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Safe-T Group Ltd. (IL:ALAR)
:ALAR
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Safe-T Group
(ALAR)
Rating:72Outperform
Price Target:
521.00
▲(92.96%Upside)
Safe-T Group (ALAR) vs. iShares MSCI Israel ETF (EIS)
Market Cap
314.23M
Dividend YieldN/A
Average Volume (3M)756.04K
Price to Earnings (P/E)17.5
Beta (1Y)0.18
Revenue Growth3.90%
EPS GrowthN/A
CountryIL
Employees68
SectorTechnology
Sector Strength84
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)2.10
Shares Outstanding70,186,900
10 Day Avg. Volume607,137
30 Day Avg. Volume756,041
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.59
Price to Sales (P/S)0.00
P/FCF Ratio-0.98
Enterprise Value/Market Cap0.03
Enterprise Value/Revenue0.08
Enterprise Value/Gross Profit0.38
Enterprise Value/Ebitda-1.31
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Safe-T Group Business Overview & Revenue Model
Company DescriptionSafe-T Group (NASDAQ: ALAR) is a global provider of cybersecurity and privacy solutions. The company operates in various sectors, including software development and digital privacy services, offering products and services designed to protect data and ensure secure communications across networks. Safe-T Group's core offerings include secure network access solutions, zero-trust network access (ZTNA), and privacy tools that cater to both enterprises and individual users. The company is committed to enhancing digital security through innovative technologies and strategic partnerships.
How the Company Makes MoneySafe-T Group generates revenue primarily through the sale of its cybersecurity and privacy solutions. The company's key revenue streams include software licenses, subscription services, and professional services such as consulting and support. Safe-T Group partners with various technology providers and resellers to expand its market reach and deliver comprehensive solutions to its clients. Additionally, the company may engage in strategic acquisitions and collaborations to enhance its product portfolio and drive sales growth. Revenue is further supported by its focus on the growing demand for secure access solutions in an increasingly digital world.
Safe-T Group Earnings Call Summary
Earnings Call Date:May 29, 2025
(Q1-2025)
| % Change Since: -8.57%|
Next Earnings Date:Aug 21, 2025
Earnings Call Sentiment Neutral
Alarum Technologies is strategically investing in its infrastructure and capabilities to capitalize on the growing demand for data in the AI sector. While there is strong momentum and significant partnerships, the company faces challenges with declining year-over-year revenues and increased operating expenses. Despite these challenges, the company's strong financial position allows for continued investment in growth.Q1-2025 Updates
Positive Updates
Strong Demand and Strategic Positioning in AI
Alarum is strategically positioning itself as a key enabler in the AI revolution, with its data collection offerings playing a critical role in powering AI developments. The company is seeing increasing demand from both tech giants and startups for its data collection infrastructure.
Financial Performance and Investments
First quarter 2025 revenue was $7.1 million, with a net profit of $0.4 million and adjusted EBITDA exceeding guidance at $1.3 million. The company has increased investments to scale its operations to meet growing AI-driven demand, supported by a strong balance sheet.
Major Collaborations and Expanding Infrastructure
Alarum has expanded its collaborations with major AI and e-commerce platforms, including a leading global consumer electronics brand and a fast-growing European AI analytics company. The company is also expanding its infrastructure to support these opportunities.
Strong Financial Position
Alarum's shareholders' equity increased substantially to $27.6 million by March 31, 2025, up from $17.1 million a year earlier. Cash and long-term investments were $24 million, nearly 60% higher than the previous year.
Negative Updates
Revenue Decline Year-over-Year
Revenue for Q1 2025 was $7.1 million, a decrease from $8.4 million in Q1 2024. The company's non-IFRS gross margin also decreased to 69.4% from 80.4% in the previous year.
Increased Operating Expenses
Operating expenses increased to $4.5 million in Q1 2025, up from $4 million in the same period the previous year, driven primarily by increased employee salaries and investment in product development.
Lower Net Profit and EBITDA
Non-IFRS net profit for Q1 2025 was $1.1 million, down from $2.8 million in Q1 2024. Adjusted EBITDA also decreased to $1.3 million from $3.2 million in the same period last year.
Company Guidance
During the Alarum Technologies' First Quarter 2025 Corporate Update Conference Call held on May 29, 2025, the company reported a revenue of $7.1 million, a net profit of $0.4 million, and an adjusted EBITDA of $1.3 million, surpassing their guidance. The first quarter's non-IFRS gross margin was 69.4%, down from 80.4% the previous year, due to significant reinvestments aimed at scaling operations to meet the demand from AI-driven customers. The guidance for the second quarter of 2025 anticipates revenue to range at $7.9 million, with adjusted EBITDA expected between $0.5 million and $0.8 million. The company has noted a shift in the market driven by the AI revolution, prompting increased investments in infrastructure and talent to support the growing demand for data collection services. As of March 31, 2025, Alarum's shareholders' equity reached $27.6 million, and the cash and long-term investments balance was $24 million, reflecting a strategic focus on sustainable growth and value creation.Safe-T Group Financial Statement Overview
Summary
The company has demonstrated strong revenue growth, increased profitability margins, and enhanced cash flow metrics. It maintains a low leverage position with a strong equity base, indicating financial stability and potential for future growth.Income Statement
The company has shown significant revenue growth with a notable increase in total revenue from $26.52M in 2023 to $31.82M in 2024, marking a 19.99% growth rate. Gross profit margin improved to 75.12% in 2024, indicating strong cost management. The net profit margin increased to 18.16%, reflecting a turnaround from losses in prior years. EBIT and EBITDA margins also improved substantially, showcasing enhanced operational efficiency.85
Very Positive
Balance Sheet
The debt-to-equity ratio decreased to 0.06, demonstrating low leverage and financial stability. Return on equity (ROE) reached 21.94%, highlighting effective management of shareholder funds. The equity ratio at 75.68% indicates a strong equity position, although the total assets growth has been moderate.75
Positive
Cash Flow
Free cash flow grew by 88.19% to $8.79M, reflecting improved cash generation. The operating cash flow to net income ratio of 1.54 indicates solid cash conversion from profits. The free cash flow to net income ratio is 1.52, further supporting strong cash flow management.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.22M | 31.82M | 26.52M | 18.78M | 10.28M | 4.89M |
| Gross Profit | 21.63M | 23.91M | 19.11M | 10.13M | 5.14M | 2.39M |
| EBITDA | 3.96M | 8.31M | -2.90M | -10.53M | -9.70M | -8.03M |
| Net Income | -3.40M | 5.78M | -5.53M | -13.15M | -13.13M | -7.84M |
Balance Sheet | ||||||
| Total Assets | 26.08M | 34.81M | 20.07M | 22.37M | 30.65M | 22.97M |
| Cash, Cash Equivalents and Short-Term Investments | 15.06M | 15.08M | 10.87M | 3.29M | 9.71M | 11.02M |
| Total Debt | 1.87M | 1.59M | 1.99M | 3.05M | 562.00K | 663.00K |
| Total Liabilities | 9.02M | 8.46M | 6.88M | 9.06M | 6.47M | 6.76M |
| Stockholders Equity | 17.06M | 26.35M | 13.18M | 13.31M | 24.19M | 16.22M |
Cash Flow | ||||||
| Free Cash Flow | 5.67M | 8.79M | 4.67M | -8.11M | -9.49M | -6.75M |
| Operating Cash Flow | 5.67M | 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 | 11.74M | 14.71M |
Safe-T Group Technical Analysis
Positive
270.00
Price Trends
323.53
Positive
299.06
Positive
370.31
Positive
Market Momentum
42.35
Negative
65.12
Neutral
65.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ALAR, the sentiment is Positive. The current price of 270 is below the 20-day moving average (MA) of 397.64, below the 50-day MA of 323.53, and below the 200-day MA of 370.31, indicating a bullish trend. The MACD of 42.35 indicates Negative momentum. The RSI at 65.12 is Neutral, neither overbought nor oversold. The STOCH value of 65.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ALAR.
Safe-T Group Risk Analysis
Safe-T Group disclosed 57 risk factors in its most recent earnings report. Safe-T Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Safe-T Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Performance Comparison
IL:ALAR
Safe-T Group
466.90
-1,233.10
-72.54%
IL:ABRA
Abra
332.60
86.30
35.04%
IL:RZR
Razor Labs
484.80
22.40
4.84%
Safe-T Group Corporate Events
Safe-T Group Announces Beneficial Ownership Below 5%
Feb 11, 2025
Safe-T Group has disclosed that its beneficial ownership is below 5%, based on the latest SEC filing and amendment to the Securities Law. This announcement may impact Safe-T Group’s compliance with securities regulations and provide transparency to stakeholders regarding ownership structure.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.