AlphaStocks
1.6
Avoid

Alarm.com Holdings, Inc. (ALRM)

Financials / Application Software

S&P SmallCap 600

$43.30

Scores poorly across most models. Proceed with caution.

Avoid

Score based on 2 of 5 models — limited data

#3out of 13 in Financials

Is Alarm.com Holdings, Inc. a Good Investment in 2026?

Alarm.com Holdings, Inc. (ALRM) scores 1.6 out of 10 on AlphaStocks' composite model, earning a Avoid rating. The Lynch model rates Alarm.com Holdings, Inc. as Attractive (High PEG — growth premium · Slow Grower). The Greenblatt Magic Formula model is the least favorable, rating it Attractive. Alarm.com Holdings, Inc. currently trades above its estimated fair value of $22, suggesting limited upside at current prices. Alarm.com Holdings, Inc. ranks #3 out of 13 stocks in the Financials sector.

This summary is algorithmically generated and is not financial advice.

Key Metrics

P/E39.8ROE7.7Market Cap3B

Estimated Fair Value

$21.9997% above

Trading above estimated fair value. P/e of 40x implies high growth expectations. eps growth of -52% may not justify the premium.

Model-based estimate, not a price target.

5-Model Analysis

Each model evaluates this stock from a different angle. Combined, they form the composite score above.

Piotroski

Limited Data

Financial health check (9 signals)

Buffett

Limited Data

Business quality & competitive moat

Graham

Limited Data

Price vs intrinsic value

Lynch

Attractive

High PEG — growth premium · Slow Grower

Greenblatt

Attractive

Top half (rank 45%)

Frequently Asked Questions

Is Alarm.com Holdings, Inc. (ALRM) a good investment?
Based on AlphaStocks' composite analysis, Alarm.com Holdings, Inc. (ALRM) scores 1.6 out of 10, earning a Avoid rating. This score is below average, suggesting caution. Trading above estimated fair value. P/e of 40x implies high growth expectations. eps growth of -52% may not justify the premium.
What is Alarm.com Holdings, Inc.'s Piotroski F-Score?
Alarm.com Holdings, Inc.'s Piotroski F-Score status is Limited Data. The Piotroski F-Score evaluates financial health using 9 fundamental signals including profitability, leverage, and operating efficiency.
Is ALRM overvalued or undervalued?
Based on AlphaStocks' model-based fair value estimate of $22, ALRM appears overvalued. The stock currently trades 97% above its estimated fair value. Trading above estimated fair value. P/e of 40x implies high growth expectations. eps growth of -52% may not justify the premium.
How does ALRM compare to other Financials stocks?
Alarm.com Holdings, Inc. ranks #3 out of 13 stocks in the Financials sector, placing it in the top 23% of its sector by composite score. This is a strong position relative to sector peers.
What do investment models say about ALRM?
AlphaStocks evaluates ALRM using five proven investment models. Lynch: Attractive; Greenblatt Magic Formula: Attractive. These models are combined into a single composite score of 1.6/10.

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Scores are algorithm-generated research tools, not investment recommendations. Past performance does not guarantee future results. Always do your own due diligence. Full disclaimer