Is NYSE:ANET a Suitable Choice 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 course 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.

Looking into the quality metrics of ARISTA NETWORKS INC

• 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 76.34%, 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 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.
• The 5-year EBIT growth of ARISTA NETWORKS INC has been remarkable, with 26.56% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, ARISTA NETWORKS INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

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

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Overall ANET gets a fundamental rating of 7 out of 10. We evaluated ANET against 56 industry peers in the Communications Equipment industry. ANET scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ANET is growing strongly while it is still valued neutral. This is a good 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

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

Disclaimer

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.