Alarum Technologies (ALAR) AI Stock Analysis

• Market Cap: $107.16M
• Dividend Yield: N/A
• Average Volume (3M): 67.08K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 1.91
• Revenue Growth: -1.43%
• EPS Growth: 3.86%
• Country: US
• Employees: 68
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): <0.01
• Shares Outstanding: 7,129,549
• 10 Day Avg. Volume: 62,928
• 30 Day Avg. Volume: 67,082
• PEG Ratio: -0.08
• Price to Book (P/B): 2.75
• Price to Sales (P/S): 2.28
• P/FCF Ratio: 8.25
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 2.65
• Enterprise Value/Gross Profit: 3.90
• Enterprise Value/Ebitda: 33.15
• 1Y Price Target: $22.25
• Price Target Upside: 53.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: $17.50 ▲(20.44% Upside)

Alarum Technologies' strong financial performance and strategic growth initiatives in AI projects are significant positives. While technical indicators show mixed signals, the company's reasonable valuation and positive earnings call sentiment support a favorable outlook. Challenges such as decreased margins and increased expenses are noted but are offset by long-term growth potential.

Positive Factors

Strong Financial Position

A strong cash position provides Alarum with the financial flexibility to invest in growth opportunities and withstand market volatility, supporting long-term stability.

Strategic AI Partnerships

Strategic partnerships in the AI sector position Alarum to capitalize on emerging trends, enhancing its market presence and driving sustainable revenue growth.

Revenue Growth Prospects

Projected revenue growth reflects strong demand for Alarum's products, indicating robust market positioning and potential for continued expansion.

Negative Factors

Decreased Gross Margin

A declining gross margin may impact profitability, as increased costs could outweigh revenue gains, challenging long-term financial performance.

Increased Operating Expenses

Rising operating expenses, particularly in R&D, could pressure margins and limit the company's ability to invest in other growth initiatives.

Market Volatility

Market volatility can lead to unpredictable demand and revenue fluctuations, posing risks to Alarum's ability to maintain stable growth and profitability.

Alarum Technologies Business Overview & Revenue Model

Company Description

Alarum Technologies Ltd. provides cybersecurity and privacy solutions to consumers and enterprises in Israel, the United States, Hong Kong, the Asia Pacific, and internationally. Its cybersecurity solutions comprise iShield, a cybersecurity cloud software that protects users from online threats, including phishing, malware, ransomware and others; AdBlocker, an iOS application for an ad-free internet experience; ZoneZero SDP, a solution based on software defined perimeter and zero trust network access concepts that grant access to applications on a need-to-know basis only; ZoneZero MFA, a solution designed to add centralized multi-factor authentication capabilities for various types of internal applications; and SDE, which is designed to unify various data exchange scenarios of an organization. The company also provides Proxy solutions consisting of static and dynamic residential proxy network cloud services, data center proxy network cloud services, and data collection API cloud services; Proxy-in-a-Box, an on-premise solution of private proxy access network for customers who wish to deploy and maintain their own proxy network; and Premium dedicated static residential proxies, a solution that creates a dedicated static IP for each user. It offers its products through resellers, distributors, and internet service providers. The company serves finance, healthcare, and retail sectors; and government agencies, commercial and online companies, and educational institutions. The company was formerly known as Safe-T Group Ltd. and changed its name to Alarum Technologies Ltd. in January 2023. Alarum Technologies Ltd. was founded in 2013 and is headquartered in Tel Aviv-Yafo, Israel.

How the Company Makes Money

Alarum Technologies generates revenue through a combination of direct product sales, subscription-based services, and consulting fees. The primary revenue stream comes from the sale of its cybersecurity software and hardware solutions, which are tailored for businesses of varying sizes. Additionally, the company offers subscription plans for ongoing access to its cloud-based security services, which provide continuous updates, monitoring, and support. Consulting services, including security assessments and compliance audits, contribute further to its earnings. Alarum Technologies has forged strategic partnerships with other tech firms and cybersecurity organizations, enhancing its market reach and enabling bundled offerings that attract a broader customer base, thus significantly boosting its revenue potential.

Alarum Technologies Financial Statement Overview

Summary

Alarum Technologies has shown strong financial performance with significant improvements in revenue, profitability, and cash flow. The company turned a profit with a net income of $5.78 million and maintains a robust gross profit margin of 75.1%. The balance sheet is solid with a high equity ratio and low leverage, while cash flow performance indicates strong cash generation capabilities.

Income Statement

Alarum Technologies has demonstrated strong growth in revenue, increasing by 20% from the previous year. The company turned around its net income from a loss to a profit of $5.78 million, resulting in a net profit margin of 18.2%. The gross profit margin is robust at 75.1%, and both EBIT and EBITDA margins have significantly improved, indicating enhanced operational efficiency.

Balance Sheet

The company's balance sheet shows a solid equity position with a high equity ratio of 75.7%. The debt-to-equity ratio is low at 0.06, reflecting minimal leverage. Return on equity stands at 21.9%, highlighting effective utilization of equity to generate profits. However, the relatively low total assets compared to industry peers might limit scalability.

Cash Flow

Alarum Technologies has shown remarkable improvement in cash flow, with free cash flow increasing significantly. The operating cash flow to net income ratio of 1.54 indicates strong cash generation relative to earnings. The free cash flow to net income ratio is robust at 1.52, showcasing excellent cash conversion capabilities. Despite past negative cash flows, the company has managed a positive trajectory in recent periods.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.49M	31.82M	26.52M	18.55M	9.65M	4.89M
Gross Profit	20.74M	23.91M	15.94M	10.13M	4.81M	2.39M
EBITDA	2.44M	8.31M	-2.90M	-10.53M	-12.16M	-6.58M
Net Income	5.39M	5.78M	-5.53M	-13.15M	-13.13M	-7.84M
Balance Sheet
Total Assets	35.77M	34.81M	20.07M	22.37M	30.65M	22.97M
Cash, Cash Equivalents and Short-Term Investments	14.91M	15.08M	10.87M	3.29M	9.71M	11.02M
Total Debt	893.00K	1.59M	1.99M	3.05M	562.00K	663.00K
Total Liabilities	6.65M	8.46M	6.88M	9.06M	6.47M	6.76M
Stockholders Equity	29.13M	26.35M	13.18M	13.31M	24.19M	16.22M
Cash Flow
Free Cash Flow	0.00	8.79M	4.67M	-8.11M	-9.49M	-6.75M
Operating Cash Flow	0.00	8.89M	4.73M	-8.05M	-9.21M	-6.61M
Investing Cash Flow	0.00	-9.34M	592.00K	5.04M	-9.80M	-1.19M
Financing Cash Flow	0.00	4.69M	2.21M	2.60M	11.64M	14.71M

Alarum Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.53
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALAR, the sentiment is Negative. The current price of 14.53 is below the 20-day moving average (MA) of 15.04, below the 50-day MA of 15.43, and above the 200-day MA of 10.82, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 45.55 is Neutral, neither overbought nor oversold. The STOCH value of 47.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALAR.

Alarum Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALAR	75 Outperform	$107.16M	18.56	21.76%	―	-1.43%	3.86%
QLYS	74 Outperform	$4.60B	25.41	39.53%	―	9.69%	9.50%
VRNS	72 Outperform	$6.76B	―	-25.73%	―	14.29%	-14.42%
CYBR	67 Neutral	$24.55B	1,777.39	-10.35%	―	39.45%	-982.51%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GRRR	53 Neutral	$380.16M	―	24.92%	―	―	―

Alarum Technologies Corporate Events

Alarum Technologies Reports Q2 2025 Financial Results and Strengthens AI Collaborations

Alarum Technologies announced its financial results for the second quarter of 2025, reporting revenues of $8.8 million and a net profit of $0.3 million. The company is deepening collaborations with major AI and e-commerce players, expanding its market presence and strengthening its role in the AI ecosystem. Alarum is investing in infrastructure and talent to support growing demand, positioning itself as a central player in the AI revolution. The company anticipates revenue growth in the upcoming quarter, despite potential short-term fluctuations due to the evolving AI market.

Alarum Technologies Confirms Key Appointments and Approvals at Annual Meeting

On August 7, 2025, Alarum Technologies Ltd. conducted its Annual and Extraordinary General Meeting of Shareholders, where several key proposals were approved. These included the re-appointment of PwC Israel as the company’s independent auditor, the re-appointment of Mr. Chen Katz and Mr. Avi Rubinstein as Class III directors for a three-year term, and the approval of a grant of RSUs to CEO Shachar Daniel. These decisions reflect the company’s strategic focus on maintaining strong leadership and ensuring robust financial oversight, which are crucial for its continued growth and stability in the cybersecurity sector.