Alarm.com Holdings (ALRM) Fundamental Analysis: Revenue, Earnings & Valuation

6.47 / 10

Outperform

Fundamental analysis rates ALRM as Outperform with a 6.5/10 score. Strengths include a short operating cycle, fast inventory turnover, healthy asset‑liability ratio and efficient current‑asset turnover. Weak points are low Asset‑MV, modest Profit‑MV and a high equity multiplier, tempering upside.

Analysis Checks(5/10)

Asset-liability ratio (%)

Value58.30

Score2/3

Weight8.98%

1M Return1.54%

Operating cycle

Value143.33

Score3/3

Weight39.58%

1M Return6.96%

Days sales outstanding

Value47.69

Score2/3

Weight10.73%

1M Return1.84%

Profit-MV

Value0.82

Score1/3

Weight-19.89%

1M Return-3.97%

Current assets turnover ratio

Value0.73

Score3/3

Weight26.15%

1M Return4.61%

Long-term debt to working capital ratio (%)

Value0.96

Score1/3

Weight4.00%

1M Return0.73%

Asset-MV

Value-0.55

Score1/3

Weight12.01%

1M Return1.93%

Equity multiplier (DuPont analysis %)

Value2.65

Score0/3

Weight-2.68%

1M Return-0.49%

Inventory turnover days

Value95.64

Score2/3

Weight20.55%

1M Return3.65%

Net profit / Total profit (%)

Value77.77

Score1/3

Weight0.57%

1M Return0.10%

Is ALRM fundamentally strong?

ALRM scores 6.47/10 on fundamentals and holds a Discounted valuation at present. Backed by its 15.95% ROE, 13.02% net margin, 16.06 P/E ratio, 2.39 P/B ratio, and 6.40% earnings growth, these metrics solidify its Outperform investment rating.