A10 NETWORKS INC (ATEN)
US0021211018 - Common Stock
Overall ATEN gets a fundamental rating of 6 out of 10. We evaluated ATEN against 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ATEN was profitable.
ATEN had a positive operating cash flow in the past year.
Of the past 5 years ATEN 4 years were profitable.
ATEN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ATEN has a better Return On Assets (10.26%) than 90.88% of its industry peers.
With an excellent Return On Equity value of 19.23%, ATEN belongs to the best of the industry, outperforming 90.15% of the companies in the same industry.
ATEN's Return On Invested Capital of 12.50% is amongst the best of the industry. ATEN outperforms 91.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ATEN is above the industry average of 10.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.26% | ||
| ROE | 19.23% | ||
| ROIC | 12.5% |
ROA(3y)15.7%
ROA(5y)9.35%
ROE(3y)30.19%
ROE(5y)17.91%
ROIC(3y)14.15%
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 15.88%, ATEN belongs to the best of the industry, outperforming 86.50% of the companies in the same industry.
In the last couple of years the Profit Margin of ATEN has grown nicely.
With an excellent Operating Margin value of 15.36%, ATEN belongs to the best of the industry, outperforming 87.59% of the companies in the same industry.
ATEN's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 80.94%, ATEN belongs to the best of the industry, outperforming 85.77% 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 | 15.36% | ||
| PM (TTM) | 15.88% | ||
| GM | 80.94% |
OM growth 3Y25.07%
OM growth 5YN/A
PM growth 3Y26.24%
PM growth 5YN/A
GM growth 3Y1.34%
GM growth 5Y0.83%
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.
The number of shares outstanding for ATEN has been increased compared to 1 year ago.
Compared to 5 years ago, ATEN has about the same amount of shares outstanding.
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 4.78 indicates that ATEN is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.78, ATEN is doing good in the industry, outperforming 70.07% of the companies in the same industry.
ATEN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.78 |
ROIC/WACC1.26
WACC9.93%
2.3 Liquidity
ATEN has a Current Ratio of 2.45. This indicates that ATEN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ATEN (2.45) is better than 69.71% of its industry peers.
A Quick Ratio of 2.24 indicates that ATEN has no problem at all paying its short term obligations.
The Quick ratio of ATEN (2.24) is better than 66.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.24 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.82% 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 17.50% on average per year.
ATEN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.21%.
Measured over the past years, ATEN shows a small growth in Revenue. The Revenue has been growing by 1.63% on average per year.
EPS 1Y (TTM)2.82%
EPS 3Y17.5%
EPS 5YN/A
EPS growth Q2Q4.17%
Revenue 1Y (TTM)-10.21%
Revenue growth 3Y3.73%
Revenue growth 5Y1.63%
Revenue growth Q2Q-9.29%
3.2 Future
Based on estimates for the next years, ATEN will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.25% on average per year.
ATEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.72% yearly.
EPS Next Y8.33%
EPS Next 2Y10.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.05%
Revenue Next 2Y5.72%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 21.05 indicates a rather expensive valuation of ATEN.
Based on the Price/Earnings ratio, ATEN is valued cheaper than 83.94% of the companies in the same industry.
ATEN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.55.
A Price/Forward Earnings ratio of 19.44 indicates a rather expensive valuation of ATEN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ATEN indicates a rather cheap valuation: ATEN is cheaper than 83.94% of the companies listed in the same industry.
ATEN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.05 | ||
| Fwd PE | 19.44 |
4.2 Price Multiples
ATEN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ATEN is cheaper than 85.04% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ATEN is valued a bit cheaper than the industry average as 72.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.06 | ||
| EV/EBITDA | 19.24 |
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)2.53
PEG (5Y)N/A
EPS Next 2Y10.25%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ATEN has a Yearly Dividend Yield of 1.84%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 11.28, ATEN pays a better dividend. On top of this ATEN pays more dividend than 94.89% of the companies listed in the same industry.
ATEN's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
ATEN has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
ATEN pays out 44.57% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP44.57%
EPS Next 2Y10.25%
EPS Next 3YN/A
A10 NETWORKS INC
NYSE:ATEN (5/1/2024, 7:04:00 PM)
After market: 15.37 0 (0%)15.37
+2.31 (+17.69%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.15B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Dividend Growth(5Y)
DP
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Ex-Date
Surprises & Revisions
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.05 | ||
| Fwd PE | 19.44 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.53
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.26% | ||
| ROE | 19.23% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.36% | ||
| PM (TTM) | 15.88% | ||
| GM | 80.94% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)2.82%
EPS 3Y17.5%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.33%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.21%
Revenue growth 3Y3.73%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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