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 (ALLT) has received an undervalued rating of 4 out of 5 stars from Cashu. This rating is supported by several key financial ratios that indicate potential value for investors.
The Price-to-Book (PB) ratio for Allot stands at 1.27, significantly lower than the sector average of 3.19. A lower PB ratio suggests that the company is trading for less than its book value, indicating potential undervaluation relative to its peers.
Allot's net profit margin is reported at -67.42, compared to the sector's -17.81. While negative margins typically suggest challenges in profitability, the extent of Allot's margin indicates deeper issues that may be temporary or manageable, positioning the company for future recovery as it addresses its cost structure and revenue generation.
The return on equity (ROE) for Allot is -126.21, contrasted with the sector average of -25.14. This negative ROE reflects the company's struggles to generate profit from shareholders' equity. However, it also indicates a potential for significant improvement if the company can turn its performance around.
Lastly, the return on assets (ROA) stands at -45.46, while the sector average is -13.92. This highlights the underutilization of assets in generating earnings, suggesting that operational efficiencies could lead to enhanced profitability.
Overall, these financial metrics illustrate that Allot is currently undervalued compared to its sector. Investors may find an opportunity for growth as the company works to improve its financial health.
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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