# Alarm.com Holdings Inc. (ALRM) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Software. Price $56.48, market value $2.8 billion.

## Valuation
- **P/E (trailing): 25.0×** (5-yr avg 43.9×, 3-yr avg 29.8×). Alarm.com Holdings Inc. trades at 25.0× trailing earnings, well below its own five-year average of 43.9×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 18.4×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 2.48**. A PEG of 2.48 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 2.6×**. Each dollar of revenue is priced at 2.6×.
- **Price / book: 3.2×**. The shares trade at 3.2× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 11.3×**. Enterprise value is 11.3× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 6.8%** (5-yr avg 3.4%). Free cash flow equals 6.8% of the market value, above its five-year average of 3.4%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 4.0%**. The inverse of the P/E: 4.0% of the price is earned each year.

## Profitability
- **Operating margin: 12.8%**. 12.8% of revenue is left after running the business.
- **Net margin: 13.0%**. 13.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 15.5%**. 15.5% on shareholders' equity is solid.
- **Return on assets: 5.5%**. Each dollar of assets produces 5.5% of profit.

## Growth
- **Revenue growth (1 yr): 7.6%** (3-yr 6.3%/yr, 5-yr 10.3%/yr). Revenue grew 7.6% over the last year, against 10.3% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 7.4%** (3-yr 32.0%/yr, 5-yr 10.0%/yr). Earnings per share rose 7.4%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): 69.3%/yr**. Free cash flow has compounded at 69.3% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.13**. Debt is 0.13 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Alarm.com Holdings Inc. holds more cash than debt.
- **Current ratio: 1.92** (quick 1.92). Current assets cover the next year's liabilities 1.92 times.
- **Altman Z-score: 2.91**. A Z-score of 2.91 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Alarm.com Holdings Inc. does not currently pay a dividend.

## Analyst view
- **Analyst consensus: buy** (5 analysts). 5 analysts cover Alarm.com Holdings Inc.; the consensus is buy, with an average price target of $63.00 (+12% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -1.1%** (YTD 10.7%, 3-mo 24.5%). The shares are down 1.1% over twelve months including dividends.
- **From 52-week high: -2.9%** (36.1% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 54**. An RSI of 54 is neutral.
- **Beta (1 yr): 0.67** (volatility 31%). Beta of 0.67 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ALRM · Page: https://foliofundamentals.com/stocks/alrm

Not investment advice.