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Alarm.com Holdings, Inc.

Rank #134Value

ALRM · Nasdaq · Technology

Alarm.com Holdings, Inc. (ALRM) — Rank #134 by gross profitability (GP/assets 0.40) · ROE 15.3% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0001459200 · all metrics point-in-time as of the filing date.

About

Alarm.com Holdings, Inc. operates a platform for connected properties in North America and internationally.

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It operates in two segments, Alarm.com and Other. The company offers residential solutions, such as alarm transmission, smart signal, smart arming, and personal safety and awareness, as well as real-time alerts and always-on monitoring; video monitoring solutions, including video analytics, remote video monitoring, AI deterrence, video doorbell, intelligent integration, and cell connector; scenes, video analytics triggers, smart thermostat schedules, responsive savings, precision comfort, HVAC monitoring service, places feature, whole home water safety solution, and energy usage and solar monitoring solution. It also provides clean energy software and services SaaS platform; commercial grade video solutions, commercial video analytics, smarter access control, enterprise dashboard and multi-site management, connected fleet solution, energy savings, proactive protection for valuables and inventory, temperature monitoring, daily safeguard, and professionally supported and low cost of ownership solutions. In addition, the company offers OpenEye software comprising video surveillance as a service, cameras, recorders, and other peripherals designed for video applications; forensic video search, point-of sale system integration, customer site mapping, and large-scale camera deployments enterprise-level requirements; shooter detection systems; service provider portal, service dashboard, installation and support service provider solutions; and AI-powered enhancements to professional monitoring and false alarm reduction. Further, it provides business management services; sales, marketing, training services; and home builder program hardware and services.

The company was founded in 2000 and is headquartered in Tysons, Virginia.

Industry
Software - Application
Sector
Technology
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
alarm.com

Price History

ALRM-35.0% · -8.2% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

$2.73B

P/E (annual)

22.6

P/S (annual)

2.7

P/B

3.2

P/OCF (annual)

17.8

Shareholder Yield

-1.6%

Employees

2,051

Industry

Software - Application

Exchange

Nasdaq

Signal Flags

4 green
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
0.40
Return on equity
15.3%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.86
Current ratio
4.96×
Net cash
$711.89M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
3.3%

Growth

2/2 pass
Revenue growth
7.6%
Piotroski F-Score
N/A
Share dilution
1.6%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

10.1%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 1.6% — per-share value needs a total required return of 11.7% once share-count change is priced in.

vs. own 6-year median revenue growth: 10.0%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

5.7%

r = 10% (base)

10.1%

r = 12%

14.0%

Net debt / market cap: -21.7%

Base FCF: $137M3Y mean FCF: $153.9M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

18.4xCheap
18.4xmed 52.8x282.4x

P / S

Price / revenue per share

2.6xCheap
2.6xmed 4.8x10.9x

P / B

Price / book value per share

3.1xCheap
3.1xmed 6.3x14.8x

P / GP

Price / gross profit per share

4.0xCheap
4.0xmed 7.8x17.6x

P / FCF

Price / free cash flow per share

19.4xCheap
17.9xmed 56.0x209.6x

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Gross profitability (GP / assets)

0.40

Primary signal (Novy-Marx).

59th pctl of 38 SIC 7372 peers

Return on equity

15.3%

Gross margin

66.1%

38th pctl of 38 SIC 7372 peers

Revenue growth (YoY)

7.6%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

6.3%

Revenue CAGR (5Y)

10.3%

Earnings CAGR (3Y)

—

FCF CAGR (3Y)

69.3%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.86

38th pctl of 33 SIC 7372 peers (best = lowest)

Current ratio

4.96×

89th pctl of 38 SIC 7372 peers

Quick ratio

3.97×

Net cash

$711.89M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$137.05M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.03

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

3.3%

Stock-based comp intensity.

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20202025
Hypergrowth
Op. Leverage
Value
View full financial statements →