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ALAR (Alarum Technologies) Piotroski F-Score : 6 (As of Dec. 12, 2024)


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What is Alarum Technologies Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Alarum Technologies has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Alarum Technologies's Piotroski F-Score or its related term are showing as below:

ALAR' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 4   Max: 6
Current: 6

During the past 10 years, the highest Piotroski F-Score of Alarum Technologies was 6. The lowest was 2. And the median was 4.


Alarum Technologies Piotroski F-Score Historical Data

The historical data trend for Alarum Technologies's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Alarum Technologies Piotroski F-Score Chart

Alarum Technologies Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.00 5.00 4.00 4.00 6.00

Alarum Technologies Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 6.00 - - -

Competitive Comparison of Alarum Technologies's Piotroski F-Score

For the Software - Infrastructure subindustry, Alarum Technologies's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Alarum Technologies's Piotroski F-Score Distribution in the Software Industry

For the Software industry and Technology sector, Alarum Technologies's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Alarum Technologies's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was $-5.53 Mil.
Cash Flow from Operations was $4.73 Mil.
Revenue was $26.52 Mil.
Gross Profit was $18.81 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was (22.371 + 20.066) / 2 = $21.2185 Mil.
Total Assets at the begining of this year (Dec22) was $22.37 Mil.
Long-Term Debt & Capital Lease Obligation was $1.33 Mil.
Total Current Assets was $13.27 Mil.
Total Current Liabilities was $5.56 Mil.
Net Income was $-13.15 Mil.

Revenue was $18.55 Mil.
Gross Profit was $10.15 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was (30.654 + 22.371) / 2 = $26.5125 Mil.
Total Assets at the begining of last year (Dec21) was $30.65 Mil.
Long-Term Debt & Capital Lease Obligation was $0.62 Mil.
Total Current Assets was $6.40 Mil.
Total Current Liabilities was $8.14 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Alarum Technologies's current Net Income (TTM) was -5.53. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Alarum Technologies's current Cash Flow from Operations (TTM) was 4.73. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec22)
=-5.525/22.371
=-0.24697153

ROA (Last Year)=Net Income/Total Assets (Dec21)
=-13.151/30.654
=-0.42901416

Alarum Technologies's return on assets of this year was -0.24697153. Alarum Technologies's return on assets of last year was -0.42901416. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Alarum Technologies's current Net Income (TTM) was -5.53. Alarum Technologies's current Cash Flow from Operations (TTM) was 4.73. ==> 4.73 > -5.53 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=1.325/21.2185
=0.06244551

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=0.619/26.5125
=0.02334748

Alarum Technologies's gearing of this year was 0.06244551. Alarum Technologies's gearing of last year was 0.02334748. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec23)=Total Current Assets/Total Current Liabilities
=13.265/5.56
=2.38579137

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=6.4/8.14
=0.78624079

Alarum Technologies's current ratio of this year was 2.38579137. Alarum Technologies's current ratio of last year was 0.78624079. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Alarum Technologies's number of shares in issue this year was 4.144. Alarum Technologies's number of shares in issue last year was 3.159. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=18.81/26.521
=0.70924927

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=10.148/18.55
=0.54706199

Alarum Technologies's gross margin of this year was 0.70924927. Alarum Technologies's gross margin of last year was 0.54706199. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec22)
=26.521/22.371
=1.18550802

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=18.55/30.654
=0.60514125

Alarum Technologies's asset turnover of this year was 1.18550802. Alarum Technologies's asset turnover of last year was 0.60514125. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+1+1+0+1+0+1+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Alarum Technologies has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Alarum Technologies  (NAS:ALAR) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Alarum Technologies Piotroski F-Score Related Terms

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Alarum Technologies Business Description

Traded in Other Exchanges
Address
30 Haarba’a Street, P.O. Box 174, Tel Aviv, ISR, 6473926
Alarum Technologies Ltd is a company engaged in the information security business. The company has two Internet access segments which include Enterprise Internet Access and Consumer Internet Access. Its Enterprise Internet Access offers web data collection and a private Internet browsing platform and Consumer Internet Access provides solutions for secure and private Internet browsing. Geographically, the company has a presence in the UK Virgin Islands, Israel, Europe, APAC, MEA, Hong Kong, the USA, and others, and generates a majority of its revenue from the APAC followed by the United States.