A10 NETWORKS INC (ATEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATEN - US0021211018 - Common Stock
18 USD
-0.13 (-0.72%)
18 USD
0 (0%)
Overall ATEN gets a fundamental rating of 7 out of 10. We evaluated ATEN against 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 correct valuation and a medium growth rate. These ratings could make ATEN a good candidate 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.
ATEN had positive earnings in each of the past 5 years.
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 80.94% of its industry peers.
ATEN has a Return On Equity of 24.38%. This is amongst the best in the industry. ATEN outperforms 90.65% of its industry peers.
ATEN has a Return On Invested Capital of 9.10%. This is amongst the best in the industry. ATEN outperforms 82.01% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ATEN is above the industry average of 10.78%.
The last Return On Invested Capital (9.10%) 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 | 8.11% | ||
| 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
The Profit Margin of ATEN (17.68%) is better than 81.30% of its industry peers.
In the last couple of years the Profit Margin of ATEN has declined.
ATEN has a Operating Margin of 17.72%. This is amongst the best in the industry. ATEN outperforms 84.53% of its industry peers.
ATEN's Operating Margin has improved in the last couple of years.
ATEN's Gross Margin of 79.66% is amongst the best of the industry. ATEN outperforms 80.22% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ATEN is still creating some value.
ATEN has less shares outstanding than it did 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
An Altman-Z score of 3.10 indicates that ATEN is not in any danger for bankruptcy at the moment.
ATEN's Altman-Z score of 3.10 is in line compared to the rest of the industry. ATEN outperforms 59.71% of its industry peers.
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 Debt to FCF ratio of 3.05. This is in the better half of the industry: ATEN outperforms 64.03% of its industry peers.
A Debt/Equity ratio of 1.06 is on the high side and indicates that ATEN has dependencies on debt financing.
The Debt to Equity ratio of ATEN (1.06) is worse than 78.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 3.1 |
ROIC/WACC0.83
WACC11.02%
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.
The Current ratio of ATEN (3.64) is better than 80.22% of its industry peers.
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 Quick ratio of 3.49. This is in the better half of the industry: ATEN outperforms 79.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.64 | ||
| Quick Ratio | 3.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.28% 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.
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
Based on estimates for the next years, ATEN will show a small growth in Earnings Per Share. The EPS will grow by 7.33% on average per year.
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 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
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.
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
With a Price/Earnings ratio of 18.95, ATEN is valued on the expensive side.
Based on the Price/Earnings ratio, ATEN is valued a bit cheaper than 76.62% of the companies in the same industry.
ATEN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.50.
ATEN is valuated rather expensively with a Price/Forward Earnings ratio of 18.67.
ATEN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ATEN is cheaper than 75.18% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.93, ATEN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.95 | ||
| Fwd PE | 18.67 |
4.2 Price Multiples
85.25% of the companies in the same industry are more expensive than ATEN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ATEN indicates a rather cheap valuation: ATEN is cheaper than 82.01% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.03 | ||
| EV/EBITDA | 13.49 |
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)6.27
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%. Purely for dividend investing, there may be better candidates out there.
ATEN's Dividend Yield is rather good when compared to the industry average which is at 0.52. ATEN pays more dividend than 93.17% of the companies in the same industry.
ATEN's Dividend Yield is slightly below the S&P500 average, which is at 1.87.
| 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%
18
-0.13 (-0.72%)
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 (31.28%)
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 | 18.95 | ||
| Fwd PE | 18.67 | ||
| P/S | 4.54 | ||
| P/FCF | 18.03 | ||
| P/OCF | 14.81 | ||
| P/B | 6.26 | ||
| P/tB | 7.05 | ||
| EV/EBITDA | 13.49 |
EPS(TTM)0.95
EY5.28%
EPS(NY)0.96
Fwd EY5.36%
FCF(TTM)1
FCFY5.55%
OCF(TTM)1.22
OCFY6.75%
SpS3.96
BVpS2.87
TBVpS2.55
PEG (NY)6.27
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 | 3.1 |
F-Score5
WACC11.02%
ROIC/WACC0.83
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%.