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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

DLocal Ltd.

nCino, Inc.

StoneCo Ltd.

Commvault Systems, Inc.

Altair Engineering, Inc.

Alarm.com Holdings, Inc.

BlackLine, Inc.

Playtika Holding Corp.

PowerSchool Holdings, Inc.

Instructure Holdings, Inc.

Engagesmart, Inc.

Why is Alarm.com Holdings, Inc. ?

The company is Net-Debt Free

Healthy long term growth as Net Sales has grown by an annual rate of 10.35%

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at USD 179.92 MM
DEBT-EQUITY RATIO (HY) Highest at 8.06 %
OPERATING PROFIT MARGIN(Q) Lowest at 16.79 %

With ROE of 15.82%, it has a attractive valuation with a 2.50 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 -21.20%, its profits have risen by 9.4% ; the PEG ratio of the company is 1.9

High Institutional Holdings at 100%

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

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -21.20% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Alarm.com Holdings, Inc.

-21.2%

-0.95

30.66%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.35%

EBIT Growth (5y)

18.87%

EBIT to Interest (avg)

12.60

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

0.60

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

2.50

EV to EBIT

15.91

EV to EBITDA

11.86

EV to Capital Employed

2.44

EV to Sales

2.13

PEG Ratio

1.89

Dividend Yield

ROCE (Latest)

15.31%

ROE (Latest)

15.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

4What is working for the Company

NET SALES(Q)

Highest at USD 265.19 MM

INTEREST COVERAGE RATIO(Q)

Highest at 1,212.42

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 179.92 MM

DEBT-EQUITY RATIO (HY)

Highest at 8.06 %

OPERATING PROFIT MARGIN(Q)

Lowest at 16.79 %

PRE-TAX PROFIT(Q)

Lowest at USD 29.83 MM

NET PROFIT(Q)

Lowest at USD 24.25 MM

EPS(Q)

Lowest at USD 0.47

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

Net Sales

Highest at USD 265.19 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Interest Coverage Ratio

Highest at 1,212.42

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Depreciation

Highest at USD 12.82 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.

Operating Cash Flow

Lowest at USD 179.92 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Pre-Tax Profit

At USD 29.83 MM has Fallen at -29.89%

over average net sales of the previous four periods of USD 42.54 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Debt-Equity Ratio

Highest at 8.06 % and Grown

In each half year 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

Operating Profit Margin

Lowest at 16.79 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 29.83 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 24.25 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Net Profit

At USD 24.25 MM has Fallen at -28.23%

over average net sales of the previous four periods of USD 33.79 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.47

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)