A10 Networks Profitability Analysis

ATEN
 Stock
  

USD 15.36  0.45  3.02%   

For A10 Networks profitability analysis, we use financial ratios and fundamental drivers that measure the ability of A10 Networks to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well A10 Networks utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between A10 Networks's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of A10 Networks over time as well as its relative position and ranking within its peers. Please continue to Trending Equities.
  
A10 Networks Return on Sales is quite stable at the moment as compared to the past year. The company's current value of Return on Sales is estimated at 0.14. Sales per Share is expected to rise to 4.30 this year, although the value of Price to Sales Ratio will most likely fall to 4.20. A10 Networks Net Income Per Employee is quite stable at the moment as compared to the past year. The company's current value of Net Income Per Employee is estimated at 173,522.

A10 Networks Revenues

242.76 Million

Is A10 Networks' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of A10 Networks. If investors know A10 Networks will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about A10 Networks listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.63
Market Capitalization
1.2 B
Quarterly Revenue Growth YOY
0.15
Return On Assets
0.0795
Return On Equity
0.64
The market value of A10 Networks is measured differently than its book value, which is the value of A10 Networks that is recorded on the company's balance sheet. Investors also form their own opinion of A10 Networks' value that differs from its market value or its book value, called intrinsic value, which is A10 Networks' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because A10 Networks' market value can be influenced by many factors that don't directly affect A10 Networks' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between A10 Networks' value and its price as these two are different measures arrived at by different means. Investors typically determine A10 Networks value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, A10 Networks' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

A10 Networks Debt to Equity vs. Earnings Per Share Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining A10 Networks's current stock value. Our valuation model uses many indicators to compare A10 Networks value to that of its competitors to determine the firm's financial worth.
A10 Networks is number one stock in earnings per share category among related companies. It is rated third in debt to equity category among related companies fabricating about  0.11  of Debt to Equity per Earnings Per Share. The ratio of Earnings Per Share to Debt to Equity for A10 Networks is roughly  9.43 . Debt to Equity Ratio is expected to rise to 0.95 this year, although the value of Average Equity will most likely fall to about 133.4 M.. Comparative valuation analysis is a catch-all model that can be used if you cannot value A10 Networks by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for A10 Networks' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the A10 Networks' earnings, one of the primary drivers of an investment's value.

A10 Networks Debt to Equity vs. Earnings Per Share

Earnings per Share (EPS) denotes the portion of a company's earnings that is allocated to each share of common stock. To calculate Earnings per Share investors will need to take a company's net income, subtract any dividends for preferred stock, and divide it by the number of average outstanding shares. EPS is usually presented in two different ways: basic and diluted. Fully diluted Earnings per Share takes into account effects of warrants, options, and convertible securities and is generally viewed by analysts as a more accurate measure.
A10 Networks 
Earnings per Share 
 = 
Earnings 
Average Shares 
1.15 X
Earnings per Share is one of the most critical measures of the firm's current share price and is used by investors to determine the overall company profitability, especially when compared to the EPS of similar companies.
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
A10 Networks 
D/E 
 = 
Total Debt 
Total Equity 
0.12 %
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.

A10 Networks Debt to Equity Comparison

A10 Networks is currently under evaluation in debt to equity category among related companies.

A10 Networks Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in A10 Networks, profitability is also one of the essential criteria for including it into their portfolios because, without profit, A10 Networks will eventually generate negative long term returns. The profitability progress is the general direction of A10 Networks' change in net profit over the period of time. It can combine multiple indicators of A10 Networks, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-229 K-235 K
Consolidated Income94.9 M102.4 M
Net Income94.9 M102.4 M
Net Income Common Stock94.9 M102.4 M
Operating Income33.4 M36 M
Preferred Dividends Income Statement ImpactM1.2 M
Income Tax Expense-63.2 M-64.9 M
Net Income Per Employee160.8 K173.5 K
A10 Networks, Inc. provides networking solutions in the Americas, Japan, other Asia Pacific, and EMEA countries. A10 Networks, Inc. was incorporated in 2004 and is headquartered in San Jose, California. A10 Networks operates under SoftwareInfrastructure classification in the United States and is traded on New York Stock Exchange. It employs 590 people.

A10 Networks Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on A10 Networks. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of A10 Networks position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the A10 Networks' important profitability drivers and their relationship over time.

A10 Networks Profitability Trends

A10 Networks profitability trend refers to the progression of profit or loss within a business. An upward trend means that A10 Networks' profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is A10 Networks' gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

A10 Networks Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between A10 Networks different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards A10 Networks in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down A10 Networks' future profitability.

Use A10 Networks in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if A10 Networks position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in A10 Networks will appreciate offsetting losses from the drop in the long position's value.

A10 Networks Pair Trading

A10 Networks Pair Trading Analysis

The ability to find closely correlated positions to A10 Networks could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace A10 Networks when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back A10 Networks - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling A10 Networks to buy it.
The correlation of A10 Networks is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as A10 Networks moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if A10 Networks moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for A10 Networks can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your A10 Networks position

In addition to having A10 Networks in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Munis Theme
Funds or Etfs that invest in fixed income securities issued by states, cities, and towns as well as other public entities. The Munis theme has 40 constituents at this time.
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Please continue to Trending Equities. Note that the A10 Networks information on this page should be used as a complementary analysis to other A10 Networks' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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To fully project A10 Networks' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of A10 Networks at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include A10 Networks' income statement, its balance sheet, and the statement of cash flows.
Potential A10 Networks investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although A10 Networks investors may work on each financial statement separately, they are all related. The changes in A10 Networks's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on A10 Networks's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.