ARISTA NETWORKS INC (1ANET.MI) Stock Fundamental Analysis
BIT:1ANET - Euronext Milan - US0404132054 - Common Stock - Currency: EUR
Taking everything into account, 1ANET scores 7 out of 10 in our fundamental rating. 1ANET was compared to 26 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 is valued quite expensively, but it does show have an excellent growth rating. This makes 1ANET very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
1ANET had positive earnings in the past year.
In the past year 1ANET had a positive cash flow from operations.
Each year in the past 5 years 1ANET has been profitable.
Each year in the past 5 years 1ANET had a positive operating cash flow.
1.2 Ratios
1ANET has a better Return On Assets (20.86%) than 100.00% of its industry peers.
1ANET has a better Return On Equity (29.93%) than 92.31% of its industry peers.
With an excellent Return On Invested Capital value of 23.94%, 1ANET belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
1ANET had an Average Return On Invested Capital over the past 3 years of 23.71%. This is significantly above the industry average of 10.21%.
The last Return On Invested Capital (23.94%) for 1ANET is above the 3 year average (23.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.86% | ||
| ROE | 29.93% | ||
| ROIC | 23.94% |
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
1ANET's Profit Margin of 40.72% is amongst the best of the industry. 1ANET outperforms 100.00% of its industry peers.
1ANET's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 42.27%, 1ANET belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
1ANET's Operating Margin has improved in the last couple of years.
1ANET has a Gross Margin of 64.09%. This is in the better half of the industry: 1ANET outperforms 73.08% of its industry peers.
1ANET's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.27% | ||
| PM (TTM) | 40.72% | ||
| GM | 64.09% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1ANET is creating value.
The number of shares outstanding for 1ANET has been increased compared to 1 year ago.
1ANET has more shares outstanding than it did 5 years ago.
1ANET has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
1ANET has an Altman-Z score of 19.36. This indicates that 1ANET is financially healthy and has little risk of bankruptcy at the moment.
1ANET's Altman-Z score of 19.36 is amongst the best of the industry. 1ANET outperforms 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 | 19.36 |
ROIC/WACC2.45
WACC9.79%
2.3 Liquidity
1ANET has a Current Ratio of 3.93. This indicates that 1ANET is financially healthy and has no problem in meeting its short term obligations.
1ANET's Current ratio of 3.93 is amongst the best of the industry. 1ANET outperforms 92.31% of its industry peers.
A Quick Ratio of 3.31 indicates that 1ANET has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.31, 1ANET belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.93 | ||
| Quick Ratio | 3.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.68% over the past year.
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 22.31%.
1ANET shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.77% yearly.
EPS 1Y (TTM)29.68%
EPS 3Y46.94%
EPS 5Y30.17%
EPS Q2Q%30.65%
Revenue 1Y (TTM)22.31%
Revenue growth 3Y33.43%
Revenue growth 5Y23.77%
Sales Q2Q%27.58%
3.2 Future
The Earnings Per Share is expected to grow by 16.25% on average over the next years. This is quite good.
Based on estimates for the next years, 1ANET will show a quite strong growth in Revenue. The Revenue will grow by 17.22% on average per year.
EPS Next Y14.77%
EPS Next 2Y15.66%
EPS Next 3Y16.75%
EPS Next 5Y16.25%
Revenue Next Year19.92%
Revenue Next 2Y18.68%
Revenue Next 3Y18.09%
Revenue Next 5Y17.22%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 39.95 indicates a quite expensive valuation of 1ANET.
Based on the Price/Earnings ratio, 1ANET is valued a bit cheaper than 61.54% of the companies in the same industry.
1ANET's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.55.
The Price/Forward Earnings ratio is 31.94, which means the current valuation is very expensive for 1ANET.
The rest of the industry has a similar Price/Forward Earnings ratio as 1ANET.
1ANET's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.95 | ||
| Fwd PE | 31.94 |
4.2 Price Multiples
1ANET's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1ANET is more expensive than 61.54% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ANET indicates a slightly more expensive valuation: 1ANET is more expensive than 61.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.22 | ||
| EV/EBITDA | 33.56 |
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 16.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.71
PEG (5Y)1.32
EPS Next 2Y15.66%
EPS Next 3Y16.75%
5. Dividend
5.1 Amount
1ANET does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1ANET (6/6/2025, 7:00:00 PM)
85.1
+85.1 (+Infinity%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners68.57%
Inst Owner ChangeN/A
Ins Owners3.65%
Ins Owner ChangeN/A
Market Cap106.88B
Analysts81.94
Price TargetN/A
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)9.9%
Min EPS beat(2)7.74%
Max EPS beat(2)12.07%
EPS beat(4)4
Avg EPS beat(4)9.62%
Min EPS beat(4)5.76%
Max EPS beat(4)12.91%
EPS beat(8)8
Avg EPS beat(8)11.44%
EPS beat(12)12
Avg EPS beat(12)11.95%
EPS beat(16)16
Avg EPS beat(16)10.39%
Revenue beat(2)0
Avg Revenue beat(2)-0.43%
Min Revenue beat(2)-0.6%
Max Revenue beat(2)-0.26%
Revenue beat(4)2
Avg Revenue beat(4)0.33%
Min Revenue beat(4)-0.6%
Max Revenue beat(4)1.85%
Revenue beat(8)4
Avg Revenue beat(8)0.39%
Revenue beat(12)8
Avg Revenue beat(12)1.94%
Revenue beat(16)11
Avg Revenue beat(16)1.66%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.95 | ||
| Fwd PE | 31.94 | ||
| P/S | 16.4 | ||
| P/FCF | 32.22 | ||
| P/OCF | 31.79 | ||
| P/B | 12.05 | ||
| P/tB | 12.45 | ||
| EV/EBITDA | 33.56 |
EPS(TTM)2.13
EY2.5%
EPS(NY)2.66
Fwd EY3.13%
FCF(TTM)2.64
FCFY3.1%
OCF(TTM)2.68
OCFY3.15%
SpS5.19
BVpS7.06
TBVpS6.83
PEG (NY)2.71
PEG (5Y)1.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.86% | ||
| ROE | 29.93% | ||
| ROCE | 27.59% | ||
| ROIC | 23.94% | ||
| ROICexc | 84.09% | ||
| ROICexgc | 93.45% | ||
| OM | 42.27% | ||
| PM (TTM) | 40.72% | ||
| GM | 64.09% | ||
| FCFM | 50.9% |
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%
ROICexcg growth 3Y3.57%
ROICexcg 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-Score6
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 84.75% | ||
| Cap/Sales | 0.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 119.75% | ||
| Profit Quality | 125% | ||
| Current Ratio | 3.93 | ||
| Quick Ratio | 3.31 | ||
| Altman-Z | 19.36 |
F-Score6
WACC9.79%
ROIC/WACC2.45
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)29.68%
EPS 3Y46.94%
EPS 5Y30.17%
EPS Q2Q%30.65%
EPS Next Y14.77%
EPS Next 2Y15.66%
EPS Next 3Y16.75%
EPS Next 5Y16.25%
Revenue 1Y (TTM)22.31%
Revenue growth 3Y33.43%
Revenue growth 5Y23.77%
Sales Q2Q%27.58%
Revenue Next Year19.92%
Revenue Next 2Y18.68%
Revenue Next 3Y18.09%
Revenue Next 5Y17.22%
EBIT growth 1Y29.2%
EBIT growth 3Y47.12%
EBIT growth 5Y29.59%
EBIT Next Year18.97%
EBIT Next 3Y17.52%
EBIT Next 5YN/A
FCF growth 1Y515.7%
FCF growth 3Y56.94%
FCF growth 5Y31.15%
OCF growth 1Y490.03%
OCF growth 3Y53.97%
OCF growth 5Y30.95%