Should you consider NYSE:ANET for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if ARISTA NETWORKS INC (NYSE:ANET) is suited for quality investing. Investors should of couse do their own research, but we spotted ARISTA NETWORKS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Why NYSE:ANET may be interesting for quality investors.

• Over the past 5 years, ARISTA NETWORKS INC has experienced impressive revenue growth, with 21.63% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• ARISTA NETWORKS INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 69.14% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• ARISTA NETWORKS INC maintains a healthy Debt/Free Cash Flow Ratio of 0.0, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a robust Profit Quality (5-year) ratio of 103.0%, ARISTA NETWORKS INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• ARISTA NETWORKS INC has experienced impressive EBIT growth over the past 5 years, with 26.56% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• ARISTA NETWORKS INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

What is the full fundamental picture of NYSE:ANET telling us.

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

ANET gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 60 industry peers in the Communications Equipment industry. Both the health and profitability get an excellent rating, making ANET a very profitable company, without any liquidiy or solvency issues. ANET is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, ANET could be worth investigating further for growth and quality investing!.

For an up to date full fundamental analysis you can check the fundamental report of ANET

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.