ALRM
TechnologyAlarm.com Holdings, Inc. · Software - Application · $3B
What is Alarm.com Holdings, Inc.?
Alarm.com Holdings provides cloud-based smart security and automation solutions for homes and businesses across the US and internationally.
The company delivers interactive security monitoring, video surveillance, intelligent automation, and energy management through a network of professional service providers. It earns recurring software revenue by connecting security devices — locks, cameras, thermostats, and sensors — to its cloud platform.
Is ALRM a Good Stock to Buy?
UQS Score rates ALRM as Below Average overall, reflecting weak growth alongside neutral quality, moat, and risk profiles.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
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ALRM — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| Jul 30, 2026 | 47.0 | 42.0 | 43.0 | 18.0 | 75.1 | 72.8 | -1.3 |
| Jul 25, 2026 | 48.3 | 42.7 | 43.0 | 18.0 | 75.1 | 79.7 | -0.2 |
| Jul 23, 2026 | 48.5 | 43.0 | 43.0 | 18.0 | 75.1 | 80.5 | +0.3 |
| Jul 22, 2026 | 48.2 | 42.6 | 43.0 | 18.0 | 75.1 | 79.4 | +0.1 |
| Jul 21, 2026 | 48.1 | 42.5 | 43.0 | 18.0 | 75.1 | 78.9 | +0.1 |
| Jul 18, 2026 | 48.0 | 42.4 | 43.0 | 18.0 | 75.1 | 78.8 | +0.1 |
| Jul 17, 2026 | 47.9 | 42.3 | 43.0 | 18.0 | 75.1 | 78.2 | -0.3 |
| Jul 14, 2026 | 48.2 | 42.6 | 43.0 | 18.0 | 75.1 | 79.4 | -0.1 |
| Jul 11, 2026 | 48.3 | 42.8 | 43.0 | 18.0 | 75.1 | 79.9 | — |
ALRM — Pillar Breakdown
Quality
— 42.0/100 (25%)Alarm.com Holdings, Inc. has average quality metrics, with room for improvement in margins or capital efficiency.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 18.0/100 (20%)Alarm.com Holdings, Inc. faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 75.1/100 (15%)Alarm.com Holdings, Inc. carries minimal financial risk with conservative leverage and strong solvency.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 72.7/100 (15%)Alarm.com Holdings, Inc. trades at a reasonable valuation with decent earnings yield and FCF multiples.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 43/100 (25%)Alarm.com Holdings, Inc. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for ALRM.
Score Composition
Financial Data
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How is the ALRM UQS Score Calculated?
The UQS (Unified Quality Score) for Alarm.com Holdings, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Alarm.com Holdings, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Alarm.com Holdings, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.