Stock AnalizAlarm.com Holdings, Inc. ALRM
Computer Software: Prepackaged Software · IPO 2015 · data as of November 13, 2026
Alarm.com Holdings, Inc. (ALRM) is a technology company listed in the US with a market value of about $3.2B. In the twelve months to September 30, 2026 it had revenue of $1.1B and net income of $117M, a net margin of 10.8%.
Its overall Stock Analiz score is 2.6 out of 5 (average). The strongest part is financial health (4/5); the weakest is value (1/5).
Key numbers: a P/E of 28.8, a price to free cash flow of 16.8, 5-year revenue growth of 10% a year, a 5-year average ROIC of 5%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 37% below the current price.
Score: 2.6 / 5
Checks passed
- P/FCF below 20
- Profit margin improving
- 3-year free cash flow growth above 10% a year
- Strong R&D investment or growth above 20%
- 5-year revenue growth above 8% a year
- Profitable 5 years in a row
- ROE above 15%
- Positive free cash flow
Checks not passed
- P/E below 25
- P/E below the industry median
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- 5-year EPS growth above 10% a year
- 5-year average ROIC above 12%
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $1.1B | $1.0B | $940M | $882M | $843M | $749M | $618M | $502M | $420M | $339M | $261M |
| Net income | $117M | $133M | $124M | $81M | $56M | $52M | $78M | $54M | $22M | $29M | $10M |
| Free cash flow | $191M | $137M | $196M | $128M | $28M | $92M | $86M | $28M | $50M | $47M | $14M |
| EPS (diluted) | $2.27 | $2.46 | $2.29 | $1.53 | $1.07 | $1.01 | $1.53 | $1.06 | $0.43 | $0.59 | $0.21 |
| Net margin | 10.8% | 13.1% | 13.2% | 9.2% | 6.7% | 7.0% | 12.6% | 10.7% | 5.1% | 8.6% | 3.9% |
| ROIC | — | 7.3% | 5.3% | 4.5% | 4.4% | 4.5% | 8.6% | 9.8% | 2.5% | 10.0% | 5.0% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 5 analysts is $73.00, 12% above the current price; targets range from $50.00 to $85.00; the consensus rating is “Buy”; expected EPS is $3.03 for the fiscal year ending December 31, 2026.
Frequently asked questions
What is Alarm.com’s P/E ratio?
About 28.8, based on the last twelve months of diluted earnings per share (forward P/E about 22.1).
Is Alarm.com stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 37% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Alarm.com pay a dividend?
Not currently.
Is Alarm.com a good stock to buy?
We do not give buy or sell advice. Alarm.com scores 2.6 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.