Holdings Stock Analysis, Valuation (NASDAQ:ALRM)

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$54.88 $1.33 (2.48%) ALRM stock closing price Aug 17, 2018 (Closing)

Investors can watch the Amigobulls 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 Holdings revenue growth, profits and return on equity measures from the latest quarter 2018 Q2 earnings. We compare Holdings valuation with its sector peers to gauge relative attractiveness of ALRM stock. Our Holdings stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy ALRM stock?

  • Holdings sales grew by 25% year on year in 2018-03.
  • Holdings had a healthy average operating margin of 11.43 over the last 4 quarters.
  • Net margins came in at average 10% for Holdings over the last twelve months.
  • Holdings has a lower debt burden than its peers in the Industrial Products sector, with a debt/equity ratio of 0.28.
  • Holdings has an attractive ROIC (Return on Invested Capital) of 16.3
  • Holdings has a good Return On Equity (ROE) of 15.9.

Should you sell ALRM stock?

  • Cash flow from operations is low at 0.333 times the net income.
  • ALRM stock is trading at a PE ratio of 53.3, which is worse than the sector average multiple of 20.5.
  • ALRM stock is trading at a PS multiple of 6.9, which is a negative when compared to the Industrial Products sector average multiple of 1.4.

Comments on this video and Holdings stock

Investors can use Amigobulls 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. 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.