NASDAQ
ALRM
Last Price
US $48.50
KEY FIGURES
MKT CAP
$2.3B
EPS
TTM
$2.58
PEG
TTM
-
P/E
TTM
17.96x
P/S
TTM
2.27x
YIELD
0.00%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
15.39%
Return on equity
ROIC: 7.16%
Valuation History
18.0X
Price to Earnings
EV/EBITDA: 10.6X
Cash flow
Profit margin
10.35%
(FY vs FY)
EBITDA Y/Y
15.93%
(FY vs FY)
Cash flow Y/Y
10.93%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $48.50
-6.47%
Default assumptions
EBITDA Multiple
Fair Value
Market $48.50
-39.69%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Alarm.com Holdings, Inc. cash flow to debt ratio of 13.53% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial risk - Healthy cash flow growth.
Alarm.com Holdings, Inc.'s free cash flow has decreased -30.18% from $196.28M last year to $137.05M, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
Alarm.com Holdings, Inc.'s debt to equity ratio is 0.66, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
Alarm.com Holdings, Inc.'s debt has decreased relative to shareholder equity from 1.45 last year to 0.66 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
Alarm.com Holdings, Inc. has a net debt to EBITDA ratio of 0.73x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Alarm.com Holdings, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.
Financial risk - Profit margin growth.
Alarm.com Holdings, Inc.'s profit margin has decreased (-6.43%) in the last year from 13.21% to 12.36%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
Alarm.com Holdings, Inc.'s short-term assets of $1.27G exceed its short-term liabilities of $663.14M
Increasing performance - ROA.
Alarm.com Holdings, Inc.'s return on assets of 7.80% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Alarm.com Holdings, Inc.'s return on equity of 15.39%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Alarm.com Holdings, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Alarm.com Holdings, Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Alarm.com Holdings, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Alarm.com Holdings, Inc. has a free cash flow yield of 5.98%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Alarm.com Holdings, Inc.'s yearly earnings has increased 6.81% since last year from $124.12M to $132.57M, signaling increasing performance
Increasing performance - Healthy revenue growth.
Alarm.com Holdings, Inc.'s yearly revenue has increased 7.59% since last year from $939.83M to $1.01G, signaling increasing performance
Increasing performance - ROIC.
ROIC 7.16% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
Alarm.com Holdings, Inc.'s 3-year revenue CAGR of 6.27% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Alarm.com Holdings, Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Alarm.com Holdings, Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Alarm.com Holdings, Inc. is overvalued relative to its fair value price of 45.36 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Alarm.com Holdings, Inc. has an earnings yield of 5.58%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Alarm.com Holdings, Inc. is overvalued relative to its fair value price of 29.25 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Alarm.com Holdings, Inc. has an EV/EBITDA ratio of 10.56x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
Alarm.com Holdings, Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails
Undervalued - P/B ratio.
Alarm.com Holdings, Inc. has a price-to-book ratio of 2.67x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Alarm.com Holdings, Inc. has a price-to-sales ratio of 2.21x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue