Alarm.com Holdings Inc (ALRM) Stock Analysis
Verdict: BUY
Resilient high-margin SaaS recurring cash flow drives peer-discount valuation upside, tempered by top-line growth deceleration and insider sales.
Investment score: 68/100
Analysis as of
Is Alarm.com Holdings Inc stock worth reviewing? The TradeMates thesis
Alarm.com presents a compelling valuation structure trading at 24.22x P/E with an 8.4% FCF yield, supported by consistent earnings beats and strong cash reserves, making it an attractive BUY for low-beta equity allocations.
7-factor investment score
- Valuation: 76/100 (weight 20%)
- Financial Health: 80/100 (weight 15%)
- Technical Momentum: 74/100 (weight 15%)
- Earnings Quality: 84/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 58/100 (weight 10%)
- Risk-Adjusted Return: 68/100 (weight 15%)
Alarm.com Holdings Inc opportunities and risks
What speaks for ALRM
- Robust Free Cash Flow Yield of 8.4% and Low Leverage
What speaks against ALRM
- Top-Line Growth Deceleration in Core Residential Security
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| ALRM | 24.2x | 2.7x | 13.2x | 63.4% | 11.1% | 8.4% |
| WK | 93.0x | 4.4x | 62.7x | 80.2% | 4.9% | 4.8% |
| AGYS | 74.1x | 9.7x | 47.8x | 62.3% | 13.0% | 2.5% |
| MARA | n/a | 4.0x | n/a | -8.5% | -429.7% | -48.7% |
| AVPT | 44.5x | 6.7x | 42.1x | 73.4% | 15.3% | 3.2% |
| SPSC | 41.7x | 4.0x | 16.1x | 69.8% | 10.1% | 6.4% |
| Peer median | 44.5x | 4.4x | 42.1x | 69.8% | 10.1% | 3.2% |
Frequently asked questions about Alarm.com Holdings Inc (ALRM)
Is ALRM stock a good investment?
The TradeMates model rates Alarm.com Holdings Inc as BUY with an investment score of 68/100. Alarm.com presents a compelling valuation structure trading at 24.22x P/E with an 8.4% FCF yield, supported by consistent earnings beats and strong cash reserves, making it an attractive BUY for low-beta equity allocations. This is algorithmic model output, not personal investment advice.
Is ALRM stock a buy?
The TradeMates model verdict for ALRM is BUY with an investment score of 68/100. Treat this as a model signal to review, not a personal buy recommendation.