Alarm.com Holdings, Inc. — Earnings Quality Grade C
ALRM · Technology
Some red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 51 days, change +2 days YoY
AR growth 12.5% exceeds revenue growth 7.6%
Revenue 7.6%, CFFO -25.7%. Cash follows revenue
Expense Quality
Inventory 8.0% vs COGS 5.0%. Normal
CapEx growth 33.2% is >2x revenue growth 7.6%
SG&A/Gross Profit = 35.0%. Normal
Gross margin 66.1%, change +0.9pp. Stable
Cash Flow Quality
CFFO/NI = 1.16. Profits backed by cash
FCF $0.1B, FCF/NI = 1.02
Accruals ratio = -1.0%. Low accruals
Cash $1.0B covers 90% of debt $1.1B
Balance Sheet Health
Goodwill+Intangibles $0.3B = 38% of equity
Debt/EBITDA = 4.6x (>4x). Financial stress
Other assets grew 78.5% vs revenue 7.6%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 49% YoY
Manipulation Score
M-Score = -2.16 (grey zone)
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25