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Alarm.com Holdings Earnings Yield (Joel Greenblatt) %

: 1.73% (As of Jun. 2022)
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Alarm.com Holdings's Enterprise Value for the quarter that ended in Jun. 2022 was $2,980.4 Mil. Alarm.com Holdings's EBIT for the trailing twelve months (TTM) ended in Jun. 2022 was $51.6 Mil. Alarm.com Holdings's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2022 was 1.73%.

The historical rank and industry rank for Alarm.com Holdings's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

ALRM' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 0.35   Med: 1.76   Max: 8.27
Current: 1.4

During the past 10 years, the highest Earnings Yield (Joel Greenblatt) of Alarm.com Holdings was 8.27%. The lowest was 0.35%. And the median was 1.76%.

ALRM's Earnings Yield (Joel Greenblatt) % is ranked better than
50.44% of 2732 companies
in the Software industry
Industry Median: 1.32 vs ALRM: 1.40

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Alarm.com Holdings's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2022 was 21.63%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Alarm.com Holdings Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Alarm.com Holdings's Earnings Yield (Joel Greenblatt) % 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.

* Premium members only.

Alarm.com Holdings Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Earnings Yield (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.96 0.60 2.96 1.64 1.54

Alarm.com Holdings Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Earnings Yield (Joel Greenblatt) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.21 1.77 1.54 1.76 1.73

Competitive Comparison

For the Software - Application subindustry, Alarm.com Holdings's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % Distribution

For the Software industry and Technology sector, Alarm.com Holdings's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Alarm.com Holdings's Earnings Yield (Joel Greenblatt) % falls into.



Alarm.com Holdings Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

Alarm.com Holdingss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2021 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=62.025/4033.033714
=1.54 %

Alarm.com Holdings's EBIT for the trailing twelve months (TTM) ended in Jun. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $51.6 Mil.



Alarm.com Holdings  (NAS:ALRM) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


Alarm.com Holdings Earnings Yield (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of Alarm.com Holdings's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Alarm.com Holdings Business Description

Alarm.com Holdings logo
Industry
Traded in Other Exchanges
Address
8281 Greensboro Drive, Suite 100, Tysons, VA, USA, 22102
Alarm.com Holdings Inc provides a software-as-a-service, or SaaS, platform solution for the connected home. The platform allows home and business owners to secure their properties and automate and control an array of connected devices. SaaS and license fees from service providers, who resell these services and pay Alarm.com a monthly subscription, are the largest sources of revenue for the firm. The SaaS platform also caters to the service provider by offering enterprise-grade business-management solutions to expand and manage its customer base. A large majority of the firm's revenue is generated in the United States and Canada.
Executives
Mcadam Timothy P director 250 MIDDLEFIELD RD MENLO PARK CA 94025
Whall Timothy J. director C/O ADT, LLC 1501 YAMATO ROAD BOCA RATON FL 33431
Evans Stephen C. director C/O ALARM.COM HOLDINGS, INC. 8281 GREENSBORO DRIVE, SUITE 100 TYSONS VA 22102
Tcv Vii Management, L.l.c. 10 percent owner, other: May be part of a13(d) group 528 RAMONA STREET PALO ALTO CA 94301
Wu Simone director 1 CHOICE HOTELS CIRCLE ROCKVILLE MD 20850
Lee Michelle K. director C/O ALARM.COM HOLDINGS, INC. 8281 GREENSBORO DRIVE, SUITE 100 TYSONS VA 22102
Tcv Member Fund, L.p. 10 percent owner, other: May be part of a 13(d) group 528 RAMONA STREET PALO ALTO CA 94301
Technology Crossover Management Vii, L.p. 10 percent owner, other: May be part of a 13(d) group 528 RAMONA STREET PALO ALTO CA 94301
Abs Capital Partners V Trust 10 percent owner 400 EAST PRATT STREET SUITE 910 BALTIMORE MD 21202
Abs Capital Partners, Inc. 10 percent owner 400 EAST PRATT STREET, SUITE 910 BALTIMORE MD 21202-3127
Valenzuela Steve officer: Chief Financial Officer 1800 GREEN HILLS ROAD SCOTTS VALLEY CA 95066
Gollinger Allan Jon officer: Principal Accounting Officer 8281 GREENSBORO DRIVE, STE 100 C/O ALARM.COM HOLDINGS, INC. TYSONS VA 22102
Nevin Darius G director C/O WCI COMMUNITIES, INC. 24301 WALDEN CENTER DRIVE BONITA SPRINGS FL 34134
Abs Partners V, L.p. 10 percent owner C/O ALARM.COM HOLDINGS, INC. 8150 LEESBURG PIKE VIENNA VA 22182
Abs Partners V Llc 10 percent owner C/O ALARM.COM HOLDINGS, INC. 8150 LEESBURG PIKE VIENNA VA 22182

Alarm.com Holdings Headlines

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