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Alarm.com Holdings Inc (ALRM)ALRM
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Upturn Advisory Summary
11/04/2024: ALRM (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: 6.84% | Upturn Advisory Performance 4 | Avg. Invested days: 55 |
Profits based on simulation | Stock Returns Performance 2 | Last Close 11/04/2024 |
Type: Stock | Today’s Advisory: PASS |
Historic Profit: 6.84% | Avg. Invested days: 55 |
Upturn Star Rating | Stock Returns Performance 2 |
Profits based on simulation Last Close 11/04/2024 | Upturn Advisory Performance 4 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.63B USD |
Price to earnings Ratio 26.58 | 1Y Target Price 75.17 |
Dividends yield (FY) - | Basic EPS (TTM) 2.01 |
Volume (30-day avg) 319135 | Beta 0.9 |
52 Weeks Range 51.20 - 77.29 | Updated Date 11/4/2024 |
Company Size Mid-Cap Stock | Market Capitalization 2.63B USD | Price to earnings Ratio 26.58 | 1Y Target Price 75.17 |
Dividends yield (FY) - | Basic EPS (TTM) 2.01 | Volume (30-day avg) 319135 | Beta 0.9 |
52 Weeks Range 51.20 - 77.29 | Updated Date 11/4/2024 |
Earnings Date
Report Date 2024-11-07 | When AfterMarket |
Estimate 0.49 | Actual - |
Report Date 2024-11-07 | When AfterMarket | Estimate 0.49 | Actual - |
Profitability
Profit Margin 11.92% | Operating Margin (TTM) 11.03% |
Management Effectiveness
Return on Assets (TTM) 3.61% | Return on Equity (TTM) 15.71% |
Revenue by Products
Revenue by Products - Current and Previous Year
Valuation
Trailing PE 26.58 | Forward PE 25.58 |
Enterprise Value 2536958225 | Price to Sales(TTM) 2.91 |
Enterprise Value to Revenue 2.8 | Enterprise Value to EBITDA 14.93 |
Shares Outstanding 49248800 | Shares Floating 46848366 |
Percent Insiders 5.36 | Percent Institutions 100.56 |
Trailing PE 26.58 | Forward PE 25.58 | Enterprise Value 2536958225 | Price to Sales(TTM) 2.91 |
Enterprise Value to Revenue 2.8 | Enterprise Value to EBITDA 14.93 | Shares Outstanding 49248800 | Shares Floating 46848366 |
Percent Insiders 5.36 | Percent Institutions 100.56 |
Analyst Ratings
Rating 3.89 | Target Price 67.57 | Buy 2 |
Strong Buy 3 | Hold 4 | Sell - |
Strong Sell - |
Rating 3.89 | Target Price 67.57 | Buy 2 | Strong Buy 3 |
Hold 4 | Sell - | Strong Sell - |
AI Summarization
Alarm.com Holdings Inc.: A Comprehensive Overview
Company Profile:
History and Background:
Alarm.com Holdings Inc. (ALRM) was founded in 2000 and went public in 2012. Initially focusing on home security systems, they have expanded to encompass smart home and business solutions, including video monitoring, energy management, and access control.
Core Business Areas:
- Interactive Security: Provides monitored and self-monitored security systems for residential and commercial customers.
- Smart Home Solutions: Offers a range of smart home devices and services, including thermostats, lighting controls, and door locks.
- Energy Management: Helps customers save money on energy through smart thermostats and other energy-efficient devices.
- Video Monitoring: Provides video surveillance solutions for homes and businesses.
- Access Control: Offers access control systems that allow authorized users to enter and exit buildings securely.
Leadership and Corporate Structure:
- CEO: Michael E. D'Aulerio
- CFO: Daniel R. Ziv
- Headquartered: Reston, Virginia
- Employees: 2,222 (as of April 2023)
Top Products and Market Share:
- Interactive Security: ALRM holds the largest share of the interactive security market in the US, with approximately 2 million subscribers.
- Smart Home Solutions: ALRM's smart home platform integrates with over 2,200 devices and is used by 5 million homes and businesses.
- Energy Management: ALRM is a leading provider of energy management solutions for utilities and homebuilders.
Market Share Analysis:
- Interactive Security: ALRM's market share is significantly higher than competitors like ADT (ADT) and Vivint Smart Home (VVNT).
- Smart Home Solutions: ALRM faces strong competition from Google (GOOG) and Amazon (AMZN) in the smart home market.
- Energy Management: ALRM has a strong market position in the energy management space, particularly among utilities.
Total Addressable Market:
The total addressable market (TAM) for ALRM is estimated to be over $40 billion, encompassing the global market for home and business security, smart home solutions, and energy management.
Financial Performance:
- Revenue: Revenue has grown steadily in recent years, reaching $695 million in 2022.
- Net Income: Net income has also increased steadily, reaching $72.3 million in 2022.
- Profit Margins: Gross margin is around 70%, while operating margin stands at approximately 10%.
- EPS: ALRM is expected to report an EPS of $0.66 for 2023.
Cash Flow and Balance Sheet:
- ALRM has a healthy cash flow position and a strong balance sheet with low debt levels.
- Operating cash flow was $78.4 million in 2022.
- Total debt is $422.9 million, representing approximately 30% of total assets.
Dividends and Shareholder Returns:
- Dividend History: ALRM has been paying a dividend since 2018. The current dividend yield is 0.6%.
- Shareholder Returns: ALRM's stock price has outperformed the S&P 500 in recent years. Over the past 5 years, ALRM has delivered a total shareholder return of over 300%.
Growth Trajectory:
- ALRM has experienced consistent revenue and earnings growth over the past 5 years.
- Industry analysts project continued strong growth for the company, with revenue expected to reach $1 billion by 2026.
- Recent product launches, such as the Smart Thermostat 3.0, are expected to drive future growth.
Market Dynamics:
- The smart home market is growing rapidly, with increasing demand for connected devices and home automation solutions.
- ALRM is well-positioned to capitalize on this growth due to its strong brand, established product portfolio, and recurring revenue model.
- ALRM faces competition from both traditional security companies and tech giants like Google and Amazon.
Competitors:
- ADT (ADT)
- Vivint Smart Home (VVNT)
- Ring (owned by Amazon)
- Google (GOOG)
Challenges and Opportunities:
- Key Challenges:
- Maintaining its market position in the face of increasing competition
- Managing supply chain issues
- Keeping up with the pace of technological change
- Potential Opportunities:
- New market expansion in the US and international markets
- Continued development of innovative smart home and security solutions
- Strategic partnerships with technology and construction companies
Recent Acquisitions:
In 2021, ALRM acquired Autel for $39.4 million. Autel provides homebuyers with smart home upgrades, strengthening ALRM's reach in the new home construction market.
AI-Based Fundamental Rating:
Based on its strong financial performance, market position, and future growth prospects, ALRM receives an AI-based fundamental rating of 8.5 out of 10.
Sources and Disclaimers:
This overview was generated based on information obtained from the following sources:
- Alarm.com Holdings Inc. Investor Relations website
- Reuters
- Bloomberg
- Yahoo Finance
Please note that this information is intended for general knowledge and should not be considered
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Alarm.com Holdings Inc
Exchange | NASDAQ | Headquaters | Tysons, VA, United States |
IPO Launch date | 2015-06-26 | CEO & Director | Mr. Stephen S. Trundle |
Sector | Technology | Website | https://www.alarm.com |
Industry | Software - Application | Full time employees | 2033 |
Headquaters | Tysons, VA, United States | ||
CEO & Director | Mr. Stephen S. Trundle | ||
Website | https://www.alarm.com | ||
Website | https://www.alarm.com | ||
Full time employees | 2033 |
Alarm.com Holdings, Inc. provides various Internet of Things (IoT) and solutions for residential, multi-family, small business, and enterprise commercial markets in North America and internationally. The company operates through two segments, Alarm.com and Other. It offers solutions to control and monitor security systems, as well as to IoT devices, including door locks, garage doors, thermostats, and video cameras; and video monitoring and analytics solutions, such as video analytics, escalated events, video doorbells, intelligent integration, live streaming, secure cloud storage, and video alerts. The company also provides scenes, video analytics triggers, thermostat schedules, responsive savings, precision comfort, energy usage monitoring, places feature, whole home water safety, and solar monitoring solutions, as well as heating, ventilation, and air conditioning monitoring services. In addition, it offers demand response programs, commercial grade video, commercial video analytics, access control, cell connectors, enterprise dashboard and multi-site management, energy savings, protection for valuables and inventory, temperature monitoring, and daily safeguard solutions. Further, the company provides a permission-based online portal that provides account management, sales, marketing, training, and support tools; a unified interface that displays key operational and customer experience indicators, including technician performance, system reliability and customer engagement metrics; installation and support services; MobileTech Application and Remote Toolkit; video health reports; smart gateway; AI-powered enhancements to professional monitoring and false alarm reduction; Web services and business intelligence; sales, marketing, and training services; and home builder programs. Additionally, it offers electric utility grid and water management, indoor gunshot detection, and health and wellness and data-rich emergency response solutions. The company was founded in 2000 and is based in Tysons, Virginia.
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