Hey everyone, I am new to the group and to investing in SAAS companies. I have read all of Saul’s knowledge base boards and I am excited to invest and learn from this board.
I was hoping to get some feedback on a company that I have been looking into. The company is Alarm.com ALRM. From Saul’s parameters this appears to be a lucrative company.
Revenue is climbing 23.2%
Cash Flow is up 34.2%
TTM is slowly climbing
Subscription and License Revenue increased 14.9%
Operating Expenses are growing at a slower rate than Revenue
Inside Ownership is 1.80%. Would like to see this higher.
From my research the Smart Home Industry is worth 27.6B which means ALRM owns 8.62%
and the Security System Market is worth 45.6B which means ALRM owns 5% and is forecast to reach 75B in 2023.
The company may not be skyrocketing now but I think it may have potential. The Q1 Earnings call seemed up beat about how well Q1 was. The President and CEO did state “We are well-positioned to manage through uncertainty, but we expect the remainder of the year to be a more challenging period.” So this may be a company to keep an eye on for now.
Any feedback would be appreciated! Being new to these evaluations, I know there is something I may have not researched or data I may have overlooked. I’m hoping that experienced investors can tell me what I missed and provide me with constructive feedback
Thank you in advance,