Alarm.com Holdings (STU:3RL) Beneish M-Score: -2.06 (As of Jun. 25, 2026)

What is Alarm.com Holdings Beneish M-Score?

Alarm.com Holdings STU:3RL +3.20% 87 Beneish M-Score is -2.06 as of Jun. 25, 2026. GuruFocus rates STU:3RL with a GF Score™ of 87/100 and a GF Value™ of €56.93. The stock has 2 warning signs investors should review. Among 2,633 Software companies, Alarm.com Holdings ranks worse than 74.25% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.06 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

STU:3RL' s Beneish M-Score Range Over the Past 10 Years
Min: -2.91 Med: -2.48 Max: -1.77
Current: -2.06

During the past 13 years, the highest Beneish M-Score of Alarm.com Holdings was -1.77. The lowest was -2.91. And the median was -2.48.

Alarm.com Holdings Beneish M-Score Related Terms

Alarm.com Holdings Beneish M-Score Historical Data

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The historical data trend for Alarm.com Holdings's Beneish M-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.

Alarm.com Holdings Beneish M-Score Chart

Alarm.com Holdings Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

Beneish M-Score

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-2.74

-2.21

-2.62

-2.85

-2.17

Alarm.com Holdings Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
Beneish M-Score	Get a 7-Day Free Trial															-2.76	-2.38	-2.48	-2.17	-2.06

STU:3RL vs GRND, VERX, PLUS: Beneish M-Score Comparison

For the Software - Application subindustry, Alarm.com Holdings's Beneish M-Score, along with its competitors' market caps and Beneish M-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 Beneish M-Score vs Software Industry

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

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

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87GF Score

Alarm.com Holdings Inc STU:3RL

Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.

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Alarm.com Holdings Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Alarm.com Holdings for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.105

0.528 * 0.9979

0.404 * 1.8373

0.892 * 1.0064

0.115 * 0.8711

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0018

4.679 * -0.033124

0.327 * 0.7312

-2.12

This Year (Mar26) TTM:

Last Year (Mar25) TTM:

Total Receivables was €122.2 Mil.
Revenue was 229.392 + 223.455 + 218.453 + 220.485 = €891.8 Mil.
Gross Profit was 151.1 + 147.417 + 143.85 + 144.655 = €587.0 Mil.
Total Current Assets was €692.9 Mil.
Total Assets was €1,421.7 Mil.
Property, Plant and Equipment(Net PPE) was €99.2 Mil.
Depreciation, Depletion and Amortization(DDA) was €41.3 Mil.
Selling, General, & Admin. Expense(SGA) was €206.7 Mil.
Total Current Liabilities was €134.3 Mil.
Long-Term Debt & Capital Lease Obligation was €483.6 Mil.
Net Income was 20.399 + 29.663 + 30.108 + 29.957 = €110.1 Mil.
Non Operating Income was -3.381 + 3.366 + 3.014 + -0.13 = €2.9 Mil.
Cash Flow from Operations was 43.799 + 30.683 + 60.175 + 19.695 = €154.4 Mil.

Total Receivables was €109.9 Mil.
Revenue was 220.91 + 231.339 + 216.688 + 217.207 = €886.1 Mil.
Gross Profit was 148.544 + 151.497 + 140.33 + 141.696 = €582.1 Mil.
Total Current Assets was €1,343.8 Mil.
Total Assets was €1,921.6 Mil.
Property, Plant and Equipment(Net PPE) was €114.6 Mil.
Depreciation, Depletion and Amortization(DDA) was €39.5 Mil.
Selling, General, & Admin. Expense(SGA) was €205.1 Mil.
Total Current Liabilities was €626.6 Mil.
Long-Term Debt & Capital Lease Obligation was €515.6 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(122.156 / 891.785)	/	(109.85 / 886.144)
	=	0.136979	/	0.123964
	=	1.105

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(582.067 / 886.144)	/	(587.022 / 891.785)
	=	0.656854	/	0.658255
	=	0.9979

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (692.86 + 99.215) / 1421.746)	/	(1 - (1343.794 + 114.627) / 1921.624)
	=	0.442886	/	0.241048
	=	1.8373

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	891.785	/	886.144
	=	1.0064

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(39.485 / (39.485 + 114.627))	/	(41.341 / (41.341 + 99.215))
	=	0.25621	/	0.294125
	=	0.8711

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(206.748 / 891.785)	/	(205.064 / 886.144)
	=	0.231836	/	0.231412
	=	1.0018

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((483.626 + 134.296) / 1421.746)	/	((515.602 + 626.621) / 1921.624)
	=	0.434622	/	0.594405
	=	0.7312

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(110.127 - 2.869	-	154.352)	/	1421.746
	=	-0.033124

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Alarm.com Holdings has a M-score of -2.12 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →

What does a Beneish M-Score of -2.06 mean?

Alarm.com Holdings (STU:3RL) has a Beneish M-Score of -2.06 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Alarm.com Holdings and its competitors. According to the industry distribution chart, Alarm.com Holdings ranks #1955 out of 2633 companies in the Software industry, placing it in the top 74.2%.

Is Alarm.com Holdings' Beneish M-Score too high?

Alarm.com Holdings' current Beneish M-Score is -2.06. Based on the distribution chart, Alarm.com Holdings ranks #1955 out of 2633 companies in the Software industry, which is below the industry midpoint. Overall, Alarm.com Holdings has a GF Score™ of 87/100, reflecting its overall financial health beyond just this single metric.

How does Alarm.com Holdings' Beneish M-Score compare to GRND and VERX?

According to the Software industry distribution chart, Alarm.com Holdings ranks #1955 out of 2633 companies for Beneish M-Score. This places Alarm.com Holdings in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Beneish M-Score for a Software company?

A good Beneish M-Score depends on the Software industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Beneish M-Score mean?

A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Alarm.com Holdings and its competitors. Alarm.com Holdings's current Beneish M-Score is -2.06. 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?

Alarm.com Holdings (STU:3RL) has a current Beneish M-Score of -2.06. The stock's GF Value™ is €56.93, compared to a current price of €39.03 — trading 31.4% below its estimated fair value. The current Beneish M-Score is -2.06. 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 Beneish M-Score calculated?

Beneish M-Score is calculated from a company's financial statements. For Alarm.com Holdings (STU:3RL), the current Beneish M-Score is -2.06 as of Jun. 25, 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 (STU:3RL) Overvalued in 2026?

Based on GuruFocus' analysis, Alarm.com Holdings stock appears to be undervalued. The current stock price of €39.03 is trading 31.4% below its estimated GF Value™ of €56.93.

Key valuation signals for STU:3RL:

Beneish M-Score: -2.06
GF Value™: €56.93 vs. price of €39.03 (31.4% below fair value)
GF Score™: 87/100 with 2 warning signs

No single metric tells the full story. See the STU:3RL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Alarm.com Holdings Business Description

Industry Technology Software

Comparable Companies GRND VERX PLUS SPSC PDFS AGYS NIQ EVCM WRD ALKT XTER:SAP CRM SHOP UBER NOW ADBE CDNS INTU ADP SNOW

Other Exchanges ALRM:USA 0HC2:UK 3RL:Germany

Address 8281 Greensboro Drive, Suite 100, Tysons, VA, USA, 22102

Website https://www.alarm.com

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

Get the complete analysis for STU:3RL

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€39.03

Price

€56.93

GF Value

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