Alarm.com Holdings Inc.
Find Ratings ReportsALARM.COM HOLDINGS INC's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the subsector average, its revenue growth has not. ALARM.COM HOLDINGS INC is extremely liquid. Currently, the Quick Ratio is 4.72 which clearly shows the ability to cover any short-term cash needs. ALRM managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has increased by 14.97% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 226.24 | 208.14 |
EBITDA ($mil) | 33.92 | 22.87 |
EBIT ($mil) | 25.73 | 14.8 |
Net Income ($mil) | 31.3 | 18.09 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 697.08 | 622.18 |
Total Assets ($mil) | 1439.56 | 1329.38 |
Total Debt ($mil) | 526.03 | 529.91 |
Equity ($mil) | 688.55 | 598.86 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 64.21 | 61.92 |
EBITDA Margin | 14.99 | 10.98 |
Operating Margin | 11.37 | 7.11 |
Sales Turnover | 0.61 | 0.63 |
Return on Assets | 5.62 | 4.23 |
Return on Equity | 11.77 | 9.41 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 5.46 | 5.4 |
Debt/Capital | 0.43 | 0.47 |
Interest Expense | 0.83 | 0.79 |
Interest Coverage | 31.07 | 18.79 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 49.87 | 49.45 |
Div / share | 0.0 | 0.0 |
EPS | 0.58 | 0.34 |
Book value / share | 13.81 | 12.11 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 251207.0 | 256683.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 61.20 for the Comp Infrastructure, Data, Web Hosting, Related Se subsector and a significant premium compared to the S&P 500 average of 27.95. Conducting a second comparison, its price-to-book ratio of 5.36 indicates a premium versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 9.55. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, ALARM.COM HOLDINGS INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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ALRM 48.40 | Peers 61.20 | ALRM 27.16 | Peers 28.25 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. ALRM is trading at a discount to its peers. |
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. ALRM is trading at a valuation on par to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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ALRM 32.62 | Peers 18.10 | ALRM 1.26 | Peers 0.46 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. ALRM is trading at a significant premium to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. ALRM trades at a significant premium to its peers. |
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Price/Book |
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Earnings Growth |
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ALRM 5.36 | Peers 9.55 | ALRM 41.66 | Peers 211.27 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. ALRM is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, ALRM is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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ALRM 4.19 | Peers 6.93 | ALRM 4.64 | Peers 11.39 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. ALRM is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. ALRM significantly trails its peers on the basis of sales growth. |
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