A10 NETWORKS INC (ATEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATEN - US0021211018 - Common Stock
17.96 USD
-0.34 (-1.86%)
17.96 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to ATEN. ATEN was compared to 278 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 decent growth rate and is not valued too expensively. These ratings would make ATEN suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year ATEN was profitable.
ATEN had a positive operating cash flow in the past year.
Each year in the past 5 years ATEN has been profitable.
In the past 5 years ATEN always reported a positive cash flow from operatings.
1.2 Ratios
ATEN's Return On Assets of 8.11% is amongst the best of the industry. ATEN outperforms 81.14% of its industry peers.
Looking at the Return On Equity, with a value of 24.38%, ATEN belongs to the top of the industry, outperforming 90.75% of the companies in the same industry.
ATEN has a better Return On Invested Capital (9.10%) than 82.21% of its industry peers.
ATEN had an Average Return On Invested Capital over the past 3 years of 14.57%. This is above the industry average of 10.78%.
The 3 year average ROIC (14.57%) for ATEN is well above the current ROIC(9.10%). The reason for the recent decline needs to be investigated.
| 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
ATEN's Profit Margin of 17.68% is amongst the best of the industry. ATEN outperforms 81.49% of its industry peers.
ATEN's Profit Margin has declined in the last couple of years.
ATEN's Operating Margin of 17.72% is amongst the best of the industry. ATEN outperforms 84.70% of its industry peers.
In the last couple of years the Operating Margin of ATEN has grown nicely.
The Gross Margin of ATEN (79.66%) is better than 80.43% 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.
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 3.08. This indicates that ATEN is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.08, ATEN perfoms like the industry average, outperforming 59.79% of the companies in the same industry.
ATEN has a debt to FCF ratio of 3.05. This is a good value and a sign of high solvency as ATEN would need 3.05 years to pay back of all of its debts.
ATEN has a better Debt to FCF ratio (3.05) than 64.41% of its industry peers.
ATEN has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ATEN (1.06) is worse than 77.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 3.08 |
ROIC/WACC0.84
WACC10.89%
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.
Looking at the Current ratio, with a value of 3.64, ATEN belongs to the top of the industry, outperforming 80.07% of the companies in the same industry.
ATEN has a Quick Ratio of 3.49. This indicates that ATEN is financially healthy and has no problem in meeting its short term obligations.
ATEN has a better Quick ratio (3.49) than 79.00% 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.
The Earnings Per Share has been growing by 11.95% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 7.33% on average over the next years.
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.
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 18.91, which indicates a rather expensive current valuation of ATEN.
ATEN's Price/Earnings ratio is a bit cheaper when compared to the industry. ATEN is cheaper than 77.22% of the companies in the same industry.
ATEN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
ATEN is valuated rather expensively with a Price/Forward Earnings ratio of 18.63.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ATEN indicates a somewhat cheap valuation: ATEN is cheaper than 75.80% of the companies listed in the same industry.
ATEN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.91 | ||
| Fwd PE | 18.63 |
4.2 Price Multiples
ATEN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ATEN is cheaper than 85.41% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ATEN is valued cheaply inside the industry as 82.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.99 | ||
| EV/EBITDA | 13.3 |
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)6.26
PEG (5Y)N/A
EPS Next 2Y5.27%
EPS Next 3Y7.33%
5. Dividend
5.1 Amount
ATEN has a Yearly Dividend Yield of 1.31%.
Compared to an average industry Dividend Yield of 0.52, ATEN pays a better dividend. On top of this ATEN pays more dividend than 92.88% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 1.87, ATEN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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%
17.96
-0.34 (-1.86%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.03%
Inst Owner Change1.64%
Ins Owners1.19%
Ins Owner Change0.12%
Market Cap1.29B
Revenue(TTM)284.41M
Net Income(TTM)50.27M
Analysts81.54
Price Target23.63 (31.57%)
Short Float %7.37%
Short Ratio8.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend0.24
Dividend Growth(5Y)N/A
DP35.95%
Div Incr Years0
Div Non Decr Years3
Ex-Date
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)0.72%
PT rev (3m)0.72%
EPS NQ rev (1m)-2.92%
EPS NQ rev (3m)-3.54%
EPS NY rev (1m)1.64%
EPS NY rev (3m)1.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)1.66%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.91 | ||
| Fwd PE | 18.63 | ||
| P/S | 4.53 | ||
| P/FCF | 17.99 | ||
| P/OCF | 14.78 | ||
| P/B | 6.25 | ||
| P/tB | 7.03 | ||
| EV/EBITDA | 13.3 |
EPS(TTM)0.95
EY5.29%
EPS(NY)0.96
Fwd EY5.37%
FCF(TTM)1
FCFY5.56%
OCF(TTM)1.22
OCFY6.77%
SpS3.96
BVpS2.87
TBVpS2.55
PEG (NY)6.26
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 | 3.08 |
F-Score5
WACC10.89%
ROIC/WACC0.84
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.
Can you provide the valuation status for A10 NETWORKS INC?
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.
How financially healthy is A10 NETWORKS INC?
The financial health rating of A10 NETWORKS INC (ATEN) is 7 / 10.
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%.