Alarm.com Holdings, Inc. (ALRM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Alarm.com Holdings, Inc.

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Engagesmart, Inc.

Why is Alarm.com Holdings, Inc. ?

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 11.67%

Flat results in Jun 25

INTEREST(HY) At USD 8.63 MM has Grown at 212.41%
DEBT-EQUITY RATIO (HY) Highest at 4.8 %

With ROE of 16.69%, it has a fair valuation with a 3.83 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -19.07%, its profits have risen by 31.8% ; the PEG ratio of the company is 0.7

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Below par performance in long term as well as near term

Along with generating -19.07% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Alarm.com Holdings, Inc. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Alarm.com Holdings, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Alarm.com Holdings, Inc.

-21.39%

-0.56

29.03%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.67%

EBIT Growth (5y)

18.92%

EBIT to Interest (avg)

12.60

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

0.64

Tax Ratio

15.83%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

15.99%

ROE (avg)

13.45%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.83

EV to EBIT

22.75

EV to EBITDA

16.66

EV to Capital Employed

4.79

EV to Sales

2.84

PEG Ratio

0.70

Dividend Yield

ROCE (Latest)

21.06%

ROE (Latest)

16.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 180.38 MM

ROCE(HY)

Highest at 17.95%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.28 times

RAW MATERIAL COST(Y)

Fallen by -0.72% (YoY

CASH AND EQV(HY)

Highest at USD 2,211.06 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 7.91 times

NET SALES(Q)

Highest at USD 254.31 MM

-11What is not working for the Company

INTEREST(HY)

At USD 8.63 MM has Grown at 212.41%

DEBT-EQUITY RATIO (HY)

Highest at 4.8 %

Here's what is working for Alarm.com Holdings, Inc.

Operating Cash Flow

Highest at USD 180.38 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Inventory Turnover Ratio

Highest at 4.28 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at USD 254.31 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Cash and Eqv

Highest at USD 2,211.06 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 7.91 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -0.72% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 11.64 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Alarm.com Holdings, Inc.

Interest

At USD 8.63 MM has Grown at 212.41%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 4.8 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio