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A10 NETWORKS INC (ATEN) Stock Fundamental Analysis

NYSE:ATEN - New York Stock Exchange, Inc. - US0021211018 - Common Stock - Currency: USD

18.17  +0.42 (+2.37%)

After market: 18.17 0 (0%)

Fundamental Rating

7

Overall ATEN gets a fundamental rating of 7 out of 10. We evaluated ATEN against 282 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 is not valued too expensively and it also shows a decent growth rate. These ratings would make ATEN suitable for quality investing!


Dividend Valuation Growth Profitability Health

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9

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.
ATEN had positive earnings in each of the past 5 years.
ATEN had a positive operating cash flow in each of the past 5 years.
ATEN Yearly Net Income VS EBIT VS OCF VS FCFATEN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M 40M -40M 60M 80M

1.2 Ratios

ATEN has a better Return On Assets (8.24%) than 82.27% of its industry peers.
ATEN has a Return On Equity of 25.50%. This is amongst the best in the industry. ATEN outperforms 89.36% of its industry peers.
With an excellent Return On Invested Capital value of 8.25%, ATEN belongs to the best of the industry, outperforming 82.98% 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 12.11%.
The last Return On Invested Capital (8.25%) 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 RankSector Rank
ROA 8.24%
ROE 25.5%
ROIC 8.25%
ROA(3y)11.52%
ROA(5y)12.96%
ROE(3y)22.26%
ROE(5y)25.51%
ROIC(3y)14.57%
ROIC(5y)12.6%
ATEN Yearly ROA, ROE, ROICATEN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40

1.3 Margins

ATEN's Profit Margin of 18.70% is amongst the best of the industry. ATEN outperforms 86.17% of its industry peers.
In the last couple of years the Profit Margin of ATEN has declined.
With an excellent Operating Margin value of 17.16%, ATEN belongs to the best of the industry, outperforming 85.46% of the companies in the same industry.
ATEN's Operating Margin has improved in the last couple of years.
ATEN has a better Gross Margin (80.01%) than 80.50% of its industry peers.
ATEN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 17.16%
PM (TTM) 18.7%
GM 80.01%
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%
ATEN Yearly Profit, Operating, Gross MarginsATEN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60 80

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7

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.
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.
ATEN Yearly Shares OutstandingATEN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
ATEN Yearly Total Debt VS Total AssetsATEN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

2.2 Solvency

ATEN has an Altman-Z score of 3.08. This indicates that ATEN is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.08, ATEN perfoms like the industry average, outperforming 59.93% of the companies in the same industry.
The Debt to FCF ratio of ATEN is 3.55, which is a good value as it means it would take ATEN, 3.55 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.55, ATEN is doing good in the industry, outperforming 62.41% of the companies in the same industry.
A Debt/Equity ratio of 1.11 is on the high side and indicates that ATEN has dependencies on debt financing.
The Debt to Equity ratio of ATEN (1.11) is worse than 74.47% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.11
Debt/FCF 3.55
Altman-Z 3.08
ROIC/WACC0.81
WACC10.25%
ATEN Yearly LT Debt VS Equity VS FCFATEN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M 200M

2.3 Liquidity

A Current Ratio of 4.05 indicates that ATEN has no problem at all paying its short term obligations.
The Current ratio of ATEN (4.05) is better than 83.69% of its industry peers.
ATEN has a Quick Ratio of 3.87. This indicates that ATEN is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 3.87, ATEN belongs to the best of the industry, outperforming 82.27% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 4.05
Quick Ratio 3.87
ATEN Yearly Current Assets VS Current LiabilitesATEN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

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5

3. Growth

3.1 Past

ATEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.88%, which is quite good.
The Earnings Per Share has been growing by 11.95% on average over the past years. This is quite good.
ATEN shows a small growth in Revenue. In the last year, the Revenue has grown by 4.89%.
ATEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.24% yearly.
EPS 1Y (TTM)16.88%
EPS 3Y11.95%
EPS 5YN/A
EPS Q2Q%17.65%
Revenue 1Y (TTM)4.89%
Revenue growth 3Y1.54%
Revenue growth 5Y4.24%
Sales Q2Q%9%

3.2 Future

The Earnings Per Share is expected to grow by 5.97% 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 Y0.63%
EPS Next 2Y7.14%
EPS Next 3Y5.97%
EPS Next 5YN/A
Revenue Next Year8.37%
Revenue Next 2Y7.9%
Revenue Next 3Y7.42%
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.
ATEN Yearly Revenue VS EstimatesATEN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 100M 200M 300M 400M 500M
ATEN Yearly EPS VS EstimatesATEN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.5 1

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5

4. Valuation

4.1 Price/Earnings Ratio

ATEN is valuated rather expensively with a Price/Earnings ratio of 20.19.
ATEN's Price/Earnings ratio is a bit cheaper when compared to the industry. ATEN is cheaper than 77.66% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.24, ATEN is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 18.20, the valuation of ATEN can be described as rather expensive.
ATEN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ATEN is cheaper than 78.72% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.42, ATEN is valued rather cheaply.
Industry RankSector Rank
PE 20.19
Fwd PE 18.2
ATEN Price Earnings VS Forward Price EarningsATEN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ATEN is valued cheaper than 83.33% of the companies in the same industry.
ATEN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ATEN is cheaper than 79.08% of the companies in the same industry.
Industry RankSector Rank
P/FCF 21.33
EV/EBITDA 18.32
ATEN Per share dataATEN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3

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)31.95
PEG (5Y)N/A
EPS Next 2Y7.14%
EPS Next 3Y5.97%

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4

5. Dividend

5.1 Amount

ATEN has a Yearly Dividend Yield of 1.30%.
ATEN's Dividend Yield is rather good when compared to the industry average which is at 35.29. ATEN pays more dividend than 93.62% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, ATEN's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.3%

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
ATEN Yearly Dividends per shareATEN Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 2025 0.05 0.1 0.15 0.2

5.3 Sustainability

ATEN pays out 35.55% of its income as dividend. This is a sustainable payout ratio.
DP35.55%
EPS Next 2Y7.14%
EPS Next 3Y5.97%
ATEN Yearly Income VS Free CF VS DividendATEN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M 40M -40M 60M 80M
ATEN Dividend Payout.ATEN Dividend Payout, showing the Payout Ratio.ATEN Dividend Payout.PayoutRetained Earnings

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A10 NETWORKS INC

NYSE:ATEN (8/4/2025, 8:04:00 PM)

After market: 18.17 0 (0%)

18.17

+0.42 (+2.37%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-01 2025-05-01/amc
Earnings (Next)08-05 2025-08-05/amc
Inst Owners99.91%
Inst Owner Change-0.65%
Ins Owners1.16%
Ins Owner Change1.82%
Market Cap1.31B
Analysts80
Price Target22.44 (23.5%)
Short Float %8.5%
Short Ratio7.72
Dividend
Industry RankSector Rank
Dividend Yield 1.3%
Yearly Dividend0.24
Dividend Growth(5Y)N/A
DP35.55%
Div Incr Years0
Div Non Decr Years3
Ex-Date05-15 2025-05-15 (0.06)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.54%
Min EPS beat(2)8.03%
Max EPS beat(2)37.06%
EPS beat(4)4
Avg EPS beat(4)13.76%
Min EPS beat(4)2.3%
Max EPS beat(4)37.06%
EPS beat(8)7
Avg EPS beat(8)9.46%
EPS beat(12)9
Avg EPS beat(12)6.14%
EPS beat(16)13
Avg EPS beat(16)8.69%
Revenue beat(2)2
Avg Revenue beat(2)1.53%
Min Revenue beat(2)1.27%
Max Revenue beat(2)1.78%
Revenue beat(4)3
Avg Revenue beat(4)-0.46%
Min Revenue beat(4)-7.47%
Max Revenue beat(4)2.58%
Revenue beat(8)4
Avg Revenue beat(8)-1.48%
Revenue beat(12)4
Avg Revenue beat(12)-1.26%
Revenue beat(16)8
Avg Revenue beat(16)-0.54%
PT rev (1m)-2.22%
PT rev (3m)-3.3%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)3.71%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)0.98%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.28%
Valuation
Industry RankSector Rank
PE 20.19
Fwd PE 18.2
P/S 4.9
P/FCF 21.33
P/OCF 17.4
P/B 6.69
P/tB 7.62
EV/EBITDA 18.32
EPS(TTM)0.9
EY4.95%
EPS(NY)1
Fwd EY5.5%
FCF(TTM)0.85
FCFY4.69%
OCF(TTM)1.04
OCFY5.75%
SpS3.71
BVpS2.72
TBVpS2.38
PEG (NY)31.95
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 8.24%
ROE 25.5%
ROCE 9.3%
ROIC 8.25%
ROICexc 29.67%
ROICexgc 35.98%
OM 17.16%
PM (TTM) 18.7%
GM 80.01%
FCFM 22.99%
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-Score5
Asset Turnover0.44
Health
Industry RankSector Rank
Debt/Equity 1.11
Debt/FCF 3.55
Debt/EBITDA 3.76
Cap/Depr 115.34%
Cap/Sales 5.18%
Interest Coverage 250
Cash Conversion 130.13%
Profit Quality 122.94%
Current Ratio 4.05
Quick Ratio 3.87
Altman-Z 3.08
F-Score5
WACC10.25%
ROIC/WACC0.81
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 Y0.63%
EPS Next 2Y7.14%
EPS Next 3Y5.97%
EPS Next 5YN/A
Revenue 1Y (TTM)4.89%
Revenue growth 3Y1.54%
Revenue growth 5Y4.24%
Sales Q2Q%9%
Revenue Next Year8.37%
Revenue Next 2Y7.9%
Revenue Next 3Y7.42%
Revenue Next 5Y8.75%
EBIT growth 1Y15.45%
EBIT growth 3Y9.6%
EBIT growth 5YN/A
EBIT Next Year36.44%
EBIT Next 3Y14.95%
EBIT Next 5Y23.11%
FCF growth 1Y57.47%
FCF growth 3Y20.3%
FCF growth 5YN/A
OCF growth 1Y52.52%
OCF growth 3Y21.78%
OCF growth 5YN/A