A10 NETWORKS INC (ATEN) Stock Fundamental Analysis
NYSE:ATEN - US0021211018 - Common Stock
17.45 USD
+0.22 (+1.28%)
17.45 USD
0 (0%)
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 has a decent growth rate and is not valued too expensively. This makes ATEN very considerable 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.
Each year in the past 5 years ATEN has been profitable.
Each year in the past 5 years ATEN had a positive operating cash flow.
1.2 Ratios
ATEN's Return On Assets of 8.39% is amongst the best of the industry. ATEN outperforms 82.98% of its industry peers.
With an excellent Return On Equity value of 25.01%, ATEN belongs to the best of the industry, outperforming 89.72% of the companies in the same industry.
ATEN's Return On Invested Capital of 8.57% is amongst the best of the industry. ATEN outperforms 81.91% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ATEN is above the industry average of 11.98%.
The last Return On Invested Capital (8.57%) 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 | 8.39% | ||
| 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
The Profit Margin of ATEN (18.46%) is better than 82.98% of its industry peers.
ATEN's Profit Margin has declined in the last couple of years.
ATEN has a better Operating Margin (17.45%) than 84.75% of its industry peers.
ATEN's Operating Margin has improved in the last couple of years.
ATEN has a Gross Margin of 79.72%. This is in the better half of the industry: ATEN outperforms 79.43% 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
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.
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 3.06. This indicates that ATEN is financially healthy and has little risk of bankruptcy at the moment.
ATEN has a Altman-Z score (3.06) which is comparable to the rest of the industry.
ATEN has a debt to FCF ratio of 3.09. This is a good value and a sign of high solvency as ATEN would need 3.09 years to pay back of all of its debts.
ATEN's Debt to FCF ratio of 3.09 is fine compared to the rest of the industry. ATEN outperforms 64.54% of its industry peers.
ATEN has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
ATEN has a Debt to Equity ratio of 1.07. This is in the lower half of the industry: ATEN underperforms 75.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.09 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.76
WACC11.25%
2.3 Liquidity
A Current Ratio of 4.23 indicates that ATEN has no problem at all paying its short term obligations.
ATEN has a Current ratio of 4.23. This is amongst the best in the industry. ATEN outperforms 84.40% of its industry peers.
A Quick Ratio of 4.04 indicates that ATEN has no problem at all paying 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%.
Measured over the past years, ATEN shows a small growth in Revenue. The Revenue has been growing by 4.24% on average per year.
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
ATEN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.49% yearly.
ATEN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.75% yearly.
EPS Next Y1.36%
EPS Next 2Y6.98%
EPS Next 3Y6.49%
EPS Next 5YN/A
Revenue Next Year9.3%
Revenue Next 2Y8.34%
Revenue Next 3Y7.96%
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
The Price/Earnings ratio is 18.76, which indicates a rather expensive current valuation of ATEN.
Based on the Price/Earnings ratio, ATEN is valued cheaply inside the industry as 80.14% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.14, ATEN is valued a bit cheaper.
The Price/Forward Earnings ratio is 17.53, which indicates a rather expensive current valuation of ATEN.
Based on the Price/Forward Earnings ratio, ATEN is valued cheaply inside the industry as 80.14% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.80, ATEN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 17.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATEN is valued cheaply inside the industry as 84.75% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ATEN is valued cheaply inside the industry as 84.04% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.82 | ||
| EV/EBITDA | 16.03 |
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)13.85
PEG (5Y)N/A
EPS Next 2Y6.98%
EPS Next 3Y6.49%
5. Dividend
5.1 Amount
ATEN has a Yearly Dividend Yield of 1.41%.
ATEN's Dividend Yield is rather good when compared to the industry average which is at 52.87. ATEN pays more dividend than 94.33% of the companies in the same industry.
ATEN's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
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 2Y6.98%
EPS Next 3Y6.49%
17.45
+0.22 (+1.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.54%
Inst Owner Change-2.86%
Ins Owners1.21%
Ins Owner Change0.46%
Market Cap1.26B
Analysts78.57
Price Target23.29 (33.47%)
Short Float %8.23%
Short Ratio6.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
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)3.79%
PT rev (3m)1.48%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)-5.07%
EPS NY rev (1m)0.72%
EPS NY rev (3m)0.99%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)-1.56%
Revenue NY rev (1m)0.83%
Revenue NY rev (3m)1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 17.53 | ||
| P/S | 4.55 | ||
| P/FCF | 17.82 | ||
| P/OCF | 14.77 | ||
| P/B | 6.17 | ||
| P/tB | 6.98 | ||
| EV/EBITDA | 16.03 |
EPS(TTM)0.93
EY5.33%
EPS(NY)1
Fwd EY5.71%
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
WACC11.25%
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)22.37%
EPS 3Y11.95%
EPS 5YN/A
EPS Q2Q%16.67%
EPS Next Y1.36%
EPS Next 2Y6.98%
EPS Next 3Y6.49%
EPS Next 5YN/A
Revenue 1Y (TTM)11.04%
Revenue growth 3Y1.54%
Revenue growth 5Y4.24%
Sales Q2Q%15.45%
Revenue Next Year9.3%
Revenue Next 2Y8.34%
Revenue Next 3Y7.96%
Revenue Next 5Y8.75%
EBIT growth 1Y36.45%
EBIT growth 3Y9.6%
EBIT growth 5YN/A
EBIT Next Year38.1%
EBIT Next 3Y14.95%
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