ARISTA NETWORKS INC (1ANET.MI) Stock Fundamental Analysis
BIT:1ANET - Euronext Milan - US0404132054 - Common Stock - Currency: EUR
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 is valued quite expensive, but it does show an excellent growth. These ratings would make 1ANET suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year 1ANET was profitable.
1ANET had a positive operating cash flow in the past year.
In the past 5 years 1ANET has always 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.
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 3 year average ROIC (23.71%) for 1ANET is below the current ROIC(23.94%), indicating increased profibility in the last year.
| 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 has a better Profit Margin (40.72%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of 1ANET has grown nicely.
With an excellent Operating Margin value of 42.27%, 1ANET belongs to the best 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.
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 | 42.27% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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
An Altman-Z score of 19.63 indicates that 1ANET is not in any danger for bankruptcy at the moment.
1ANET has a better Altman-Z score (19.63) 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 | 19.63 |
ROIC/WACC2.34
WACC10.25%
2.3 Liquidity
A Current Ratio of 3.93 indicates that 1ANET has no problem at all paying 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.
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.
1ANET has a better Quick ratio (3.31) than 92.31% of its industry peers.
| 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.
1ANET shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.17% yearly.
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
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.
The Revenue is expected to grow by 17.22% on average over the next years. This is quite good.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 40.72, 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 26.31.
With a Price/Forward Earnings ratio of 32.45, 1ANET can be considered very expensive at the moment.
1ANET's Price/Forward Earnings ratio is in line with the industry average.
1ANET's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.72 | ||
| Fwd PE | 32.45 |
4.2 Price Multiples
61.54% of the companies in the same industry are cheaper than 1ANET, based on the Enterprise Value to EBITDA ratio.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.74 | ||
| EV/EBITDA | 34.17 |
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.
1ANET's earnings are expected to grow with 16.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.76
PEG (5Y)1.35
EPS Next 2Y15.66%
EPS Next 3Y16.75%
5. Dividend
5.1 Amount
No dividends for 1ANET!.
| 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 | 40.72 | ||
| Fwd PE | 32.45 | ||
| P/S | 16.66 | ||
| P/FCF | 32.74 | ||
| P/OCF | 32.3 | ||
| P/B | 12.25 | ||
| P/tB | 12.65 | ||
| EV/EBITDA | 34.17 |
EPS(TTM)2.09
EY2.46%
EPS(NY)2.62
Fwd EY3.08%
FCF(TTM)2.6
FCFY3.05%
OCF(TTM)2.63
OCFY3.1%
SpS5.11
BVpS6.95
TBVpS6.73
PEG (NY)2.76
PEG (5Y)1.35
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 | 19.63 |
F-Score6
WACC10.25%
ROIC/WACC2.34
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%