Alarum Technologies Ltd. (ALAR) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Alarum Technologies Ltd. (ALAR) Technology Profile & Competitive Position

Alarum Technologies Ltd. delivers comprehensive cybersecurity and privacy solutions globally, encompassing advanced cloud-based threat protection like iShield and Zero Trust Network Access via ZoneZero SDP. The company also provides a robust suite of proxy services, serving diverse sectors from finance to government, positioning itself within the critical software infrastructure market.

What Is the Investment Thesis for ALAR?

Alarum Technologies Ltd. operates in the expanding cybersecurity and privacy sectors, offering a diversified portfolio of solutions to consumers and enterprises across multiple international markets. The company's strategic value proposition is underpinned by its comprehensive product suite, which includes advanced cybersecurity tools like iShield and the Zero Trust-based ZoneZero SDP, alongside a robust array of proxy services. With a market capitalization of $0.05 billion and a P/E ratio of 10.64, Alarum demonstrates a valuation reflecting its growth potential within its niche. Its gross margin of 57.9% indicates strong operational efficiency in delivering its software and services, while a profit margin of 2.5% suggests profitability, albeit with room for expansion. Key growth catalysts for Alarum include the persistent and escalating global demand for sophisticated cybersecurity defenses against evolving threats, driving adoption of solutions like iShield and ZoneZero. The increasing need for data privacy and secure data collection further fuels the demand for its specialized proxy services. Geographic expansion, particularly within the Asia Pacific region and the United States, presents avenues for revenue growth. The company's beta of 0.19 suggests relatively low volatility compared to the broader market, which may appeal to certain investor profiles. Strategic partnerships with resellers and distributors are crucial for extending market reach and customer acquisition, positioning Alarum to capitalize on the ongoing digital transformation across its target sectors, including finance, healthcare, and government.

Based on FMP financials and quantitative analysis

ALAR Key Highlights

Market Capitalization of $0.05 billion, indicating a small-cap technology company.

• P/E Ratio of 10.64, reflecting market expectations for future earnings growth.
• Gross Margin of 57.9%, demonstrating strong efficiency in its core software and service delivery.
• Profit Margin of 2.5%, indicating net profitability from its operations.
• Beta of 0.19, suggesting lower price volatility relative to the overall market.

Who Are ALAR's Competitors?

ALAR is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are ALAR's Key Strengths?

Comprehensive cybersecurity and privacy product suite, including Zero Trust solutions and diverse proxy services.

• Global operational presence across Israel, US, Hong Kong, and Asia Pacific.
• Strong gross margin of 57.9% indicating efficient service delivery.
• Serves a diversified client base across critical sectors like finance, healthcare, and government.

What Are ALAR's Weaknesses?

Relatively small market capitalization of $0.05 billion, potentially limiting access to capital for large-scale expansion.

• Profit margin of 2.5% suggests limited net profitability compared to gross margin.
• Small employee base (68 employees) may present challenges for rapid scaling and extensive R&D.
• High P/E ratio of 10.64 could imply high growth expectations that need to be consistently met.

What Could Drive ALAR Stock Higher?

ALAR catalyst: Increasing global cybersecurity threats and data privacy concerns continue to drive demand for Alarum's iShield and ZoneZero solutions.

• Persistent digital transformation initiatives across finance, healthcare, and government sectors are expanding the addressable market for the company's enterprise security offerings.
• Potential introduction of new features or significant updates to its Zero Trust Network Access (ZTNA) or proxy service platforms, enhancing competitive positioning.
• Formation of new strategic partnerships with major resellers or internet service providers to broaden distribution channels and market reach.

What Are the Key Risks for ALAR?

Financial-distress signal — its Altman Z-Score of -0.65 sits in the distress zone (elevated bankruptcy risk).

• Intense competition within the cybersecurity and proxy service markets from larger, well-capitalized global players.
• Rapid technological obsolescence in the cybersecurity landscape, necessitating continuous and significant investment in research and development.
• Adverse changes in international data privacy regulations or cybersecurity compliance standards, requiring costly adaptations to products and services.
• Dependence on third-party resellers, distributors, and internet service providers for market access and customer acquisition, which could impact sales if these relationships falter.
• Exposure to currency exchange rate fluctuations between the Israeli New Shekel and the U.S. Dollar, affecting the financial performance of the ADR.

What Are the Growth Opportunities for ALAR?

• **Expansion of Zero Trust Network Access Solutions:** The global adoption of Zero Trust security models is a significant growth driver. Alarum's ZoneZero SDP and MFA solutions are directly aligned with this trend, offering granular access control and centralized multi-factor authentication. Alarum can capitalize by enhancing its ZoneZero suite, integrating with broader enterprise security ecosystems, and targeting new enterprise clients in regulated industries, positioning itself as a key enabler of modern, robust security frameworks.
• **Increased Demand for Specialized Proxy Services:** The market for proxy networks is expanding due to rising needs for data collection, market research, ad verification, and enhanced online privacy for both businesses and individuals. Alarum's diverse proxy solutions, including static and dynamic residential proxies, data center proxies, and data collection APIs, position it to capture a share of this growing market. The demand for premium dedicated static residential proxies, offering stable and unique IP addresses, is particularly strong among businesses requiring consistent online identities. Strategic marketing and partnerships can extend the reach of these services to a broader range of commercial and online companies, leveraging the increasing value of accessible, reliable, and private online data.
• **Geographic Market Penetration and Strategic Partnerships:** Alarum currently operates in Israel, the United States, Hong Kong, and the Asia Pacific. There is substantial opportunity to deepen penetration within these existing markets and expand into new regions with high cybersecurity spending or emerging digital economies. By strengthening its network of resellers, distributors, and internet service providers, Alarum can significantly broaden its customer base without incurring extensive direct sales infrastructure costs. Focusing on regions with stringent data privacy regulations or high rates of cybercrime could yield significant growth, as these areas naturally require more robust solutions like iShield and ZoneZero, creating a clear pathway for market expansion.
• **Addressing Evolving Cyber Threats and Regulatory Compliance:** The cybersecurity landscape is in constant flux, with new threats emerging regularly. Alarum's ability to continuously update and enhance its iShield and ZoneZero offerings to counter sophisticated phishing, malware, and ransomware attacks is a critical growth opportunity. Furthermore, the increasing complexity of global data privacy regulations (e.g., GDPR, CCPA) mandates that organizations adopt advanced security and data exchange solutions. Alarum's SDE, designed to unify data exchange scenarios, and its Zero Trust solutions can be positioned as essential tools for achieving and maintaining compliance, thereby attracting clients seeking to navigate this complex regulatory environment and mitigate legal and reputational risks.
• **Leveraging AI and Machine Learning for Enhanced Security:** Integrating advanced artificial intelligence and machine learning capabilities into its cybersecurity products represents a significant future growth opportunity for Alarum. AI can enhance threat detection in iShield, improve the adaptive capabilities of ZoneZero SDP, and optimize proxy network performance. As cyber threats become more automated and sophisticated, AI-driven defenses are becoming indispensable. By investing in R&D to embed these technologies, Alarum can offer more proactive, intelligent, and efficient solutions, differentiating itself from competitors and attracting clients seeking cutting-edge protection. This strategic move can solidify its position as an innovator in the software infrastructure space.

What Threats Does ALAR Face?

• Intense competition from larger, more established cybersecurity and proxy service providers.
• Rapid technological advancements in cyber warfare requiring continuous and costly R&D.
• Evolving regulatory landscape for data privacy and cybersecurity, necessitating constant adaptation.
• Potential for economic downturns affecting enterprise IT spending.

What Are ALAR's Competitive Advantages?

• **Diversified Product Portfolio:** Offers a broad range of cybersecurity (iShield, ZoneZero) and privacy (proxy) solutions catering to both consumers and enterprises.
• **Zero Trust Expertise:** Specialization in Software Defined Perimeter (SDP) and Multi-Factor Authentication (MFA) based on Zero Trust principles, a critical and growing area of enterprise security.
• **Comprehensive Proxy Services:** Provides a unique suite of static, dynamic, residential, and data center proxy networks, including on-premise and dedicated IP options.
• **Global Reach:** Established presence in key international markets including the US, Asia Pacific, and Europe, enabling broader customer acquisition.

What Does ALAR Do?

Alarum Technologies Ltd., founded in 2013 and headquartered in Tel Aviv-Yafo, Israel, is a technology company dedicated to providing cybersecurity and privacy solutions to a broad spectrum of clients, including consumers and enterprises. The company operates across various international markets, notably Israel, the United States, Hong Kong, and the Asia Pacific region. Initially known as Safe-T Group Ltd., the company underwent a rebranding and officially changed its name to Alarum Technologies Ltd. in January 2023, signaling its evolving strategic focus. Alarum's comprehensive cybersecurity portfolio includes iShield, a cloud-based software designed to shield users from a wide array of online threats such as phishing, malware, and ransomware. For consumers, it offers AdBlocker, an iOS application aimed at providing an uninterrupted, ad-free internet experience. Enterprise-grade solutions are robust, featuring ZoneZero SDP (Software Defined Perimeter), which implements zero-trust network access principles to grant application access strictly on a need-to-know basis, thereby enhancing security posture. Complementing this is ZoneZero MFA, a solution that centralizes multi-factor authentication for various internal applications, strengthening access controls. Furthermore, the company provides SDE, a solution engineered to unify diverse data exchange scenarios within an organization, streamlining secure communication. Beyond cybersecurity, Alarum Technologies is a significant provider of Proxy solutions. This segment includes static and dynamic residential proxy network cloud services, data center proxy network cloud services, and data collection API cloud services, catering to various data intelligence and privacy needs. For clients preferring on-premise deployment, Proxy-in-a-Box offers a private proxy access network solution. Additionally, Premium dedicated static residential proxies are available, providing a unique, dedicated static IP for each user, ensuring enhanced anonymity and stability. The company distributes its extensive product and service offerings through a robust network of resellers, distributors, and internet service providers. Its diverse client base spans critical sectors such as finance, healthcare, and retail, alongside government agencies, commercial and online companies, and educational institutions, underscoring its broad applicability and market reach in safeguarding digital assets and privacy.

What Products and Services Does ALAR Offer?

• Provides iShield, a cloud-based cybersecurity software protecting against online threats like phishing, malware, and ransomware.
• Offers AdBlocker, an iOS application for an ad-free internet browsing experience for consumers.
• Delivers ZoneZero SDP, a Software Defined Perimeter solution implementing zero trust network access for enterprise applications.
• Supplies ZoneZero MFA, a centralized multi-factor authentication solution for internal applications.
• Develops SDE (Secure Data Exchange) to unify various data exchange scenarios within organizations.
• Offers a range of Proxy solutions, including static and dynamic residential, data center, and data collection API cloud services.
• Provides Proxy-in-a-Box, an on-premise private proxy access network solution for self-deployment.
• Creates Premium dedicated static residential proxies, offering unique, dedicated static IPs for users.

How Does ALAR Make Money?

• Generates revenue through subscriptions and licensing fees for its cybersecurity software (iShield, ZoneZero suite).
• Offers cloud-based service fees for its various proxy network solutions and data collection APIs.
• Sells on-premise solutions like Proxy-in-a-Box, likely involving upfront licensing and maintenance contracts.
• Utilizes a channel-centric distribution model, selling products through resellers, distributors, and internet service providers.

What Industry Does ALAR Operate In?

Alarum Technologies Ltd. is strategically positioned within the dynamic and critical Software - Infrastructure industry, specifically focusing on cybersecurity and privacy solutions. The global cybersecurity market continues to experience robust growth, driven by the escalating volume and sophistication of cyber threats, increased regulatory scrutiny around data protection, and the accelerating pace of digital transformation across all sectors. Enterprises and consumers alike face persistent challenges from phishing, malware, ransomware, and data breaches, creating an urgent demand for comprehensive protective measures. Alarum's offerings, such as iShield for threat protection and ZoneZero SDP for Zero Trust Network Access, directly address these pressing needs. The company also capitalizes on the growing market for privacy and data collection tools through its diverse proxy services. Within this competitive landscape, Alarum differentiates itself by offering a broad suite of solutions that cater to both individual users and large organizations, spanning critical sectors like finance, healthcare, and government, thereby securing its niche by providing essential digital infrastructure.

Who Are ALAR's Key Customers?

• Financial institutions requiring robust data security and privacy.
• Healthcare organizations needing to protect sensitive patient data and comply with regulations.
• Retail companies safeguarding customer information and online transactions.
• Government agencies seeking secure network access and data exchange solutions.
• Commercial and online companies utilizing proxy services for market intelligence and privacy.
• Educational institutions protecting student data and network integrity.

Company Profile

Alarum Technologies Ltd. operates in the Information Technology Services industry within the Technology sector. It is headquartered in Tel Aviv, IL. The company is led by CEO Shachar Daniel. ALAR has traded publicly since 2018.

Alarum Technologies Ltd. Financial Trajectory

Alarum Technologies Ltd. (ALAR) reported $11.7M in revenue for Q1 FY2026, a decline of 0.9% compared to the prior quarter. The company recorded net income of $593K, with diluted EPS of $0.10. Revenue has contracted over three consecutive quarters, which investors in this unknown Technology stock should monitor closely. Across the four most recent quarters, ALAR averaged $0.04 in diluted EPS.

How Alarum Technologies Ltd. Is Valued

Analyst price targets span from $27.00 to $27.00, with a consensus of $27.00. At the current price of $1.80, that implies approximately 1396% upside potential. Relative to its peer group, ALAR's quantitative score of 34/100 is below the peer average of 80/100.

Return on equity for Alarum Technologies Ltd. stands at 3.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.6%, showing how much profit it generates from its asset base. ALAR trades at a trailing price-to-earnings ratio of 10.64, below the Technology sector average of ~32.70x. A current ratio of 2.58 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 2.0%, the inverse of the P/E and a quick read on earnings relative to price.

Alarum Technologies Ltd.'s Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of -0.65 places it in the distress zone, a signal of elevated financial risk.

Alarum Technologies Ltd. has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 440.0% above estimates on average.

Over the past six months, Alarum Technologies Ltd. insiders filed 7 SEC Form 4 transactions — 0 sales and 7 purchases. On net that is roughly 700K shares acquired (about $0) — insiders putting money in tends to read as conviction.

ALAR Financials

ALAR Latest News

ALAR Analyst Consensus

ALAR MoonshotScore

Common Questions About ALAR (Technology)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources