On September 19, 2023, Alarm.com Holdings, Inc. (NASDAQ:ALRM), a leading provider of cloud-based services for smart homes and businesses, received positive feedback from Roth MKM analyst Darren Aftahi. Aftahi reiterated a Buy rating on the company and increased the price target to $67 from $61.
Aftahi conducted a Mid-Q survey, which revealed that Alarm.com’s core software-as-a-service (SaaS) growth estimate of 5.6% could see a 170 basis point upside. This suggests a year-over-year growth of approximately 12.3%, excluding Vivint revenue from the previous year. The analyst noted that ALRM reported 1H23 SaaS growth of 13.4% and overall growth of 14.1%.
Although the survey indicated a slowdown in year-over-year growth for video peripheral systems such as video doorbells and cameras, respondents expressed optimism about future growth and prospects. The survey showed a range of growth between 19% and 36%, with an average of 26%. However, respondents reported that video peripheral product sales in 3Q23 were only up by 0-2% compared to the previous year, a decrease from the levels seen in the 2Q survey. The availability of hardware remained consistent throughout the quarter.
The analyst’s checks also provided minor data on Alarm.com’s Commercial segment, which continues to grow at a rate exceeding 20%. Aftahi believes this trend could continue in the future.
Looking ahead, the analyst projects revenues of $876.5 million and earnings per share (EPS) of $1.70 for FY23. For FY24, the projections are $929.4 million in revenues and EPS of $1.76.
As of the last check on Tuesday, ALRM shares were trading slightly lower at $59.85, representing a decrease of 0.15%.
Alarm.com Holdings, Inc.
ALRM
Strong Buy
Updated on: 27/09/2023
Financial Health
Very Healthy
Debt to equity ratio: Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Neutral
Alarm.com Holdings Inc. (ALRM) Stock Analysis: Stable Performance with Declining Earnings Growth
On September 19, 2023, Alarm.com Holdings Inc. (ALRM) opened at $60.59, slightly higher than the previous day’s closing price of $59.94. Throughout the day, the stock traded within a range of $59.38 to $60.59. The trading volume for the day was 7,945 shares, significantly lower than the average volume of 232,487 shares over the past three months. The market capitalization of Alarm.com Holdings Inc. stood at $3.0 billion.
In terms of earnings growth, Alarm.com Holdings Inc. experienced a positive growth rate of 7.68% in the previous year. However, its earnings growth for the current year is -19.21%. Looking ahead, the company is expected to achieve a modest earnings growth rate of 6.60% over the next five years.
On the revenue front, Alarm.com Holdings Inc. demonstrated a healthy growth rate of 12.50% in the last year.
The price-to-earnings (P/E) ratio for Alarm.com Holdings Inc. is 47.5, indicating that investors are willing to pay a higher price for each dollar of earnings. The price-to-sales ratio stands at 3.23, while the price-to-book ratio is 4.91.
In terms of recent performance, Alarm.com Holdings Inc. saw a positive change of $0.43 or +0.63% on September 19, 2023.
Looking ahead, Alarm.com Holdings Inc. is expected to report its next earnings on November 7, 2023. Analysts forecast an earnings per share (EPS) of $0.39 for the current quarter.
In the previous fiscal year, Alarm.com Holdings Inc. generated annual revenue of $842.6 million and a profit of $56.3 million. The net profit margin for the company was 6.69%.
Alarm.com Holdings Inc. operates in the Technology Services sector and is classified under the Packaged Software industry. The company’s corporate headquarters are located in Tysons, Virginia.
Overall, the stock performance of Alarm.com Holdings Inc. on September 19, 2023, was relatively stable, with a slight increase in the stock price. However, the company’s earnings growth for this year is expected to decline. Investors should closely monitor future earnings reports and industry trends to make informed investment decisions regarding ALRM stock.
Alarm.com Holdings Inc Shows Strong Performance in Stock Market with Positive Future Outlook
Alarm.com Holdings Inc, a leading provider of cloud-based security and smart home solutions, has been performing well in the stock market on September 19, 2023. According to data from CNN Money, the stock’s current price is $60.33. However, analysts are forecasting a positive future for the company, with a median target price of $67.00 over the next 12 months.
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