Is ARISTA NETWORKS INC (NYSE:ANET) suited for quality investing?

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.

Exploring Why NYSE:ANET Holds Appeal for Quality Investors.

• ARISTA NETWORKS INC has shown strong performance in revenue growth over the past 5 years, with a 22.19% 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 90.32%, 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.
• ARISTA NETWORKS INC exhibits impressive Profit Quality (5-year) with a 93.14% 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 demonstrated consistent growth in EBIT over the past 5 years, with a strong 27.18%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• ARISTA NETWORKS INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

A complete fundamental analysis of NYSE:ANET

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to ANET. ANET was compared to 51 industry peers in the Communications Equipment industry. ANET gets an excellent profitability rating and is at the same time showing great financial health properties. ANET shows excellent growth, but is valued quite expensive already. These ratings could make ANET a good candidate for growth and quality investing.

For an up to date full fundamental analysis you can check the fundamental report of ANET

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.