Reasonable Growth, Debt Levels, and a High ROIC Make ARISTA NETWORKS INC (NYSE:ANET) Appealing to Quality Investors.

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.

Looking into the quality metrics of ARISTA NETWORKS INC

• ARISTA NETWORKS INC has demonstrated significant revenue growth over the past 5 years, with a 21.63% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• With a robust ROIC excluding cash and goodwill at 76.34%, ARISTA NETWORKS INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• With a Debt/Free Cash Flow Ratio of 0.0, ARISTA NETWORKS INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• ARISTA NETWORKS INC exhibits impressive Profit Quality (5-year) with a 103.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• ARISTA NETWORKS INC has consistently achieved strong EBIT growth over the past 5 years, with a 26.56% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• 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.

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, ANET scores 7 out of 10 in our fundamental rating. ANET was compared to 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 not overvalued while it is showing excellent growth. This is an interesting combination. This makes ANET very considerable for growth and quality investing!

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

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

Disclaimer

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.