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

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.

Highlighting Notable Quality Metrics of NYSE:ANET.

• The 5-year revenue growth of ARISTA NETWORKS INC has been remarkable, with 22.19% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• With a robust ROIC excluding cash and goodwill at 90.32%, 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.
• ARISTA NETWORKS INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.0, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• With a robust Profit Quality (5-year) ratio of 93.14%, 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.
• ARISTA NETWORKS INC has consistently achieved strong EBIT growth over the past 5 years, with a 27.18% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• 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.

Zooming in on the fundamentals.

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 8 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 is evaluated to be cheap and growing strongly. This does not happen too often! These ratings would make ANET suitable for value and 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.

Keep in mind

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.