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A10 Networks, Inc. (ATEN)

Company Dividend Discount ModelIndustry: Software - InfrastructureSector: Technology

Valuation Snapshot

Stable Growth$4.82 - $6.94$5.86
Multi-Stage$7.88 - $8.65$8.26
Blended Fair Value$7.06
Current Price$18.15
Upside-61.11%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.240.240.220.050.000.000.000.000.000.00
YoY Growth---0.11%11.90%310.36%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.47%1.76%1.39%0.38%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)50.57
(-) Cash Dividends Paid (M)17.50
(=) Cash Retained (M)33.07
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)10.116.323.79
Cash Retained (M)33.0733.0733.07
(-) Cash Required (M)-10.11-6.32-3.79
(=) Excess Retained (M)22.9626.7529.28
(/) Shares Outstanding (M)74.0574.0574.05
(=) Excess Retained per Share0.310.360.40
LTM Dividend per Share0.240.240.24
(+) Excess Retained per Share0.310.360.40
(=) Adjusted Dividend0.550.600.63
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$4.82$5.86$6.94
Upside / Downside-73.42%-67.72%-61.74%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)50.5750.0749.5749.0748.5848.0949.54
Payout Ratio34.61%45.69%56.77%67.84%78.92%90.00%92.50%
Projected Dividends (M)17.5022.8728.1433.2938.3443.2845.82

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)20.7620.9721.18
Year 2 PV (M)23.1623.6424.12
Year 3 PV (M)24.8725.6426.42
Year 4 PV (M)25.9927.0628.17
Year 5 PV (M)26.6228.0129.45
PV of Terminal Value (M)462.12486.19511.24
Equity Value (M)583.52611.50640.59
Shares Outstanding (M)74.0574.0574.05
Fair Value$7.88$8.26$8.65
Upside / Downside-56.58%-54.50%-52.34%

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