A10 NETWORKS INC (ATEN) Stock Fundamental Analysis
NYSE:ATEN - New York Stock Exchange, Inc. - US0021211018 - Common Stock - Currency: USD
ATEN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 284 industry peers in the Software industry. Both the health and profitability get an excellent rating, making ATEN a very profitable company, without any liquidiy or solvency issues. ATEN has a correct valuation and a medium growth rate. This makes ATEN very considerable for quality investing!
1. Profitability
1.1 Basic Checks
ATEN had positive earnings in the past year.
ATEN had a positive operating cash flow in the past year.
In the past 5 years ATEN has always 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 8.24% is amongst the best of the industry. ATEN outperforms 83.10% of its industry peers.
ATEN's Return On Equity of 25.50% is amongst the best of the industry. ATEN outperforms 89.44% of its industry peers.
The Return On Invested Capital of ATEN (8.25%) is better than 83.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ATEN is above the industry average of 12.30%.
The 3 year average ROIC (14.57%) for ATEN is well above the current ROIC(8.25%). The reason for the recent decline needs to be investigated.
| 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
ATEN's Profit Margin of 18.70% is amongst the best of the industry. ATEN outperforms 86.27% of its industry peers.
ATEN's Profit Margin has declined in the last couple of years.
ATEN's Operating Margin of 17.16% is amongst the best of the industry. ATEN outperforms 85.21% of its industry peers.
ATEN's Operating Margin has improved in the last couple of years.
The Gross Margin of ATEN (80.01%) is better than 80.28% of its industry peers.
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
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.
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 3.05. This indicates that ATEN is financially healthy and has little risk of bankruptcy at the moment.
ATEN has a Altman-Z score (3.05) which is comparable to the rest of the industry.
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.
Looking at the Debt to FCF ratio, with a value of 3.55, ATEN is in the better half of the industry, outperforming 62.68% of the companies in the same industry.
A Debt/Equity ratio of 1.11 is on the high side and indicates that ATEN has dependencies on debt financing.
ATEN has a Debt to Equity ratio of 1.11. This is in the lower half of the industry: ATEN underperforms 73.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 3.05 |
ROIC/WACC0.91
WACC9.05%
2.3 Liquidity
ATEN has a Current Ratio of 4.05. This indicates that ATEN is financially healthy and has no problem in meeting its short term obligations.
ATEN has a better Current ratio (4.05) than 83.10% of its industry peers.
A Quick Ratio of 3.87 indicates that ATEN has no problem at all paying its short term obligations.
ATEN has a Quick ratio of 3.87. This is amongst the best in the industry. ATEN outperforms 81.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.05 | ||
| Quick Ratio | 3.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.88% over the past year.
ATEN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.95% yearly.
Looking at the last year, ATEN shows a small growth in Revenue. The Revenue has grown by 4.89% in the last year.
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)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
ATEN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.18% yearly.
The Revenue is expected to grow by 8.75% on average over the next years. This is quite good.
EPS Next Y0.36%
EPS Next 2Y7.34%
EPS Next 3Y9.18%
EPS Next 5YN/A
Revenue Next Year8.24%
Revenue Next 2Y7.95%
Revenue Next 3Y7.34%
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.
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 19.64, 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 79.93% of the companies are valued more expensively.
ATEN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.64, which indicates a rather expensive current valuation of ATEN.
Based on the Price/Forward Earnings ratio, ATEN is valued a bit cheaper than the industry average as 77.82% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ATEN to the average of the S&P500 Index (22.13), we can say ATEN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.64 | ||
| Fwd PE | 17.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATEN is valued cheaply inside the industry as 82.75% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ATEN is valued cheaper than 80.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.75 | ||
| EV/EBITDA | 18.04 |
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)54.78
PEG (5Y)N/A
EPS Next 2Y7.34%
EPS Next 3Y9.18%
5. Dividend
5.1 Amount
ATEN has a Yearly Dividend Yield of 1.34%.
ATEN's Dividend Yield is rather good when compared to the industry average which is at 16.44. ATEN pays more dividend than 94.01% of the companies in the same industry.
With a Dividend Yield of 1.34, ATEN pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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 35.55% of its income as dividend. This is a sustainable payout ratio.
DP35.55%
EPS Next 2Y7.34%
EPS Next 3Y9.18%
17.68
-0.26 (-1.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners99.91%
Inst Owner Change7.78%
Ins Owners1.16%
Ins Owner Change2.19%
Market Cap1.27B
Analysts80
Price Target22.95 (29.81%)
Short Float %9.07%
Short Ratio6.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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)0.75%
EPS NQ rev (1m)1.71%
EPS NQ rev (3m)1.71%
EPS NY rev (1m)0.71%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)0.76%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.64 | ||
| Fwd PE | 17.64 | ||
| P/S | 4.77 | ||
| P/FCF | 20.75 | ||
| P/OCF | 16.93 | ||
| P/B | 6.51 | ||
| P/tB | 7.42 | ||
| EV/EBITDA | 18.04 |
EPS(TTM)0.9
EY5.09%
EPS(NY)1
Fwd EY5.67%
FCF(TTM)0.85
FCFY4.82%
OCF(TTM)1.04
OCFY5.91%
SpS3.71
BVpS2.72
TBVpS2.38
PEG (NY)54.78
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 | 3.05 |
F-Score5
WACC9.05%
ROIC/WACC0.91
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 Y0.36%
EPS Next 2Y7.34%
EPS Next 3Y9.18%
EPS Next 5YN/A
Revenue 1Y (TTM)4.89%
Revenue growth 3Y1.54%
Revenue growth 5Y4.24%
Sales Q2Q%9%
Revenue Next Year8.24%
Revenue Next 2Y7.95%
Revenue Next 3Y7.34%
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