Fundamental analysis: Allot Ltd. (ALLT)

Awarener score: 3.7

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very poor), the business stability (Lacking) and growth (Average), and the company's inclination to return cash to the stockholders (Lacking).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.0

Business has been growing at a low pace. It's been almost average when measured against peer companies.
Allot Ltd. business shows some variation, there's some risk. It looks mediocre against rivals.

Margins score: 4.5

ALLT profit margins -on goods and services sold- are usually very good. They stand slightly worse than rival companies.
Business profit on sales tends to be meagre. It's similar to competitors.
Profits on sales made -available to repay debt and purchase properties- are usually very poor. They remain rather normal in relation to peers.
Earnings -before income taxes and interests on loans taken- tend to be meagre in relation to total revenues. They're still slightly better than similar companies.
Profits -before income taxes- are usually meagre considering total sales, and remain similar to rivals.
Total net profit tends to be meagre when confronted to sales. Company stands similar to comparable firms.

Growth score: 1.7

Allot Ltd. profit -on goods and services sold- has been growing at a normal pace. It's been a slight improvement compared to competitors.
In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 3.7

ALLT had still to pay income taxes, even though in recent past years mostly lost money. It's been bottom tier against peers.
Research and development expenses consume some portion of revenues. It's below average when measured against competitors.
The company grows sparsely in relation to research and development efforts. It stands lacking compared to rival companies.

Profitability score: 4.0

Allot Ltd. usually gets low returns on the resources it controls. It proves similar to peer firms.
The company normally gets low proceeds -on the resources directly invested in the business-. They remain close to average when compared to similar companies.
Profitability -in relation to owned resources- is usually lacking. It ranks similar to competitors.
In the past, got low returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's similar to comparable enterprises.

Usage of Funds score: 3.0

ALLT on average doesn't generate genuine funds, so to buy or replace property, plants and equipment must either burn existing cash or increase debt. It stands similar to rival firms.
The company is usually replacing the property, plant, and equipment that gets old, keeping its operating capabilities up to date, which is similar to industry peers.
In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
The company somewhat enlarges a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains a slight improvement compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands a disappointment compared to rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 5.3

Allot Ltd. intangible assets (like brands and goodwill) represent a modest portion of resources controlled, according to accounting books. There could be some difficulties in liquidating them if the company ever gets in financial distress. It happens to be encouraging in relation to peer companies.
The company has roughly triple short-term resources than short-term obligations. Liquidity concerns are most likely unimportant. It turns to be in good shape compared to similar firms.
Very few resources controlled were provided for with financial debt. Financial strength is very solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains well ranked against rival firms.
Resources controlled can be quickly made into cash, which is very good for liquidity and risk. It looks encouraging in relation to rivals.
For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's excellent in relation to peer firms.
For every dollar of short-term obligations, the company has enough dollars in cash and equivalents, which is well ranked against similar enterprises.
Usually, sales are on somewhat more than three months credit. It still ranks weak when measured against peers.
Normally has approximately three months of sales worth in inventory. It comes up as in a very weak position compared to competitors.
On average, it takes higher than six months from the purchase to charging customers. It happens to be bottom tier against peers.
On average pays suppliers after a month and a half from the purchase. It ranks almost average when measured against industry peers.
The company pays its suppliers six months or more before charging its customers, so there's abundant money invested in working capital. It's a disappointment compared to similar companies.
Company earns net interest income on its investments and therefore is in a quite comfortable financial position. It stands top-notch against rival firms.
Business has usually been operated at a loss. Unless prospects improve, the company is no position to decrease loans taken levels but by additional shareholders' funding. Profitability must improve. It ranks last-in-rank when measured against comparable enterprises.
Revenues are quite good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks lacking compared to similar firms.
Resource exploitation is quite good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still better than most peer companies.

Valuation score: 4.3

Allot Ltd. reported losses, so valuating it in relation to earnings is meaningless. It happens to be last-in-rank when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains excellent in relation to peers.
In the past twelve months, the company consumed lots of funds. Either it reinvested heavily in the business or genuine fund generation might be struggling, which stands bottom tier against similar companies.
The company usually consumes more funds than can genuinely generate. Business needs are meet by borrowing money or consuming preexistent cash, which can only keep up until a certain limit. Unless the company is driving business growth, genuine profitability may be brought into question. It's still substantially worse when measured against industry firms.
In the past twelve months, the company has enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among somewhat more stockholders. It came up close to average when compared to peer ventures.
This company is sitting in a mountain of cash. It's very well poised to substantially increase stockholder payments, or to fund new business projects. It looks top-notch against similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation has been negative, as the company lost money. It ranks last-in-rank when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a not far from one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks excellent in relation to rival firms.
The relation between the stock price and accounting book value might be more than reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains better than most peer firms.
In the past twelve months, the operating business lost a lot of money. It happens to be substantially worse when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown a very low earnings power ability when measured against the current stock price and financial position. Profitability is in dispute. It's still in a very weak position compared to peer companies.

Total score: 3.9

Company at a glance: Allot Ltd. (ALLT)

Sector, industry: Technology, Software—Infrastructure

Market Cap: 0.10 billions

Revenues TTM: 0.15 billions

Allot Ltd. provides network intelligence and security solutions to protect and personalize the digital experience in Europe, Asia, Oceania, the Middle East, Africa, and the Americas. The company offers Allot Secure Management platform that includes Allot NetworkSecure, Allot HomeSecure, Allot DNSecure, EndPoint Secure, Allot BusinessSecure, Allot IoTSecure, and Allot Secure Cloud. It also provides Allot DDoS Secure/5G Protect, a solution that offers attack detection and mitigation services; integrated network intelligence solutions; and centralized management solutions, such as Allot NetXplorer for providing a central access point for network-wide monitoring, reporting, analytics, troubleshooting, accounting, and quality of service policy provisioning. The company markets its products through direct sales, distributors, resellers, original equipment manufacturers, and system integrators to carriers, mobile and fixed service providers, cable operators, satellite service providers, private networks, data centers, financial and educational institutions, and governments. Allot Ltd. was formerly known as Allot Communications Ltd. and changed its name to Allot Ltd. in October 2018. The company was incorporated in 1996 and is based in Hod Hasharon, Israel.