ARISTA NETWORKS INC (1ANET.MI) Stock Fundamental Analysis
Europe - BIT:1ANET - US0404132054 - Common Stock
125.76 EUR
-8.94 (-6.64%)
We assign a fundamental rating of 7 out of 10 to 1ANET. 1ANET was compared to 29 industry peers in the Communications Equipment industry. 1ANET scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 1ANET is valued quite expensively, but it does show have an excellent growth rating. 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.
In the past year 1ANET had a positive cash flow from operations.
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
1ANET's Return On Assets of 19.67% is amongst the best of the industry. 1ANET outperforms 100.00% of its industry peers.
1ANET has a Return On Equity of 29.83%. This is amongst the best in the industry. 1ANET outperforms 89.66% of its industry peers.
1ANET's Return On Invested Capital of 23.84% is amongst the best of the industry. 1ANET outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1ANET is significantly above the industry average of 11.63%.
The last Return On Invested Capital (23.84%) for 1ANET is above the 3 year average (23.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.67% | ||
| ROE | 29.83% | ||
| ROIC | 23.84% |
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 40.89% 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.
With an excellent Operating Margin value of 43.14%, 1ANET belongs to the best 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.
1ANET has a Gross Margin of 64.24%. This is in the better half of the industry: 1ANET outperforms 79.31% of its industry peers.
1ANET's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.14% | ||
| PM (TTM) | 40.89% | ||
| GM | 64.24% |
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 23.39. This indicates that 1ANET is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1ANET (23.39) is better 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 | 23.39 |
ROIC/WACC2.56
WACC9.3%
2.3 Liquidity
1ANET has a Current Ratio of 3.33. This indicates that 1ANET is financially healthy and has no problem in meeting its short term obligations.
1ANET's Current ratio of 3.33 is amongst the best of the industry. 1ANET outperforms 82.76% of its industry peers.
1ANET has a Quick Ratio of 2.82. This indicates that 1ANET is financially healthy and has no problem in meeting its short term obligations.
1ANET's Quick ratio of 2.82 is amongst the best of the industry. 1ANET outperforms 86.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.50% 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 25.97%.
The Revenue has been growing by 23.77% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)31.5%
EPS 3Y46.94%
EPS 5Y30.17%
EPS Q2Q%39.05%
Revenue 1Y (TTM)25.97%
Revenue growth 3Y33.43%
Revenue growth 5Y23.77%
Sales Q2Q%30.43%
3.2 Future
The Earnings Per Share is expected to grow by 19.41% on average over the next years. This is quite good.
1ANET is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.59% yearly.
EPS Next Y25.99%
EPS Next 2Y21.03%
EPS Next 3Y20.53%
EPS Next 5Y19.42%
Revenue Next Year25.58%
Revenue Next 2Y22.64%
Revenue Next 3Y21.65%
Revenue Next 5Y19.59%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 55.16, the valuation of 1ANET can be described as expensive.
Based on the Price/Earnings ratio, 1ANET is valued a bit cheaper than 62.07% of the companies in the same industry.
1ANET is valuated expensively when we compare the Price/Earnings ratio to 27.55, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 43.65, 1ANET can be considered very expensive at the moment.
1ANET's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1ANET is more expensive than 62.07% of the companies in the same industry.
1ANET's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.16 | ||
| Fwd PE | 43.65 |
4.2 Price Multiples
65.52% of the companies in the same industry are cheaper than 1ANET, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ANET indicates a slightly more expensive valuation: 1ANET is more expensive than 65.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.94 | ||
| EV/EBITDA | 51.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 20.53% in the coming years.
PEG (NY)2.12
PEG (5Y)1.83
EPS Next 2Y21.03%
EPS Next 3Y20.53%
5. Dividend
5.1 Amount
No dividends for 1ANET!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1ANET (10/15/2025, 7:00:00 PM)
125.76
-8.94 (-6.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners69.05%
Inst Owner ChangeN/A
Ins Owners3.35%
Ins Owner ChangeN/A
Market Cap158.06B
Analysts82.42
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)8.98%
Min EPS beat(2)7.74%
Max EPS beat(2)10.22%
EPS beat(4)4
Avg EPS beat(4)10.73%
Min EPS beat(4)7.74%
Max EPS beat(4)12.91%
EPS beat(8)8
Avg EPS beat(8)11.75%
EPS beat(12)12
Avg EPS beat(12)11.47%
EPS beat(16)16
Avg EPS beat(16)10.73%
Revenue beat(2)1
Avg Revenue beat(2)1.15%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)2.55%
Revenue beat(4)2
Avg Revenue beat(4)0.89%
Min Revenue beat(4)-0.6%
Max Revenue beat(4)2.55%
Revenue beat(8)4
Avg Revenue beat(8)0.24%
Revenue beat(12)8
Avg Revenue beat(12)1.68%
Revenue beat(16)11
Avg Revenue beat(16)1.77%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)14.43%
EPS NY rev (1m)0.48%
EPS NY rev (3m)9.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.16 | ||
| Fwd PE | 43.65 | ||
| P/S | 22.97 | ||
| P/FCF | 45.94 | ||
| P/OCF | 45.12 | ||
| P/B | 16.75 | ||
| P/tB | 17.42 | ||
| EV/EBITDA | 51.65 |
EPS(TTM)2.28
EY1.81%
EPS(NY)2.88
Fwd EY2.29%
FCF(TTM)2.74
FCFY2.18%
OCF(TTM)2.79
OCFY2.22%
SpS5.48
BVpS7.51
TBVpS7.22
PEG (NY)2.12
PEG (5Y)1.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.67% | ||
| ROE | 29.83% | ||
| ROCE | 27.48% | ||
| ROIC | 23.84% | ||
| ROICexc | 81.79% | ||
| ROICexgc | 92.37% | ||
| OM | 43.14% | ||
| PM (TTM) | 40.89% | ||
| GM | 64.24% | ||
| FCFM | 50% |
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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 124.95% | ||
| Cap/Sales | 0.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 116.05% | ||
| Profit Quality | 122.26% | ||
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.82 | ||
| Altman-Z | 23.39 |
F-Score6
WACC9.3%
ROIC/WACC2.56
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)31.5%
EPS 3Y46.94%
EPS 5Y30.17%
EPS Q2Q%39.05%
EPS Next Y25.99%
EPS Next 2Y21.03%
EPS Next 3Y20.53%
EPS Next 5Y19.42%
Revenue 1Y (TTM)25.97%
Revenue growth 3Y33.43%
Revenue growth 5Y23.77%
Sales Q2Q%30.43%
Revenue Next Year25.58%
Revenue Next 2Y22.64%
Revenue Next 3Y21.65%
Revenue Next 5Y19.59%
EBIT growth 1Y31.8%
EBIT growth 3Y47.12%
EBIT growth 5Y29.59%
EBIT Next Year29.88%
EBIT Next 3Y22%
EBIT Next 5Y23.37%
FCF growth 1Y320.65%
FCF growth 3Y56.94%
FCF growth 5Y31.15%
OCF growth 1Y311.66%
OCF growth 3Y53.97%
OCF growth 5Y30.95%