QualityDipStocks / Telecommunications · Computer Communications Equipment
A10 Networks ATEN
Outside our quality screen, so we don’t track its dips. It’s 38% below its 52-week high.
Outside our quality screen, trading well above our fair value estimate, 10% under its Market Value.
Worth knowing
- Net cash = 20% of its market cap
- Down 39% from its 52-week high while revenue grew 12%
From the data on this page, as of the last close. How we pick these
- Fair value est.
- $12.76−46%
- Market Value
- $26.28price −10%
- Off 52-wk high
- −38%
- Risk vs market
- Above marketbeta 1.13
52-week range 32% of the way from its 52-week low to its high
Price $23.52Fair value est. $12.76Market Value $26.28
5 bullish · 5 bearish See why
Repriced or dip?
Dip: business intact
The price is 38% below its 52-week high (Jul 9), but the business held up: free cash flow +18.6%, net cash (cash minus debt) +11.6% of market cap since the high, revenue +3.6%.
Some numbers held up (free cash flow +18.6%, net cash (cash minus debt) +11.6% of market cap since the high, revenue +3.6%), others slipped (earnings per share −7.2%, shares outstanding more shares, each owns less). The price is 38% below its 52-week high.
The price is 38% below its 52-week high, and the business changed too: earnings per share −7.2%, shares outstanding more shares, each owns less.
Within 10% of its 52-week high, so there is no dip to judge yet.
The evidence 10 numbers, high vs now
- Revenue, last 12 months$299M → $310M (+3.6%)held up
- Revenue growth rate+12.1% → +12.2% a year (+0.1 pts)held up
- Earnings per share, 12 months$0.61 → $0.57 (−7.2%)changed
- Free cash flow, 12 months$51M → $61M (+18.6%)held up
- Operating margin17.2% → 16.1% (−1.0 pts)about the same
- Shares outstanding+3.8% (more shares, each owns less)changed
- Net cash (cash minus debt)+11.6% of market cap since the highheld up
- Stock vs its sector (Telecommunications)stock −38%, sector median −7% since Jul 9changed
- Price fall vs business numbersprice −38%, revenue/EPS/FCF median +4% (shown, not scored)
- Valuation multipleP/FCF 54.1× at the high → 29.2× now (shown, not scored)
Business numbers as reported at the high (12 months to Mar 31, 2026) vs the latest filing (12 months to Jun 30, 2026). Each measure is scored from −1 (business changed) to +1 (business intact) and weighted: revenue, earnings per share, free cash flow, operating margin, revenue growth rate, share count, net cash and the move vs its sector. 60 or more reads as a dip, 40 or less as a repricing. Analyst estimates are not in our data, so they are not used. How to read it
Data-based read, not advice.
Priced in
How much growth the market assumed at the 52-week high, the low and today (a reverse DCF).
At the high ($38.11, Jul 9) the price assumed about 26%/yr free-cash-flow growth; at the low ($16.55, Nov 19) about 4%; today about 14%. The last 3 years delivered 5%/yr (free cash flow).
Dashed line: what the last 3 years delivered, 5%/yr (free cash flow)
| High | Low | Now | |
|---|---|---|---|
| Price | $38.11Jul 9 | $16.55Nov 19 | $23.52 |
| Implied growth | +26% | +4% | +14% |
| P/E | 62.3× | 23.9× | 41.4× |
| P/FCF | 54.1× | 16.8× | 29.2× |
| EV/Sales | 8.8× | 3.7× | 4.6× |
What this means: the higher the implied growth, the more the price already counts on. If today's number sits well below what the business has delivered, the market expects less than its track record.
How it’s computed
Reverse DCF: the same 10-year free-cash-flow model as our fair value estimate (9.5% discount rate, growth for years 1–5 fading to 3% by year 10, 3% after), solved for the growth that makes it equal the market value at each price. For the high and the low we use only the filings that were public on that day, so nothing from a later report leaks back. Market value = that close × diluted shares. P/E = market value / 12-month net income; Price / FCF = market value / 12-month free cash flow; EV / Sales = (market value + debt − cash) / 12-month revenue. Hidden when the share count moved over 20% (split, merger), free cash flow is negative, or the company reports in another currency.
Valuation
What we estimate it's worth, and how it ranks on value vs every stock we cover.
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 3.0% ±2 points. Bear = 10.5% and 1.0%; bull = 8.5% and 5.0% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price is above even the bull case.
What the price implies To be worth today’s price, ATEN’s free cash flow would need to grow about 14% a year for five years; our estimate uses 3%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 31 to Nov 2, 252 sessions). Beta = how much ATEN moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Swings more than the market, and its own price swings are 3.1× the S&P 500’s.
- Beta vs S&P 500
- 1.13
- Volatility
- 40% vs 13% SPY
- Correlation SPY
- 0.36
- Correlation QQQ
- 0.43
How it ranks
Where ATEN stands vs every one of the 2,467 stocks we cover that has the number. Longer bar = better.
Not in the top quarter on any of these 5 measures
- Discount to fair value estimate46% · price above our base caseLowest 15%of 1,507
- Free cash flow yield3.4% · free cash flow vs market capLowest 45%of 1,690
- Dividends + buybacks yield2.3% · cash paid out or used to retire shares, vs market capLowest 46%of 2,227
- Revenue growth, last 12 months+12% · vs the 12 months beforeTop 41%of 2,184
- Operating margin16% · of sales kept as operating profitTop 33%of 1,549
From SEC filings and our fair value estimate model. A ranking, not advice.
Valuation details
DCF $12.76 · MV $26.28 · FCF value $20.75
Assumes 3.0% growth for 5 years (revenue grew 1.2% a year FY22–FY25; floored at 3%), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $0.81 a share (trailing 12 months to Jun 30, 2026), from the 10-Q filed Aug 6, 2026. Net cash $357M, not added.
Fundamentals
The business itself: sales, profits, cash and debt, from SEC filings.
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
Balance sheetNet cash of $357M: cash and short-term investments exceed debt (Jun 30, 2026).
ProfitabilityReturn on equity of 19% over the last 12 months.
Balance sheetDebt / equity of 0.0×, below the 0.5× median for the 20 Telecommunications companies we cover.
GrowthSales grew 12% to $310M over the last 12 months vs the 12 months before (SEC filings).
ValuationTrades 10.5% below its Market Value of $26.28, the average price paid since the Aug 5 filing.
Top bearish points 5 of 5
ValuationOur DCF fair value estimate is $12.76, 46% below the price.
ValuationP/E of 41.4× vs a 15.6× median for the 30 Telecommunications companies we cover.
GrowthDiluted EPS fell 15% to $0.57 in FY2025.
Cash returnsShare count up 3.5% in a year: existing holders are being diluted.
RiskReports earnings Nov 5 (consensus EPS $0.20): results can move the price sharply and reset Market Value.
All fundamentals
P/E 41.4 · FCF yield 3.4% · ROE 19%
Valuation
- P/E
- 41.4×Telecommunications median 15.6×
- Price / FCF
- 29.2×
- FCF yield
- 3.4%
- EV / EBITDA
- 21.5×
- Price / sales
- 5.74×
- Price / book
- 7.48×
- Market cap
- $1.8Bprice × diluted shares
- Enterprise value
- $1.4B
Growth
- Revenue, 12 months
- $310M
- Sales growth, 12 months
- +12.2%vs the 12 months before
- Sales growth, 3 yrs
- +1.2%/yrfrom FY2022
- Diluted EPS, 12 months
- $0.58
- EPS growth, last FY
- −14.9%
- Net income, 12 months
- $43M
- Net income growth
- −16%12 months vs before
Profitability
- Gross margin
- 79.4%
- Operating margin
- 16.1%
- Net margin
- 13.9%
- FCF margin
- 19.6%
- Return on equity
- 19%
- Return on invested capital
- n/aoperating income, debt, equity or cash not tagged
Balance sheet
- Cash & short-term inv.
- $357M
- Total debt
- $0
- Net cash
- $357M
- Debt / equity
- 0.00×
- Interest coverage
- 6.7×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- $61M
- FCF growth, 12 months
- −14%
- Dividend yield
- 0.97%$17M paid
- Payout ratio
- 40%
- Buybacks, 12 months
- $23M1.3% of market cap
- Share count, 1 year
- +3.5%diluted shares vs a year ago
- Stock-based comp
- $23M
Trailing 12 months to Jun 30, 2026; balance sheet at Jun 30, 2026. From A10 Networks’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
The business
FCF $0.1B · Sales +16%
- Free cash flow, 12 months$0.1B
- Free-cash-flow yield3.4%
- Free-cash-flow margin20%
- Gross margin79%
- Operating margin11%
- Return on invested capital26%
- Return on equity19%
- Sales growth (latest quarter vs year-ago quarter)+16%
- Net debt / EBITDA−2.0×
Chart & levels
Where the price is vs its key levels and trends.
Key levels
Every level vs today’s $23.52
- Fair value est.base case$12.76−45.7%
- 52-wk lowlowest close, 1 year$16.55−29.6%
- PriceMon Nov 2 close$23.52you are here
- Market Valueavg paid since Aug 5$26.28+11.7%
- 52-wk highhighest close, 1 year$38.11+62.0%
Momentum & 52-week range
RSI 36 · 5 days −8.8%
Signals
Reversal signal setups, the public ledger and the next earnings date.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
Next report
Nov 5
- DateThu Nov 5, after the close
- Consensus EPS$0.20
- Year-ago EPS$0.18
- QuarterSep/2026
From Nasdaq’s earnings calendar. A report resets Market Value.
ATEN is outside our quality screen
One text when a published rule fires on one of the 332 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.
Voices & buzz
Who is talking about it, and how it compares with peers.
Who’s talking about it
Notable investors, executives, analysts and public figures on A10 Networks in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 3, 5:14 PM ET.
Compare with peers
Closest in size in Telecommunications
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.