One-glance verdict
Within fair range
$8.41 our estimate vs market $8.56
Wall Street consensus: $13.48 (60.4% higher than our fair-value estimate)
2% above our estimate
Fundamentals snapshot
Allot Ltd.
ALLT · NMS · Technology · Software - Infrastructure
Current price
$8.56
52-week range
$6.12 - $11.92
Market cap
$422.03M
Balance sheet
Healthy
49.37x Strong cushion
Net cash $95.28M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 10.6% last year.
- Reward Returns 9.4% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 3/10 years.
- Risk Insider ownership is only 3.2% (peer median: 4.8%).
What this company does
Allot Ltd.
Allot Ltd. provides businesses and internet service providers with tools to keep their networks safe from online threats and manage their internet traffic efficiently. Their main income comes from selling these security and network management services, which is important because it shows how much customers value and rely on their solutions for a secure online experience.
How the company got here
Allot Ltd. was founded in 1996 and initially focused on providing network intelligence and security solutions. The company went public on the Nasdaq in 2006, raising $78 million in its initial public offering (IPO). Over the years, Allot has grown through strategic acquisitions, such as the purchase of Optenet in 2015 and Netonomy in 2018, to expand its product offerings in IT security and connected home security. The company has also formed key partnerships, including a notable collaboration with Intel Security in 2017. Allot has evolved its business model, with a strategic focus on shifting from hardware sales to a more predictable recurring subscription model driven by its Security-as-a-Service (SECaaS) cybersecurity portfolio.
What it actually does
Allot Ltd. provides advanced solutions that help telecommunications companies and large businesses manage and secure their networks. Think of it like a digital security guard and traffic controller for the internet. Their technology analyzes all the data traveling through a network to ensure it's running smoothly and to protect it from cyber threats. This helps service providers offer better, safer services to their customers, whether it's for mobile phones, home internet, or business networks.
Network Intelligence Solutions
This part of Allot's business focuses on understanding and managing network traffic. It's like having a sophisticated system that can see exactly what's happening on the network – which applications are being used, how well they're performing, and how much data they're consuming. This allows telecommunication providers (CSPs) and enterprises to optimize their network performance, ensure a good customer experience (known as Quality of Experience or QoE), and even identify new ways to generate revenue. For example, they can prioritize certain types of traffic, like video streaming, to ensure it runs smoothly.
Security Solutions
This is a major focus for Allot, offering a range of cybersecurity products and services designed to protect networks and users from online threats. These solutions act like a digital shield, defending against everything from malware and phishing attempts to large-scale Distributed Denial of Service (DDoS) attacks, which are designed to overwhelm a network and make it unavailable. Allot's security offerings are often delivered as a service (Security-as-a-Service or SECaaS), meaning customers pay a recurring fee for continuous protection, making it easier for service providers to offer robust security to their own customers, including individuals and small businesses.
What management is betting on now
Allot's current strategy heavily emphasizes its cybersecurity offerings, aiming to become a leader in Security-as-a-Service (SECaaS). Management is focused on growing the recurring revenue from these security solutions, which provides more predictable income compared to one-time hardware sales. They are also investing in integrating cybersecurity with network intelligence to offer comprehensive, single solutions. Key priorities include expanding their market share, improving profitability, and leveraging technologies like Artificial Intelligence (AI) to enhance their product offerings and drive future growth.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$2.71M
FY2025 Q4
$15.50M
Revenue
$101.99M
Net income
$3.71M
Diluted EPS
0.08
Operating cash flow
$17.79M
Free cash flow
$15.50M
Fetching…
Sources
Revenue
$92.19M
Net income
$-5.87M
Diluted EPS
-0.15
Operating cash flow
$4.83M
Free cash flow
$2.71M
Fetching…
Sources
Is it cheap or expensive?
Fair value $8.41 vs current price $8.56
Wall Street consensus is the average analyst price target: $13.48 (60.4% higher than our fair-value estimate).
Our most-likely fair value is $8.41 a share — about 1.8% away from today's price of $8.56, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $95.3M - more cash than debt. Interest coverage 49.4x.
Net debt
$-95.28M
Interest coverage
49.37x
Allot Ltd.'s profit covers its interest bill about 49.4 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
ALLT
BASELINE
Allot Ltd.
Total debt $6.92M Interest coverage 49.37x This is the baseline the peer rows are being compared against.
Total debt $36.04M Interest coverage 64.93x +32% vs ALLT Carries about 1.3x more debt cushion than ALLT.
Total debt $14.89M Interest coverage 0.54x -99% vs ALLT Carries about 91.5x less debt cushion than ALLT.
Total debt $219.88M Interest coverage 7.43x -85% vs ALLT Carries about 6.6x less debt cushion than ALLT.
Total debt $54.12M Interest coverage 4.48x -91% vs ALLT Carries about 11.0x less debt cushion than ALLT.
Total debt $74.48M Interest coverage 15.62x -68% vs ALLT Carries about 3.2x less debt cushion than ALLT.
What you should know
The case for and against ALLT
3 Rewards
1 Risk
Rewards
-
Revenue grew 10.6% last year.
-
Returns 9.4% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Insider ownership is only 3.2% (peer median: 4.8%).
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)
38.91x
Forward P/E
22.04x
P/B
3.54x
P/S
3.87x
EV/EBITDA
31.81x
PEG ratio
0.83x
Profitability
How much profit each dollar creates
Gross margin
71.3%
Operating margin
4.0%
Net margin
9.4%
ROE
9.4%
ROA
2.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.06x
Current ratio
2.26x
Quick ratio
1.96x
Total debt
$6.92M
Total cash
$102.20M
Growth
How the business has been compounding
Revenue TTM
$410.07M
Revenue 5Y CAGR
-8.5%
EPS TTM
0.22
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-39.68M
Free CF TTM
$15.50M
FCF margin
3.8%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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