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 25 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 expensive, but it does show an excellent growth. With these ratings, 1ANET could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
1ANET had positive earnings in the past year.
1ANET had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 20.86%, 1ANET belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
1ANET has a Return On Equity of 29.93%. This is amongst the best in the industry. 1ANET outperforms 92.00% of its industry peers.
1ANET has a better Return On Invested Capital (23.94%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1ANET is significantly above the industry average of 8.88%.
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.
In the last couple of years the Profit Margin of 1ANET has grown nicely.
1ANET has a Operating Margin of 42.27%. This is amongst the best in the industry. 1ANET outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of 1ANET has grown nicely.
1ANET has a better Gross Margin (64.09%) than 76.00% 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
1ANET has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
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 21.96 indicates that 1ANET is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 21.96, 1ANET belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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 | 21.96 |
ROIC/WACC2.33
WACC10.28%
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.
Looking at the Current ratio, with a value of 3.93, 1ANET belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
A Quick Ratio of 3.31 indicates that 1ANET has no problem at all paying its short term obligations.
The Quick ratio of 1ANET (3.31) is better than 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.93 | ||
| Quick Ratio | 3.31 |
3. Growth
3.1 Past
1ANET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.68%, 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.
1ANET shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.31%.
The Revenue has been growing by 23.77% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, 1ANET will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.25% on average per year.
The Revenue is expected to grow by 17.22% on average over the next years. This is quite good.
EPS Next Y15.07%
EPS Next 2Y15.69%
EPS Next 3Y16.45%
EPS Next 5Y16.25%
Revenue Next Year20.11%
Revenue Next 2Y18.7%
Revenue Next 3Y17.88%
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 46.25 indicates a quite expensive valuation of 1ANET.
The rest of the industry has a similar Price/Earnings ratio as 1ANET.
1ANET's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.25.
1ANET is valuated quite expensively with a Price/Forward Earnings ratio of 36.91.
The rest of the industry has a similar Price/Forward Earnings ratio as 1ANET.
1ANET's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.25 | ||
| Fwd PE | 36.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1ANET is valued a bit more expensive than 60.00% of the companies in the same industry.
1ANET's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1ANET is more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.24 | ||
| EV/EBITDA | 39.49 |
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.
1ANET has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1ANET's earnings are expected to grow with 16.45% in the coming years.
PEG (NY)3.07
PEG (5Y)1.53
EPS Next 2Y15.69%
EPS Next 3Y16.45%
5. Dividend
5.1 Amount
1ANET does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1ANET (7/18/2025, 7:00:00 PM)
95.74
+2.82 (+3.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners69.58%
Inst Owner ChangeN/A
Ins Owners3.36%
Ins Owner ChangeN/A
Market Cap120.24B
Analysts80.63
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)0.03%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.27%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.25 | ||
| Fwd PE | 36.91 | ||
| P/S | 18.96 | ||
| P/FCF | 37.24 | ||
| P/OCF | 36.75 | ||
| P/B | 13.93 | ||
| P/tB | 14.39 | ||
| EV/EBITDA | 39.49 |
EPS(TTM)2.07
EY2.16%
EPS(NY)2.59
Fwd EY2.71%
FCF(TTM)2.57
FCFY2.69%
OCF(TTM)2.61
OCFY2.72%
SpS5.05
BVpS6.87
TBVpS6.65
PEG (NY)3.07
PEG (5Y)1.53
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 | 21.96 |
F-Score6
WACC10.28%
ROIC/WACC2.33
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 Y15.07%
EPS Next 2Y15.69%
EPS Next 3Y16.45%
EPS Next 5Y16.25%
Revenue 1Y (TTM)22.31%
Revenue growth 3Y33.43%
Revenue growth 5Y23.77%
Sales Q2Q%27.58%
Revenue Next Year20.11%
Revenue Next 2Y18.7%
Revenue Next 3Y17.88%
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%