Alarum Technologies Ltd. American Depositary Share (ALAR)

FairStock Score: 26/100 — RISKY

Key Financials

Strengths

• Conservative balance sheet with debt-to-equity of just 0.08, providing financial flexibility
• Revenue growth of 60.4% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($1) with negative 602% margin of safety—limited downside protection
• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of -0.0 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Alarum Technologies Ltd. American Depositary Share is a micro-cap technology company valued at $52 million. The business generates $41 million in annual revenue with a 0.5% net margin. From a quality standpoint, Alarum shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and distressed Altman Z-Score of -0.0 warrants caution. On valuation, the stock is commanding a steep 69.6x multiple, with trades far above its Graham Number ($1) with no margin of safety. Growth dynamics show revenue growing at 60.4% and profit growth of -51.4%. Our composite FairStock Score of 26/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Alarum's 60% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 70x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer