From Financial Modeling Prep: 2025-05-13 07:00:00

Alarm.com Holdings, Inc. (NASDAQ:ALRM) is a leading technology company specializing in cloud-based services for remote control, home automation, and monitoring. It competes against companies like Cerence Inc., AppFolio, Inc., BlackLine, Inc., CEVA, Inc., and Paylocity Holding Corporation.

Alarm.com Holdings, Inc. demonstrates exceptional financial performance with a ROIC of 5415.86% surpassing its WACC of 7.72%, resulting in a ROIC to WACC ratio of 701.24. This showcases the company’s efficiency in generating returns from capital investments, indicating robust financial health and potential for sustainable growth in the tech industry.

Cerence Inc. presents a negative ROIC of -58.05% and a WACC of 12.25%, resulting in a ROIC to WACC ratio of -4.74. CEVA, Inc. reports a negative ROIC of -53.67% with a WACC of 10.51%, leading to a ROIC to WACC ratio of -5.11, highlighting inefficiencies in capital utilization among Alarm.com’s competitors.

AppFolio, Inc. emerges as a notable competitor with a ROIC of 35.07% and a WACC of 8.71%, achieving a ROIC to WACC ratio of 4.03. While relatively efficient in generating returns compared to its cost of capital, it still falls behind Alarm.com’s outstanding performance.

Alarm.com’s unparalleled ROIC to WACC ratio not only highlights its strong financial performance but also underscores its potential for continued growth and success in the highly competitive tech and software industry.



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