A10 NETWORKS INC (ATEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATEN - US0021211018 - Common Stock
16.84 USD
0 (0%)
16.84 USD
0 (0%)
ATEN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 280 industry peers in the Software industry. Both the health and profitability get an excellent rating, making ATEN a very profitable company, without any liquidiy or solvency issues. ATEN is not valued too expensively and it also shows a decent growth rate. These ratings would make ATEN suitable for quality investing!
1. Profitability
1.1 Basic Checks
ATEN had positive earnings in the past year.
ATEN had a positive operating cash flow in the past year.
In the past 5 years ATEN has always been profitable.
ATEN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ATEN has a Return On Assets of 8.11%. This is amongst the best in the industry. ATEN outperforms 80.36% of its industry peers.
ATEN's Return On Equity of 24.38% is amongst the best of the industry. ATEN outperforms 90.00% of its industry peers.
With an excellent Return On Invested Capital value of 9.10%, ATEN belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ATEN is above the industry average of 11.97%.
The last Return On Invested Capital (9.10%) for ATEN is well below the 3 year average (14.57%), which needs to be investigated, but indicates that ATEN had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.11% | ||
| ROE | 24.38% | ||
| ROIC | 9.1% |
ROA(3y)11.52%
ROA(5y)12.96%
ROE(3y)22.26%
ROE(5y)25.51%
ROIC(3y)14.57%
ROIC(5y)12.6%
1.3 Margins
ATEN has a Profit Margin of 17.68%. This is amongst the best in the industry. ATEN outperforms 81.43% of its industry peers.
In the last couple of years the Profit Margin of ATEN has declined.
ATEN's Operating Margin of 17.72% is amongst the best of the industry. ATEN outperforms 84.64% of its industry peers.
In the last couple of years the Operating Margin of ATEN has grown nicely.
The Gross Margin of ATEN (79.66%) is better than 80.36% of its industry peers.
In the last couple of years the Gross Margin of ATEN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.72% | ||
| PM (TTM) | 17.68% | ||
| GM | 79.66% |
OM growth 3Y7.94%
OM growth 5YN/A
PM growth 3Y-20.38%
PM growth 5YN/A
GM growth 3Y0.74%
GM growth 5Y0.86%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ATEN is creating some value.
The number of shares outstanding for ATEN has been reduced compared to 1 year ago.
The number of shares outstanding for ATEN has been reduced compared to 5 years ago.
ATEN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
ATEN has an Altman-Z score of 2.97. This is not the best score and indicates that ATEN is in the grey zone with still only limited risk for bankruptcy at the moment.
ATEN's Altman-Z score of 2.97 is in line compared to the rest of the industry. ATEN outperforms 60.00% of its industry peers.
The Debt to FCF ratio of ATEN is 3.05, which is a good value as it means it would take ATEN, 3.05 years of fcf income to pay off all of its debts.
ATEN's Debt to FCF ratio of 3.05 is fine compared to the rest of the industry. ATEN outperforms 64.64% of its industry peers.
ATEN has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.06, ATEN is not doing good in the industry: 77.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 2.97 |
ROIC/WACC0.83
WACC10.99%
2.3 Liquidity
ATEN has a Current Ratio of 3.64. This indicates that ATEN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.64, ATEN belongs to the top of the industry, outperforming 80.71% of the companies in the same industry.
ATEN has a Quick Ratio of 3.49. This indicates that ATEN is financially healthy and has no problem in meeting its short term obligations.
ATEN has a Quick ratio of 3.49. This is amongst the best in the industry. ATEN outperforms 80.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.64 | ||
| Quick Ratio | 3.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.28% over the past year.
ATEN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.95% yearly.
Looking at the last year, ATEN shows a quite strong growth in Revenue. The Revenue has grown by 10.27% in the last year.
ATEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.24% yearly.
EPS 1Y (TTM)17.28%
EPS 3Y11.95%
EPS 5YN/A
EPS Q2Q%9.52%
Revenue 1Y (TTM)10.27%
Revenue growth 3Y1.54%
Revenue growth 5Y4.24%
Sales Q2Q%11.93%
3.2 Future
The Earnings Per Share is expected to grow by 6.67% on average over the next years.
Based on estimates for the next years, ATEN will show a quite strong growth in Revenue. The Revenue will grow by 8.75% on average per year.
EPS Next Y1.36%
EPS Next 2Y6.62%
EPS Next 3Y6.67%
EPS Next 5YN/A
Revenue Next Year9.36%
Revenue Next 2Y8.38%
Revenue Next 3Y8.06%
Revenue Next 5Y8.75%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.73, ATEN is valued on the expensive side.
76.07% of the companies in the same industry are more expensive than ATEN, based on the Price/Earnings ratio.
ATEN is valuated rather cheaply when we compare the Price/Earnings ratio to 25.65, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.03 indicates a rather expensive valuation of ATEN.
Based on the Price/Forward Earnings ratio, ATEN is valued a bit cheaper than 77.14% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.45, ATEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.73 | ||
| Fwd PE | 17.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATEN is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ATEN is valued cheaper than 81.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.97 | ||
| EV/EBITDA | 12.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ATEN may justify a higher PE ratio.
PEG (NY)13.08
PEG (5Y)N/A
EPS Next 2Y6.62%
EPS Next 3Y6.67%
5. Dividend
5.1 Amount
ATEN has a Yearly Dividend Yield of 1.44%.
Compared to an average industry Dividend Yield of 51.75, ATEN pays a better dividend. On top of this ATEN pays more dividend than 93.21% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, ATEN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
ATEN has been paying a dividend for over 5 years, so it has already some track record.
ATEN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
ATEN pays out 35.95% of its income as dividend. This is a sustainable payout ratio.
DP35.95%
EPS Next 2Y6.62%
EPS Next 3Y6.67%
16.84
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.21%
Inst Owner Change1.64%
Ins Owners1.16%
Ins Owner Change0.17%
Market Cap1.22B
Revenue(TTM)284.41M
Net Income(TTM)50.27M
Analysts81.54
Price Target23.63 (40.32%)
Short Float %9.2%
Short Ratio10.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
Yearly Dividend0.24
Dividend Growth(5Y)N/A
DP35.95%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.73%
Min EPS beat(2)3.03%
Max EPS beat(2)6.43%
EPS beat(4)4
Avg EPS beat(4)13.64%
Min EPS beat(4)3.03%
Max EPS beat(4)37.06%
EPS beat(8)7
Avg EPS beat(8)8.71%
EPS beat(12)10
Avg EPS beat(12)7.01%
EPS beat(16)13
Avg EPS beat(16)7.39%
Revenue beat(2)2
Avg Revenue beat(2)3.12%
Min Revenue beat(2)2.68%
Max Revenue beat(2)3.55%
Revenue beat(4)4
Avg Revenue beat(4)2.32%
Min Revenue beat(4)1.27%
Max Revenue beat(4)3.55%
Revenue beat(8)6
Avg Revenue beat(8)-0.4%
Revenue beat(12)6
Avg Revenue beat(12)-0.54%
Revenue beat(16)8
Avg Revenue beat(16)-0.46%
PT rev (1m)0.72%
PT rev (3m)1.46%
EPS NQ rev (1m)-0.64%
EPS NQ rev (3m)0.31%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.99%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.73 | ||
| Fwd PE | 17.03 | ||
| P/S | 4.27 | ||
| P/FCF | 16.97 | ||
| P/OCF | 13.94 | ||
| P/B | 5.89 | ||
| P/tB | 6.63 | ||
| EV/EBITDA | 12.16 |
EPS(TTM)0.95
EY5.64%
EPS(NY)0.99
Fwd EY5.87%
FCF(TTM)0.99
FCFY5.89%
OCF(TTM)1.21
OCFY7.18%
SpS3.94
BVpS2.86
TBVpS2.54
PEG (NY)13.08
PEG (5Y)N/A
Graham Number7.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.11% | ||
| ROE | 24.38% | ||
| ROCE | 10.25% | ||
| ROIC | 9.1% | ||
| ROICexc | 37.11% | ||
| ROICexgc | 45.89% | ||
| OM | 17.72% | ||
| PM (TTM) | 17.68% | ||
| GM | 79.66% | ||
| FCFM | 25.18% |
ROA(3y)11.52%
ROA(5y)12.96%
ROE(3y)22.26%
ROE(5y)25.51%
ROIC(3y)14.57%
ROIC(5y)12.6%
ROICexc(3y)36.75%
ROICexc(5y)41.17%
ROICexgc(3y)37.38%
ROICexgc(5y)42.87%
ROCE(3y)16.42%
ROCE(5y)14.2%
ROICexgc growth 3Y2.56%
ROICexgc growth 5YN/A
ROICexc growth 3Y2.13%
ROICexc growth 5YN/A
OM growth 3Y7.94%
OM growth 5YN/A
PM growth 3Y-20.38%
PM growth 5YN/A
GM growth 3Y0.74%
GM growth 5Y0.86%
F-Score5
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.05 | ||
| Debt/EBITDA | 3.41 | ||
| Cap/Depr | 114.3% | ||
| Cap/Sales | 5.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 136.21% | ||
| Profit Quality | 142.45% | ||
| Current Ratio | 3.64 | ||
| Quick Ratio | 3.49 | ||
| Altman-Z | 2.97 |
F-Score5
WACC10.99%
ROIC/WACC0.83
Cap/Depr(3y)123.85%
Cap/Depr(5y)92.22%
Cap/Sales(3y)4.29%
Cap/Sales(5y)3.3%
Profit Quality(3y)119.34%
Profit Quality(5y)139.2%
High Growth Momentum
Growth
EPS 1Y (TTM)17.28%
EPS 3Y11.95%
EPS 5YN/A
EPS Q2Q%9.52%
EPS Next Y1.36%
EPS Next 2Y6.62%
EPS Next 3Y6.67%
EPS Next 5YN/A
Revenue 1Y (TTM)10.27%
Revenue growth 3Y1.54%
Revenue growth 5Y4.24%
Sales Q2Q%11.93%
Revenue Next Year9.36%
Revenue Next 2Y8.38%
Revenue Next 3Y8.06%
Revenue Next 5Y8.75%
EBIT growth 1Y16.79%
EBIT growth 3Y9.6%
EBIT growth 5YN/A
EBIT Next Year38.87%
EBIT Next 3Y16.28%
EBIT Next 5Y23.11%
FCF growth 1Y21.75%
FCF growth 3Y20.3%
FCF growth 5YN/A
OCF growth 1Y26.16%
OCF growth 3Y21.78%
OCF growth 5YN/A
A10 NETWORKS INC / ATEN FAQ
What is the ChartMill fundamental rating of A10 NETWORKS INC (ATEN) stock?
ChartMill assigns a fundamental rating of 7 / 10 to ATEN.
Can you provide the valuation status for A10 NETWORKS INC?
ChartMill assigns a valuation rating of 6 / 10 to A10 NETWORKS INC (ATEN). This can be considered as Fairly Valued.
What is the profitability of ATEN stock?
A10 NETWORKS INC (ATEN) has a profitability rating of 9 / 10.
How financially healthy is A10 NETWORKS INC?
The financial health rating of A10 NETWORKS INC (ATEN) is 7 / 10.
Is the dividend of A10 NETWORKS INC sustainable?
The dividend rating of A10 NETWORKS INC (ATEN) is 4 / 10 and the dividend payout ratio is 35.95%.