Feb. 6 at 4:30 PM
$ATEN With
$378M in cash, strong free cash flow and disciplined capital allocation, A10 is well positioned for strategic acquisitions if the right opportunities emerge imo. Management is focused on organic growth but with their financial flexibility and proven execution, targeted acquisitions to accelerate growth or expand capabilities would make sense. Compare that to
$NET burning cash at 28x sales or
$FTNT at
$60B market cap trading at 9.5x sales. A10 has comparable EBITDA margins to FTNT (29.6% vs 33%) but trades at a tiny fraction of the valuation while returning cash to shareholders through dividends and buybacks. If they wanted to accelerate revenue growth through smart acquisitions while maintaining margin discipline, they have the firepower. That optionality matters in this market.