Growth Ratio
PEG Ratio: ALRM is poor value based on its PEG Ratio (5.7x)
Price to Book Ratio
PB vs Industry: ALRM is overvalued based on its PB Ratio (5.1x) compared to the US Software industry average (3.6x).
How is Alarm.com Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ALRM's forecast earnings growth (10.8% per year) is above the savings rate (1.9%).
Earnings vs Market: ALRM's earnings (10.8% per year) are forecast to grow slower than the US market (12.6% per year).
High Growth Earnings: ALRM's earnings are forecast to grow, but not significantly.
Revenue vs Market: ALRM's revenue (7.2% per year) is forecast to grow slower than the US market (8% per year).
High Growth Revenue: ALRM's revenue (7.2% 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?
Past Performance Score1/6
Past Performance Score 1/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ALRM has a large one-off loss of $12.5M impacting its March 31 2022 financial results.
Growing Profit Margin: ALRM's current net profit margins (5.9%) are lower than last year (13.1%).
Past Earnings Growth Analysis
Earnings Trend: ALRM's earnings have grown significantly by 25.5% per year over the past 5 years.
Accelerating Growth: ALRM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ALRM had negative earnings growth (-44.6%) over the past year, making it difficult to compare to the Software industry average (29.6%).
Return on Equity
High ROE: ALRM's Return on Equity (7.9%) is considered low.
How is Alarm.com Holdings's financial position?
Financial Health Score4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: ALRM's short term assets ($888.6M) exceed its short term liabilities ($107.5M).
Long Term Liabilities: ALRM's short term assets ($888.6M) exceed its long term liabilities ($539.0M).
Debt to Equity History and Analysis
Debt Level: ALRM has more cash than its total debt.
Reducing Debt: ALRM's debt to equity ratio has increased from 37.1% to 84.4% over the past 5 years.
Debt Coverage: ALRM's debt is not well covered by operating cash flow (13.9%).
Interest Coverage: ALRM's interest payments on its debt are well covered by EBIT (5.3x coverage).
What is Alarm.com Holdings's current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Future Dividend Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ALRM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ALRM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ALRM's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ALRM's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as ALRM has not reported any payouts.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Steve Trundle (52 yo)
Mr. Stephen S. Trundle, also known as Steve, has been the President and Chief Executive Officer at Alarm Com Holdings, Inc. since May 2003. Mr. Trundle serves as Chief Executive Officer and President of Al...
CEO Compensation Analysis
Compensation vs Market: Steve's total compensation ($USD3.61M) is below average for companies of similar size in the US market ($USD6.90M).
Compensation vs Earnings: Steve's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: ALRM's management team is seasoned and experienced (8.3 years average tenure).
Experienced Board: ALRM's board of directors are considered experienced (6.1 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 employee growth, exchange listings and data sources
- Name: Alarm.com Holdings, Inc.
- Ticker: ALRM
- Exchange: NasdaqGS
- Founded: 2000
- Industry: Application Software
- Sector: Software
- Implied Market Cap: US$2.871b
- Shares outstanding: 50.09m
- Website: https://www.alarm.com
Number of Employees
- Alarm.com Holdings, Inc.
- 8281 Greensboro Drive
- Suite 100
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/16 00:00|
|End of Day Share Price||2022/05/16 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.