A10 NETWORKS INC (ATEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATEN - US0021211018 - Common Stock
17.58 USD
+0.18 (+1.03%)
17.58 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to ATEN. ATEN was compared to 276 industry peers in the Software industry. ATEN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
- In the past year ATEN had a positive cash flow from operations.
- ATEN had positive earnings in each of the past 5 years.
- Each year in the past 5 years ATEN had a positive operating cash flow.
1.2 Ratios
- ATEN has a better Return On Assets (8.11%) than 80.43% of its industry peers.
- ATEN's Return On Equity of 24.38% is amongst the best of the industry. ATEN outperforms 90.58% of its industry peers.
- The Return On Invested Capital of ATEN (9.10%) is better than 81.88% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ATEN is above the industry average of 10.78%.
- 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
- The Profit Margin of ATEN (17.68%) is better than 80.07% 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 84.42% of its industry peers.
- ATEN's Operating Margin has improved in the last couple of years.
- The Gross Margin of ATEN (79.66%) is better than 80.07% 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.
- 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
- ATEN has an Altman-Z score of 3.02. This indicates that ATEN is financially healthy and has little risk of bankruptcy at the moment.
- ATEN has a better Altman-Z score (3.02) than 61.23% 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.
- Looking at the Debt to FCF ratio, with a value of 3.05, ATEN is in the better half of the industry, outperforming 64.13% of the companies in the same industry.
- ATEN has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
- ATEN's Debt to Equity ratio of 1.06 is on the low side compared to the rest of the industry. ATEN is outperformed by 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 3.02 |
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.
- ATEN's Current ratio of 3.64 is fine compared to the rest of the industry. ATEN outperforms 79.71% of its industry peers.
- A Quick Ratio of 3.49 indicates that ATEN has no problem at all paying its short term obligations.
- ATEN has a Quick ratio of 3.49. This is in the better half of the industry: ATEN outperforms 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.64 | ||
| Quick Ratio | 3.49 |
3. Growth
3.1 Past
- ATEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.28%, which is quite good.
- 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.
- 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
- Based on estimates for the next years, ATEN will show a small growth in Earnings Per Share. The EPS will grow by 7.33% on average per year.
- 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 Y3.02%
EPS Next 2Y5.27%
EPS Next 3Y7.33%
EPS Next 5YN/A
Revenue Next Year11.18%
Revenue Next 2Y9.63%
Revenue Next 3Y8.84%
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
- A Price/Earnings ratio of 18.51 indicates a rather expensive valuation of ATEN.
- Based on the Price/Earnings ratio, ATEN is valued a bit cheaper than the industry average as 76.45% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.54, ATEN is valued a bit cheaper.
- ATEN is valuated rather expensively with a Price/Forward Earnings ratio of 18.24.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ATEN indicates a somewhat cheap valuation: ATEN is cheaper than 76.09% of the companies listed in the same industry.
- ATEN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.51 | ||
| Fwd PE | 18.24 |
4.2 Price Multiples
- 84.78% of the companies in the same industry are more expensive than ATEN, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, ATEN is valued cheaper than 82.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.61 | ||
| EV/EBITDA | 12.68 |
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)6.13
PEG (5Y)N/A
EPS Next 2Y5.27%
EPS Next 3Y7.33%
5. Dividend
5.1 Amount
- ATEN has a Yearly Dividend Yield of 1.39%.
- ATEN's Dividend Yield is rather good when compared to the industry average which is at 0.52. ATEN pays more dividend than 93.84% of the companies in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.92, ATEN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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 2Y5.27%
EPS Next 3Y7.33%
17.58
+0.18 (+1.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-04 2025-11-04/amc
Earnings (Next)02-04 2026-02-04/amc
Inst Owners100.09%
Inst Owner Change-0.31%
Ins Owners1.17%
Ins Owner Change0.13%
Market Cap1.26B
Revenue(TTM)284.41M
Net Income(TTM)50.27M
Analysts81.54
Price Target23.63 (34.41%)
Short Float %7.9%
Short Ratio8.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend0.24
Dividend Growth(5Y)N/A
DP35.95%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
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%
PT rev (3m)0.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.54%
EPS NY rev (1m)0%
EPS NY rev (3m)1.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.51 | ||
| Fwd PE | 18.24 | ||
| P/S | 4.43 | ||
| P/FCF | 17.61 | ||
| P/OCF | 14.46 | ||
| P/B | 6.12 | ||
| P/tB | 6.89 | ||
| EV/EBITDA | 12.68 |
EPS(TTM)0.95
EY5.4%
EPS(NY)0.96
Fwd EY5.48%
FCF(TTM)1
FCFY5.68%
OCF(TTM)1.22
OCFY6.91%
SpS3.96
BVpS2.87
TBVpS2.55
PEG (NY)6.13
PEG (5Y)N/A
Graham Number7.84
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 | 3.02 |
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 Y3.02%
EPS Next 2Y5.27%
EPS Next 3Y7.33%
EPS Next 5YN/A
Revenue 1Y (TTM)10.27%
Revenue growth 3Y1.54%
Revenue growth 5Y4.24%
Sales Q2Q%11.93%
Revenue Next Year11.18%
Revenue Next 2Y9.63%
Revenue Next 3Y8.84%
Revenue Next 5Y8.75%
EBIT growth 1Y16.79%
EBIT growth 3Y9.6%
EBIT growth 5YN/A
EBIT Next Year43.89%
EBIT Next 3Y20.96%
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.
What is the valuation status of A10 NETWORKS INC (ATEN) stock?
ChartMill assigns a valuation rating of 5 / 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.
Can you provide the expected EPS growth for ATEN stock?
The Earnings per Share (EPS) of A10 NETWORKS INC (ATEN) is expected to grow by 3.02% in the next year.
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%.