ARISTA NETWORKS INC (1ANET.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ANET - US0404132054 - Common Stock
116.44 EUR
-16.26 (-12.25%)
We assign a fundamental rating of 7 out of 10 to 1ANET. 1ANET was compared to 29 industry peers in the Communications Equipment industry. 1ANET gets an excellent profitability rating and is at the same time showing great financial health properties. 1ANET shows excellent growth, but is valued quite expensive already. These ratings could make 1ANET a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year 1ANET was profitable.
In the past year 1ANET had a positive cash flow from operations.
1ANET had positive earnings in each of the past 5 years.
1ANET had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 18.60%, 1ANET belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of 1ANET (28.19%) is better than 93.10% of its industry peers.
With an excellent Return On Invested Capital value of 23.49%, 1ANET belongs to the best of the industry, outperforming 96.55% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1ANET is significantly above the industry average of 11.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.6% | ||
| ROE | 28.19% | ||
| ROIC | 23.49% |
ROA(3y)20.41%
ROA(5y)17.86%
ROE(3y)28.38%
ROE(5y)25.08%
ROIC(3y)23.71%
ROIC(5y)20.75%
1.3 Margins
Looking at the Profit Margin, with a value of 39.73%, 1ANET belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of 1ANET has grown nicely.
1ANET has a better Operating Margin (42.88%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of 1ANET has grown nicely.
Looking at the Gross Margin, with a value of 64.34%, 1ANET is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
In the last couple of years the Gross Margin of 1ANET has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.88% | ||
| PM (TTM) | 39.73% | ||
| GM | 64.34% |
OM growth 3Y10.26%
OM growth 5Y4.7%
PM growth 3Y12.61%
PM growth 5Y2.7%
GM growth 3Y0.17%
GM growth 5Y0.02%
2. Health
2.1 Basic Checks
1ANET has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, 1ANET has more shares outstanding
Compared to 5 years ago, 1ANET has more shares outstanding
There is no outstanding debt for 1ANET. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 19.04 indicates that 1ANET is not in any danger for bankruptcy at the moment.
1ANET has a better Altman-Z score (19.04) than 100.00% of its industry peers.
There is no outstanding debt for 1ANET. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 19.04 |
ROIC/WACC2.56
WACC9.19%
2.3 Liquidity
1ANET has a Current Ratio of 3.25. This indicates that 1ANET is financially healthy and has no problem in meeting its short term obligations.
1ANET has a Current ratio of 3.25. This is amongst the best in the industry. 1ANET outperforms 82.76% of its industry peers.
A Quick Ratio of 2.79 indicates that 1ANET has no problem at all paying its short term obligations.
1ANET has a Quick ratio of 2.79. This is amongst the best in the industry. 1ANET outperforms 89.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.25 | ||
| Quick Ratio | 2.79 |
3. Growth
3.1 Past
1ANET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.75%, which is quite impressive.
Measured over the past years, 1ANET shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.17% on average per year.
Looking at the last year, 1ANET shows a very strong growth in Revenue. The Revenue has grown by 27.75%.
The Revenue has been growing by 23.77% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)29.75%
EPS 3Y46.94%
EPS 5Y30.17%
EPS Q2Q%25%
Revenue 1Y (TTM)27.75%
Revenue growth 3Y33.43%
Revenue growth 5Y23.77%
Sales Q2Q%27.46%
3.2 Future
The Earnings Per Share is expected to grow by 21.87% on average over the next years. This is a very strong growth
1ANET is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.06% yearly.
EPS Next Y26.16%
EPS Next 2Y21.42%
EPS Next 3Y20.92%
EPS Next 5Y21.87%
Revenue Next Year25.2%
Revenue Next 2Y22.94%
Revenue Next 3Y21.75%
Revenue Next 5Y21.06%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 48.32, the valuation of 1ANET can be described as expensive.
1ANET's Price/Earnings is on the same level as the industry average.
1ANET's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.45.
With a Price/Forward Earnings ratio of 40.04, 1ANET can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, 1ANET is valued a bit more expensive than the industry average as 65.52% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 34.46. 1ANET is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.32 | ||
| Fwd PE | 40.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1ANET is valued a bit more expensive than the industry average as 72.41% of the companies are valued more cheaply.
1ANET's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.75 | ||
| EV/EBITDA | 40.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1ANET does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of 1ANET may justify a higher PE ratio.
1ANET's earnings are expected to grow with 20.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.85
PEG (5Y)1.6
EPS Next 2Y21.42%
EPS Next 3Y20.92%
5. Dividend
5.1 Amount
No dividends for 1ANET!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1ANET (11/12/2025, 7:00:00 PM)
116.44
-16.26 (-12.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners69.05%
Inst Owner ChangeN/A
Ins Owners3.35%
Ins Owner ChangeN/A
Market Cap146.63B
Revenue(TTM)8.45B
Net Income(TTM)3.36B
Analysts82.42
Price Target135.34 (16.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.6%
Min EPS beat(2)2.99%
Max EPS beat(2)10.22%
EPS beat(4)4
Avg EPS beat(4)8.25%
Min EPS beat(4)2.99%
Max EPS beat(4)12.07%
EPS beat(8)8
Avg EPS beat(8)10.44%
EPS beat(12)12
Avg EPS beat(12)10.26%
EPS beat(16)16
Avg EPS beat(16)10.51%
Revenue beat(2)2
Avg Revenue beat(2)1.52%
Min Revenue beat(2)0.49%
Max Revenue beat(2)2.55%
Revenue beat(4)2
Avg Revenue beat(4)0.55%
Min Revenue beat(4)-0.6%
Max Revenue beat(4)2.55%
Revenue beat(8)4
Avg Revenue beat(8)0.3%
Revenue beat(12)8
Avg Revenue beat(12)0.98%
Revenue beat(16)12
Avg Revenue beat(16)1.84%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)4.01%
EPS NQ rev (3m)6.83%
EPS NY rev (1m)0.06%
EPS NY rev (3m)9.63%
Revenue NQ rev (1m)2.28%
Revenue NQ rev (3m)3.06%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)3.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.32 | ||
| Fwd PE | 40.04 | ||
| P/S | 19.99 | ||
| P/FCF | 41.75 | ||
| P/OCF | 40.79 | ||
| P/B | 14.19 | ||
| P/tB | 14.7 | ||
| EV/EBITDA | 40.95 |
EPS(TTM)2.41
EY2.07%
EPS(NY)2.91
Fwd EY2.5%
FCF(TTM)2.79
FCFY2.4%
OCF(TTM)2.85
OCFY2.45%
SpS5.82
BVpS8.21
TBVpS7.92
PEG (NY)1.85
PEG (5Y)1.6
Graham Number21.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.6% | ||
| ROE | 28.19% | ||
| ROCE | 27.07% | ||
| ROIC | 23.49% | ||
| ROICexc | 95.95% | ||
| ROICexgc | 109.92% | ||
| OM | 42.88% | ||
| PM (TTM) | 39.73% | ||
| GM | 64.34% | ||
| FCFM | 47.89% |
ROA(3y)20.41%
ROA(5y)17.86%
ROE(3y)28.38%
ROE(5y)25.08%
ROIC(3y)23.71%
ROIC(5y)20.75%
ROICexc(3y)67.83%
ROICexc(5y)64.95%
ROICexgc(3y)77.58%
ROICexgc(5y)79.18%
ROCE(3y)27.32%
ROCE(5y)23.92%
ROICexgc growth 3Y3.57%
ROICexgc growth 5Y0.83%
ROICexc growth 3Y8.79%
ROICexc growth 5Y0.97%
OM growth 3Y10.26%
OM growth 5Y4.7%
PM growth 3Y12.61%
PM growth 5Y2.7%
GM growth 3Y0.17%
GM growth 5Y0.02%
F-Score5
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 145.66% | ||
| Cap/Sales | 1.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 112.28% | ||
| Profit Quality | 120.54% | ||
| Current Ratio | 3.25 | ||
| Quick Ratio | 2.79 | ||
| Altman-Z | 19.04 |
F-Score5
WACC9.19%
ROIC/WACC2.56
Cap/Depr(3y)57.2%
Cap/Depr(5y)66.94%
Cap/Sales(3y)0.69%
Cap/Sales(5y)0.98%
Profit Quality(3y)85.94%
Profit Quality(5y)96.87%
High Growth Momentum
Growth
EPS 1Y (TTM)29.75%
EPS 3Y46.94%
EPS 5Y30.17%
EPS Q2Q%25%
EPS Next Y26.16%
EPS Next 2Y21.42%
EPS Next 3Y20.92%
EPS Next 5Y21.87%
Revenue 1Y (TTM)27.75%
Revenue growth 3Y33.43%
Revenue growth 5Y23.77%
Sales Q2Q%27.46%
Revenue Next Year25.2%
Revenue Next 2Y22.94%
Revenue Next 3Y21.75%
Revenue Next 5Y21.06%
EBIT growth 1Y30.09%
EBIT growth 3Y47.12%
EBIT growth 5Y29.59%
EBIT Next Year29.88%
EBIT Next 3Y22%
EBIT Next 5Y23.27%
FCF growth 1Y168.1%
FCF growth 3Y56.94%
FCF growth 5Y31.15%
OCF growth 1Y167.5%
OCF growth 3Y53.97%
OCF growth 5Y30.95%
ARISTA NETWORKS INC / 1ANET.MI FAQ
What is the ChartMill fundamental rating of ARISTA NETWORKS INC (1ANET.MI) stock?
ChartMill assigns a fundamental rating of 7 / 10 to 1ANET.MI.
What is the valuation status for 1ANET stock?
ChartMill assigns a valuation rating of 2 / 10 to ARISTA NETWORKS INC (1ANET.MI). This can be considered as Overvalued.
How profitable is ARISTA NETWORKS INC (1ANET.MI) stock?
ARISTA NETWORKS INC (1ANET.MI) has a profitability rating of 9 / 10.
What are the PE and PB ratios of ARISTA NETWORKS INC (1ANET.MI) stock?
The Price/Earnings (PE) ratio for ARISTA NETWORKS INC (1ANET.MI) is 48.32 and the Price/Book (PB) ratio is 14.19.