A10 Networks, Inc.
A10 Networks, Inc. Fundamental Analysis
A10 Networks, Inc. (ATEN) shows moderate financial fundamentals with a PE ratio of 32.21, profit margin of 14.50%, and ROE of 20.61%. The company generates $0.3B in annual revenue with moderate year-over-year growth of 3.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ATEN's fundamental strength across five key dimensions:
Efficiency Score
WeakATEN struggles to generate sufficient returns from assets.
Valuation Score
ModerateATEN shows balanced valuation metrics.
Growth Score
ModerateATEN shows steady but slowing expansion.
Financial Health Score
ModerateATEN shows balanced financial health with some risks.
Profitability Score
ModerateATEN maintains healthy but balanced margins.
Key Financial Metrics
Is ATEN Expensive or Cheap?
P/E Ratio
ATEN trades at 32.21 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ATEN's PEG of -2.05 indicates potential undervaluation.
Price to Book
The market values A10 Networks, Inc. at 6.42 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.02 times EBITDA. This signals the market has high growth expectations.
How Well Does ATEN Make Money?
Net Profit Margin
For every $100 in sales, A10 Networks, Inc. keeps $14.50 as profit after all expenses.
Operating Margin
Core operations generate 16.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.61 in profit for every $100 of shareholder equity.
ROA
A10 Networks, Inc. generates $6.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
A10 Networks, Inc. generates strong operating cash flow of $85.07M, reflecting robust business health.
Free Cash Flow
A10 Networks, Inc. generates strong free cash flow of $64.90M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.90 in free cash annually.
FCF Yield
ATEN converts 4.76% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.42
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How ATEN Stacks Against Its Sector Peers
| Metric | ATEN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.21 | 34.79 | Neutral |
| ROE | 20.61% | 1185.00% | Weak |
| Net Margin | 14.50% | -133093.00% (disorted) | Strong |
| Debt/Equity | 1.03 | 0.43 | Weak (High Leverage) |
| Current Ratio | 3.56 | 4.90 | Strong Liquidity |
| ROA | 6.69% | -324805.00% (disorted) | Weak |
ATEN outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews A10 Networks, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
26.39%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
388.95%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
21913.39%
Industry Style: Growth, Innovation, High Beta
High Growth