ALRM (Alarm.com Holdings) ROCE %: 8.82% (As of Mar. 2026)


ALRM Alarm.com Holdings Inc ALRM
83 GF Score
Price $44.47
GF Value $64.87
Valuation Significantly Undervalued
! 2 Warning Signs
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What is Alarm.com Holdings ROCE %?

Alarm.com Holdings ALRM +3.25% 83 ROCE % is 8.82% as of Mar. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Alarm.com Holdings's annualized ROCE % for the quarter that ended in Mar. 2026 was 8.82%.

Alarm.com Holdings  (NAS:ALRM) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Alarm.com Holdings ROCE % Related Terms

Alarm.com Holdings ROCE % Historical Data

* Premium members only.

The historical data trend for Alarm.com Holdings's ROCE % 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 ROCE % Chart

Alarm.com Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.11 5.27 8.34 9.83 11.07

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
ROCE % Get a 7-Day Free Trial 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 9.69 12.32 14.27 13.33 8.82
ALRM
83GF Score
Alarm.com Holdings Inc ALRM
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Alarm.com Holdings ROCE % Calculation

Alarm.com Holdings's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=183.9/( ( (2038.208 - 188.806) + (2136.591 - 663.14) )/ 2 )
=183.9/( (1849.402+1473.451)/ 2 )
=183.9/1661.4265
=11.07 %

Alarm.com Holdings's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=130.66/( ( (2136.591 - 663.14) + (1643.637 - 155.255) )/ 2 )
=130.66/( ( 1473.451 + 1488.382 )/ 2 )
=130.66/1480.9165
=8.82 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 8.82% mean?
Alarm.com Holdings (ALRM) has a ROCE % of 8.82% as of Mar. 2026.
Is Alarm.com Holdings' ROCE % too high?
Alarm.com Holdings' current ROCE % is 8.82%. The Software industry median ROCE % is 5.27. Alarm.com Holdings' value of 8.82% is 67.4% above this industry median. 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' ROCE % compare to GRND and VERX?
Alarm.com Holdings' ROCE % of 8.82% can be compared against companies in the Software industry. The industry median ROCE % is 5.27. Alarm.com Holdings' value of 8.82% is 67.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Software company?
The median ROCE % among Software companies is 5.27, based on 2,711 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alarm.com Holdings's current ROCE % of 8.82% is 67.4% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median ROCE % is 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alarm.com Holdings's current ROCE % is 8.82%. 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 ROCE % is 8.82% and 67.4% above the Software industry median of 5.27. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Alarm.com Holdings (ALRM), the current ROCE % is 8.82% 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:

  • ROCE %: 8.82%
  • GF Value™: $64.87 vs. price of $44.47 (31.4% below fair value)
  • GF Score™: 83/100 with 2 warning signs
  • Industry Position: 67.4% above the Software median

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 Business Description

Other Exchanges 0HC2:UK3RL:Germany
Address 8281 Greensboro Drive, Suite 100, Tysons, VA, USA, 22102
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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$44.47
Price
$64.87
GF Value