Alarm.com Holdings Stock Analysis, Valuation (NASDAQ:ALRM)

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$42.26 $0.73 (1.76%) ALRM stock closing price May 18, 2018 (Closing)
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Alarm.com Holdings
Updated on : May 18, 2018
previous close
ALRM 42.3 (0%)
S&P 500 2713 (0%)
Closing Price On: May 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
protection-safety equipment and service
Sector :
Industrial Products
5 Quarter Revenue
Revenue Growth
2018-Q1
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
11.4%
Sector Average:
8.3%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
70M
Debt/Equity Ratio:
 0.28
Compared to the industry
Cash Flow
Operating cash flow:
$3.5M
Net Income:
$10.5M
PROS      CONS
Recent Growth
Operating Margins
Net Margins
Low Debt Burden
ROIC
ROE
Cash Flow
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ALRM PS :
5.6
Industry PS :
1.5
Sector:   Industrial Products.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
16.3%
Return on Equity:
15.9%
Free Cash Flow Margin:
0.5%
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ALRM Stock Analysis

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Investors can watch the Amigobulls Alarm.com Holdings stock analysis video here. This video puts forward our latest analysis highlighting the pros and cons for ALRM stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

AlarmCom Hldg Inc Stock Rating 3.1/5

Amigobulls ALRM stock analysis relies on business fundamentals such as Alarm.com Holdings revenue growth, profits and return on equity measures from the latest quarter 2018 Q1 earnings. We compare Alarm.com Holdings valuation with its sector peers to gauge relative attractiveness of ALRM stock. Our Alarm.com Holdings stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy ALRM stock?

  • The Year Over Year (YoY) revenue growth for Alarm.com Holdings was 25% in 2018 Q1.
  • Alarm.com Holdings's average operating margin of 11.4% was exceptional.
  • Net margins stood at a healthy 10% (average) for Alarm.com Holdings in the Trailing Twelve Months.
  • With a debt/equity ratio of  0.28, Alarm.com Holdings is comparatively less leveraged than its peers in the Industrial Products sector.
  • Alarm.com Holdings has an attractive ROIC (Return on Invested Capital) of 16.3%
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Alarm.com Holdings at 15.9%.

Should you sell ALRM stock?

  • The company has an operating cash flow which is 0.3 times the net income. This is not a healthy sign.
  • ALRM stock is trading at a PE ratio of 41, which is worse than the industry average multiple of 20.9.
  • The company is trading at a price to sales multiple of 5.6, which is overvalued in comparison to the protection-safety equipment and service industry average multiple of 1.5.

Comments on this video and Alarm.com Holdings stock

Investors can use Amigobulls Alarm.com Holdings stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Alarm.com Holdings revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. One can also combine technical analysis and fundamental analysis to get a holistic picture about ALRM stock.