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Alarm.com Holdings, Inc.

  • Market Cap: Small Cap
  • Industry: Software Products
  • ISIN: US0116421050
  • NASDAQ: ALRM
USD
53.35
0.19 (0.36%)

Sep 23

NAS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
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.
Alarm.com Holdings, Inc.
Commvault Systems, Inc.
StoneCo Ltd.
Altair Engineering, Inc.
BlackLine, Inc.
Playtika Holding Corp.
PowerSchool Holdings, Inc.
Instructure Holdings, Inc.
Engagesmart, Inc.

Why is Alarm.com Holdings, Inc. ?

1
The company is Net-Debt Free
2
Healthy long term growth as Net Sales has grown by an annual rate of 10.35%
3
Positive results in Jun 26
  • OPERATING CASH FLOW(Y) Highest at USD 199.09 MM
  • NET SALES(Q) Highest at USD 277.73 MM
  • INTEREST COVERAGE RATIO(Q) Highest at 1,279.76
4
With ROE of 15.82%, it has a fair 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 -4.82%, its profits have risen by 9.4% ; the PEG ratio of the company is 1.9
5
High Institutional Holdings at 100%
  • These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Consistent Underperformance against the benchmark over the last 3 years
  • Along with generating -4.82% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Alarm.com Holdings, Inc. should be less than 10%
  2. 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.
-1.44%
-0.48
31.48%
S&P 500
15.76%
1.22
13.15%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
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)
0
Net Debt to Equity (avg)
-0.25
Sales to Capital Employed (avg)
0.60
Tax Ratio
15.83%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
15.99%
ROE (avg)
13.45%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
16
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
NA
ROCE (Latest)
15.31%
ROE (Latest)
15.82%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

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

9What is working for the Company
OPERATING CASH FLOW(Y)

Highest at USD 199.09 MM

NET SALES(Q)

Highest at USD 277.73 MM

INTEREST COVERAGE RATIO(Q)

Highest at 1,279.76

RAW MATERIAL COST(Y)

Fallen by 0.52% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 4.31 times

-4What is not working for the Company
ROCE(HY)

Lowest at 14.19%

CASH AND EQV(HY)

Lowest at USD 982.99 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 16.33 %

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

Operating Cash Flow
Highest at USD 199.09 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)

Net Sales
Highest at USD 277.73 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 1,279.76
in the last five periods
MOJO Watch
The company's ability to manage interest payments is improving

Operating Profit to Interest

Inventory Turnover Ratio
Highest at 4.31 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost
Fallen by 0.52% (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 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 Profit Margin
Lowest at 16.33 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv
Lowest at USD 982.99 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents

Non Operating Income
Highest at USD 0.37 MM
in the last five periods
MOJO Watch
Increased income from non business activities may not be sustainable

Non Operating income

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