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 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
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
The Return On Assets of 1ANET (20.86%) is better than 100.00% of its industry peers.
1ANET's Return On Equity of 29.93% is amongst the best of the industry. 1ANET outperforms 92.31% of its industry peers.
1ANET has a better Return On Invested Capital (23.94%) 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.
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 better Gross Margin (64.09%) 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 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.
1ANET has more shares outstanding than it did 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 Altman-Z score of 19.63. This is amongst the best in the industry. 1ANET outperforms 100.00% 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 | 19.63 |
ROIC/WACC2.47
WACC9.68%
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.
A Quick Ratio of 3.31 indicates that 1ANET has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.31, 1ANET belongs to the best 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.
The Earnings Per Share has been growing by 30.17% on average over the past years. This is a very strong growth
Looking at the last year, 1ANET shows a very strong growth in Revenue. The Revenue has grown by 22.31%.
Measured over the past years, 1ANET shows a very strong growth in Revenue. The Revenue has been growing by 23.77% on average per year.
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
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.
When comparing the Price/Earnings ratio of 1ANET to the average of the S&P500 Index (26.60), we can say 1ANET is valued expensively.
Based on the Price/Forward Earnings ratio of 32.45, the valuation of 1ANET can be described as expensive.
1ANET's Price/Forward Earnings is on the same level as the industry average.
1ANET is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
| 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.
Based on the Price/Free Cash Flow ratio, 1ANET is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
| 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.
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)2.76
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
WACC9.68%
ROIC/WACC2.47
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%