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Is NYSE:ANET suited for quality investing?

By Mill Chart

Last update: Dec 13, 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.

A Deep Dive into ARISTA NETWORKS INC's Quality Metrics.

  • ARISTA NETWORKS INC has shown strong performance in revenue growth over the past 5 years, with a 21.63% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • With a notable ROIC excluding cash and goodwill at 76.34%, ARISTA NETWORKS INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • 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.
  • With a robust 5-year EBIT growth of 26.56%, ARISTA NETWORKS INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • The EBIT 5-year growth of ARISTA NETWORKS INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Fundamental Analysis Observations

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.

Taking everything into account, ANET scores 7 out of 10 in our fundamental rating. ANET was compared to 59 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 priced too expensively while it is growing strongly. Keep and eye on this one! 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 quality stocks can be found in our Caviar Cruise screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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ARISTA NETWORKS INC

NYSE:ANET (5/17/2024, 7:04:00 PM)

After market: 320.02 +0.13 (+0.04%)

319.89

-0.2 (-0.06%)

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