Is ALRM a good stock to buy right now?

Based on our 6-factor quantitative model, Alarm.com Holdings, Inc. (ALRM) receives a "Reduce" rating with a composite score of 43.9/100. It is ranked #2,507 out of 4,446 stocks. Key factor scores: Quality 50/100, Value 65/100, Momentum 30/100. The timing signal is "Neutral". This is quantitative analysis only — not investment advice.

What is the stock rating for ALRM?

Alarm.com Holdings, Inc. (ALRM) has a "Reduce" rating and 2-star score. The composite score of 43.9 ranks it #2,507 among 4,446 U.S. stocks. Ratings are updated weekly using academically-proven factor models.

What sector is ALRM in?

Alarm.com Holdings, Inc. operates in the Technology sector (Computer Software industry) with a market cap of $2.15 billion. It is classified as a mid-cap stock.

Does ALRM pay a dividend?

ALRM does not currently pay a regular dividend. The company may be reinvesting profits for growth.

What is ALRM's P/E ratio?

ALRM has a trailing P/E ratio of 16.53x. The Technology sector average is 45.3x. This P/E is in a moderate range relative to the broader market.

How profitable is ALRM?

ALRM's quality factor score is 50/100. Gross margin: 65.9%. ROE: 15.7% vs sector average -1.4%. High margins suggest pricing power and competitive moats.

How is ALRM valued compared to peers?

ALRM's value factor score is 65/100 (higher = cheaper). Key multiples: P/E 16.5x, EV/EBITDA 13.6x. The stock appears attractively valued versus peers.

What is ALRM's debt level?

ALRM's debt-to-equity ratio is 147%. Sector average: 43%. Moderate leverage is normal for established companies.

ALRM has a beta of 0.89, meaning it tracks the market. Stability score: 72/100.

Does ALRM have high short interest?

ALRM's short interest factor score is 16/100 (higher = less short selling). Elevated short interest may indicate bearish sentiment or short squeeze potential.

ALRM Stock Analysis: Top Mid-Cap Reduce (Score 43.9/100) | Blank Capital Research

Data Series	1D	5D	1M	YTD	1Y	3Y	5Y	10Y
ALRM	-2.04%	-2.34%	-12.78%	-16.41%	-16.59%	-	-	-
Industry Proxy XLK	+0.39%	+4.88%	+2.05%	-0.94%	-26.62%	-	-	-
U.S. Market SPY	-0.07%	+3.60%	+0.34%	-0.36%	+29.52%	-	-	-
Alpha vs Market	-1.98%	-5.94%	-13.12%	-16.04%	-46.11%	-	-	-
Alpha vs Sector	-2.43%	-7.21%	-14.83%	-15.47%	+10.04%	-	-	-

Metric	ALRM	Benchmark
P/E Ratio	16.5x	-63%
EV/EBITDA	13.6x	+7%
Price / Book	2.6x

Stock Entity	Score▼	Quality	Value	Momentum	P/E Ratio	ROE	Gross Margin	Net Margin	Rev Growth	D/E Ratio	Market Cap	Compare
VRSN VERISIGN INC/CA	56	79	59	40	30.7x	-41.1%	88.0%	50.6%	8.3%	-87.0x	$23.0B	VS
IHS IHS Holding Ltd	55	42	63	63	-	-616.0%	48.0%	-96.1%	-	365.0x	$2.8B	VS
LHX L3HARRIS TECHNOLOGIES, INC. /DE/	55	50	52	66	37.5x	9.0%	25.5%	8.1%	10.3%	110.0x	$66.1B	VS
ESP ESPEY MFG & ELECTRONICS CORP	53	48	44	71	25.8x	12.8%	29.0%	17.1%	-11.7%	66.0x	$169M	VS
NYAX Nayax Ltd.	52	38	46	78	-	-13.6%	44.6%	-1.8%	-	30.0x	$2.2B	VS
ESE ESCO TECHNOLOGIES INC	52	49	40	69	65.6x	7.4%	40.8%	10.4%	16.3%	9.0x	$7.6B	VS
INTT INTEST CORP	52	50	32	72	-	-3.2%	43.1%	-3.1%	-22.8%	46.0x	$179M	VS
KARO Karooooo Ltd.	49	50	72	53	-	117.1%	69.5%	20.3%	-	10.0x	$1.6B	VS
MTC MMTec, Inc.	47	32	40	96	-	-1,370.8%	81.6%	-4,879.7%	-	120.0x	$136M	VS
CCLD CareCloud, Inc.	47	38	71	60	12.4x	18.5%	48.0%	9.6%	10.6%	47.0x	$154M	VS
ALRM Alarm.com Holdings, Inc.	44	50	65	30	16.5x	15.7%	65.9%	13.5%	9.7%	147.0x	$2.2B

Key Ratio	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
Gross Margin %	0.7%	0.7%	0.7%	0.6%	0.6%	0.6%	0.6%	0.6%	0.7%	0.7%	0.6%
Operating Margin %	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.0%	0.1%	0.1%
EBITDA Margin %	0.2%	0.2%	0.1%	0.1%	0.1%	0.1%	0.2%	0.2%	0.1%	0.2%	0.1%
Net Margin %	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.0%
FCF Margin %	-4.0%	-	-	-	-	-	13.9%	5.5%	11.8%	13.8%	5.2%
ROE %	0.2%	0.2%	0.2%	0.1%	0.1%	0.1%	0.2%	0.1%	0.1%	0.1%	0.1%
ROA %	0.1%	0.1%	0.1%	0.1%	0.0%	0.0%	0.1%	0.1%	0.0%	0.1%	0.0%
ROIC %	13.5%	12.4%	11.8%	7.7%	6.7%	7.9%	13.7%	13.3%	4.9%	12.7%	19.4%

Key Ratio

TTM

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

Gross Margin %

0.7%

0.6%

0.7%

0.6%

Operating Margin %

0.1%

0.0%

0.1%

EBITDA Margin %

0.2%

0.1%

0.2%

0.1%

0.2%

0.1%

Net Margin %

0.1%

0.0%

FCF Margin %

-4.0%

13.9%

5.5%

11.8%

13.8%

5.2%

ROE %

0.2%

0.1%

0.2%

0.1%

ROA %

0.1%

0.0%

0.1%

0.0%

0.1%

0.0%

ROIC %

13.5%

12.4%

11.8%

7.7%

6.7%

7.9%

13.7%

13.3%

4.9%

12.7%

19.4%

Line Item	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
	$990M	$1.0B	$940M	$882M	$843M	$749M	$618M	$502M	$420M	$339M	$261M	$209M
	—	$342M	$326M	$325M	$343M	$306M	—	—	—	—	—	—
	$652M	$669M	$614M	$557M	$500M	$443M	$391M	$319M	$275M	$223M	$162M	$132M
Gross Margin	65.9%	66.1%	65.3%	63.1%	59.3%	59.2%	63.2%	63.4%	65.3%	65.7%	61.9%	63.0%
	—	$270M	$256M	$245M	$219M	$178M	$152M	$114M	$89M	$73M	$44M	$40M
Depreciation	—	$31M	$29M	$31M	$31M	$30M	$37M	$31M	$23M	$19M	$7M	$6M
Total Operating Expenses	—	$535M	$505M	$490M	$449M	$381M	—	—	—	—	—	—
	$132M	$134M	$109M	$67M	$51M	$62M	$56M	$50M	$12M	$33M	$14M	$18M
EBIT	$132M	$134M	$109M	$67M	$51M	$62M	$56M	$50M	$12M	$33M	$14M	$18M
EBITDA	$162M	$164M	$138M	$98M	$82M	$91M	$119M	$87M	$35M	$52M	$22M	$24M
Operating Margin	13.3%	13.2%	11.6%	7.6%	6.1%	8.2%	9.1%	10.0%	2.9%	9.8%	5.4%	8.6%
EBITDA Margin	16.4%	16.3%	14.6%	11.1%	9.7%	12.2%	19.3%	17.4%	8.3%	15.4%	8.4%	11.5%
	—	—	—	—	—	—	$3M	$3M	$3M	$2M	$190K	$178K
	—	$167M	$142M	$98M	$57M	$46M	—	—	—	—	—	—
Income Tax Expense	—	$38M	$19M	$17M	$962K	-$5M	$4M	$6M	-$10M	$3M	$4M	$6M
	$133M	$132M	$123M	$80M	$56M	$51M	$77M	$53M	$22M	$29M	$10M	$12M
Net Margin	13.5%	13.0%	13.0%	9.1%	6.6%	6.8%	12.4%	10.6%	5.1%	8.6%	3.9%	5.6%
	$2.66	$2.66	$2.50	$1.63	$1.13	$1.05	$1.59	$1.11	$0.45	$0.63	$0.22	$-0.30
Diluted EPS	$2.66	$2.46	$2.29	$1.53	$1.07	$1.01	$1.59	$1.11	$0.45	$0.63	$0.22	$-0.30
Weighted Avg Basic	—	50M	50M	50M	50M	50M	—	—	—	—	—	—
Weighted Avg Diluted	—	59M	58M	55M	55M	52M	—	—	—	—	—	—

Line Item

TTM

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

$990M

$1.0B

$940M

$882M

$843M

$749M

$618M

$502M

$420M

$339M

$261M

$209M

—

$342M

$326M

$325M

$343M

$306M

—

$652M

$669M

$614M

$557M

$500M

$443M

$391M

$319M

$275M

$223M

$162M

$132M

Gross Margin

65.9%

66.1%

65.3%

63.1%

59.3%

59.2%

63.2%

63.4%

65.3%

65.7%

61.9%

63.0%

—

$270M

$256M

$245M

$219M

$178M

$152M

$114M

$89M

$73M

$44M

$40M

Depreciation

—

$31M

$29M

$31M

$30M

$37M

$31M

$23M

$19M

$7M

$6M

Total Operating Expenses

—

$535M

$505M

$490M

$449M

$381M

—

$132M

$134M

$109M

$67M

$51M

$62M

$56M

$50M

$12M

$33M

$14M

$18M

EBIT

$132M

$134M

$109M

$67M

$51M

$62M

$56M

$50M

$12M

$33M

$14M

$18M

EBITDA

$162M

$164M

$138M

$98M

$82M

$91M

$119M

$87M

$35M

$52M

$22M

$24M

Operating Margin

13.3%

13.2%

11.6%

7.6%

6.1%

8.2%

9.1%

10.0%

2.9%

9.8%

5.4%

8.6%

EBITDA Margin

16.4%

16.3%

14.6%

11.1%

9.7%

12.2%

19.3%

17.4%

8.3%

15.4%

8.4%

11.5%

—

$3M

$2M

$190K

$178K

—

$167M

$142M

$98M

$57M

$46M

—

Income Tax Expense

—

$38M

$19M

$17M

$962K

-$5M

$4M

$6M

-$10M

$3M

$4M

$6M

$133M

$132M

$123M

$80M

$56M

$51M

$77M

$53M

$22M

$29M

$10M

$12M

Net Margin

13.5%

13.0%

9.1%

6.6%

6.8%

12.4%

10.6%

5.1%

8.6%

3.9%

5.6%

$2.66

$2.50

$1.63

$1.13

$1.05

$1.59

$1.11

$0.45

$0.63

$0.22

$-0.30

Diluted EPS

$2.66

$2.46

$2.29

$1.53

$1.07

$1.01

$1.59

$1.11

$0.45

$0.63

$0.22

$-0.30

Weighted Avg Basic

—

50M

—

Weighted Avg Diluted

—

59M

58M

55M

52M

—

Alarm.com Holdings, Inc. (ALRM) Stock Analysis — April 2026 Rating, Price, and Forecast

Last updated: April 2026

Company Overview — What Does Alarm.com Holdings, Inc. Do?

Alarm.com Holdings, Inc. provides cloud-based solutions for smart residential and commercial properties in the United States and internationally. It operates in two segments, Alarm.com and Other. The company provides interactive security solutions to control and monitor their security systems, as well as connected security devices, including door locks, motion sensors, door locks, garage doors, Internet of Things, thermostats, and video cameras; and video monitoring solutions, such as video analytics, live streaming, video doorbell, video clips, video alerts, continuous high definition recording, and commercial video surveillance solutions. It also offers intelligent automation and energy management solutions comprising scenes button; smart thermostat schedules; responsive savings; precision comfort; energy usage monitoring; heating, ventilation, and air conditioning monitoring services; whole home water safety solutions; geo-services; and demand response programs. In addition, the company provides commercial solutions, such as daily safeguards, commercial grade video, energy savings, protection for valuables and inventory, temperature monitoring, multi-site management and access control, early identification, simple to use, professionally supported, and easy to maintain. Further, it offers service provider solutions, including a permission-based online portal that offers account management, sales, marketing, training, and support tools; sales, marketing, and training services; and home builder programs, as well as wellness solutions. The company serves residential and commercial subscribers. Alarm.com Holdings, Inc. was founded in 2000 and is based in Tysons, Virginia. Alarm.com Holdings, Inc. (ALRM) is classified as a mid-cap stock in the Technology sector, specifically within the Computer Software industry. The company is led by CEO Stephen S. Trundle and employs approximately 1,730 people, headquartered in Vienna, Virginia. With a market capitalization of $2.2B, ALRM is one of the notable companies in the Technology sector.

Alarm.com Holdings, Inc. (ALRM) Stock Rating — Reduce (April 2026)

As of April 2026, Alarm.com Holdings, Inc. receives a Reduce rating with a composite score of 43.9/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.ALRM ranks #2,507 out of 4,446 stocks in our coverage universe. Within the Technology sector, Alarm.com Holdings, Inc. ranks #269 of 584 stocks, placing it in the upper half of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

ALRM Stock Price and 52-Week Range

Alarm.com Holdings, Inc. (ALRM) currently trades at $43.52. The stock lost $0.02 (0.0%) in the most recent trading session. The 52-week high for ALRM is $60.76, which means the stock is currently trading -28.4% from its annual peak. The 52-week low is $43.00, putting the stock 1.2% above its annual trough. Recent trading volume was 5K shares, suggesting relatively thin trading activity.

Is ALRM Overvalued or Undervalued? — Valuation Analysis

Alarm.com Holdings, Inc. (ALRM) carries a value factor score of 65/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 16.53x, compared to the Technology sector average of 45.27x — a discount of 63%. The price-to-book ratio stands at 2.60x, versus the sector average of 3.16x. The price-to-sales ratio is 2.23x, compared to 1.06x for the average Technology stock. On an enterprise value basis, ALRM trades at 13.63x EV/EBITDA, versus 12.79x for the sector.

Overall, ALRM's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.

Alarm.com Holdings, Inc. Profitability — ROE, Margins, and Quality Score

Alarm.com Holdings, Inc. (ALRM) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 15.7%, compared to the Technology sector average of -1.4%, which is within a healthy range. Return on assets (ROA) comes in at 6.3% versus the sector average of -1.0%.

On a margin basis, Alarm.com Holdings, Inc. reports gross margins of 65.9%, compared to 50.9% for the sector. The operating margin is 13.3% (sector: -0.5%). Net profit margin stands at 13.5%, versus -1.5% for the average Technology stock. Revenue growth is running at 9.7% on a trailing basis, compared to 14.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.

ALRM Debt, Balance Sheet, and Financial Health

Alarm.com Holdings, Inc. has a debt-to-equity ratio of 147.0%, compared to the Technology sector average of 43.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.92x, suggesting adequate working capital coverage. Total debt on the balance sheet is $988M. Cash and equivalents stand at $1.07B.

ALRM has a beta of 0.89, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for Alarm.com Holdings, Inc. is 72/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.

Alarm.com Holdings, Inc. Revenue and Earnings History — Quarterly Trend

In TTM 2026, Alarm.com Holdings, Inc. reported revenue of $990M and earnings per share (EPS) of $2.66. Net income for the quarter was $133M. Gross margin was 65.9%. Operating income came in at $132M.

In FY 2025, Alarm.com Holdings, Inc. reported revenue of $1.01B and earnings per share (EPS) of $2.66. Net income for the quarter was $132M. Gross margin was 66.1%. Revenue grew 7.6% year-over-year compared to FY 2024. Operating income came in at $134M.

In Q3 2025, Alarm.com Holdings, Inc. reported revenue of $256M and earnings per share (EPS) of $0.71. Net income for the quarter was $35M. Gross margin was 65.8%. Revenue grew 6.6% year-over-year compared to Q3 2024. Operating income came in at $37M.

In Q2 2025, Alarm.com Holdings, Inc. reported revenue of $254M and earnings per share (EPS) of $0.69. Net income for the quarter was $34M. Gross margin was 65.6%. Revenue grew 8.8% year-over-year compared to Q2 2024. Operating income came in at $32M.

Over the past 8 quarters, Alarm.com Holdings, Inc. has demonstrated a growth trajectory, with revenue expanding from $234M to $990M. Investors analyzing ALRM stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

ALRM Dividend Yield and Income Analysis

Alarm.com Holdings, Inc. (ALRM) does not currently pay a dividend. This is common among smaller companies in the Computer Software industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Technology dividend stocks may want to explore other Technology stocks or use the stock screener to filter by dividend yield.

ALRM Momentum and Technical Analysis Profile

Alarm.com Holdings, Inc. (ALRM) has a momentum factor score of 30/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 29/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 16/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.

ALRM vs Competitors — Technology Sector Ranking and Peer Comparison

Within the Technology sector, Alarm.com Holdings, Inc. (ALRM) ranks #269 out of 584 stocks based on the Blank Capital composite score. This places ALRM in the upper half of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.

Comparing ALRM against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full ALRM vs S&P 500 (SPY) comparison to assess how Alarm.com Holdings, Inc. stacks up against the broader market across all factor dimensions.

ALRM Next Earnings Date

No upcoming earnings date has been announced for Alarm.com Holdings, Inc. (ALRM) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy ALRM? — Investment Thesis Summary

The quantitative profile for Alarm.com Holdings, Inc. suggests caution. The value score of 65/100 suggests attractive pricing relative to fundamentals. Momentum is weak at 30/100, a headwind for near-term performance. Low volatility (stability score 72/100) reduces downside risk.

In summary, Alarm.com Holdings, Inc. (ALRM) earns a Reduce rating with a composite score of 43.9/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on ALRM stock.

Related Resources for ALRM Investors

Explore more research and tools: ALRM vs S&P 500 comparison, top Technology stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare ALRM head-to-head with peers: ALRM vs IHS, ALRM vs VRSN, ALRM vs ESE.

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Alarm.com Holdings, Inc. (ALRM) Stock Analysis — April 2026 Rating, Price, and Forecast

Company Overview — What Does Alarm.com Holdings, Inc. Do?

Alarm.com Holdings, Inc. (ALRM) Stock Rating — Reduce (April 2026)

ALRM Stock Price and 52-Week Range

Is ALRM Overvalued or Undervalued? — Valuation Analysis

Alarm.com Holdings, Inc. Profitability — ROE, Margins, and Quality Score

ALRM Debt, Balance Sheet, and Financial Health

Alarm.com Holdings, Inc. Revenue and Earnings History — Quarterly Trend

ALRM Dividend Yield and Income Analysis

ALRM Momentum and Technical Analysis Profile

ALRM vs Competitors — Technology Sector Ranking and Peer Comparison

ALRM Next Earnings Date

Should You Buy ALRM? — Investment Thesis Summary

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