Currently trading at 14% below its fair value Revenue is expected to grow 9% per year Earnings grew by 150% over the past year ALRM is good value based on its PE Ratio ALRM’s revenue is forecast to grow faster than the US market per year ALRM’s net profit margins (11%) are higher than last year (5%) ALRM’s earnings have grown by 50% per year over the past 5 years Short term assets exceed its short and long term liabilities ALRM’s debt is covered by its cash flow Over the past 4 quarters, ALRM has beaten consensus EPS 4 times Analysts (overall) are optimistic about ALRM
CON’s:
Forecasters expect earnings to decline by -14% per year ALRM underperformed the US software industry and US market over the past year ALRM is poor value based on its PE Ratio ALRM is overvalued based on its PB Ratio compared to the US software industry average ALRM’s revenue is forecast to grow slower than 20% per year ALRM does not pay a dividend ALRM insiders have only sold shares in the past 3 months
Report:
Definitely a good company to consider, ALRM is outperforming its rivals Comcast, Honeywell International, Raytheon Technologies. With good earnings release yesterday, we can expect this company to continue heading north for the medium term at least. Fundamental data is satisfactory, with a good track record and flawless balance sheets.
Bottomcatcher’s Opinion: Two ways you can work with this, for a short term hold, a long position could be taken at current levels (48.00) with a target at mid 53s (1). My preferred set-up would be to wait for a break, hold and close on the daily time frame above the 5370 level (1) and enter a long there, focusing on testing the ‘lower’ channel resistance line (A) as a first target. Back inside the channel would be considered very bullish. Below the 40.00 handle negates this idea.