Alarm.com HoldingsALRM +3.25%83 OCF Margin % is 19.09% as of Mar. 2026, which is 29% above its 10-year median of 14.80. GuruFocus rates ALRM with a GF Score™ of 83/100 and a GF Value™ of $64.87 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,815 Software companies, Alarm.com Holdings ranks better than 73.5% on this metric.
The historical rank and industry rank for Alarm.com Holdings's OCF Margin % or its related term are showing as below:
ALRM'
s OCF Margin % Range Over the Past 10 Years
Min: 6.75 Med: 14.8 Max: 21.96
Current: 17.34
During the past 13 years, the highest OCF Margin % of Alarm.com Holdings was 21.96%. The lowest was 6.75%. And the median was 14.80%.
ALRM's OCF Margin % is ranked better than 73.5% of 2815
companies
in the Software industry
Industry Median: 6.78
vs ALRM: 17.34
Alarm.com Holdings OCF Margin % Related Terms
Alarm.com Holdings OCF Margin % Historical Data
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The historical data trend for Alarm.com Holdings's OCF Margin % 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.
For the Software - Application subindustry, Alarm.com Holdings's OCF Margin %, along with its competitors' market caps and OCF Margin % 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 OCF Margin % vs Software Industry
For the Software industry and Technology sector, Alarm.com Holdings's OCF Margin % distribution charts can be found below:
* The bar in red indicates where Alarm.com Holdings's OCF Margin % 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 OCF Margin % of 19.09% as of Mar. 2026. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Alarm.com Holdings and its competitors. This is 29% above median its historical median of 14.80. Over the past decade, Alarm.com Holdings' OCF Margin % has ranged from 6.75 to 21.96. According to the industry distribution chart, Alarm.com Holdings ranks #746 out of 2815 companies in the Software industry, placing it in the top 26.5%.
Is Alarm.com Holdings' OCF Margin % too high?
Alarm.com Holdings' current OCF Margin % of 19.09% is 29% above median its 10-year median of 14.80. Over the past 10 years, this metric has ranged from a low of 6.75 to a high of 21.96. The Software industry median OCF Margin % is 6.78. Alarm.com Holdings' value of 19.09% is 181.6% above this industry median. Based on the distribution chart, Alarm.com Holdings ranks #746 out of 2815 companies in the Software industry, which is above the industry midpoint. Overall, Alarm.com Holdings has a GF Score™ of 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alarm.com Holdings' OCF Margin % compare to GRND and VERX?
According to the Software industry distribution chart, Alarm.com Holdings ranks #746 out of 2815 companies for OCF Margin %. This puts Alarm.com Holdings in the upper half of its industry. The industry median OCF Margin % is 6.78. Alarm.com Holdings' value of 19.09% is 181.6% above this benchmark. Historically, Alarm.com Holdings' own OCF Margin % has ranged from 6.75 to 21.96 over the past decade. While the company's 10-year median is 14.80 vs. the industry median of 6.78, 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 OCF Margin % for a Software company?
The median OCF Margin % among Software companies is 6.78, based on 2,815 companies in the industry. Companies in the top quartile (top 25%) have a OCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, OCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alarm.com Holdings's current OCF Margin % of 19.09% is 181.6% 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 OCF Margin % mean?
A high OCF Margin % can signal that a stock is expensive relative to its fundamentals. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Alarm.com Holdings and its competitors. For the Software industry, the median OCF Margin % is 6.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alarm.com Holdings's current OCF Margin % is 19.09%, which is 29% above median its own 10-year median of 14.80. 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 Significantly Undervalued. The stock's GF Value™ is $64.87, compared to a current price of $44.47 — trading 31.4% below its estimated fair value. The current OCF Margin % is 19.09%, which is 29% above median its 10-year median of 14.80 and 181.6% above the Software industry median of 6.78. Alarm.com Holdings' overall GF Score™ is 83/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is OCF Margin % calculated?
OCF Margin % is calculated from a company's financial statements. For Alarm.com Holdings (ALRM), the current OCF Margin % is 19.09% 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 $44.47 is trading 31.4% below its estimated GF Value™ of $64.87.
GuruFocus considers Alarm.com Holdings to be Significantly Undervalued.
Key valuation signals for ALRM:
OCF Margin %: 19.09% (29% above median its 10-year median of 14.80)
GF Value™: $64.87 vs. price of $44.47 (31.4% below fair value)
Industry Position: 181.6% above the Software median (#746 of 2815)
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.
83GF Score
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