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 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 could make ATEN a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year ATEN was profitable.
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
With an excellent Return On Assets value of 8.24%, ATEN belongs to the best of the industry, outperforming 82.98% of the companies in the same industry.
The Return On Equity of ATEN (25.50%) is better than 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 82.62% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ATEN is above the industry average of 12.28%.
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 Rank | Sector 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%
1.3 Margins
With an excellent Profit Margin value of 18.70%, ATEN belongs to the best of the industry, outperforming 86.17% of the companies in the same industry.
In the last couple of years the Profit Margin of ATEN has declined.
The Operating Margin of ATEN (17.16%) is better than 85.11% of its industry peers.
ATEN's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 80.01%, ATEN belongs to the best of the industry, outperforming 80.14% 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 | 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%
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.
2.2 Solvency
ATEN has an Altman-Z score of 3.09. This indicates that ATEN is financially healthy and has little risk of bankruptcy at the moment.
ATEN's Altman-Z score of 3.09 is in line compared to the rest of the industry. ATEN outperforms 58.16% of its industry peers.
ATEN has a debt to FCF ratio of 3.55. This is a good value and a sign of high solvency as ATEN would need 3.55 years to pay back of all of its debts.
The Debt to FCF ratio of ATEN (3.55) is better than 62.41% of its industry peers.
ATEN has a Debt/Equity ratio of 1.11. This is a high value indicating a heavy dependency on external financing.
ATEN's Debt to Equity ratio of 1.11 is on the low side compared to the rest of the industry. ATEN is outperformed by 74.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 3.09 |
ROIC/WACC0.76
WACC10.79%
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.
A Quick Ratio of 3.87 indicates that ATEN has no problem at all paying its short term obligations.
The Quick ratio of ATEN (3.87) is better than 82.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.05 | ||
| Quick Ratio | 3.87 |
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
Based on estimates for the next years, ATEN will show a small growth in Earnings Per Share. The EPS will grow by 5.97% on average per year.
The Revenue is expected to grow by 8.75% on average over the next years. This is quite good.
EPS Next Y0.63%
EPS Next 2Y7.14%
EPS Next 3Y5.97%
EPS Next 5YN/A
Revenue Next Year8.4%
Revenue Next 2Y7.97%
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.
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
Based on the Price/Earnings ratio of 20.29, the valuation of ATEN can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ATEN indicates a somewhat cheap valuation: ATEN is cheaper than 79.08% of the companies listed in the same industry.
ATEN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.41.
Based on the Price/Forward Earnings ratio of 18.29, the valuation of ATEN can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ATEN indicates a rather cheap valuation: ATEN is cheaper than 80.85% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.19. ATEN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.29 | ||
| Fwd PE | 18.29 |
4.2 Price Multiples
ATEN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ATEN is cheaper than 82.62% 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 79.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.43 | ||
| EV/EBITDA | 18.43 |
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)32.11
PEG (5Y)N/A
EPS Next 2Y7.14%
EPS Next 3Y5.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.27%, ATEN has a reasonable but not impressive dividend return.
ATEN's Dividend Yield is rather good when compared to the industry average which is at 24.07. ATEN pays more dividend than 93.62% of the companies in the same industry.
With a Dividend Yield of 1.27, ATEN pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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
35.55% of the earnings are spent on dividend by ATEN. This is a low number and sustainable payout ratio.
DP35.55%
EPS Next 2Y7.14%
EPS Next 3Y5.97%
18.26
-0.67 (-3.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners99.91%
Inst Owner Change0%
Ins Owners1.16%
Ins Owner Change1.74%
Market Cap1.32B
Analysts80
Price Target22.95 (25.68%)
Short Float %7.93%
Short Ratio6.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend0.24
Dividend Growth(5Y)N/A
DP35.55%
Div Incr Years0
Div Non Decr Years3
Ex-Date
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)0%
PT rev (3m)-1.1%
EPS NQ rev (1m)1.12%
EPS NQ rev (3m)4.01%
EPS NY rev (1m)0.27%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.29 | ||
| Fwd PE | 18.29 | ||
| P/S | 4.93 | ||
| P/FCF | 21.43 | ||
| P/OCF | 17.49 | ||
| P/B | 6.72 | ||
| P/tB | 7.66 | ||
| EV/EBITDA | 18.43 |
EPS(TTM)0.9
EY4.93%
EPS(NY)1
Fwd EY5.47%
FCF(TTM)0.85
FCFY4.67%
OCF(TTM)1.04
OCFY5.72%
SpS3.71
BVpS2.72
TBVpS2.38
PEG (NY)32.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.09 |
F-Score5
WACC10.79%
ROIC/WACC0.76
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 Year8.4%
Revenue Next 2Y7.97%
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