ALRM

Alarm.com Holdings, Inc.

Fundamental data last updated:June 3, 2026

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company profile

SECTOR

Technology

industry

Software - Application

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

08/06/2026

Business Summary

Alarm.com Holdings, Inc. provides cloud-based solutions for smart residential and commercial properties in the United States and internationally. It operates in two segments, Alarm.com and Other. The company provides interactive security solutions to control and monitor their security systems, as well as connected security devices, including door locks, motion sensors, door locks, garage doors, Internet of Things, thermostats, and video cameras; and video monitoring solutions, such as video analytics, live streaming, video doorbell, video clips, video alerts, continuous high definition recording, and commercial video surveillance solutions. It also offers intelligent automation and energy management solutions comprising scenes button; smart thermostat schedules; responsive savings; precision comfort; energy usage monitoring; heating, ventilation, and air conditioning monitoring services; whole home water safety solutions; geo-services; and demand response programs. In addition, the company provides commercial solutions, such as daily safeguards, commercial grade video, energy savings, protection for valuables and inventory, temperature monitoring, multi-site management and access control, early identification, simple to use, professionally supported, and easy to maintain. Further, it offers service provider solutions, including a permission-based online portal that offers account management, sales, marketing, training, and support tools; sales, marketing, and training services; and home builder programs, as well as wellness solutions. The company serves residential and commercial subscribers. Alarm.com Holdings, Inc. was founded in 2000 and is based in Tysons, Virginia.

 


VALUATION

P/E

17.06

Market Cap ($M USD)

$2.18B

Forward P/E

13.82

PEG

0.59

PRICE TO SALES

2.10

PRICE TO BOOK

2.54

EV / EBITDA

10.11

5-Year Average P/E

Free Cash Flow Yield

7.71%

DCF Value

$212.68

Graham Number

$31.75

Price to FCF

12.97

EV to FCF

13.38

Earnings Yield

5.86%

FCF Yield

7.71%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$2.58

Next Year EPS Growth Estimate

$3.19

Next Year Revenue Growth Estimate

$115.43B

Return on Equity (ROE)

15.39%

FREE CASH FLOW

Operating Margin

13.26%

Debt-to-Equity

1.34

Piotroski F-Score

7

Altman Z-Score

3.70

Return on Invested Capital (ROIC)

9.24%

Current Ratio

5.16

Quick Ratio

4.55

Net Debt to EBITDA

0.31

Interest Coverage

8.26

Gross Profit margin

63.38%

FCF PER SHARE

$3.39

REVENUE PER SHARE

$20.92

Gainseekers Quantitative Analysis

Summary

Alarm.com Holdings, Inc. presents a compelling valuation anomaly. Despite a DCF value that towers over its recent pricing, the market seems to overlook its intrinsic worth. The Forward P/E of 14.93 and an Earnings Yield of 5.43% suggest a stock priced for growth, yet not excessively so. With an Altman Z-score of 3.84, financial distress appears distant, signaling robust financial health. This stock seems undervalued relative to its potential, offering a margin of safety for discerning investors.

AI Exposure / Tech Reliance

Operating in the Software - Application industry, Alarm.com is well-positioned to leverage AI advancements. Its technology-driven platform can seamlessly integrate AI to enhance security solutions, offering adaptive and intelligent services. This adaptability ensures resilience in a rapidly evolving tech landscape.

The Bull Case

For the value-driven investor, Alarm.com shines with its impressive ROIC of 9.24% and a Piotroski F-Score of 7, indicating efficient capital allocation and strong financial health. The company's FCF Yield of 5.08% underscores its ability to generate cash, while a Gross Profit Margin of 63.38% highlights its pricing power. These metrics collectively paint a picture of a company that not only grows but does so with profitability and efficiency.

The Bear Case

However, the stock is not without its pitfalls. The Price/Book ratio of 2.75 and Price/Sales ratio of 2.27 suggest a premium valuation that may deter deep value hunters. Despite a solid operating margin, the Debt/Equity ratio of 1.34 raises concerns about leverage. Additionally, trading close to its 52-week high, the stock may be technically overextended, posing a risk for those wary of buying at peaks.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$55.00

Institutional Ownership %

1-Year Beta

0.79

Insider Buying % (6 Mo)

Distance to 52-Week High

36.01%

Distance to 52-Week Low

5.92%

EARNINGS SURPRISE %

8.33%

50-DAY SMA

$44.43

200-DAY SMA

$49.59

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.