Allot Ltd. Ordinary Shares (ALLT)

FairStock Score: 41/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Allot as a small software infrastructure company in network intelligence and security. The latest filed quarter, 2026-Q2, showed $27.7M of revenue and $2.6M of net income, a 9.28% margin. That is a real profit, and trailing free cash flow of $29.0M against a $357.1M market cap gives an 8.1% FCF yield, which I like. The balance sheet is debt-light with a debt-to-equity ratio of 0.06 and an Altman Z-Score of 3.22, so solvency does not appear to be the issue. But quality is more than survival. ROE is 9.35% and ROCE is only 2.57%, suggesting the business does not yet earn exceptional returns on the capital it employs. The moat is not obvious to me; it competes in security software with 348 employees. Price is the problem. At the 2026-10-13 close of $8.83, the FairStock calculations show a P/E of 40.14, P/B of 3.65, EV/EBITDA of 33.94, and a Graham Number of $3.46, leaving a margin of safety of -155.20%. The FairStock-calculated PEG ratio of 0.16 looks cheap only if the supplied 15.33% revenue and 252.25% profit growth are durable and from a sustainable base. A Piotroski F-Score of 5/9 is middling. I would want more filed history before calling this a bargain.

In plain English: Allot makes security and network intelligence software for telecom and network operators. It is profitable and produces cash, but the latest quarter's profit margin was small and the stock price looks high compared with its profits and net assets. The company has little debt, but returns on its capital are modest, so the business looks promising but not clearly cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer