One-glance verdict
Undervalued
$60.25 our estimate vs market $1.30
Wall Street consensus: $16.00 (-73.4% lower than our fair-value estimate)
98% below our estimate, below the bear case
Fundamentals snapshot
Alarum Technologies Ltd.
ALAR · NCM · Technology · Software - Infrastructure
Current price
$1.30
52-week range
$1.16 - $16.48
Market cap
$9.68M
Balance sheet
Healthy
2.25x Stretched
Net cash $11.51M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 28.1% last year.
- Reward Returns 3.8% on equity, ahead of 60% of its peers.
- Risk Forward P/E (10.0x) is higher than trailing (8.7x) - earnings are expected to drop.
- Risk Insider ownership is only 0.5% (peer median: 3.3%).
What this company does
Alarum Technologies Ltd.
Alarum Technologies sells tools that help businesses collect information from the internet, like website data and social media content. Most of their money comes from selling these services to a variety of companies, including those in advertising, finance, and cybersecurity, which is important because it shows how widely their services are needed. They offer different types of services, such as residential proxy networks (which help mask where data is coming from online) and AI data collectors, to meet various customer needs.
How the company got here
Alarum Technologies Ltd. was founded in 2013 and is headquartered in Tel Aviv, Israel. It was formerly known as Safe-T Group Ltd. and changed its name in January 2023. The company has evolved over time, shifting its focus to web data collection solutions. This strategic pivot involved developing and refining its technology to meet the growing demand for accessing and analyzing public web data. Alarum Technologies has also undergone funding rounds and has been publicly listed on stock exchanges, indicating its growth and development as a company.
What it actually does
Alarum Technologies provides businesses with tools to collect data from the internet. Think of it like a specialized service that helps companies gather information from public websites, much like how you might search for information online, but on a much larger and more automated scale. They offer solutions that allow for secure, fast, and anonymous browsing and data collection, which is crucial for businesses that need to analyze market trends, monitor competitors, or gather data for artificial intelligence (AI) model training. Their services are offered through a software-as-a-service (SaaS) model, meaning customers pay a recurring fee to use the software.
Web Data Collection
This is Alarum Technologies' primary business. They offer a range of services that allow businesses to collect data from public websites. This includes various types of proxy networks (static residential, rotating residential, data center, and mobile proxies) which act as intermediaries to mask the user's identity and location while browsing. They also provide specialized services like search engine results page (SERP) data collection and social media data collection. Essentially, they help businesses access and gather vast amounts of information from the web in a structured and efficient way, which is vital for market research, competitive analysis, and powering AI applications. This segment is the core of their operations and represents the majority of their business.
What management is betting on now
Alarum Technologies is heavily focused on scaling its infrastructure and improving operational efficiency to better serve its clients. A key strategic priority is the development and launch of AI-native products, recognizing the explosive growth and demand in the artificial intelligence sector. The company is positioning itself to be a leader in AI data infrastructure, aiming to provide the tools necessary for AI model training and development. This includes evolving its platform beyond traditional proxy services to offer broader AI data solutions, with a particular emphasis on agentic workflows, which are automated processes that can perform complex tasks. They are also focused on expanding their global reach and strengthening relationships with major customers.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $60.25 vs current price $1.30
Wall Street consensus is the average analyst price target: $16.00 (-73.4% lower than our fair-value estimate).
Our most-likely fair value is $60.25 a share — about 4,534.7% above today's price of $1.30, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $11.5M - more cash than debt. Interest coverage 2.3x.
Net debt
$-11.51M
Interest coverage
2.25x
Alarum Technologies Ltd.'s profit covers its interest bill about 2.3 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
ALAR
BASELINE
Alarum Technologies Ltd.
Total debt $2.55M Interest coverage 2.25x This is the baseline the peer rows are being compared against.
Total debt $3.53B Interest coverage -23.64x -100% vs ALAR This peer has almost no interest-payment cushion compared with ALAR.
Total debt $9.34B Interest coverage 20.42x +806% vs ALAR Carries about 9.1x more debt cushion than ALAR.
Total debt $398.29M Interest coverage -9.34x -100% vs ALAR This peer has almost no interest-payment cushion compared with ALAR.
Total debt $74.48M Interest coverage 15.62x +593% vs ALAR Carries about 6.9x more debt cushion than ALAR.
What you should know
The case for and against ALAR
3 Rewards
2 Risks
Rewards
-
Revenue grew 28.1% last year.
-
Returns 3.8% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 2/10 years.
Risks
-
Forward P/E (10.0x) is higher than trailing (8.7x) - earnings are expected to drop.
-
Insider ownership is only 0.5% (peer median: 3.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
8.67x
Forward P/E
10.00x
P/B
0.28x
P/S
0.21x
EV/EBITDA
-1.98x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
57.9%
Operating margin
6.9%
Net margin
2.5%
ROE
3.8%
ROA
1.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.08x
Current ratio
2.58x
Quick ratio
2.58x
Total debt
$2.55M
Total cash
$14.06M
Growth
How the business has been compounding
Revenue TTM
$45.33M
Revenue 5Y CAGR
30.0%
EPS TTM
0.15
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-2.01M
Free CF TTM
$-2.43M
FCF margin
-5.4%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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