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Fundamental analysis: Alarm.com Holdings, Inc. (ALRM)

Awarener score: 6.4

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 9.0

• Business has been growing at a very good pace. It's been almost average when measured against peer companies.
• Alarm.com Holdings, Inc. business trend is extremely stable, which is best. It looks better than most rivals.

Margins score: 7.0

• ALRM profit margins -on goods and services sold- are usually excellent. They stand slightly worse than rival companies.
• Business profit on sales tends to be good. It's more than average in relation to competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain in good shape compared to peers.
• Earnings -before income taxes and interests on loans taken- tend to be sufficient in relation to total revenues. They're still better than most similar companies.
• Profits -before income taxes- are usually good considering total sales, and remain great when measured against rivals.
• Total net profit tends to be good when confronted to sales. Company stands great when measured against comparable firms.

Growth score: 8.3

• Alarm.com Holdings, Inc. profit -on goods and services sold- has been growing at a normal pace. It's been close to average when compared to competitors.
• In recent years, earnings -on operations- have been growing at an excellent step, which has been better than most comparable firms.
• Profits -available to repay debt and purchase properties- have been growing at a very good pace, which compares more than average in relation to peer enterprises.
• Earnings -before income taxes and interests on loans taken- have been growing at an excellent tempo. It turns to be excellent in relation to similar stocks.
• In past years, profits -before income taxes- grew at an extremely fast speed. It was better than most rivals.
• In the previous years, growth trend on total net profit has been very good, and encouraging in relation to peer companies.
• Earnings per share have grown at a very good rhythm in past years. It's been a slight improvement compared to industry peers.

Miscellaneous score: 7.0

• ALRM managed to get a credit on income taxes in the past years, even though it earned money. It's been well ranked against peers.
• Research and development expenses consume some portion of revenues. It's below average when measured against competitors.
• The company grows modestly in relation to research and development efforts. It stands lacking compared to rival companies.

Profitability score: 7.8

• Alarm.com Holdings, Inc. usually gets very good returns on the resources it controls. It proves great when measured against peer firms.
• The company normally gets good proceeds -on the resources directly invested in the business-. They remain excellent in relation to similar companies.
• There's usually abundant profitability -in relation to owned resources-. It ranks great when measured against competitors.
• In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's great when measured against comparable enterprises.

Usage of Funds score: 5.0

• ALRM usually uses a significant portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is abundant. It stands great when measured against rival firms.
• The company is usually replacing most of the property, plant, and equipment that gets old, and saving a little funds for something else, which is similar to industry peers.
• In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
• The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
• As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
• The company somewhat enlarges a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains in good shape compared to peer enterprises.
• Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
• The company uses a low portion of genuine fund generation to reward investors, which can most likely be sustained. It still looks more than average in relation to competitors.

Balance Sheet score: 6.2

• Alarm.com Holdings, Inc. intangible assets (like brands and goodwill) represent some portion of resources controlled, according to accounting books. There could be some difficulties in liquidating them if the company ever gets in financial distress. It happens to be almost average when measured against peer companies.
• The company has a lot more short-term resources than short-term obligations. Liquidity concerns are most likely irrelevant. It turns to be excellent in relation to similar firms.
• A significant part of resources controlled were provided for with financial debt. Creditors have almost as many claims on the company as shareholders. It remains mediocre against rival firms.
• Most controlled resources can be made into cash reasonably quick, which is good for liquidity and risk. It looks encouraging in relation to rivals.
• For every dollar of short-term obligations, the company has abundant dollars in cash and short-term receivables. It's excellent in relation to peer firms.
• For every dollar of short-term obligations, the company has more than enough dollars in cash and equivalents, which is better than most similar enterprises.
• Usually, sales are on a two-months credit. It still ranks similar to peers.
• Normally has approximately four months of sales worth in inventory. It comes up as in a weak position compared to competitors.
• On average, it takes higher than six months from the purchase to charging customers. It happens to be worse than most peers.
• On average pays suppliers approximately four months or higher after the purchase. It ranks great when measured against industry peers.
• The company pays its suppliers roughly one month before charging its customers, so there's sparse money invested in working capital. It's lacking compared to similar companies.
• Company earns net interest income on its investments and therefore is in a quite comfortable financial position. It stands top-notch against rival firms.
• Business earnings have usually been low when measured against loans taken. Even cutting back reinvesting in the business, it could take more than seven years to repay the obligations with current profitability. It ranks below average when measured against comparable enterprises.
• Revenues are very good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements allows the company to keep more money to reward stockholders in the long run. It looks rather normal in relation to similar firms.
• Resource exploitation is quite good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still somewhat better than peer companies.

Valuation score: 4.5

• Alarm.com Holdings, Inc. looks heavily expensive in relation to profits and financial position. It happens to be encouraging in relation to competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains close to average when compared to peers.
• In the past twelve months, the company neither generated nor consumed funds. Whatever funds it could generate, it reinvested in the business, which stands slightly better than similar companies.
• The company usually generates reasonably more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be fair. It's still more than average in relation to industry firms.
• In the past twelve months, the company has significantly enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among numerous more stockholders. It came up close to average when compared to peer ventures.
• The company has more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks slightly better than similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation is very high. A lot of improvement expectations are already in the stock price, which is risky. It ranks similar to peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks rather normal in relation to rival firms.
• The relation between the stock price and accounting book value is really high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains slightly worse than peer firms.
• In the past twelve months, the operating business lost a little money. It happens to be great when measured against industry peers.
• In an alternate metric of bang for the buck, the company has usually shown a modest earnings power ability when measured against the current stock price and financial position. It's still excellent in relation to peer companies.

Total score: 6.8

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Awarener score: 6.4

Conclusion

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