Alarm.com Holdings, Inc.

Technology
Computer Software: Prepackaged Software
www.alarm.com

Earnings Score
Moat Score

Market Cap $2.92B
PE 24
Debt -
Cash $1.23B
EV -
FCF $196.28M

Earnings

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Sales & Net Margins

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Earnings	$122.51M
EBIT	$141.81M
ROE	17%
ROA	7%
FCF	$196.28M
Equity	$726.55M
Growth Stability	92%
PE	23.82
PEG	2
PB	4.02
P/FCF	14.87
P/S	3.11
Price/Cash	0.42
Net Margins	13%
Gross Margins	65%
Op. Margins	15%
Earnings CAGR	27%
Sales Growth YoY	7%
Sales Growth QoQ	1%
Sales CAGR	19%
FCF CAGR	28%
Equity CAGR	20%
Earnings Stability	0.74
Earnings Growth YoY	-3%

Earnings Growth QoQ	-17%
Earnings CAGR 5Y	12%
Sales CAGR 5Y	12%
FCF CAGR 5Y	24%
Equity CAGR 5Y	12%
Earnings CAGR 3Y	6%
Sales CAGR 3Y	6%
FCF CAGR 3Y	127%
Equity CAGR 3Y	10%
Market Cap	$2.92B
Revenue	$939.83M
Assets	$2.04B
Cash	$1.23B
Shares Outstanding	49.01M
Earnings Score	93%
Moat Score	89%
Working Capital	1.29B
Current Ratio	7.85
Gross Profit	$613.68M
Shares Growth 3y	-1%
Equity Growth QoQ	5%
Equity Growth YoY	6%

Assets & ROA

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Stockholders Equity & ROE

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Alarm.com Holdings Inc provides a software-as-a-service, or SaaS, platform solution for the connected home. The platform allows home and business owners to secure their properties and automate and control an array of connected devices. SaaS and license fees from service providers, who resell these services and pay Alarm.com a monthly subscription, are the largest sources of revenue for the firm. The SaaS platform also caters to the service provider by offering enterprise-grade business-management solutions to expand and manage its customer base. A large majority of the firm's revenue is generated in the United States and Canada.

SEC Filings

Direct access to Alarm.com Holdings, Inc. (ALRM) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Alarm.com Holdings, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Alarm.com Holdings, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 27%

Stability 74%

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Alarm.com Holdings, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Alarm.com Holdings, Inc..

Years

Calculation mode

= $14B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$196M	$251M	$322M	$413M	$528M	$677M	$867M	$1.1B	$1.4B	$1.8B	$2.3B	$23B
DCF		$229M	$266M	$310M	$361M	$420M	$490M	$570M	$664M	$773M	$900M	$9B
Value	$14B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	-3%	4%	9%	5%	11%	12%	7%	7%	9%	13%	13%
ROA	-	6%	9%	3%	11%	11%	5%	4%	7%	7%	7%
ROE	-	5%	13%	8%	15%	16%	8%	9%	12%	17%	17%

Good Net Margins (13.04%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	0.79	1.52	1.35	2.27	1.28	-	-	-	-	-
Debt over Equity	0.04	0.04	0.3	0.24	0.18	0.24	-	-	-	-	-
Growth Stability	-	-	-	100%	100%	100%	100%	92%	100%	100%	92%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Good Graham’s Stability (92%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	25%	30%	24%	19%	23%	21%	12%	5%	7%	12%
Earnings YoY growth	-	-240%	188%	-26%	148%	44%	-33%	9%	44%	52%	12%
Equity YoY growth	-	12%	22%	19%	28%	32%	31%	-2%	15%	6%	12%
FCF YoY growth	-	-50%	453%	6%	-44%	209%	7%	-69%	355%	53%	24%