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Alarm.com Holdings Piotroski F-Score

: 4 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Alarm.com Holdings has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Alarm.com Holdings's Piotroski F-Score or its related term are showing as below:

ALRM' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 5   Max: 7
Current: 4

During the past 10 years, the highest Piotroski F-Score of Alarm.com Holdings was 7. The lowest was 3. And the median was 5.


Alarm.com Holdings Piotroski F-Score Historical Data

The historical data trend for Alarm.com Holdings's Piotroski F-Score 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
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 4.00 5.00 5.00 4.00

Alarm.com Holdings Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Piotroski F-Score 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 6.00 5.00 4.00 4.00 4.00

Competitive Comparison

For the Software - Application subindustry, Alarm.com Holdings's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Piotroski F-Score Distribution

For the Software industry and Technology sector, Alarm.com Holdings's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Alarm.com Holdings's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Mar22) TTM:Last Year (Mar21) TTM:
Net Income was 14.745 + 13.538 + 9.146 + 9.079 = $46.5 Mil.
Cash Flow from Operations was 24.076 + 37.886 + 19.963 + -13.961 = $68.0 Mil.
Revenue was 188.857 + 192.324 + 195.29 + 205.437 = $781.9 Mil.
Gross Profit was 111.49 + 111.94 + 112.904 + 115.35 = $451.7 Mil.
Average Total Assets from the begining of this year (Mar21)
to the end of this year (Mar22) was
(1114.545 + 1156.791 + 1181.754 + 1232.015 + 1224.79) / 5 = $1181.979 Mil.
Total Assets at the begining of this year (Mar21) was $1,114.5 Mil.
Long-Term Debt & Capital Lease Obligation was $519.8 Mil.
Total Current Assets was $888.6 Mil.
Total Current Liabilities was $107.5 Mil.
Net Income was 16.995 + 36.084 + 15.967 + 14.83 = $83.9 Mil.

Revenue was 141.637 + 158.851 + 165.576 + 172.498 = $638.6 Mil.
Gross Profit was 92.632 + 97.668 + 106.316 + 106.736 = $403.4 Mil.
Average Total Assets from the begining of last year (Mar20)
to the end of last year (Mar21) was
(624.075 + 662.645 + 698.045 + 731.687 + 1114.545) / 5 = $766.1994 Mil.
Total Assets at the begining of last year (Mar20) was $624.1 Mil.
Long-Term Debt & Capital Lease Obligation was $448.3 Mil.
Total Current Assets was $795.8 Mil.
Total Current Liabilities was $91.1 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Alarm.com Holdings's current Net Income (TTM) was 46.5. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Alarm.com Holdings's current Cash Flow from Operations (TTM) was 68.0. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Mar21)
=46.508/1114.545
=0.04172824

ROA (Last Year)=Net Income/Total Assets (Mar20)
=83.876/624.075
=0.13440051

Alarm.com Holdings's return on assets of this year was 0.04172824. Alarm.com Holdings's return on assets of last year was 0.13440051. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Alarm.com Holdings's current Net Income (TTM) was 46.5. Alarm.com Holdings's current Cash Flow from Operations (TTM) was 68.0. ==> 68.0 > 46.5 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar21 to Mar22
=519.788/1181.979
=0.43976077

Gearing (Last Year: Mar21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar20 to Mar21
=448.263/766.1994
=0.58504744

Alarm.com Holdings's gearing of this year was 0.43976077. Alarm.com Holdings's gearing of last year was 0.58504744. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Mar22)=Total Current Assets/Total Current Liabilities
=888.578/107.469
=8.26822619

Current Ratio (Last Year: Mar21)=Total Current Assets/Total Current Liabilities
=795.778/91.073
=8.73780374

Alarm.com Holdings's current ratio of this year was 8.26822619. Alarm.com Holdings's current ratio of last year was 8.73780374. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Alarm.com Holdings's number of shares in issue this year was 55.171. Alarm.com Holdings's number of shares in issue last year was 51.739. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=451.684/781.908
=0.57766898

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=403.352/638.562
=0.63165675

Alarm.com Holdings's gross margin of this year was 0.57766898. Alarm.com Holdings's gross margin of last year was 0.63165675. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar21)
=781.908/1114.545
=0.70154906

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar20)
=638.562/624.075
=1.02321356

Alarm.com Holdings's asset turnover of this year was 0.70154906. Alarm.com Holdings's asset turnover of last year was 1.02321356. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+0+0+0+0
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Alarm.com Holdings has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Alarm.com Holdings  (NAS:ALRM) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Alarm.com Holdings Piotroski F-Score Related Terms

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Alarm.com Holdings Business Description

Alarm.com Holdings logo
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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