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Why ARISTA NETWORKS INC (NYSE:ANET) should be investigated by quality investors.

By Mill Chart

Last update: Aug 29, 2023

In this article we will dive into ARISTA NETWORKS INC (NYSE:ANET) as a possible candidate for quality investing. Investors should always do their own research, but we noticed ARISTA NETWORKS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

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.
  • The ROIC excluding cash and goodwill of ARISTA NETWORKS INC stands at 69.14%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • ARISTA NETWORKS INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.0, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • 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 demonstrated consistent growth in EBIT over the past 5 years, with a strong 26.56%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • 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.

Zooming in on the fundamentals.

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

ANET gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 60 industry peers in the Communications Equipment industry. ANET has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ANET is growing strongly while it is still valued neutral. This is a good combination! This makes ANET very considerable for growth and quality investing!

Check the latest full fundamental report of ANET for a complete fundamental analysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.


This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.