ARISTA NETWORKS INC (ANET)
US0404131064 - Common Stock
Taking everything into account, ANET scores 7 out of 10 in our fundamental rating. ANET was compared to 54 industry peers in the Communications Equipment industry. Both the health and profitability get an excellent rating, making ANET a very profitable company, without any liquidiy or solvency issues. ANET is valued quite expensive, but it does show an excellent growth. These ratings would make ANET suitable for growth and quality investing!
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.
1.2 Ratios
With an excellent Return On Assets value of 20.98%, ANET belongs to the best of the industry, outperforming 98.15% of the companies in the same industry.
ANET's Return On Equity of 28.91% is amongst the best of the industry. ANET outperforms 94.44% of its industry peers.
With an excellent Return On Invested Capital value of 24.11%, ANET belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.
ANET had an Average Return On Invested Capital over the past 3 years of 21.73%. This is significantly above the industry average of 10.47%.
The 3 year average ROIC (21.73%) for ANET is below the current ROIC(24.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.98% | ||
| ROE | 28.91% | ||
| ROIC | 24.11% |
ROA(3y)18.54%
ROA(5y)17.91%
ROE(3y)25.91%
ROE(5y)25.31%
ROIC(3y)21.73%
ROIC(5y)19.92%
1.3 Margins
The Profit Margin of ANET (35.62%) is better than 100.00% of its industry peers.
ANET's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 38.52%, ANET belongs to the top 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.
ANET has a better Gross Margin (61.95%) than 87.04% of its industry peers.
In the last couple of years the Gross Margin of ANET has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.52% | ||
| PM (TTM) | 35.62% | ||
| GM | 61.95% |
OM growth 3Y8.46%
OM growth 5Y4.09%
PM growth 3Y9.16%
PM growth 5Y18.5%
GM growth 3Y-1.05%
GM growth 5Y-0.6%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ANET is creating value.
Compared to 1 year ago, ANET has more shares outstanding
ANET has more shares outstanding than it did 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.
2.2 Solvency
An Altman-Z score of 20.53 indicates that ANET is not in any danger for bankruptcy at the moment.
ANET has a Altman-Z score of 20.53. This is amongst the best in the industry. ANET outperforms 100.00% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 20.53 |
ROIC/WACC2.54
WACC9.5%
2.3 Liquidity
A Current Ratio of 4.39 indicates that ANET has no problem at all paying its short term obligations.
ANET has a Current ratio of 4.39. This is amongst the best in the industry. ANET outperforms 87.04% of its industry peers.
A Quick Ratio of 3.31 indicates that ANET has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.31, ANET belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.39 | ||
| Quick Ratio | 3.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.09% over the past year.
ANET shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.34% yearly.
The Revenue has grown by 33.75% in the past year. This is a very strong growth!
The Revenue has been growing by 22.19% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)51.09%
EPS 3Y45.21%
EPS 5Y28.34%
EPS growth Q2Q47.52%
Revenue 1Y (TTM)33.75%
Revenue growth 3Y36.24%
Revenue growth 5Y22.19%
Revenue growth Q2Q20.76%
3.2 Future
The Earnings Per Share is expected to grow by 9.46% on average over the next years. This is quite good.
Based on estimates for the next years, ANET will show a quite strong growth in Revenue. The Revenue will grow by 10.36% on average per year.
EPS Next Y10.5%
EPS Next 2Y12.36%
EPS Next 3Y12.81%
EPS Next 5Y9.46%
Revenue Next Year12.74%
Revenue Next 2Y13.79%
Revenue Next 3Y13.73%
Revenue Next 5Y10.36%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
ANET is valuated quite expensively with a Price/Earnings ratio of 35.56.
Compared to the rest of the industry, the Price/Earnings ratio of ANET is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 24.76. ANET is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 32.18, ANET can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ANET is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of ANET to the average of the S&P500 Index (21.26), we can say ANET is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.56 | ||
| Fwd PE | 32.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ANET is on the same level as its industry peers.
ANET's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.48 | ||
| EV/EBITDA | 31.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ANET may justify a higher PE ratio.
ANET's earnings are expected to grow with 12.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.39
PEG (5Y)1.25
EPS Next 2Y12.36%
EPS Next 3Y12.81%
5. Dividend
5.1 Amount
ANET does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ARISTA NETWORKS INC
NYSE:ANET (4/19/2024, 7:04:00 PM)
After market: 244.71 -1.38 (-0.56%)246.09
-11.1 (-4.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap76.94B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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PT rev (1m)
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EPS NQ rev (1m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.56 | ||
| Fwd PE | 32.18 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.39
PEG (5Y)1.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.98% | ||
| ROE | 28.91% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 38.52% | ||
| PM (TTM) | 35.62% | ||
| GM | 61.95% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.39 | ||
| Quick Ratio | 3.31 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)51.09%
EPS 3Y45.21%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.5%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)33.75%
Revenue growth 3Y36.24%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
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