A10 NETWORKS INC (ATEN) Stock Fundamental Analysis
USA - NYSE:ATEN - US0021211018 - Common Stock
17.46 USD
+0.21 (+1.22%)
17.46 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to ATEN. ATEN was compared to 282 industry peers in the Software industry. ATEN gets an excellent profitability rating and is at the same time showing great financial health properties. ATEN has a correct valuation and a medium 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.
In the past 5 years ATEN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.39%, ATEN belongs to the top of the industry, outperforming 82.98% of the companies in the same industry.
ATEN has a Return On Equity of 25.01%. This is amongst the best in the industry. ATEN outperforms 89.01% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.57%, ATEN belongs to the top of the industry, outperforming 81.21% 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 11.88%.
The 3 year average ROIC (14.57%) for ATEN is well above the current ROIC(8.57%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.39% | ||
| ROE | 25.01% | ||
| ROIC | 8.57% |
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
With an excellent Profit Margin value of 18.46%, ATEN belongs to the best of the industry, outperforming 82.62% of the companies in the same industry.
ATEN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 17.45%, ATEN belongs to the top of the industry, outperforming 84.75% of the companies in the same industry.
In the last couple of years the Operating Margin of ATEN has grown nicely.
ATEN has a better Gross Margin (79.72%) than 80.85% of its industry peers.
ATEN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.45% | ||
| PM (TTM) | 18.46% | ||
| GM | 79.72% |
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
ATEN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ATEN has less shares outstanding than it did 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
An Altman-Z score of 3.06 indicates that ATEN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.06, ATEN is in line with its industry, outperforming 58.51% of the companies in the same industry.
The Debt to FCF ratio of ATEN is 3.09, which is a good value as it means it would take ATEN, 3.09 years of fcf income to pay off all of its debts.
ATEN's Debt to FCF ratio of 3.09 is fine compared to the rest of the industry. ATEN outperforms 63.48% of its industry peers.
A Debt/Equity ratio of 1.07 is on the high side and indicates that ATEN has dependencies on debt financing.
ATEN has a worse Debt to Equity ratio (1.07) than 75.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.09 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.77
WACC11.19%
2.3 Liquidity
ATEN has a Current Ratio of 4.23. 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 4.23, ATEN belongs to the top of the industry, outperforming 84.40% of the companies in the same industry.
ATEN has a Quick Ratio of 4.04. This indicates that ATEN is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of ATEN (4.04) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.23 | ||
| Quick Ratio | 4.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.37% over the past year.
Measured over the past years, ATEN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.95% on average per year.
ATEN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.04%.
The Revenue has been growing slightly by 4.24% on average over the past years.
EPS 1Y (TTM)22.37%
EPS 3Y11.95%
EPS 5YN/A
EPS Q2Q%16.67%
Revenue 1Y (TTM)11.04%
Revenue growth 3Y1.54%
Revenue growth 5Y4.24%
Sales Q2Q%15.45%
3.2 Future
The Earnings Per Share is expected to grow by 6.14% on average over the next years.
The Revenue is expected to grow by 8.75% on average over the next years. This is quite good.
EPS Next Y1.36%
EPS Next 2Y6.62%
EPS Next 3Y6.14%
EPS Next 5YN/A
Revenue Next Year9.36%
Revenue Next 2Y8.38%
Revenue Next 3Y8.2%
Revenue Next 5Y8.75%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 18.77, ATEN is valued on the expensive side.
ATEN's Price/Earnings ratio is a bit cheaper when compared to the industry. ATEN is cheaper than 79.08% of the companies in the same industry.
When comparing the Price/Earnings ratio of ATEN to the average of the S&P500 Index (27.40), we can say ATEN is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.65, which indicates a rather expensive current valuation of ATEN.
ATEN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ATEN is cheaper than 78.01% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ATEN to the average of the S&P500 Index (22.94), we can say ATEN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.77 | ||
| Fwd PE | 17.65 |
4.2 Price Multiples
ATEN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ATEN is cheaper than 82.98% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ATEN is valued cheaper than 82.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.83 | ||
| EV/EBITDA | 16.06 |
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.
The excellent profitability rating of ATEN may justify a higher PE ratio.
PEG (NY)13.85
PEG (5Y)N/A
EPS Next 2Y6.62%
EPS Next 3Y6.14%
5. Dividend
5.1 Amount
ATEN has a Yearly Dividend Yield of 1.31%.
Compared to an average industry Dividend Yield of 30.35, ATEN pays a better dividend. On top of this ATEN pays more dividend than 93.62% of the companies listed in the same industry.
With a Dividend Yield of 1.31, ATEN pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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
34.51% of the earnings are spent on dividend by ATEN. This is a low number and sustainable payout ratio.
DP34.51%
EPS Next 2Y6.62%
EPS Next 3Y6.14%
17.46
+0.21 (+1.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.21%
Inst Owner Change0.38%
Ins Owners1.16%
Ins Owner Change0.35%
Market Cap1.26B
Analysts81.54
Price Target23.46 (34.36%)
Short Float %8.33%
Short Ratio7.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend0.24
Dividend Growth(5Y)N/A
DP34.51%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.53%
Min EPS beat(2)3.03%
Max EPS beat(2)8.03%
EPS beat(4)4
Avg EPS beat(4)13.94%
Min EPS beat(4)3.03%
Max EPS beat(4)37.06%
EPS beat(8)7
Avg EPS beat(8)8.95%
EPS beat(12)9
Avg EPS beat(12)5.88%
EPS beat(16)13
Avg EPS beat(16)8.17%
Revenue beat(2)2
Avg Revenue beat(2)2.23%
Min Revenue beat(2)1.78%
Max Revenue beat(2)2.68%
Revenue beat(4)4
Avg Revenue beat(4)2.08%
Min Revenue beat(4)1.27%
Max Revenue beat(4)2.68%
Revenue beat(8)5
Avg Revenue beat(8)-1.03%
Revenue beat(12)5
Avg Revenue beat(12)-0.94%
Revenue beat(16)8
Avg Revenue beat(16)-0.53%
PT rev (1m)0%
PT rev (3m)2.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.49%
EPS NY rev (1m)0%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.77 | ||
| Fwd PE | 17.65 | ||
| P/S | 4.56 | ||
| P/FCF | 17.83 | ||
| P/OCF | 14.78 | ||
| P/B | 6.18 | ||
| P/tB | 6.98 | ||
| EV/EBITDA | 16.06 |
EPS(TTM)0.93
EY5.33%
EPS(NY)0.99
Fwd EY5.66%
FCF(TTM)0.98
FCFY5.61%
OCF(TTM)1.18
OCFY6.77%
SpS3.83
BVpS2.83
TBVpS2.5
PEG (NY)13.85
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.39% | ||
| ROE | 25.01% | ||
| ROCE | 9.65% | ||
| ROIC | 8.57% | ||
| ROICexc | 32.35% | ||
| ROICexgc | 39.32% | ||
| OM | 17.45% | ||
| PM (TTM) | 18.46% | ||
| GM | 79.72% | ||
| FCFM | 25.55% |
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 Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.09 | ||
| Debt/EBITDA | 3.57 | ||
| Cap/Depr | 113.43% | ||
| Cap/Sales | 5.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 139.51% | ||
| Profit Quality | 138.45% | ||
| Current Ratio | 4.23 | ||
| Quick Ratio | 4.04 | ||
| Altman-Z | 3.06 |
F-Score5
WACC11.19%
ROIC/WACC0.77
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)22.37%
EPS 3Y11.95%
EPS 5YN/A
EPS Q2Q%16.67%
EPS Next Y1.36%
EPS Next 2Y6.62%
EPS Next 3Y6.14%
EPS Next 5YN/A
Revenue 1Y (TTM)11.04%
Revenue growth 3Y1.54%
Revenue growth 5Y4.24%
Sales Q2Q%15.45%
Revenue Next Year9.36%
Revenue Next 2Y8.38%
Revenue Next 3Y8.2%
Revenue Next 5Y8.75%
EBIT growth 1Y36.45%
EBIT growth 3Y9.6%
EBIT growth 5YN/A
EBIT Next Year38.87%
EBIT Next 3Y16.28%
EBIT Next 5Y23.11%
FCF growth 1Y43.48%
FCF growth 3Y20.3%
FCF growth 5YN/A
OCF growth 1Y41.85%
OCF growth 3Y21.78%
OCF growth 5YN/A