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ARISTA NETWORKS INC (ANET) Stock Fundamental Analysis

USA - NYSE:ANET - US0404132054 - Common Stock

142.16 USD
-3.27 (-2.25%)
Last: 9/16/2025, 8:04:00 PM
142.1 USD
-0.06 (-0.04%)
After Hours: 9/16/2025, 8:04:00 PM
Fundamental Rating

7

ANET gets a fundamental rating of 7 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 valued quite expensively, but it does show have an excellent growth rating. These ratings could make ANET a good candidate for growth and quality investing.


Dividend Valuation Growth Profitability Health

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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.
Each year in the past 5 years ANET had a positive operating cash flow.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

1.2 Ratios

ANET has a Return On Assets of 19.67%. This is amongst the best in the industry. ANET outperforms 97.92% of its industry peers.
ANET has a Return On Equity of 29.83%. This is amongst the best in the industry. ANET outperforms 93.75% of its industry peers.
Looking at the Return On Invested Capital, with a value of 23.84%, ANET belongs to the top of the industry, outperforming 97.92% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ANET is significantly above the industry average of 13.71%.
The last Return On Invested Capital (23.84%) for ANET is above the 3 year average (23.71%), which is a sign of increasing profitability.
Industry RankSector 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%
ANET Yearly ROA, ROE, ROICANET Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

With an excellent Profit Margin value of 40.89%, 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.
The Operating Margin of ANET (43.14%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of ANET has grown nicely.
Looking at the Gross Margin, with a value of 64.24%, ANET belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Gross Margin of ANET has remained more or less at the same level.
Industry RankSector 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%
ANET Yearly Profit, Operating, Gross MarginsANET Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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9

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.
The number of shares outstanding for ANET has been increased compared to 1 year ago.
Compared to 5 years ago, ANET has more shares outstanding
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 2015 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

2.2 Solvency

ANET has an Altman-Z score of 21.58. This indicates that ANET is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 21.58, ANET belongs to the top of the industry, outperforming 95.83% of the companies in the same industry.
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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 21.58
ROIC/WACC2.41
WACC9.9%
ANET Yearly LT Debt VS Equity VS FCFANET Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.3 Liquidity

A Current Ratio of 3.33 indicates that ANET has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.33, ANET belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
A Quick Ratio of 2.82 indicates that ANET has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.82, ANET is doing good in the industry, outperforming 79.17% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.33
Quick Ratio 2.82
ANET Yearly Current Assets VS Current LiabilitesANET Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

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8

3. Growth

3.1 Past

ANET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.50%, which is quite impressive.
ANET shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.17% yearly.
ANET shows a strong growth in Revenue. In the last year, 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

Based on estimates for the next years, ANET will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.55% on average per year.
ANET is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.68% yearly.
EPS Next Y25.4%
EPS Next 2Y20.53%
EPS Next 3Y19.9%
EPS Next 5Y19.55%
Revenue Next Year25.58%
Revenue Next 2Y22.33%
Revenue Next 3Y21.09%
Revenue Next 5Y19.68%

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.
ANET Yearly Revenue VS EstimatesANET Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5B 10B 15B
ANET Yearly EPS VS EstimatesANET Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 2 3 4 5

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2

4. Valuation

4.1 Price/Earnings Ratio

ANET is valuated quite expensively with a Price/Earnings ratio of 54.05.
ANET's Price/Earnings ratio is in line with the industry average.
ANET's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.20.
The Price/Forward Earnings ratio is 43.06, which means the current valuation is very expensive for ANET.
The rest of the industry has a similar Price/Forward Earnings ratio as ANET.
When comparing the Price/Forward Earnings ratio of ANET to the average of the S&P500 Index (22.71), we can say ANET is valued expensively.
Industry RankSector Rank
PE 54.05
Fwd PE 43.06
ANET Price Earnings VS Forward Price EarningsANET Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

ANET's Enterprise Value to EBITDA ratio is in line with the industry average.
ANET's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 44.95
EV/EBITDA 46.8
ANET Per share dataANET EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ANET does not grow enough to justify the current Price/Earnings ratio.
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 19.90% in the coming years.
PEG (NY)2.13
PEG (5Y)1.79
EPS Next 2Y20.53%
EPS Next 3Y19.9%

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0

5. Dividend

5.1 Amount

ANET does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ARISTA NETWORKS INC

NYSE:ANET (9/16/2025, 8:04:00 PM)

After market: 142.1 -0.06 (-0.04%)

142.16

-3.27 (-2.25%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)08-05 2025-08-05/amc
Earnings (Next)11-05 2025-11-05/amc
Inst Owners69.86%
Inst Owner Change-1.34%
Ins Owners3.35%
Ins Owner Change-0.69%
Market Cap178.68B
Analysts81.82
Price Target149.37 (5.07%)
Short Float %1.22%
Short Ratio1.34
Dividend
Industry RankSector Rank
Dividend Yield N/A
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)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)32.44%
PT rev (3m)38.36%
EPS NQ rev (1m)2.07%
EPS NQ rev (3m)14.66%
EPS NY rev (1m)8.97%
EPS NY rev (3m)9.26%
Revenue NQ rev (1m)0.61%
Revenue NQ rev (3m)7.74%
Revenue NY rev (1m)4.21%
Revenue NY rev (3m)4.72%
Valuation
Industry RankSector Rank
PE 54.05
Fwd PE 43.06
P/S 22.47
P/FCF 44.95
P/OCF 44.15
P/B 16.39
P/tB 17.04
EV/EBITDA 46.8
EPS(TTM)2.63
EY1.85%
EPS(NY)3.3
Fwd EY2.32%
FCF(TTM)3.16
FCFY2.22%
OCF(TTM)3.22
OCFY2.27%
SpS6.33
BVpS8.67
TBVpS8.34
PEG (NY)2.13
PEG (5Y)1.79
Profitability
Industry RankSector 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 RankSector 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 21.58
F-Score6
WACC9.9%
ROIC/WACC2.41
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 Y25.4%
EPS Next 2Y20.53%
EPS Next 3Y19.9%
EPS Next 5Y19.55%
Revenue 1Y (TTM)25.97%
Revenue growth 3Y33.43%
Revenue growth 5Y23.77%
Sales Q2Q%30.43%
Revenue Next Year25.58%
Revenue Next 2Y22.33%
Revenue Next 3Y21.09%
Revenue Next 5Y19.68%
EBIT growth 1Y31.8%
EBIT growth 3Y47.12%
EBIT growth 5Y29.59%
EBIT Next Year20.52%
EBIT Next 3Y18.69%
EBIT Next 5Y22.49%
FCF growth 1Y320.65%
FCF growth 3Y56.94%
FCF growth 5Y31.15%
OCF growth 1Y311.66%
OCF growth 3Y53.97%
OCF growth 5Y30.95%