ARISTA NETWORKS INC (1ANET.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ANET - US0404132054 - Common Stock
104.9 EUR
-1.78 (-1.67%)
Taking everything into account, 1ANET scores 8 out of 10 in our fundamental rating. 1ANET was compared to 31 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. This makes 1ANET very considerable 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.
- In the past 5 years 1ANET has always been profitable.
- 1ANET had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 18.60%, 1ANET belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- The Return On Equity of 1ANET (28.19%) is better than 96.77% of its industry peers.
- 1ANET's Return On Invested Capital of 23.49% is amongst the best of the industry. 1ANET outperforms 96.77% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1ANET is significantly above the industry average of 10.63%.
| 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
- With an excellent Profit Margin value of 39.73%, 1ANET belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- 1ANET's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 42.88%, 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.
- With an excellent Gross Margin value of 64.34%, 1ANET belongs to the best of the industry, outperforming 83.87% 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
- 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
- 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
- 1ANET has an Altman-Z score of 17.69. This indicates that 1ANET is financially healthy and has little risk of bankruptcy at the moment.
- 1ANET has a Altman-Z score of 17.69. This is amongst the best in the industry. 1ANET outperforms 90.32% of its industry peers.
- 1ANET has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 17.69 |
ROIC/WACC2.46
WACC9.55%
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.
- Looking at the Current ratio, with a value of 3.25, 1ANET belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
- 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 87.10% 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%.
- 1ANET shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.77% yearly.
EPS 1Y (TTM)29.75%
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
- 1ANET is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.87% yearly.
- Based on estimates for the next years, 1ANET will show a very strong growth in Revenue. The Revenue will grow by 21.06% on average per year.
EPS Next Y28.73%
EPS Next 2Y22.53%
EPS Next 3Y21.67%
EPS Next 5Y21.87%
Revenue Next Year27.41%
Revenue Next 2Y24.57%
Revenue Next 3Y22.94%
Revenue Next 5Y21.06%
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 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
- A Price/Earnings ratio of 44.26 indicates a quite expensive valuation of 1ANET.
- Compared to the rest of the industry, the Price/Earnings ratio of 1ANET indicates a somewhat cheap valuation: 1ANET is cheaper than 70.97% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. 1ANET is valued rather expensively when compared to this.
- 1ANET is valuated quite expensively with a Price/Forward Earnings ratio of 36.10.
- 1ANET's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. 1ANET is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.26 | ||
| Fwd PE | 36.1 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1ANET.
- 1ANET's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.34 | ||
| EV/EBITDA | 37.21 |
4.3 Compensation for Growth
- 1ANET's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of 1ANET may justify a higher PE ratio.
- A more expensive valuation may be justified as 1ANET's earnings are expected to grow with 21.67% in the coming years.
PEG (NY)1.54
PEG (5Y)1.47
EPS Next 2Y22.53%
EPS Next 3Y21.67%
5. Dividend
5.1 Amount
- 1ANET does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 8 / 10 to 1ANET.MI.
What is the valuation status of ARISTA NETWORKS INC (1ANET.MI) stock?
ChartMill assigns a valuation rating of 3 / 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.
Can you provide the PE and PB ratios for 1ANET stock?
The Price/Earnings (PE) ratio for ARISTA NETWORKS INC (1ANET.MI) is 44.26 and the Price/Book (PB) ratio is 13.03.