Alarm.com HoldingsALRM +5.20%87 Days Inventory is 95.55 as of Mar. 2026, which is 42% above its 10-year median of 67.14. GuruFocus rates ALRM with a GF Score™ of 87/100 and a GF Value™ of $64.89 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,650 Software companies, Alarm.com Holdings ranks worse than 79.82% on this metric.
The historical rank and industry rank for Alarm.com Holdings's Days Inventory or its related term are showing as below:
ALRM'
s Days Inventory Range Over the Past 10 Years
Min: 31.25 Med: 67.14 Max: 118.83
Current: 95.12
During the past 13 years, Alarm.com Holdings's highest Days Inventory was 118.83. The lowest was 31.25. And the median was 67.14.
ALRM's Days Inventory is ranked worse than 79.82% of 1650
companies
in the Software industry
Industry Median: 20.13
vs ALRM: 95.12
Alarm.com Holdings's Days Inventory
declined
from Mar. 2025 (103.56) to Mar. 2026 (95.55).
Inventory Turnover measures how fast the company turns over its inventory within a year.
Alarm.com Holdings's Inventory Turnover for the
three
months ended in Mar. 2026 was 0.95.
Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.
Alarm.com Holdings's Inventory-to-Revenue for the
three
months ended in Mar. 2026 was 0.36.
Alarm.com Holdings (NAS:ALRM) Days Inventory Explanation
Days Inventory indicates the liquidity of the inventory. Generally, a lower Days Inventory is preferred as it indicates a shorter duration to clear off the inventory. An increase of the ratio may indicate the company's sales slowed. Similar ratios related to Days Inventory are:
1. Inventory Turnover measures how fast the company turns over its inventory within a year.
Alarm.com Holdings's Inventory Turnover for the
three
months ended in Mar. 2026 is calculated as
2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.
Alarm.com Holdings's Inventory to Revenue for the
three
months ended in Mar. 2026 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.
Alarm.com Holdings Days Inventory Related Terms
Alarm.com Holdings Days Inventory Historical Data
* Premium members only.
The historical data trend for Alarm.com Holdings's Days Inventory can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ALRM vs GRND, VERX, PLUS: Days Inventory Comparison
For the Software - Application subindustry, Alarm.com Holdings's Days Inventory, along with its competitors' market caps and Days Inventory data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alarm.com Holdings Days Inventory vs Software Industry
For the Software industry and Technology sector, Alarm.com Holdings's Days Inventory distribution charts can be found below:
* The bar in red indicates where Alarm.com Holdings's Days Inventory falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Alarm.com Holdings (ALRM) has a Days Inventory of 95.55 as of Mar. 2026. Days inventory represents the average amount of days a company holds inventory before selling it. View historical data on Alarm.com Holdings and its competitors. This is 42% above median its historical median of 67.14. Over the past decade, Alarm.com Holdings' Days Inventory has ranged from 31.25 to 118.83. According to the industry distribution chart, Alarm.com Holdings ranks #1317 out of 1650 companies in the Software industry, placing it in the top 79.8%.
Is Alarm.com Holdings' Days Inventory too high?
Alarm.com Holdings' current Days Inventory of 95.55 is 42% above median its 10-year median of 67.14. Over the past 10 years, this metric has ranged from a low of 31.25 to a high of 118.83. The Software industry median Days Inventory is 20.13. Alarm.com Holdings' value of 95.55 is 374.7% above this industry median. Based on the distribution chart, Alarm.com Holdings ranks #1317 out of 1650 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Alarm.com Holdings has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alarm.com Holdings' Days Inventory compare to GRND and VERX?
According to the Software industry distribution chart, Alarm.com Holdings ranks #1317 out of 1650 companies for Days Inventory. This places Alarm.com Holdings in the lower half of its industry. The industry median Days Inventory is 20.13. Alarm.com Holdings' value of 95.55 is 374.7% above this benchmark. Historically, Alarm.com Holdings' own Days Inventory has ranged from 31.25 to 118.83 over the past decade. While the company's 10-year median is 67.14 vs. the industry median of 20.13, Alarm.com Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Days Inventory for a Software company?
The median Days Inventory among Software companies is 20.13, based on 1,650 companies in the industry. Companies in the top quartile (top 25%) have a Days Inventory significantly above this median, while those in the bottom quartile fall well below. However, Days Inventory should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alarm.com Holdings's current Days Inventory of 95.55 is 374.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Days Inventory mean?
A high Days Inventory can signal that a stock is expensive relative to its fundamentals. Days inventory represents the average amount of days a company holds inventory before selling it. View historical data on Alarm.com Holdings and its competitors. For the Software industry, the median Days Inventory is 20.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alarm.com Holdings's current Days Inventory is 95.55, which is 42% above median its own 10-year median of 67.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alarm.com Holdings stock overvalued right now?
Based on GuruFocus' analysis, Alarm.com Holdings (ALRM) is currently considered Modestly Undervalued. The stock's GF Value™ is $64.89, compared to a current price of $46.31 — trading 28.6% below its estimated fair value. The current Days Inventory is 95.55, which is 42% above median its 10-year median of 67.14 and 374.7% above the Software industry median of 20.13. Alarm.com Holdings' overall GF Score™ is 87/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Days Inventory calculated?
Days Inventory is calculated from a company's financial statements. For Alarm.com Holdings (ALRM), the current Days Inventory is 95.55 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Alarm.com Holdings (ALRM) Overvalued in 2026?
Based on GuruFocus' analysis, Alarm.com Holdings stock appears to be undervalued.
The current stock price of $46.31 is trading 28.6% below its estimated GF Value™ of $64.89.
GuruFocus considers Alarm.com Holdings to be Modestly Undervalued.
Key valuation signals for ALRM:
Days Inventory: 95.55 (42% above median its 10-year median of 67.14)
GF Value™: $64.89 vs. price of $46.31 (28.6% below fair value)
Industry Position: 374.7% above the Software median (#1317 of 1650)
No single metric tells the full story. See the ALRM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alarm.com Holdings Inc has a cloud-based platform that offers an expansive suite of IoT solutions addressing world-wide opportunities in the residential, multi-family, small business and enterprise commercial markets. It has two reportable segments: Alarm.com & Other. The Alarm.com segment represents the cloud-based Software platforms for intelligently connected property & related solutions. The other segment is focused on researching, developing & offering residential & commercial automation solutions & energy management products & services in adjacent markets. The majority of revenue is from the Alarm.com segment. The platform allows home & business owners to secure their properties and automate & control an array of connected device.
87GF Score
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