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ARISTA NETWORKS INC (1ANET.MI) Stock Fundamental Analysis

BIT:1ANET - Euronext Milan - US0404132054 - Common Stock - Currency: EUR

85.1  +85.1 (+Infinity%)

Fundamental Rating

7

Overall 1ANET gets a fundamental rating of 7 out of 10. We evaluated 1ANET against 26 industry peers in the Communications Equipment industry. Both the health and profitability get an excellent rating, making 1ANET a very profitable company, without any liquidiy or solvency issues. 1ANET shows excellent growth, but is valued quite expensive already. These ratings could make 1ANET a good candidate for growth and quality investing.


Dividend Valuation Growth Profitability Health

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9

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.
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.
1ANET.MI Yearly Net Income VS EBIT VS OCF VS FCF1ANET.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

1.2 Ratios

1ANET has a Return On Assets of 20.86%. This is amongst the best in the industry. 1ANET outperforms 100.00% of its industry peers.
The Return On Equity of 1ANET (29.93%) is better than 92.31% of its industry peers.
The Return On Invested Capital of 1ANET (23.94%) is better than 100.00% of its industry peers.
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 RankSector 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%
1ANET.MI Yearly ROA, ROE, ROIC1ANET.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

Looking at the Profit Margin, with a value of 40.72%, 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.
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.
In the last couple of years the Operating Margin of 1ANET has grown nicely.
The Gross Margin of 1ANET (64.09%) is better than 73.08% of its industry peers.
In the last couple of years the Gross Margin of 1ANET has remained more or less at the same level.
Industry RankSector 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%
1ANET.MI Yearly Profit, Operating, Gross Margins1ANET.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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9

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1ANET is creating value.
Compared to 1 year ago, 1ANET has more shares outstanding
The number of shares outstanding for 1ANET has been increased compared to 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.
1ANET.MI Yearly Shares Outstanding1ANET.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
1ANET.MI Yearly Total Debt VS Total Assets1ANET.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

2.2 Solvency

1ANET has an Altman-Z score of 19.39. This indicates that 1ANET is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 19.39, 1ANET belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
1ANET has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 19.39
ROIC/WACC2.45
WACC9.78%
1ANET.MI Yearly LT Debt VS Equity VS FCF1ANET.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.3 Liquidity

A Current Ratio of 3.93 indicates that 1ANET has no problem at all paying its short term obligations.
The Current ratio of 1ANET (3.93) is better than 92.31% of its industry peers.
1ANET has a Quick Ratio of 3.31. This indicates that 1ANET is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of 1ANET (3.31) is better than 92.31% of its industry peers.
Industry RankSector Rank
Current Ratio 3.93
Quick Ratio 3.31
1ANET.MI Yearly Current Assets VS Current Liabilites1ANET.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

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8

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.
The Earnings Per Share has been growing by 30.17% on average over the past years. This is a very strong growth
The Revenue has grown by 22.31% in the past year. This is a very strong growth!
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

1ANET is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.25% yearly.
1ANET is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.22% yearly.
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.
1ANET.MI Yearly Revenue VS Estimates1ANET.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5B 10B 15B
1ANET.MI Yearly EPS VS Estimates1ANET.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 2 3 4

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2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 40.14, the valuation of 1ANET can be described as expensive.
1ANET's Price/Earnings ratio is a bit cheaper when compared to the industry. 1ANET is cheaper than 61.54% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. 1ANET is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 31.99, the valuation of 1ANET can be described as expensive.
1ANET's Price/Forward Earnings is on the same level as the industry average.
1ANET's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.39.
Industry RankSector Rank
PE 40.14
Fwd PE 31.99
1ANET.MI Price Earnings VS Forward Price Earnings1ANET.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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.
1ANET's Price/Free Cash Flow 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.
Industry RankSector Rank
P/FCF 32.27
EV/EBITDA 33.62
1ANET.MI Per share data1ANET.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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)2.72
PEG (5Y)1.33
EPS Next 2Y15.66%
EPS Next 3Y16.75%

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0

5. Dividend

5.1 Amount

1ANET does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ARISTA NETWORKS INC

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)05-06 2025-05-06/amc
Earnings (Next)07-28 2025-07-28/amc
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 RankSector 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 RankSector Rank
PE 40.14
Fwd PE 31.99
P/S 16.43
P/FCF 32.27
P/OCF 31.84
P/B 12.07
P/tB 12.47
EV/EBITDA 33.62
EPS(TTM)2.12
EY2.49%
EPS(NY)2.66
Fwd EY3.13%
FCF(TTM)2.64
FCFY3.1%
OCF(TTM)2.67
OCFY3.14%
SpS5.18
BVpS7.05
TBVpS6.82
PEG (NY)2.72
PEG (5Y)1.33
Profitability
Industry RankSector 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 RankSector 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 19.39
F-Score6
WACC9.78%
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%