Alarm.com HoldingsALRM +1.15%87 Return-on-Tangible-Asset is 6.01% as of Mar. 2026, which is 22% below its 10-year median of 7.75. GuruFocus rates ALRM with a GF Score™ of 87/100 and a GF Value™ of $65.05 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,877 Software companies, Alarm.com Holdings ranks better than 68.96% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Alarm.com Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was $94 Mil. Alarm.com Holdings's average total tangible assets for the quarter that ended in Mar. 2026 was $1,569 Mil. Therefore, Alarm.com Holdings's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 6.01%.
The historical rank and industry rank for Alarm.com Holdings's Return-on-Tangible-Asset or its related term are showing as below:
ALRM'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 4.76 Med: 7.75 Max: 18
Current: 7.38
During the past 13 years, Alarm.com Holdings's highest Return-on-Tangible-Asset was 18.00%. The lowest was 4.76%. And the median was 7.75%.
ALRM's Return-on-Tangible-Asset is ranked better than 68.96% of 2877
companies
in the Software industry
Industry Median: 2.04
vs ALRM: 7.38
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Alarm.com Holdings Return-on-Tangible-Asset Related Terms
Alarm.com Holdings Return-on-Tangible-Asset Historical Data
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The historical data trend for Alarm.com Holdings's Return-on-Tangible-Asset 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.
ALRM vs BRZE, QNT, SPSC: Return-on-Tangible-Asset Comparison
For the Software - Application subindustry, Alarm.com Holdings's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, Alarm.com Holdings's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Alarm.com Holdings's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 6.01% mean?
Alarm.com Holdings (ALRM) has a Return-on-Tangible-Asset of 6.01% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Alarm.com Holdings and its competitors. This is 22% below median its historical median of 7.75. Over the past decade, Alarm.com Holdings' Return-on-Tangible-Asset has ranged from 4.76 to 18.00. According to the industry distribution chart, Alarm.com Holdings ranks #893 out of 2877 companies in the Software industry, placing it in the top 31%.
Is Alarm.com Holdings' Return-on-Tangible-Asset too high?
Alarm.com Holdings' current Return-on-Tangible-Asset of 6.01% is 22% below median its 10-year median of 7.75. Over the past 10 years, this metric has ranged from a low of 4.76 to a high of 18.00. The Software industry median Return-on-Tangible-Asset is 2.04. Alarm.com Holdings' value of 6.01% is 194.6% above this industry median. Based on the distribution chart, Alarm.com Holdings ranks #893 out of 2877 companies in the Software industry, which is above the industry midpoint. Overall, Alarm.com Holdings has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alarm.com Holdings' Return-on-Tangible-Asset compare to BRZE and QNT?
According to the Software industry distribution chart, Alarm.com Holdings ranks #893 out of 2877 companies for Return-on-Tangible-Asset. This puts Alarm.com Holdings in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.04. Alarm.com Holdings' value of 6.01% is 194.6% above this benchmark. Historically, Alarm.com Holdings' own Return-on-Tangible-Asset has ranged from 4.76 to 18.00 over the past decade. While the company's 10-year median is 7.75 vs. the industry median of 2.04, 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 Return-on-Tangible-Asset for a Software company?
The median Return-on-Tangible-Asset among Software companies is 2.04, based on 2,877 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alarm.com Holdings's current Return-on-Tangible-Asset of 6.01% is 194.6% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Alarm.com Holdings and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alarm.com Holdings's current Return-on-Tangible-Asset is 6.01%, which is 22% below median its own 10-year median of 7.75. 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 Modestly Undervalued. The stock's GF Value™ is $65.05, compared to a current price of $51.58 — trading 20.7% below its estimated fair value. The current Return-on-Tangible-Asset is 6.01%, which is 22% below median its 10-year median of 7.75 and 194.6% above the Software industry median of 2.04. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Alarm.com Holdings (ALRM), the current Return-on-Tangible-Asset is 6.01% 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 $51.58 is trading 20.7% below its estimated GF Value™ of $65.05.
GuruFocus considers Alarm.com Holdings to be Modestly Undervalued.
Key valuation signals for ALRM:
Return-on-Tangible-Asset: 6.01% (22% below median its 10-year median of 7.75)
GF Value™: $65.05 vs. price of $51.58 (20.7% below fair value)
Industry Position: 194.6% above the Software median (#893 of 2877)
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.
87GF Score
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