ARISTA NETWORKS INC (ANET) Stock Fundamental Analysis
NYSE:ANET • US0404132054
135.12 USD
-5.54 (-3.94%)
At close: Feb 12, 2026
149.31 USD
+14.19 (+10.5%)
Pre-Market: 2/13/2026, 7:38:15 AM
ANET gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. ANET has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ANET is quite expensive at the moment. It does show a decent growth rate. This makes ANET very considerable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year ANET was profitable.
- ANET had a positive operating cash flow in the past year.
- ANET had positive earnings in 4 of the past 5 years.
- ANET had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- ANET has a better Return On Assets (18.60%) than 95.83% of its industry peers.
- ANET has a better Return On Equity (28.19%) than 91.67% of its industry peers.
- ANET's Return On Invested Capital of 23.49% is amongst the best of the industry. ANET outperforms 97.92% of its industry peers.
- ANET had an Average Return On Invested Capital over the past 3 years of 23.71%. This is significantly above the industry average of 11.29%.
| 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%, ANET belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- 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.
- ANET's Operating Margin has improved in the last couple of years.
- ANET's Gross Margin of 64.34% is amongst the best of the industry. ANET outperforms 85.42% of its industry peers.
- ANET's Gross Margin has been stable in the last couple of years.
| 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
- ANET has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- 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 19.16 indicates that ANET is not in any danger for bankruptcy at the moment.
- ANET's Altman-Z score of 19.16 is amongst the best of the industry. ANET outperforms 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 19.16 |
ROIC/WACC2.49
WACC9.43%
2.3 Liquidity
- A Current Ratio of 3.25 indicates that ANET has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 3.25, ANET belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- A Quick Ratio of 2.79 indicates that ANET has no problem at all paying its short term obligations.
- ANET has a better Quick ratio (2.79) than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.25 | ||
| Quick Ratio | 2.79 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 29.81% over the past year.
- Measured over the past years, ANET shows a very strong growth in Earnings Per Share. The EPS has been growing by 39.17% on average per year.
EPS 1Y (TTM)29.81%
EPS 3Y37.09%
EPS 5Y39.17%
EPS Q2Q%26.15%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%28.87%
3.2 Future
- The Earnings Per Share is expected to grow by 19.96% 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 18.74% on average per year.
EPS Next Y15.65%
EPS Next 2Y17.79%
EPS Next 3Y20.02%
EPS Next 5Y19.96%
Revenue Next Year21.85%
Revenue Next 2Y20.82%
Revenue Next 3Y20.86%
Revenue Next 5Y18.74%
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 45.80 indicates a quite expensive valuation of ANET.
- ANET's Price/Earnings is on the same level as the industry average.
- 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 39.60 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.
- When comparing the Price/Forward Earnings ratio of ANET to the average of the S&P500 Index (27.69), we can say ANET is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.8 | ||
| Fwd PE | 39.6 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as ANET.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ANET.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.06 | ||
| EV/EBITDA | 41.29 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- ANET has an outstanding profitability rating, which may justify a higher PE ratio.
- ANET's earnings are expected to grow with 20.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.93
PEG (5Y)1.17
EPS Next 2Y17.79%
EPS Next 3Y20.02%
5. Dividend
5.1 Amount
- No dividends for ANET!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
135.12
-5.54 (-3.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-12 2026-02-12/amc
Earnings (Next)05-04 2026-05-04/amc
Inst Owners70.22%
Inst Owner Change-2.02%
Ins Owners3.31%
Ins Owner Change0.24%
Market Cap170.16B
Revenue(TTM)N/A
Net Income(TTM)3.36B
Analysts82.5
Price Target166.13 (22.95%)
Short Float %1.36%
Short Ratio1.91
Dividend
| Industry Rank | Sector 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)0.5%
PT rev (3m)1.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.72%
EPS NY rev (1m)0%
EPS NY rev (3m)2.04%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.96%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.8 | ||
| Fwd PE | 39.6 | ||
| P/S | 20.14 | ||
| P/FCF | 42.06 | ||
| P/OCF | 41.09 | ||
| P/B | 14.29 | ||
| P/tB | 14.81 | ||
| EV/EBITDA | 41.29 |
EPS(TTM)2.95
EY2.18%
EPS(NY)3.41
Fwd EY2.53%
FCF(TTM)3.21
FCFY2.38%
OCF(TTM)3.29
OCFY2.43%
SpS6.71
BVpS9.46
TBVpS9.12
PEG (NY)2.93
PEG (5Y)1.17
Graham Number25.05
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 19.16 |
F-Score5
WACC9.43%
ROIC/WACC2.49
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)29.81%
EPS 3Y37.09%
EPS 5Y39.17%
EPS Q2Q%26.15%
EPS Next Y15.65%
EPS Next 2Y17.79%
EPS Next 3Y20.02%
EPS Next 5Y19.96%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%28.87%
Revenue Next Year21.85%
Revenue Next 2Y20.82%
Revenue Next 3Y20.86%
Revenue Next 5Y18.74%
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 15.65% in the next year.