Why NYSE:ANET qualifies as a quality stock.

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.

Why NYSE:ANET may be interesting for quality investors.

• Over the past 5 years, ARISTA NETWORKS INC has experienced impressive revenue growth, with 22.19% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a notable ROIC excluding cash and goodwill at 78.56%, 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.
• With a favorable Debt/Free Cash Flow Ratio of 0.0, ARISTA NETWORKS INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• With a favorable Profit Quality (5-year) ratio of 93.14%, ARISTA NETWORKS INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• ARISTA NETWORKS INC has experienced impressive EBIT growth over the past 5 years, with 27.18% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• 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 else is there to say on the fundamentals of NYSE:ANET?

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily 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 52 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 valued quite expensively, but it does show have an excellent growth rating. These ratings could make ANET a good candidate for growth and quality investing.

Our latest full fundamental report of ANET contains the most current fundamental analsysis.

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

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.