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ATEN

A10 Networks NYSE:ATEN Stock Report

Last Price

US$15.36

Market Cap

US$1.2b

7D

-1.8%

1Y

17.5%

Updated

10 Aug, 2022

Data

Company Financials +
ATEN fundamental analysis
Snowflake Score
Valuation6/6
Future Growth1/6
Past Performance6/6
Financial Health6/6
Dividends2/6

ATEN Stock Overview

A10 Networks, Inc. provides networking solutions in the Americas, Japan, other Asia Pacific, and EMEA countries.

A10 Networks Competitors

Price History & Performance

Summary of all time highs, changes and price drops for A10 Networks
Historical stock prices
Current Share PriceUS$15.36
52 Week HighUS$19.05
52 Week LowUS$12.27
Beta0.92
1 Month Change9.01%
3 Month Change5.64%
1 Year Change17.52%
3 Year Change117.56%
5 Year Change144.59%
Change since IPO-5.24%

Recent News & Updates

Aug 02

A10 Non-GAAP EPS of $0.17 beats by $0.02, revenue of $68M beats by $0.56M

A10 press release (NYSE:ATEN): Q2 Non-GAAP EPS of $0.17 beats by $0.02. Revenue of $68M (+14.9% Y/Y) beats by $0.56M.

Jul 15
Investors Will Want A10 Networks' (NYSE:ATEN) Growth In ROCE To Persist

Investors Will Want A10 Networks' (NYSE:ATEN) Growth In ROCE To Persist

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Shareholder Returns

ATENUS SoftwareUS Market
7D-1.8%-3.6%0.3%
1Y17.5%-17.4%-13.5%

Return vs Industry: ATEN exceeded the US Software industry which returned -17.4% over the past year.

Return vs Market: ATEN exceeded the US Market which returned -13.5% over the past year.

Price Volatility

Is ATEN's price volatile compared to industry and market?
ATEN volatility
ATEN Average Weekly Movement6.9%
Software Industry Average Movement10.7%
Market Average Movement7.9%
10% most volatile stocks in US Market17.2%
10% least volatile stocks in US Market3.2%

Stable Share Price: ATEN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ATEN's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2004590Dhrupad Trivedihttps://www.a10networks.com

A10 Networks, Inc. provides networking solutions in the Americas, Japan, other Asia Pacific, and EMEA countries. 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 microservices; 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 (TPS) 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.

A10 Networks Fundamentals Summary

How do A10 Networks's earnings and revenue compare to its market cap?
ATEN fundamental statistics
Market CapUS$1.17b
Earnings (TTM)US$102.38m
Revenue (TTM)US$266.68m

11.4x

P/E Ratio

4.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ATEN income statement (TTM)
RevenueUS$266.68m
Cost of RevenueUS$53.70m
Gross ProfitUS$212.98m
Other ExpensesUS$110.60m
EarningsUS$102.38m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.34
Gross Margin79.86%
Net Profit Margin38.39%
Debt/Equity Ratio0%

How did ATEN perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

11%

Payout Ratio

Does ATEN pay a reliable dividends?

See ATEN dividend history and benchmarks
When do you need to buy ATEN by to receive an upcoming dividend?
A10 Networks dividend dates
Ex Dividend DateAug 12 2022
Dividend Pay DateSep 01 2022
Days until Ex dividend1 day
Days until Dividend pay date21 days

Does ATEN pay a reliable dividends?

See ATEN dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is ATEN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ATEN?

Other financial metrics that can be useful for relative valuation.

ATEN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.9x
Enterprise Value/EBITDA20.1x
PEG Ratio-0.3x

Price to Earnings Ratio vs Peers

How does ATEN's PE Ratio compare to its peers?

ATEN PE Ratio vs Peers
The above table shows the PE ratio for ATEN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average93.8x
NABL N-able
195.6x55.9%US$1.9b
PRGS Progress Software
21.9x2.0%US$2.1b
CVLT Commvault Systems
112.9x29.8%US$2.6b
TDC Teradata
44.7x42.8%US$3.7b
ATEN A10 Networks
11.4x-40.7%US$1.1b

Price-To-Earnings vs Peers: ATEN is good value based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (92.2x).


Price to Earnings Ratio vs Industry

How does ATEN's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Earnings vs Industry: ATEN is good value based on its Price-To-Earnings Ratio (11.4x) compared to the US Software industry average (43.5x)


Price to Earnings Ratio vs Fair Ratio

What is ATEN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ATEN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.4x
Fair PE Ratio16.5x

Price-To-Earnings vs Fair Ratio: ATEN is good value based on its Price-To-Earnings Ratio (11.4x) compared to the estimated Fair Price-To-Earnings Ratio (16.4x).


Share Price vs Fair Value

What is the Fair Price of ATEN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ATEN ($15.36) is trading below our estimate of fair value ($33.13)

Significantly Below Fair Value: ATEN is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-40.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATEN's earnings are forecast to decline over the next 3 years (-40.7% per year).

Earnings vs Market: ATEN's earnings are forecast to decline over the next 3 years (-40.7% per year).

High Growth Earnings: ATEN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ATEN's revenue (9.4% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: ATEN's revenue (9.4% per year) is forecast to grow slower 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


Discover growth companies

Past Performance

How has A10 Networks performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


74.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ATEN has high quality earnings.

Growing Profit Margin: ATEN's current net profit margins (38.4%) are higher than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: ATEN has become profitable over the past 5 years, growing earnings by 74.5% per year.

Accelerating Growth: ATEN's earnings growth over the past year (334.2%) exceeds its 5-year average (74.5% per year).

Earnings vs Industry: ATEN earnings growth over the past year (334.2%) exceeded the Software industry 18.5%.


Return on Equity

High ROE: ATEN's Return on Equity (52.6%) is considered outstanding.


Discover strong past performing companies

Financial Health

How is A10 Networks's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ATEN's short term assets ($271.7M) exceed its short term liabilities ($122.5M).

Long Term Liabilities: ATEN's short term assets ($271.7M) exceed its long term liabilities ($67.3M).


Debt to Equity History and Analysis

Debt Level: ATEN is debt free.

Reducing Debt: ATEN has not had any debt for past 5 years.

Debt Coverage: ATEN has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ATEN has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.30%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 10 2022Ex Dividend DateAug 12 2022Dividend Pay DateSep 01 202220 days from Ex DividendBuy in the next 1 day to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: ATEN's dividend (1.3%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.51%).

High Dividend: ATEN's dividend (1.3%) is low compared to the top 25% of dividend payers in the US market (4.09%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether ATEN's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if ATEN's dividend payments are increasing as they only just started paying a dividend.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (11.3%), ATEN's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (32%), ATEN's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

2.5yrs

Average management tenure


CEO

Dhrupad Trivedi (55 yo)

2.67yrs

Tenure

US$3,135,250

Compensation

Mr. Dhrupad Trivedi serves as President and Chief Executive Officer of A10 Networks, Inc. since December 2, 2019 and serves as its Director since December 2019. He serves as the Board Chair at A10 Networks...


CEO Compensation Analysis

Compensation vs Market: Dhrupad's total compensation ($USD3.14M) is about average for companies of similar size in the US market ($USD3.93M).

Compensation vs Earnings: Dhrupad's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ATEN's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: ATEN's board of directors are considered experienced (3.1 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: A10 Networks, Inc.
  • Ticker: ATEN
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Systems Software
  • Sector: Software
  • Implied Market Cap: US$1.170b
  • Shares outstanding: 76.17m
  • Website: https://www.a10networks.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/10 00:00
End of Day Share Price2022/08/10 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.