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Alarm.com Holdings (Alarm.com Holdings) Profitability Rank : 10 (As of Dec. 2023)


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What is Alarm.com Holdings Profitability Rank?

Alarm.com Holdings has the Profitability Rank of 10. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

Alarm.com Holdings's Operating Margin % for the quarter that ended in Dec. 2023 was 11.35%. As of today, Alarm.com Holdings's Piotroski F-Score is 8.


Competitive Comparison of Alarm.com Holdings's Profitability Rank

For the Software - Application subindustry, Alarm.com Holdings's Profitability Rank, along with its competitors' market caps and Profitability Rank 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's Profitability Rank Distribution in the Software Industry

For the Software industry and Technology sector, Alarm.com Holdings's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Alarm.com Holdings's Profitability Rank falls into.



Alarm.com Holdings Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Alarm.com Holdings has the Profitability Rank of 10. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Alarm.com Holdings's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=25.68 / 226.237
=11.35 %

* 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.

2. Piotroski F-Score

Good Sign:

Piotroski F-Score is 8, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Alarm.com Holdings has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Good Sign:

Alarm.com Holdings Inc operating margin is expanding. Margin expansion is usually a good sign.

4. Consistency of the profitability

5. Predictability Rank


Alarm.com Holdings Profitability Rank Related Terms

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Alarm.com Holdings (Alarm.com Holdings) Business Description

Traded in Other Exchanges
Address
8281 Greensboro Drive, Suite 100, Tysons, VA, USA, 22102
Alarm.com Holdings Inc 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 devices. SaaS & license fees from service providers, who resell these services & pay Alarm.com a monthly subscription, are the sources of revenue for the firm. A majority of revenue is generated in the United States & Canada.
Executives
Steve Valenzuela officer: Chief Financial Officer 1800 GREEN HILLS ROAD, SCOTTS VALLEY CA 95066
Daniel Ramos officer: Sr. VP-Corporate Development C/O ALARM.COM, INC., 8150 LEESBURG PIKE, VIENNA VA 22182
Timothy P Mcadam director 250 MIDDLEFIELD RD, MENLO PARK CA 94025
Simone Wu director 1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Jeffrey A Bedell officer: Chief Strategy & Innovation C/O MICROSTRATEGY INC, 1850 TOWERS CRESCENT PLAZA, VIENNA VA 22182
Stephen Trundle director, officer: President and CEO C/O ALARM.COM HOLDINGS, INC., 8150 LEESBURG PIKE, VIENNA VA 22182
Daniel Kerzner officer: Chief Product Officer C/O ALARM.COM HOLDINGS, INC., 8150 LEESBURG PIKE, VIENNA VA 22182
Timothy J. Whall director C/O ADT, LLC, 1501 YAMATO ROAD, BOCA RATON FL 33431
Donald E Clarke director C/O VISUAL NETWORKS INC, 2092 GAITHER ROAD, ROCKVILLE MD 20850
Stephen C. Evans director C/O ALARM.COM HOLDINGS, INC., 8281 GREENSBORO DRIVE, SUITE 100, TYSONS VA 22102
Hugh Panero director
Shattuck Mayo A Iii director C/O GAP, INC., 2 FOLSOM ST., SAN FRANCISCO CA 94105
Tcv Vii Management, L.l.c. 10 percent owner, other: May be part of a13(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
Christopher P Marshall 10 percent owner, other: May be part of a 13(g) group 250 MIDDLEFIELD RD, MENLO PARK CA 94025