NYSE:ATEN

Stock Analysis Report

Executive Summary

A10 Networks, Inc. provides software and hardware solutions in the United States, Japan, other Asia Pacific and EMEA countries, and Latin America.


Snowflake Analysis

Flawless balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has A10 Networks's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ATEN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.9%

ATEN

-4.3%

US Software

-2.6%

US Market


1 Year Return

-11.7%

ATEN

7.1%

US Software

-13.3%

US Market

Return vs Industry: ATEN underperformed the US Software industry which returned 5.2% over the past year.

Return vs Market: ATEN exceeded the US Market which returned -15.9% over the past year.


Shareholder returns

ATENIndustryMarket
7 Day-1.9%-4.3%-2.6%
30 Day-5.0%-10.0%-15.2%
90 Day-17.3%-9.1%-22.2%
1 Year-11.7%-11.7%8.2%7.1%-11.5%-13.3%
3 Year-31.7%-31.7%101.5%93.0%13.2%5.7%
5 Year39.7%39.7%165.9%147.2%31.8%17.2%

Price Volatility Vs. Market

How volatile is A10 Networks's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is A10 Networks undervalued compared to its fair value and its price relative to the market?

4.34x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ATEN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ATEN's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ATEN is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: ATEN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ATEN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ATEN is overvalued based on its PB Ratio (4.3x) compared to the US Software industry average (4x).


Next Steps

Future Growth

How is A10 Networks forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

10.3%

Forecasted Software industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ATEN's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if ATEN's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if ATEN's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if ATEN's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ATEN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has A10 Networks performed over the past 5 years?

19.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATEN is currently unprofitable.

Growing Profit Margin: ATEN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ATEN is unprofitable, but has reduced losses over the past 5 years at a rate of 19% per year.

Accelerating Growth: Unable to compare ATEN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ATEN is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.4%).


Return on Equity

High ROE: ATEN has a negative Return on Equity (-16.38%), as it is currently unprofitable.


Next Steps

Financial Health

How is A10 Networks's financial position?


Financial Position Analysis

Short Term Liabilities: ATEN's short term assets ($220.9M) exceed its short term liabilities ($97.6M).

Long Term Liabilities: ATEN's short term assets ($220.9M) exceed its long term liabilities ($67.7M).


Debt to Equity History and Analysis

Debt Level: ATEN is debt free.

Reducing Debt: ATEN had no debt 5 years ago.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ATEN has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: ATEN has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 29.2% each year


Next Steps

Dividend

What is A10 Networks's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ATEN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ATEN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ATEN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ATEN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ATEN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Dhrupad Trivedi (52yo)

0.33

Tenure

Mr. Dhrupad Trivedi serves as President and Chief Executive Officer of A10 Networks, Inc. since December 2, 2019 and Director since 2020. Mr. Trivedi served as an Executive Vice President, Chief Technology ...


Leadership Team

NamePositionTenureCompensationOwnership
Tom Constantino
Executive VP & CFO2.83yrsUS$1.20m0.081% $385.9k
Dhrupad Trivedi
President0.33yrno datano data
Todd Kleppe
Vice President of Global Operationsno datano datano data
Robert Cochran
Executive VP of Legal & Corporate Collaboration3.42yrsno data0.14% $680.6k
Neil Becker
Vice President of Worldwide Marketing and Communications4yrsno datano data
Gunter Reiss
Vice President of Worldwide Marketing2.5yrsno data0.19% $931.3k
Andrew Kim
Vice President of Worldwide Human Resources0.75yrno datano data
Greg Barnes
Managing Director of Australia & New Zealand6.25yrsno datano data
Ravi Bhat
Global Field Sales CTO & Shared Services SVP1.25yrsno datano data
Toru Kawaguchi
VP of Sales and President & Country Manager of Japan KKno datano datano data

2.7yrs

Average Tenure

52yo

Average Age

Experienced Management: ATEN's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dhrupad Trivedi
President0.33yrno datano data
James Dodson
Independent Director0.17yrno datano data
Tor Braham
Independent Director2.08yrsUS$348.41k0.064% $306.2k
Peter Chung
Independent Director6.83yrsUS$196.73k0.11% $535.7k
Alan Henricks
Independent Director6.08yrsUS$208.50k0.083% $397.7k
Eric Singer
Independent Director0.75yrno datano data

1.4yrs

Average Tenure

55yo

Average Age

Experienced Board: ATEN's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ATEN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.4%.


Top Shareholders

Company Information

A10 Networks, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: A10 Networks, Inc.
  • Ticker: ATEN
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$478.260m
  • Shares outstanding: 78.27m
  • Website: https://www.a10networks.com

Number of Employees


Location

  • A10 Networks, Inc.
  • 2300 Orchard Parkway
  • San Jose
  • California
  • 95131
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATENNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 2014
8A0DB (Deutsche Boerse AG)YesCommon StockDEEURMar 2014
8A0BRSE (Berne Stock Exchange)YesCommon StockCHCHFMar 2014

Biography

A10 Networks, Inc. provides software and hardware solutions in the United States, Japan, other Asia Pacific and EMEA countries, and Latin America. The company offers Thunder application delivery controller (ADC) that provides advanced server load balancing; Lightning ADC, a cloud-native software-as-a-service platform to boost the delivery and security of applications and micro services; and Thunder carrier grade networking product, which offers standards-compliant address and protocol translation services for service provider networks. It also provides Thunder threat protection system for the protection of networks and server resources against massive distributed denial of service attacks; Thunder secure sockets layer (SSL) insight solution that decrypts SSL-encrypted traffic and forwards it to a third-party security device for deep packet inspection; and Thunder convergent firewall, which addresses various critical security capabilities in one package by consolidating various security and networking functions in a single appliance. In addition, the company offers intelligent management and automation tools comprising harmony controller that provides intelligent management, automation, and analytics for secure application delivery in multi-cloud environment; and aGalaxy TPS, a multi-device network management solution. The company delivers its solutions on optimized hardware appliances, bare metal software, containerized software, virtual appliances, and cloud-native software. It serves cloud providers, Web-scale businesses, service providers, government organizations, and enterprises in the telecommunications, technology, industrial, government, retail, financial, gaming, and education industries. The company markets its products through sales organizations, as well as distribution channel partners, including distributors, value added resellers, and system integrators. A10 Networks, Inc. was incorporated in 2004 and is headquartered in San Jose, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 03:11
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.