(ALRM) Alarm.com Holdings - NASDAQ
Sector: Technology | Industry: Software - Application | Exchange: NASDAQ (USA) | Market Cap: 2.278m USD | Total Return: -21.2% in 12m
Avg Turnover: 23.3M
EPS Trend: 93.0%
Qual. Beats: 8
Rev. Trend: 99.7%
Qual. Beats: 9
Warnings
Choppy
Tailwinds
Shakeout
Alarm.com Holdings, Inc. (ALRM) provides a cloud-based platform for smart residential and commercial properties. Operating through its Alarm.com and Other segments, the company integrates security, video analytics, energy management, and access control into a unified software ecosystem. Its portfolio includes Video Surveillance as a Service (VSaaS), AI-driven monitoring, and specialized solutions for fleet management and commercial enterprise dashboards.
The company utilizes a Software-as-a-Service (SaaS) business model, primarily generating recurring revenue through a network of professional service providers and hardware installers. This indirect distribution strategy allows the company to scale across the fragmented security and automation markets without maintaining a massive direct-to-consumer sales force. The application software sector for connected properties is currently driven by the integration of edge-based AI and computer vision to reduce false alarms and improve forensic search capabilities.
Investors can further evaluate these industry dynamics and valuation metrics by visiting ValueRay.
Founded in 2000 and headquartered in Tysons, Virginia, Alarm.com also operates OpenEye for enterprise-level video requirements and offers specialized software for clean energy monitoring and shooter detection systems. The platform supports a wide range of hardware, including smart thermostats, water sensors, and commercial-grade cameras, positioning it as a central hub for property automation and protection.
- SaaS subscription revenue growth from residential and commercial security monitoring
- Expansion of high-margin video analytics and AI-powered monitoring services
- Growth in commercial segment market share through OpenEye and enterprise solutions
- Increased hardware costs and supply chain volatility impacting initial installation margins
- Interest rate fluctuations affecting new residential housing starts and system deployments
| Net Income: 128.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA 2.21 > 1.0 |
| NWC/Revenue: 62.24% < 20% (prev 81.15%; Δ -18.92% < -1%) |
| CFO/TA 0.11 > 3% & CFO 179.9m > Net Income 128.2m |
| Net Debt (145.6m) to EBITDA (223.7m): 0.65 < 3 |
| Current Ratio: 5.16 > 1.5 & < 3 |
| Outstanding Shares: last quarter (56.3m) vs 12m ago -6.25% < -2% |
| Gross Margin: 63.38% > 18% (prev 65.68%; Δ -2.30% > 0.5%) |
| Asset Turnover: 55.77% > 50% (prev 45.99%; Δ 9.78% > 0%) |
| Interest Coverage Ratio: 10.80 > 6 (EBIT TTM 179.8m / Interest Expense TTM 16.7m) |
| A: 0.39 (Total Current Assets 801.0m - Total Current Liabilities 155.3m) / Total Assets 1.64b |
| B: 0.33 (Retained Earnings 546.5m / Total Assets 1.64b) |
| C: 0.10 (EBIT TTM 179.8m / Avg Total Assets 1.86b) |
| D: 1.16 (Book Value of Equity 859.8m / Total Liabilities 739.8m) |
| Altman-Z'' = 5.53 = AAA |
| DSRI: 1.10 (Receivables 141.4m/118.8m, Revenue 1.04b/955.4m) |
| GMI: 1.04 (GM 65.68% / 63.38%) |
| AQI: 1.84 (AQ_t 0.44 / AQ_t-1 0.24) |
| SGI: 1.09 (Revenue 1.04b / 955.4m) |
| TATA: -0.03 (NI 128.2m - CFO 179.9m) / TA 1.64b) |
| Beneish M = -2.36 (Cap -4..+1) = BBB |
As of June 19, 2026, the stock is trading at USD 44.38 with a total of 1,406,785 shares traded.
Over the past week, the price has changed by -4.37%,
over one month by +1.27%,
over three months by -3.65% and
over the past year by -21.20%.
Alarm.com Holdings has received a consensus analysts rating of 3.78. Therefore, it is recommended to hold ALRM.
- StrongBuy: 3
- Buy: 2
- Hold: 3
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 59 | 32.9% |
P/E Trailing = 19.112
P/E Forward = 26.2467
P/S = 2.1957
P/B = 2.6467
P/EG = 1.4056
Revenue TTM = 1.04b USD
EBIT TTM = 179.8m USD
EBITDA TTM = 223.7m USD
Long Term Debt = 490.4m USD (from longTermDebt, last quarter)
Short Term Debt = 7.62m USD (from shortTermDebt, last quarter)
Debt = 643.1m USD (from shortLongTermDebtTotal, last quarter) + Leases 76.4m
Net Debt = 145.6m USD (calculated: Debt 643.1m - CCE 497.4m)
Enterprise Value = 2.42b USD (2.28b + Debt 643.1m - CCE 497.4m)
Interest Coverage Ratio = 10.80 (Ebit TTM 179.8m / Interest Expense TTM 16.7m)
EV/FCF = 14.41x (Enterprise Value 2.42b / FCF TTM 168.2m)
FCF Yield = 6.94% (FCF TTM 168.2m / Enterprise Value 2.42b)
FCF Margin = 16.21% (FCF TTM 168.2m / Revenue TTM 1.04b)
Net Margin = 12.36% (Net Income TTM 128.2m / Revenue TTM 1.04b)
Gross Margin = 63.38% ((Revenue TTM 1.04b - Cost of Revenue TTM 379.9m) / Revenue TTM)
Gross Margin QoQ = 62.44% (prev 62.74%)
Tobins Q-Ratio = 1.47 (Enterprise Value 2.42b / Total Assets 1.64b)
Interest Expense / Debt = 2.59% (Interest Expense 16.7m / Debt 643.1m)
Taxrate = 22.13% (36.2m / 163.5m)
NOPAT = 140.0m (EBIT 179.8m * (1 - 22.13%))
Current Ratio = 5.16 (Total Current Assets 801.0m / Total Current Liabilities 155.3m)
Debt / Equity = 0.75 (Debt 643.1m / totalStockholderEquity, last quarter 859.8m)
Debt / EBITDA = 0.65 (Net Debt 145.6m / EBITDA 223.7m)
Debt / FCF = 0.87 (Net Debt 145.6m / FCF TTM 168.2m)
Total Stockholder Equity = 833.1m (last 4 quarters mean from totalStockholderEquity)
RoA = 6.89% (Net Income 128.2m / Total Assets 1.64b)
RoE = 15.39% (Net Income TTM 128.2m / Total Stockholder Equity 833.1m)
RoCE = 13.59% (EBIT 179.8m / Capital Employed (Equity 833.1m + L.T.Debt 490.4m))
RoIC = 9.70% (NOPAT 140.0m / Invested Capital 1.44b)
WACC = 7.32% (E(2.28b)/V(2.92b) * Re(8.82%) + D(643.1m)/V(2.92b) * Rd(2.59%) * (1-Tc(0.22)))
Discount Rate = 8.82% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 24.44 | Cagr: 1.37%
[DCF] Terminal Value 75.55% ; FCFF base≈167.6m ; Y1≈169.5m ; Y5≈182.2m
[DCF] Fair Price = 54.26 (EV 2.83b - Net Debt 145.6m = Equity 2.68b / Shares 49.5m; r=8.35% [WACC [floored]]; 5y FCF grow 0.87% → 2.50% )
EPS Correlation: 92.95 | EPS CAGR: 8.98% | SUE: 1.13 | # QB: 8
Revenue Correlation: 99.70 | Revenue CAGR: 7.16% | SUE: 4.0 | # QB: 9
EPS current Quarter (2026-06-30): EPS=0.65 | Chg30d=-3.22% | Revisions=-25% | Analysts=7
EPS next Quarter (2026-09-30): EPS=0.76 | Chg30d=+0.19% | Revisions=-25% | Analysts=7
EPS current Year (2026-12-31): EPS=2.77 | Chg30d=-0.61% | Revisions=+11% | GrowthEPS=+5.8% | GrowthRev=+5.4%
EPS next Year (2027-12-31): EPS=2.96 | Chg30d=-0.33% | Revisions=+0% | GrowthEPS=+6.9% | GrowthRev=+4.7%
[Analyst] Revisions Ratio: -25%