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 281 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. These ratings could make ATEN a good candidate 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.
ATEN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 11.58%, ATEN belongs to the best of the industry, outperforming 86.83% of the companies in the same industry.
ATEN's Return On Equity of 21.63% is amongst the best of the industry. ATEN outperforms 86.83% of its industry peers.
ATEN has a better Return On Invested Capital (12.62%) than 90.04% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ATEN is above the industry average of 12.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.58% | ||
| ROE | 21.63% | ||
| ROIC | 12.62% |
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 (19.16%) is better than 85.05% of its industry peers.
In the last couple of years the Profit Margin of ATEN has declined.
The Operating Margin of ATEN (16.80%) is better than 84.70% of its industry peers.
In the last couple of years the Operating Margin of ATEN has grown nicely.
ATEN has a Gross Margin of 80.35%. This is amongst the best in the industry. ATEN outperforms 82.92% of its industry peers.
ATEN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.8% | ||
| PM (TTM) | 19.16% | ||
| GM | 80.35% |
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.
The number of shares outstanding for ATEN has been reduced compared to 1 year ago.
Compared to 5 years ago, ATEN has less 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
ATEN has an Altman-Z score of 4.78. This indicates that ATEN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.78, ATEN is in the better half of the industry, outperforming 71.17% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.78 |
ROIC/WACC1.21
WACC10.45%
2.3 Liquidity
ATEN has a Current Ratio of 2.49. This indicates that ATEN is financially healthy and has no problem in meeting its short term obligations.
ATEN has a Current ratio of 2.49. This is in the better half of the industry: ATEN outperforms 67.62% of its industry peers.
A Quick Ratio of 2.31 indicates that ATEN has no problem at all paying its short term obligations.
The Quick ratio of ATEN (2.31) is better than 66.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.49 | ||
| Quick Ratio | 2.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.18% over the past year.
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 3.97%.
ATEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.24% yearly.
EPS 1Y (TTM)19.18%
EPS 3Y11.95%
EPS 5YN/A
EPS Q2Q%24%
Revenue 1Y (TTM)3.97%
Revenue growth 3Y1.54%
Revenue growth 5Y4.24%
Sales Q2Q%5.38%
3.2 Future
The Earnings Per Share is expected to grow by 9.18% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.75% on average over the next years. This is quite good.
EPS Next Y-0.34%
EPS Next 2Y5.94%
EPS Next 3Y9.18%
EPS Next 5YN/A
Revenue Next Year8.08%
Revenue Next 2Y7.78%
Revenue Next 3Y7.16%
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
The Price/Earnings ratio is 18.94, which indicates a rather expensive current valuation of ATEN.
Based on the Price/Earnings ratio, ATEN is valued a bit cheaper than the industry average as 79.72% of the companies are valued more expensively.
ATEN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.88.
ATEN is valuated rather expensively with a Price/Forward Earnings ratio of 19.01.
Based on the Price/Forward Earnings ratio, ATEN is valued a bit cheaper than the industry average as 79.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.20. ATEN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.94 | ||
| Fwd PE | 19.01 |
4.2 Price Multiples
83.99% of the companies in the same industry are more expensive than ATEN, based on the Enterprise Value to EBITDA ratio.
87.19% of the companies in the same industry are more expensive than ATEN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.58 | ||
| EV/EBITDA | 16.7 |
4.3 Compensation for Growth
ATEN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.94%
EPS Next 3Y9.18%
5. Dividend
5.1 Amount
ATEN has a Yearly Dividend Yield of 1.47%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 14.64, ATEN pays a better dividend. On top of this ATEN pays more dividend than 94.66% of the companies listed in the same industry.
With a Dividend Yield of 1.47, ATEN pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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 Years2
Div Non Decr Years3
5.3 Sustainability
ATEN pays out 35.49% of its income as dividend. This is a sustainable payout ratio.
DP35.49%
EPS Next 2Y5.94%
EPS Next 3Y9.18%
16.48
-0.19 (-1.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners93.83%
Inst Owner Change-0.16%
Ins Owners0.85%
Ins Owner Change2.18%
Market Cap1.22B
Analysts80
Price Target23.21 (40.84%)
Short Float %8.25%
Short Ratio4.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
Yearly Dividend0.24
Dividend Growth(5Y)N/A
DP35.49%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.35%
Min EPS beat(2)7.65%
Max EPS beat(2)37.06%
EPS beat(4)4
Avg EPS beat(4)14.53%
Min EPS beat(4)2.3%
Max EPS beat(4)37.06%
EPS beat(8)6
Avg EPS beat(8)7.67%
EPS beat(12)9
Avg EPS beat(12)7.25%
EPS beat(16)13
Avg EPS beat(16)8.81%
Revenue beat(2)2
Avg Revenue beat(2)1.93%
Min Revenue beat(2)1.27%
Max Revenue beat(2)2.58%
Revenue beat(4)3
Avg Revenue beat(4)-0.88%
Min Revenue beat(4)-7.47%
Max Revenue beat(4)2.58%
Revenue beat(8)3
Avg Revenue beat(8)-1.8%
Revenue beat(12)4
Avg Revenue beat(12)-1.34%
Revenue beat(16)7
Avg Revenue beat(16)-0.86%
PT rev (1m)1.87%
PT rev (3m)13.75%
EPS NQ rev (1m)-1.56%
EPS NQ rev (3m)-3.94%
EPS NY rev (1m)-0.58%
EPS NY rev (3m)-1.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.94 | ||
| Fwd PE | 19.01 | ||
| P/S | 4.66 | ||
| P/FCF | 15.58 | ||
| P/OCF | 13.47 | ||
| P/B | 5.26 | ||
| P/tB | 5.33 | ||
| EV/EBITDA | 16.7 |
EPS(TTM)0.87
EY5.28%
EPS(NY)0.87
Fwd EY5.26%
FCF(TTM)1.06
FCFY6.42%
OCF(TTM)1.22
OCFY7.43%
SpS3.54
BVpS3.13
TBVpS3.09
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.58% | ||
| ROE | 21.63% | ||
| ROCE | 14.22% | ||
| ROIC | 12.62% | ||
| ROICexc | 34.34% | ||
| ROICexgc | 35.27% | ||
| OM | 16.8% | ||
| PM (TTM) | 19.16% | ||
| GM | 80.35% | ||
| FCFM | 29.89% |
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-Score7
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 108.63% | ||
| Cap/Sales | 4.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 163.75% | ||
| Profit Quality | 156.01% | ||
| Current Ratio | 2.49 | ||
| Quick Ratio | 2.31 | ||
| Altman-Z | 4.78 |
F-Score7
WACC10.45%
ROIC/WACC1.21
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)19.18%
EPS 3Y11.95%
EPS 5YN/A
EPS Q2Q%24%
EPS Next Y-0.34%
EPS Next 2Y5.94%
EPS Next 3Y9.18%
EPS Next 5YN/A
Revenue 1Y (TTM)3.97%
Revenue growth 3Y1.54%
Revenue growth 5Y4.24%
Sales Q2Q%5.38%
Revenue Next Year8.08%
Revenue Next 2Y7.78%
Revenue Next 3Y7.16%
Revenue Next 5Y8.75%
EBIT growth 1Y13.74%
EBIT growth 3Y9.6%
EBIT growth 5YN/A
EBIT Next Year36.97%
EBIT Next 3Y23.77%
EBIT Next 5Y23.11%
FCF growth 1Y132.69%
FCF growth 3Y20.3%
FCF growth 5YN/A
OCF growth 1Y103.29%
OCF growth 3Y21.78%
OCF growth 5YN/A