Alarm.com Holdings Stock Price and Value Analysis

Should you buy Alarm.com Holdings stock? (NasdaqGS:ALRM). Let's see how it does in our automated value investing analysis system.

ALRM Free Cash Flow Trend

Free Cash Flow trendline for ALRM
Free Cash Flow trendline for Alarm.com Holdings

Based on historical returns, we believe that Alarm.com Holdings can grow its free cash at a rate of about 1%. That's positive!

AdvantagesDisadvantagesNeutral
None.
  • This company has wild ups and downs.
  • This company is making money at a modest rate.
  • This company is less known than others.
  • This stock looks overpriced.
  • This company pays no dividend.

Inside the ALRM Numbers

ALRM Price
(Alarm.com Holdings stock price per share)
$86.64
[?] ALRM Fair Price
(based on intrinsic value)
$7.24
[?] ALRM Safety Price (based on a variable margin of safety) $4.34
[?] PE Ratio versus Sector 244% higher than other Technology stocks
[?] PE Ratio versus Industry 311% higher than other Software - Application stocks
[?] Free Cash Flow Jitter 84%

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 2,727,161 shares shorted. With 45,428,441 shares available for purchase and an average trading volume over the past 10 trading days of 423,514, it would take at least 6.439 days for all of the short holders to cover their shorts.

Is Alarm.com Holdings Stock on Sale?

We believe that Alarm.com Holdings may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Alarm.com Holdings looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy ALRM Stock?

Does Alarm.com Holdings have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.