One-glance verdict
Within fair range
$9.57 our estimate vs market $8.31
Wall Street consensus: $13.48 (40.9% higher than our fair-value estimate)
13% below our estimate
Fundamentals snapshot
Allot Ltd.
ALLT · NMS · Technology · Software - Infrastructure
Current price
$8.31
52-week range
$6.12 - $11.92
Market cap
$409.71M
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 66% of its peers.
- Reward Free cash flow was positive in 3/10 years.
- Risk Insider ownership is only 1.5% (peer median: 4.8%).
What this company does
Allot Ltd.
Allot provides cybersecurity software to large service providers, like the companies that supply your home internet or mobile phone plan. These providers use Allot's technology to defend their networks from cyberattacks and also sell security services directly to their own customers. This business is significant because it can create a steady stream of recurring revenue (predictable income from ongoing subscriptions) as digital security becomes a growing necessity for everyone.
How the company got here
Founded in Israel in 1996, Allot started by developing software for telecommunications companies. A key moment was its initial public offering (IPO) in 2006, which is when a private company first sells shares of stock to the public, raising $78 million to fuel its growth. Over the years, Allot has acquired several smaller tech companies to expand its capabilities, including those specializing in video streaming optimization and IT security. These acquisitions helped shift the company's focus towards network intelligence and security, leading to its name change from Allot Communications to Allot Ltd. in 2018. Today, the company partners with major telecom providers like Telefónica, Verizon, and Singtel to deliver its services globally.
What it actually does
Allot provides security and network management services that run in the background of your internet service. Think of it like a security guard and traffic manager for the internet data traveling to and from your home or phone. You don't buy Allot's products directly; instead, your internet service provider (like Verizon or Vodafone) pays Allot to protect its network and its customers from cyber threats like viruses and phishing scams. Allot's technology also helps these providers manage internet traffic to ensure that services like video streaming run smoothly without buffering. This means customers get a safer and more reliable internet experience without having to install any software themselves.
Security Solutions (SECaaS)
This is Allot's fastest-growing business, making up a significant and increasing portion of its sales. Instead of selling a one-time product, Allot offers its security services as a subscription, which is called Security-as-a-Service (SECaaS). Internet service providers pay Allot a recurring fee to use its platform, which protects their customers from online threats like malware, phishing, and other cyberattacks. Because the security is built directly into the network, users don't need to install any software on their phones or computers, a model often called "zero-touch." This segment is a major focus for the company as it provides a steady and predictable stream of income, known as recurring revenue.
Network Intelligence Solutions
This is Allot's traditional and historically larger business, though the security side is growing more quickly. This segment provides tools that help communication service providers and large companies see and manage the traffic on their networks. For example, a mobile phone company can use Allot's technology to understand how much data is being used for video streaming versus social media and can then optimize the network to prevent slowdowns. Customers in this segment typically buy hardware and software licenses, which has historically resulted in less predictable, project-based sales compared to the subscription model of the security business.
What management is betting on now
Allot's leadership is heavily focused on expanding its Security-as-a-Service (SECaaS) business. The goal is to shift away from one-time product sales toward a more predictable subscription-based model, which generates recurring revenue (a steady income stream from ongoing payments). Management believes that as the world becomes more connected and cyber threats increase, there is a growing demand for easy-to-use security that is built directly into the network. To show confidence in this strategy and the company's financial health, the board recently approved a significant share repurchase program (a plan to buy back its own stock from the market, which can increase the value of the remaining shares).
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 $9.57 vs current price $8.31
Wall Street consensus is the average analyst price target: $13.48 (40.9% higher than our fair-value estimate).
Our most-likely fair value is $9.57 a share — about 15.1% away from today's price of $8.31, 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 $39.98M Interest coverage 64.93x +32% vs ALLT Carries about 1.3x more debt cushion than ALLT.
Total debt $16.09M Interest coverage 0.54x -99% vs ALLT Carries about 91.5x less debt cushion than ALLT.
Total debt $226.08M Interest coverage 7.43x -85% vs ALLT Carries about 6.6x less debt cushion than ALLT.
Total debt $130.12M 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 66% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Insider ownership is only 1.5% (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)
36.13x
Forward P/E
20.69x
P/B
3.44x
P/S
3.76x
EV/EBITDA
30.61x
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
0.23
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
—
Payout ratio
0.0%
Last ex-div date
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