ARISTA NETWORKS INC (ANET) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:ANET • US0404132054

133.53 USD
+4.86 (+3.78%)
Last: Feb 6, 2026, 10:48 AM
Fundamental Rating

8

We assign a fundamental rating of 8 out of 10 to ANET. ANET was compared to 48 industry peers in the Communications Equipment industry. ANET scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ANET shows excellent growth, but is valued quite expensive already. With these ratings, ANET could be worth investigating further for growth and quality investing!.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • ANET had positive earnings in the past year.
  • ANET had a positive operating cash flow in the past year.
  • ANET had positive earnings in each of the past 5 years.
  • ANET had a positive operating cash flow in each of the past 5 years.
ANET Yearly Net Income VS EBIT VS OCF VS FCFANET Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

1.2 Ratios

  • ANET has a Return On Assets of 18.60%. This is amongst the best in the industry. ANET outperforms 95.83% of its industry peers.
  • ANET has a Return On Equity of 28.19%. This is amongst the best in the industry. ANET outperforms 93.75% of its industry peers.
  • The Return On Invested Capital of ANET (23.49%) is better than 97.92% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ANET is significantly above the industry average of 11.74%.
Industry RankSector 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%
ANET Yearly ROA, ROE, ROICANET Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

  • ANET's Profit Margin of 39.73% is amongst the best of the industry. ANET outperforms 100.00% of its industry peers.
  • ANET's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 42.88%, ANET 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 ANET has grown nicely.
  • The Gross Margin of ANET (64.34%) is better than 85.42% of its industry peers.
  • ANET's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
ANET Yearly Profit, Operating, Gross MarginsANET Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

9

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ANET is creating value.
  • ANET has more shares outstanding than it did 1 year ago.
  • The number of shares outstanding for ANET has been increased compared to 5 years ago.
  • There is no outstanding debt for ANET. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
ANET Yearly Shares OutstandingANET Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
ANET Yearly Total Debt VS Total AssetsANET Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

2.2 Solvency

  • ANET has an Altman-Z score of 18.37. This indicates that ANET is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of ANET (18.37) is better than 91.67% of its industry peers.
  • ANET 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 18.37
ROIC/WACC2.38
WACC9.87%
ANET Yearly LT Debt VS Equity VS FCFANET Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 3.25 indicates that ANET has no problem at all paying its short term obligations.
  • ANET has a better Current ratio (3.25) than 83.33% of its industry peers.
  • A Quick Ratio of 2.79 indicates that ANET has no problem at all paying its short term obligations.
  • ANET's Quick ratio of 2.79 is amongst the best of the industry. ANET outperforms 81.25% of its industry peers.
Industry RankSector Rank
Current Ratio 3.25
Quick Ratio 2.79
ANET Yearly Current Assets VS Current LiabilitesANET Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

9

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 29.75% over the past year.
  • ANET shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.17% yearly.
  • The Revenue has grown by 27.75% in the past year. This is a very strong growth!
  • The Revenue has been growing by 23.77% on average over the past years. This is a very strong growth!
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

  • ANET 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, ANET 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.
  • 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.
ANET Yearly Revenue VS EstimatesANET Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B
ANET Yearly EPS VS EstimatesANET Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6

More info and screens

Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 48.03, ANET can be considered very expensive at the moment.
  • The rest of the industry has a similar Price/Earnings ratio as ANET.
  • The average S&P500 Price/Earnings ratio is at 27.67. ANET is valued rather expensively when compared to this.
  • A Price/Forward Earnings ratio of 39.14 indicates a quite expensive valuation of ANET.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ANET is on the same level as its industry peers.
  • ANET is valuated rather expensively when we compare the Price/Forward Earnings ratio to 27.20, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 48.03
Fwd PE 39.14
ANET Price Earnings VS Forward Price EarningsANET Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as ANET.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ANET is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 41.56
EV/EBITDA 39.09
ANET Per share dataANET EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

  • ANET's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • ANET has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as ANET's earnings are expected to grow with 21.67% in the coming years.
PEG (NY)1.67
PEG (5Y)1.59
EPS Next 2Y22.53%
EPS Next 3Y21.67%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • ANET does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

ARISTA NETWORKS INC

NYSE:ANET (2/6/2026, 10:48:04 AM)

133.53

+4.86 (+3.78%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)11-04
Earnings (Next)02-12
Inst Owners70.22%
Inst Owner Change-2.23%
Ins Owners3.31%
Ins Owner Change0.24%
Market Cap168.15B
Revenue(TTM)8.45B
Net Income(TTM)3.36B
Analysts81.88
Price Target165.98 (24.3%)
Short Float %1.36%
Short Ratio1.91
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.6%
Min EPS beat(2)2.99%
Max EPS beat(2)10.22%
EPS beat(4)4
Avg EPS beat(4)8.25%
Min EPS beat(4)2.99%
Max EPS beat(4)12.07%
EPS beat(8)8
Avg EPS beat(8)10.44%
EPS beat(12)12
Avg EPS beat(12)10.26%
EPS beat(16)16
Avg EPS beat(16)10.51%
Revenue beat(2)2
Avg Revenue beat(2)1.52%
Min Revenue beat(2)0.49%
Max Revenue beat(2)2.55%
Revenue beat(4)2
Avg Revenue beat(4)0.55%
Min Revenue beat(4)-0.6%
Max Revenue beat(4)2.55%
Revenue beat(8)4
Avg Revenue beat(8)0.3%
Revenue beat(12)8
Avg Revenue beat(12)0.98%
Revenue beat(16)12
Avg Revenue beat(16)1.84%
PT rev (1m)0.41%
PT rev (3m)1.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4%
EPS NY rev (1m)0%
EPS NY rev (3m)2.1%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)2.49%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.45%
Valuation
Industry RankSector Rank
PE 48.03
Fwd PE 39.14
P/S 19.9
P/FCF 41.56
P/OCF 40.61
P/B 14.12
P/tB 14.63
EV/EBITDA 39.09
EPS(TTM)2.78
EY2.08%
EPS(NY)3.41
Fwd EY2.56%
FCF(TTM)3.21
FCFY2.41%
OCF(TTM)3.29
OCFY2.46%
SpS6.71
BVpS9.46
TBVpS9.12
PEG (NY)1.67
PEG (5Y)1.59
Graham Number24.32
Profitability
Industry RankSector Rank
ROA 18.6%
ROE 28.19%
ROCE 27.07%
ROIC 23.49%
ROICexc 95.95%
ROICexgc 109.92%
OM 42.88%
PM (TTM) 39.73%
GM 64.34%
FCFM 47.89%
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%
ROICexgc growth 3Y3.57%
ROICexgc 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-Score5
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 145.66%
Cap/Sales 1.12%
Interest Coverage 250
Cash Conversion 112.28%
Profit Quality 120.54%
Current Ratio 3.25
Quick Ratio 2.79
Altman-Z 18.37
F-Score5
WACC9.87%
ROIC/WACC2.38
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)29.75%
EPS 3Y46.94%
EPS 5Y30.17%
EPS Q2Q%25%
EPS Next Y28.73%
EPS Next 2Y22.53%
EPS Next 3Y21.67%
EPS Next 5Y21.87%
Revenue 1Y (TTM)27.75%
Revenue growth 3Y33.43%
Revenue growth 5Y23.77%
Sales Q2Q%27.46%
Revenue Next Year27.41%
Revenue Next 2Y24.57%
Revenue Next 3Y22.94%
Revenue Next 5Y21.06%
EBIT growth 1Y30.09%
EBIT growth 3Y47.12%
EBIT growth 5Y29.59%
EBIT Next Year35.36%
EBIT Next 3Y24.41%
EBIT Next 5Y23.27%
FCF growth 1Y168.1%
FCF growth 3Y56.94%
FCF growth 5Y31.15%
OCF growth 1Y167.5%
OCF growth 3Y53.97%
OCF growth 5Y30.95%

ARISTA NETWORKS INC / ANET FAQ

What is the ChartMill fundamental rating of ARISTA NETWORKS INC (ANET) stock?

ChartMill assigns a fundamental rating of 8 / 10 to ANET.


What is the valuation status of ARISTA NETWORKS INC (ANET) stock?

ChartMill assigns a valuation rating of 3 / 10 to ARISTA NETWORKS INC (ANET). This can be considered as Overvalued.


What is the profitability of ANET stock?

ARISTA NETWORKS INC (ANET) has a profitability rating of 9 / 10.


What is the expected EPS growth for ARISTA NETWORKS INC (ANET) stock?

The Earnings per Share (EPS) of ARISTA NETWORKS INC (ANET) is expected to grow by 28.73% in the next year.