Allot Ltd. (NASDAQ: ALLT)

Sector: Technology Industry: Software - Infrastructure CIK: 0001365767
Market Cap 282.92 Mn
P/B 2.58
P/E 271.00
P/S 2.87
ROIC (Qtr) 1.14
Div Yield % 0.00
Rev 1y % (Qtr) 13.64
Total Debt (Qtr) 6.27 Mn
Debt/Equity (Qtr) 0.06

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 14.19M provides robust 2.26x coverage of total debt 6.27M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 24.73M provide 22.88x coverage of short-term debt 1.08M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 139.88M provides 22.30x coverage of total debt 6.27M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 12.95M exceeds capital expenditure of 1.23M by 10.50x, indicating strong organic growth funding capability.
  • Tangible assets of 139.88M provide exceptional 5.15x coverage of deferred revenue 27.15M, showing strong service capability backing.

Bear case

  • Operating cash flow of 14.19M barely covers its investment activities of (29.32M), with a coverage ratio of -0.48, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (29.32M) provide weak support for R&D spending of 24.46M, which is -1.20x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 14.19M provides insufficient coverage of deferred revenue obligations of 27.15M, which is 0.52x, raising concerns about future service delivery capabilities.
  • High receivables of 32.95M relative to inventory of 14.21M (2.32 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • The company's operating cash flow of 14.19M shows concerning coverage of stock compensation expenses of 5.31M, with a 2.67 ratio indicating potential earnings quality issues.

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 1.52 2.69
EV to Cash from Ops. EV/CFO 18.44 28.91
EV to Debt EV to Debt 41.70 19.83
EV to EBIT EV/EBIT 1,142.25 -9.95
EV to EBITDA EV/EBITDA 37.91 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF 20.19 26.09
EV to Market Cap EV to Market Cap 0.92 0.36
EV to Revenue EV/Rev 2.66 -9.34
Price to Book Value [P/B] P/B 2.58 3.88
Price to Earnings [P/E] P/E 271.00 -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 Div Payout % (Qtr) 0.00 1.68
Interest Coverage Int. cover (Qtr) -0.11 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 46.18 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -12.38 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 100.39 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 138.84 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) 100.91 20.13
EBT Growth (1y) % EBT 1y % (Qtr) 110.01 14.16
EPS Growth (1y) % EPS 1y % (Qtr) 106.15 67.50
FCF Growth (1y) % FCF 1y % (Qtr) 292.71 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 19.40 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.57 0.67
Cash Payout Ratio Cash Payout Ratio 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.49 1.22
Current Ratio Curr Ratio (Qtr) 2.51 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.06 -0.96
Interest Cover Ratio Int Coverage (Qtr) -0.11 -14.20
Times Interest Earned Times Interest Earned (Qtr) -0.11 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 5.90 -548.16
EBIT Margin % EBIT Margin % (Qtr) 0.23 -199.84
EBT Margin % EBT Margin % (Qtr) 2.34 -607.20
Gross Margin % Gross Margin % (Qtr) 70.30 51.88
Net Profit Margin % Net Margin % (Qtr) 1.10 -610.00