Is Alarm.com Holdings, Inc. (ALRM) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 42.8% / 30% | 38.6% / 30% | 5.7% / 30% | 4.51% / 5% | ✗ NOT HALAL |
| DJIM | 42.8% / 33% | 38.6% / 33% | 5.7% / 33% | 4.51% / 5% | ✗ NOT HALAL |
| MSCI | 49.9% / 33% | 45.0% / 33% | 6.6% / 33% | 4.51% / 5% | ✗ NOT HALAL |
| S&P | 42.8% / 33% | 38.6% / 33% | 5.7% / 33% | 4.51% / 5% | ✗ NOT HALAL |
| FTSE | 49.9% / 33% | 45.0% / 33% | 6.6% / 50% | 4.51% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 66.1% | |
| Operating Margin | 13.6% | |
| Net Margin | 13.1% | |
| Return on Equity (ROE) | 15.8% | |
| Return on Assets (ROA) | 4.1% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $153M |
| Free Cash Flow | $136M |
| Total Debt | $1.1B |
| Debt-to-Equity | 119.6 |
| Current Ratio | 1.9 |
| Total Assets | $2.1B |
Price & Trading
| Last Close | $43.21 |
| 50-Day MA | $47.24 |
| 200-Day MA | $52.01 |
| Avg Volume | 429K |
| Beta | 0.8 |
|
52-Week Range
$41.50
| |
About Alarm.com Holdings, Inc. (ALRM)
Alarm.com Holdings, Inc. operates a platform for connected properties in North America and internationally. It operates in two segments, Alarm.com and Other. The company offers residential solutions, such as alarm transmission, smart signal, smart arming, and personal safety and awareness, as well as real-time alerts and always-on monitoring; video monitoring solutions, including video analytics, remote video monitoring, AI deterrence, video doorbell, intelligent integration, and cell connector; scenes, video analytics triggers, smart thermostat schedules, responsive savings, precision comfort, HVAC monitoring service, places feature, whole home water safety solution, and energy usage and solar monitoring solution. It also provides clean energy software and services SaaS platform; commercial grade video solutions, commercial video analytics, smarter access control, enterprise dashboard and multi-site management, connected fleet solution, energy savings, proactive protection for valuables and inventory, temperature monitoring, daily safeguard, and professionally supported and low cost of ownership solutions. In addition, the company offers OpenEye software comprising video surveillance as a service, cameras, recorders, and other peripherals designed for video applications; forensic video search, point-of sale system integration, customer site mapping, and large-scale camera deployments enterprise-level requirements; shooter detection systems; service provider portal, service dashboard, installation and support service provider solutions; and AI-powered enhancements to professional monitoring and false alarm reduction. Further, it provides business management services; sales, marketing, training services; and home builder program hardware and services. The company was founded in 2000 and is headquartered in Tysons, Virginia.
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Frequently Asked Questions
Is Alarm.com Holdings, Inc. (ALRM) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Alarm.com Holdings, Inc. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Alarm.com Holdings, Inc.'s debt ratio?
Alarm.com Holdings, Inc.'s debt ratio is 42.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 49.9%.
What are Alarm.com Holdings, Inc.'s key financial metrics?
Alarm.com Holdings, Inc. has a market capitalization of $2.1B, trailing P/E ratio of 17.3, and revenue of $1.0B. The company maintains a gross margin of 66.1% and a net margin of 13.1%. Return on equity stands at 15.8%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.