Alarum Technologies Ltd. (NASDAQ: ALAR)

Sector: Technology Industry: Software - Infrastructure CIK: 0001725332
Market Cap 57.48 Mn
P/B 1.85
P/E 48.30
P/S 1.58
ROIC (Qtr) 0.47
Div Yield % 0.00
Rev 1y % (Qtr) 80.86
Total Debt (Qtr) 3.07 Mn
Debt/Equity (Qtr) 0.10

About

Alarum Technologies Ltd., also known as NetNut, operates in the Enterprise Web Data Collection market, providing web data collection and private internet browsing platforms. The company's primary business activities encompass offering internet access solutions for both consumers and enterprise customers and delivering web data collection services. Alarum Technologies' unique value proposition lies in its ability to provide a secure and anonymous way for customers to access the internet, collect data, and analyze it. The company generates revenue...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 14.37M provide 16.36x coverage of short-term debt 878000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 38.62M provides 12.57x coverage of total debt 3.07M, indicating robust asset backing and low credit risk.
  • Tangible assets of 38.62M provide exceptional 11.37x coverage of deferred revenue 3.40M, showing strong service capability backing.
  • Long-term investments of 10.11M provide solid 4.61x coverage of long-term debt 2.19M, indicating strategic financial planning.
  • Tangible assets of 38.62M provide robust 11.37x coverage of other current liabilities 3.40M, indicating strong asset backing.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 6.87M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 0 provides insufficient coverage of deferred revenue obligations of 3.40M, which is 0x, raising concerns about future service delivery capabilities.
  • Long-term investments of 10.11M represent a high 3.23x of fixed assets 3.13M, indicating potential overexposure to financial assets versus operational capabilities.
  • Operating cash flow of 0 provides minimal 0x coverage of tax expenses of 539000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Cash position of 14.37M provides only -21.73x coverage of interest expenses of (661000), indicating potential refinancing risks in a rising rate environment.

Geographical areas [axis] Breakdown of Revenue (2024)

Products and services [axis] Breakdown of Revenue (2024)

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,563.59 Bn 33.97 12.13 60.56 Bn
2 ORCL Oracle Corp 561.87 Bn 36.43 9.21 124.39 Bn
3 PLTR Palantir Technologies Inc. 413.65 Bn 377.64 106.17 0.24 Bn
4 PANW Palo Alto Networks Inc 126.45 Bn 113.19 13.23 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 116.42 Bn -370.56 25.50 0.82 Bn
6 SNPS Synopsys Inc 86.06 Bn 64.60 12.20 14.29 Bn
7 NET Cloudflare, Inc. 62.78 Bn -609.27 31.18 3.50 Bn
8 FTNT Fortinet, Inc. 60.83 Bn 32.47 9.28 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.00 2.69
EV to Cash from Ops. EV/CFO 15.42 28.91
EV to Debt EV to Debt 14.14 19.83
EV to EBIT EV/EBIT 40.69 -9.95
EV to EBITDA EV/EBITDA 16.57 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF 15.85 26.09
EV to Market Cap EV to Market Cap 0.76 0.36
EV to Revenue EV/Rev 1.20 -9.34
Price to Book Value [P/B] P/B 1.85 3.88
Price to Earnings [P/E] P/E 48.30 -10.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.71
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 1.68
Interest Coverage Int. cover (Qtr) -1.62 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -40.17 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -92.60 25.27
EBITDA Growth (1y) % EBITDA Growth (1y) % 0.00 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) -90.75 20.13
EBT Growth (1y) % EBT 1y % (Qtr) -78.76 14.16
EPS Growth (1y) % EPS 1y % (Qtr) -94.44 67.50
FCF Growth (1y) % FCF Growth (1y) % 0.00 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -4.55 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.84 0.67
Cash Payout Ratio Cash Payout Ratio 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 1.41 1.22
Current Ratio Curr Ratio (Qtr) 2.38 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.10 -0.96
Interest Cover Ratio Int Coverage (Qtr) -1.62 -14.20
Times Interest Earned Times Interest Earned (Qtr) -1.62 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -548.16
EBIT Margin % EBIT Margin % (Qtr) 2.94 -199.84
EBT Margin % EBT Margin % (Qtr) 4.76 -607.20
Gross Margin % Gross Margin % (Qtr) 62.80 51.88
Net Profit Margin % Net Margin % (Qtr) 3.30 -610.00