Alarm.com Holdings, Inc. cash flow to debt ratio of 13.53% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Alarm.com Holdings, Inc.'s free cash flow has decreased 30.18% from $196.28M last year to $137.05M, signaling decreasing performance

Alarm.com Holdings, Inc.'s debt to equity ratio is 0.66, which means that the company's assets are unhealthy financed, signaling financial risk.

Alarm.com Holdings, Inc.'s debt has decreased relative to shareholder equity from 1.45 last year to 0.66 today, signaling strengthened financials

Alarm.com Holdings, Inc. has a net debt to EBITDA ratio of 0.75x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Alarm.com Holdings, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Alarm.com Holdings, Inc.'s profit margin has decreased (15.86%) in the last year from 13.21% to 11.11%, signaling decreasing performance

Alarm.com Holdings, Inc.'s short-term assets of $1.27B exceed its short-term liabilities of $663.14M

Alarm.com Holdings, Inc.'s return on assets of 7.12% is higher than the 5.00% threshold, indicating efficient asset utilization

Alarm.com Holdings, Inc.'s return on equity of 13.87%, is lower than 15.00%, indicating bad performance

Alarm.com Holdings, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Alarm.com Holdings, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Alarm.com Holdings, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Alarm.com Holdings, Inc. has a free cash flow yield of 4.91%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Alarm.com Holdings, Inc.'s yearly earnings has increased 6.81% since last year from $124.12M to $132.57M, signaling increasing performance

Alarm.com Holdings, Inc.'s yearly revenue has increased 7.59% since last year from $939.83M to $1.01B, signaling increasing performance

ROIC 6.95% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Alarm.com Holdings, Inc.'s 3-year revenue CAGR of 6.27% is positive, indicating growing revenue over the past 3 years

Alarm.com Holdings, Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Alarm.com Holdings, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Alarm.com Holdings, Inc. is overvalued relative to its fair value price of 45.36 based on Discounted Cash Flow model

Alarm.com Holdings, Inc. has an earnings yield of 4.23%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Alarm.com Holdings, Inc. is overvalued relative to its fair value price of 29.25 based on EBITDA multiple model

Alarm.com Holdings, Inc. has an EV/EBITDA ratio of 12.88x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Alarm.com Holdings, Inc. is overvalued relative to its fair value price of 28.42 based on Earnings Fair Value model

Alarm.com Holdings, Inc. has a PEG-ratio over 1 which is considered overvalued

Alarm.com Holdings, Inc. has a price-to-book ratio of 3.06x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Alarm.com Holdings, Inc. has a price-to-sales ratio of 2.62x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue