A10 NETWORKS INC (ATEN) Stock Fundamental Analysis
NYSE:ATEN - New York Stock Exchange, Inc. - US0021211018 - Common Stock - Currency: USD
Taking everything into account, ATEN scores 7 out of 10 in our fundamental rating. ATEN was compared to 283 industry peers in the Software industry. ATEN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ATEN has a decent growth rate and is not valued too expensively. With these ratings, ATEN could be worth investigating further 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.
Each year in the past 5 years ATEN had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 11.58%, ATEN belongs to the best of the industry, outperforming 87.63% of the companies in the same industry.
ATEN's Return On Equity of 21.63% is amongst the best of the industry. ATEN outperforms 86.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.62%, ATEN belongs to the top of the industry, outperforming 90.46% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ATEN is in line with the industry average of 12.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.58% | ||
| ROE | 21.63% | ||
| ROIC | 12.62% |
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 better Profit Margin (19.16%) than 85.51% of its industry peers.
ATEN's Profit Margin has declined in the last couple of years.
ATEN has a Operating Margin of 16.80%. This is amongst the best in the industry. ATEN outperforms 84.81% of its industry peers.
In the last couple of years the Operating Margin of ATEN has grown nicely.
With an excellent Gross Margin value of 80.35%, ATEN belongs to the best of the industry, outperforming 82.69% of the companies in the same industry.
ATEN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.8% | ||
| PM (TTM) | 19.16% | ||
| GM | 80.35% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ATEN is still creating some value.
Compared to 1 year ago, ATEN has less shares outstanding
ATEN has less shares outstanding than it did 5 years ago.
There is no outstanding debt for ATEN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
ATEN has an Altman-Z score of 4.92. This indicates that ATEN is financially healthy and has little risk of bankruptcy at the moment.
ATEN has a better Altman-Z score (4.92) than 69.61% of its industry peers.
There is no outstanding debt for ATEN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.92 |
ROIC/WACC1.14
WACC11.08%
2.3 Liquidity
ATEN has a Current Ratio of 2.49. This indicates that ATEN is financially healthy and has no problem in meeting its short term obligations.
ATEN has a Current ratio of 2.49. This is in the better half of the industry: ATEN outperforms 69.61% of its industry peers.
A Quick Ratio of 2.31 indicates that ATEN has no problem at all paying its short term obligations.
ATEN has a better Quick ratio (2.31) than 68.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.49 | ||
| Quick Ratio | 2.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.88% 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 small growth in Revenue. The Revenue has grown by 3.97% in the last year.
The Revenue has been growing slightly by 4.24% on average over the past years.
EPS 1Y (TTM)16.88%
EPS 3Y11.95%
EPS 5YN/A
EPS Q2Q%17.65%
Revenue 1Y (TTM)3.97%
Revenue growth 3Y1.54%
Revenue growth 5Y4.24%
Sales Q2Q%9%
3.2 Future
The Earnings Per Share is expected to grow by 9.18% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.75% on average over the next years. This is quite good.
EPS Next Y0.36%
EPS Next 2Y7.34%
EPS Next 3Y9.18%
EPS Next 5YN/A
Revenue Next Year8.17%
Revenue Next 2Y7.97%
Revenue Next 3Y7.28%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.92, ATEN is valued on the expensive side.
Based on the Price/Earnings ratio, ATEN is valued a bit cheaper than the industry average as 79.51% of the companies are valued more expensively.
ATEN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.82.
The Price/Forward Earnings ratio is 16.99, which indicates a correct valuation of ATEN.
Based on the Price/Forward Earnings ratio, ATEN is valued a bit cheaper than 79.51% of the companies in the same industry.
ATEN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.92 | ||
| Fwd PE | 16.99 |
4.2 Price Multiples
ATEN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ATEN is cheaper than 83.75% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ATEN is valued cheaply inside the industry as 86.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.1 | ||
| EV/EBITDA | 17.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ATEN does not grow enough to justify the current Price/Earnings ratio.
ATEN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)52.76
PEG (5Y)N/A
EPS Next 2Y7.34%
EPS Next 3Y9.18%
5. Dividend
5.1 Amount
ATEN has a Yearly Dividend Yield of 1.37%.
ATEN's Dividend Yield is rather good when compared to the industry average which is at 14.37. ATEN pays more dividend than 94.35% of the companies in the same industry.
With a Dividend Yield of 1.37, ATEN pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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 Years2
Div Non Decr Years3
5.3 Sustainability
35.49% of the earnings are spent on dividend by ATEN. This is a low number and sustainable payout ratio.
DP35.49%
EPS Next 2Y7.34%
EPS Next 3Y9.18%
17.03
-0.09 (-0.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners93.83%
Inst Owner Change7.65%
Ins Owners0.85%
Ins Owner Change2.21%
Market Cap1.26B
Analysts78.33
Price Target22.95 (34.76%)
Short Float %7.49%
Short Ratio4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend0.24
Dividend Growth(5Y)N/A
DP35.49%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.35%
Min EPS beat(2)7.65%
Max EPS beat(2)37.06%
EPS beat(4)4
Avg EPS beat(4)14.53%
Min EPS beat(4)2.3%
Max EPS beat(4)37.06%
EPS beat(8)6
Avg EPS beat(8)7.67%
EPS beat(12)9
Avg EPS beat(12)7.25%
EPS beat(16)13
Avg EPS beat(16)8.81%
Revenue beat(2)2
Avg Revenue beat(2)1.93%
Min Revenue beat(2)1.27%
Max Revenue beat(2)2.58%
Revenue beat(4)3
Avg Revenue beat(4)-0.88%
Min Revenue beat(4)-7.47%
Max Revenue beat(4)2.58%
Revenue beat(8)3
Avg Revenue beat(8)-1.8%
Revenue beat(12)4
Avg Revenue beat(12)-1.34%
Revenue beat(16)7
Avg Revenue beat(16)-0.86%
PT rev (1m)-1.1%
PT rev (3m)12.5%
EPS NQ rev (1m)1.58%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.71%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.92 | ||
| Fwd PE | 16.99 | ||
| P/S | 4.81 | ||
| P/FCF | 16.1 | ||
| P/OCF | 13.92 | ||
| P/B | 5.43 | ||
| P/tB | 5.5 | ||
| EV/EBITDA | 17.55 |
EPS(TTM)0.9
EY5.28%
EPS(NY)1
Fwd EY5.89%
FCF(TTM)1.06
FCFY6.21%
OCF(TTM)1.22
OCFY7.19%
SpS3.54
BVpS3.13
TBVpS3.09
PEG (NY)52.76
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.58% | ||
| ROE | 21.63% | ||
| ROCE | 14.22% | ||
| ROIC | 12.62% | ||
| ROICexc | 34.34% | ||
| ROICexgc | 35.27% | ||
| OM | 16.8% | ||
| PM (TTM) | 19.16% | ||
| GM | 80.35% | ||
| FCFM | 29.89% |
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%
ROICexcg growth 3Y2.56%
ROICexcg 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-Score7
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 108.63% | ||
| Cap/Sales | 4.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 163.75% | ||
| Profit Quality | 156.01% | ||
| Current Ratio | 2.49 | ||
| Quick Ratio | 2.31 | ||
| Altman-Z | 4.92 |
F-Score7
WACC11.08%
ROIC/WACC1.14
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)16.88%
EPS 3Y11.95%
EPS 5YN/A
EPS Q2Q%17.65%
EPS Next Y0.36%
EPS Next 2Y7.34%
EPS Next 3Y9.18%
EPS Next 5YN/A
Revenue 1Y (TTM)3.97%
Revenue growth 3Y1.54%
Revenue growth 5Y4.24%
Sales Q2Q%9%
Revenue Next Year8.17%
Revenue Next 2Y7.97%
Revenue Next 3Y7.28%
Revenue Next 5Y8.75%
EBIT growth 1Y13.74%
EBIT growth 3Y9.6%
EBIT growth 5YN/A
EBIT Next Year36.97%
EBIT Next 3Y23.77%
EBIT Next 5Y23.11%
FCF growth 1Y132.69%
FCF growth 3Y20.3%
FCF growth 5YN/A
OCF growth 1Y103.29%
OCF growth 3Y21.78%
OCF growth 5YN/A