A10 NETWORKS INC (ATEN)
US0021211018 - Common Stock
We assign a fundamental rating of 6 out of 10 to ATEN. ATEN was compared to 280 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ATEN was profitable.
In the past year ATEN had a positive cash flow from operations.
Of the past 5 years ATEN 4 years were profitable.
Of the past 5 years ATEN 4 years had a positive operating cash flow.
1.2 Ratios
ATEN has a Return On Assets of 12.20%. This is amongst the best in the industry. ATEN outperforms 90.11% of its industry peers.
With an excellent Return On Equity value of 22.90%, ATEN belongs to the best of the industry, outperforming 88.64% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.99%, ATEN belongs to the best of the industry, outperforming 91.58% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ATEN is in line with the industry average of 12.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.2% | ||
| ROE | 22.9% | ||
| ROIC | 13.99% |
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
Looking at the Profit Margin, with a value of 19.29%, ATEN belongs to the top of the industry, outperforming 86.08% of the companies in the same industry.
ATEN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.90%, ATEN belongs to the top of the industry, outperforming 84.25% of the companies in the same industry.
ATEN's Operating Margin has improved in the last couple of years.
ATEN has a better Gross Margin (80.69%) than 82.05% of its industry peers.
ATEN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.9% | ||
| PM (TTM) | 19.29% | ||
| GM | 80.69% |
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
ATEN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ATEN has more shares outstanding than it did 1 year ago.
ATEN has about the same amout of 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 5.32. This indicates that ATEN is financially healthy and has little risk of bankruptcy at the moment.
ATEN has a better Altman-Z score (5.32) than 63.37% of its industry peers.
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 | 5.32 |
ROIC/WACC1.22
WACC11.46%
2.3 Liquidity
ATEN has a Current Ratio of 2.23. This indicates that ATEN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ATEN (2.23) is better than 64.10% of its industry peers.
A Quick Ratio of 2.05 indicates that ATEN has no problem at all paying its short term obligations.
ATEN's Quick ratio of 2.05 is fine compared to the rest of the industry. ATEN outperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 2.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.50% 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 17.50% yearly.
Looking at the last year, ATEN shows a decrease in Revenue. The Revenue has decreased by -0.39% in the last year.
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)12.5%
EPS 3Y17.5%
EPS 5YN/A
EPS Q2Q%31.25%
Revenue 1Y (TTM)-0.39%
Revenue growth 3Y3.73%
Revenue growth 5Y1.63%
Sales Q2Q%15.48%
3.2 Future
The Earnings Per Share is expected to grow by 9.90% on average over the next years. This is quite good.
Based on estimates for the next years, ATEN will show a small growth in Revenue. The Revenue will grow by 6.11% on average per year.
EPS Next Y8.78%
EPS Next 2Y9.68%
EPS Next 3Y9.9%
EPS Next 5YN/A
Revenue Next Year1.32%
Revenue Next 2Y4.51%
Revenue Next 3Y6.11%
Revenue Next 5YN/A
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
A Price/Earnings ratio of 22.58 indicates a rather expensive valuation of ATEN.
81.32% of the companies in the same industry are more expensive than ATEN, based on the Price/Earnings ratio.
ATEN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.41.
With a Price/Forward Earnings ratio of 20.83, ATEN is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ATEN indicates a somewhat cheap valuation: ATEN is cheaper than 78.75% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, ATEN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.58 | ||
| Fwd PE | 20.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATEN indicates a rather cheap valuation: ATEN is cheaper than 83.88% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ATEN is valued a bit cheaper than 79.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.77 | ||
| EV/EBITDA | 19.58 |
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)2.57
PEG (5Y)N/A
EPS Next 2Y9.68%
EPS Next 3Y9.9%
5. Dividend
5.1 Amount
ATEN has a Yearly Dividend Yield of 1.32%.
ATEN's Dividend Yield is rather good when compared to the industry average which is at 13.58. ATEN pays more dividend than 93.77% of the companies in the same industry.
With a Dividend Yield of 1.32, ATEN pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
ATEN has been paying a dividend for less than 5 years, so it still needs to build a 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 35.81% of its income as dividend. This is a sustainable payout ratio.
DP35.81%
EPS Next 2Y9.68%
EPS Next 3Y9.9%
A10 NETWORKS INC
NYSE:ATEN (1/3/2025, 8:20:52 PM)
After market: 18.5073 +0.22 (+1.19%)18.29
+0.14 (+0.77%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners93.78%
Inst Owner Change-2.13%
Ins Owners0.51%
Ins Owner Change-0.16%
Market Cap1.35B
Analysts80
Price Target20.4 (11.54%)
Short Float %2.28%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Dividend Growth(5Y)N/A
DP35.81%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.98%
Min EPS beat(2)2.3%
Max EPS beat(2)7.65%
EPS beat(4)3
Avg EPS beat(4)3.77%
Min EPS beat(4)-5.97%
Max EPS beat(4)11.11%
EPS beat(8)6
Avg EPS beat(8)3.7%
EPS beat(12)9
Avg EPS beat(12)5.3%
EPS beat(16)13
Avg EPS beat(16)7.55%
Revenue beat(2)1
Avg Revenue beat(2)-2.44%
Min Revenue beat(2)-7.47%
Max Revenue beat(2)2.58%
Revenue beat(4)2
Avg Revenue beat(4)-3.12%
Min Revenue beat(4)-7.67%
Max Revenue beat(4)2.58%
Revenue beat(8)2
Avg Revenue beat(8)-1.97%
Revenue beat(12)4
Avg Revenue beat(12)-1.39%
Revenue beat(16)6
Avg Revenue beat(16)-1.13%
PT rev (1m)0%
PT rev (3m)22.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.71%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)2.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.58 | ||
| Fwd PE | 20.83 | ||
| P/S | 5.23 | ||
| P/FCF | 24.77 | ||
| P/OCF | 19.99 | ||
| P/B | 6.21 | ||
| P/tB | 6.25 | ||
| EV/EBITDA | 19.58 |
EPS(TTM)0.81
EY4.43%
EPS(NY)0.88
Fwd EY4.8%
FCF(TTM)0.74
FCFY4.04%
OCF(TTM)0.91
OCFY5%
SpS3.49
BVpS2.94
TBVpS2.93
PEG (NY)2.57
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.2% | ||
| ROE | 22.9% | ||
| ROCE | 15.52% | ||
| ROIC | 13.99% | ||
| ROICexc | 39.83% | ||
| ROICexgc | 40.37% | ||
| OM | 16.9% | ||
| PM (TTM) | 19.29% | ||
| GM | 80.69% | ||
| FCFM | 21.13% |
ROA(3y)15.7%
ROA(5y)9.35%
ROE(3y)30.19%
ROE(5y)17.91%
ROIC(3y)14.15%
ROIC(5y)N/A
ROICexc(3y)36.6%
ROICexc(5y)N/A
ROICexgc(3y)37.07%
ROICexgc(5y)N/A
ROCE(3y)15.7%
ROCE(5y)N/A
ROICexcg growth 3Y-25.25%
ROICexcg growth 5YN/A
ROICexc growth 3Y-23.18%
ROICexc growth 5YN/A
OM growth 3Y25.07%
OM growth 5YN/A
PM growth 3Y26.24%
PM growth 5YN/A
GM growth 3Y1.34%
GM growth 5Y0.83%
F-Score7
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 121.3% | ||
| Cap/Sales | 5.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 124.29% | ||
| Profit Quality | 109.5% | ||
| Current Ratio | 2.23 | ||
| Quick Ratio | 2.05 | ||
| Altman-Z | 5.32 |
F-Score7
WACC11.46%
ROIC/WACC1.22
Cap/Depr(3y)106.98%
Cap/Depr(5y)79.15%
Cap/Sales(3y)3.42%
Cap/Sales(5y)2.77%
Profit Quality(3y)83.12%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.5%
EPS 3Y17.5%
EPS 5YN/A
EPS Q2Q%31.25%
EPS Next Y8.78%
EPS Next 2Y9.68%
EPS Next 3Y9.9%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.39%
Revenue growth 3Y3.73%
Revenue growth 5Y1.63%
Sales Q2Q%15.48%
Revenue Next Year1.32%
Revenue Next 2Y4.51%
Revenue Next 3Y6.11%
Revenue Next 5YN/A
EBIT growth 1Y18.03%
EBIT growth 3Y29.73%
EBIT growth 5YN/A
EBIT Next Year9.49%
EBIT Next 3Y11.13%
EBIT Next 5YN/A
FCF growth 1Y44.79%
FCF growth 3Y-13.38%
FCF growth 5YN/A
OCF growth 1Y41.63%
OCF growth 3Y-6.97%
OCF growth 5YN/A