Allot provides network intelligence and security solutions for a diverse global customer base, including service providers and enterprises. Their integrated offerings encompass analytics, traffic management, and security solutions through various platforms.
Based on our analysis, Allot Ltd has been rated as undervalued by Cashu, receiving a score of 4 out of 5 stars. This assessment is supported by several key financial ratios that indicate potential for recovery and growth, particularly when compared to sector averages.
Firstly, Allot's Price-to-Book (PB) ratio stands at 1.27, significantly lower than the sector average of 3.19. A lower PB ratio suggests that the company's stock may be undervalued relative to its assets, indicating a potential opportunity for investors.
Secondly, the company's net profit margin is -67.42, compared to the sector's -18.44. While this indicates that Allot is currently struggling with profitability, the larger gap highlights the potential for improvement as operational efficiencies are realized or market conditions change.
Additionally, Allot's Return on Equity (ROE) is -126.21, significantly worse than the sector average of -25.14. This negative figure reflects challenges in generating profit from shareholder equity. However, it could also signify that any future positive developments could lead to substantial improvements in shareholder value.
Lastly, the Return on Assets (ROA) ratio for Allot is -45.46 compared to the sector average of -14.26. This metric indicates inefficiencies in using assets to generate earnings. Despite the current struggles, a turnaround could present a strong investment opportunity as the company works to enhance its asset utilization.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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