ARISTA NETWORKS INC (ANET)
US0404131064 - Common Stock
ANET gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 52 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. These ratings could make ANET a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year ANET was profitable.
In the past year ANET had a positive cash flow from operations.
Each year in the past 5 years ANET has been profitable.
ANET had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ANET has a Return On Assets of 21.18%. This is amongst the best in the industry. ANET outperforms 98.08% of its industry peers.
With an excellent Return On Equity value of 29.20%, ANET belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
ANET's Return On Invested Capital of 23.61% is amongst the best of the industry. ANET outperforms 96.15% of its industry peers.
ANET had an Average Return On Invested Capital over the past 3 years of 21.73%. This is significantly above the industry average of 10.06%.
The 3 year average ROIC (21.73%) for ANET is below the current ROIC(23.61%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.18% | ||
| ROE | 29.2% | ||
| ROIC | 23.61% |
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 (39.01%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of ANET has grown nicely.
ANET's Operating Margin of 41.23% is amongst the best of the industry. ANET outperforms 100.00% of its industry peers.
ANET's Operating Margin has improved in the last couple of years.
ANET has a Gross Margin of 64.01%. This is amongst the best in the industry. ANET outperforms 86.54% of its industry peers.
ANET's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.23% | ||
| PM (TTM) | 39.01% | ||
| GM | 64.01% |
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
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.
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 27.44 indicates that ANET is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 27.44, ANET belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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 | 27.44 |
ROIC/WACC2.59
WACC9.1%
2.3 Liquidity
A Current Ratio of 4.55 indicates that ANET has no problem at all paying its short term obligations.
ANET has a Current ratio of 4.55. This is amongst the best in the industry. ANET outperforms 90.38% of its industry peers.
ANET has a Quick Ratio of 3.70. This indicates that ANET is financially healthy and has no problem in meeting its short term obligations.
ANET's Quick ratio of 3.70 is amongst the best of the industry. ANET outperforms 90.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.55 | ||
| Quick Ratio | 3.7 |
3. Growth
3.1 Past
ANET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.09%, which is quite impressive.
Measured over the past years, ANET shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.34% on average per year.
ANET shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.93%.
Measured over the past years, ANET shows a very strong growth in Revenue. The Revenue has been growing by 22.19% on average per year.
EPS 1Y (TTM)41.09%
EPS 3Y45.21%
EPS 5Y28.34%
EPS Q2Q%32.91%
Revenue 1Y (TTM)19.93%
Revenue growth 3Y36.24%
Revenue growth 5Y22.19%
Sales Q2Q%15.87%
3.2 Future
The Earnings Per Share is expected to grow by 18.23% on average over the next years. This is quite good.
ANET is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.26% yearly.
EPS Next Y21.73%
EPS Next 2Y17.63%
EPS Next 3Y17.24%
EPS Next 5Y18.23%
Revenue Next Year16.22%
Revenue Next 2Y16.85%
Revenue Next 3Y17.15%
Revenue Next 5Y17.26%
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.
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 51.68.
The rest of the industry has a similar Price/Earnings ratio as ANET.
Compared to an average S&P500 Price/Earnings ratio of 31.52, ANET is valued quite expensively.
With a Price/Forward Earnings ratio of 43.18, ANET can be considered very expensive at the moment.
ANET's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of ANET to the average of the S&P500 Index (22.55), we can say ANET is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.68 | ||
| Fwd PE | 43.18 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ANET.
ANET's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.14 | ||
| EV/EBITDA | 45.35 |
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.
The excellent profitability rating of ANET may justify a higher PE ratio.
A more expensive valuation may be justified as ANET's earnings are expected to grow with 17.24% in the coming years.
PEG (NY)2.38
PEG (5Y)1.82
EPS Next 2Y17.63%
EPS Next 3Y17.24%
5. Dividend
5.1 Amount
ANET does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ARISTA NETWORKS INC
NYSE:ANET (10/14/2024, 4:32:33 PM)
After market: 413.47 0 (0%)413.47
-3.46 (-0.83%)
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 Cap129.89B
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)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.68 | ||
| Fwd PE | 43.18 | ||
| 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)2.38
PEG (5Y)1.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.18% | ||
| ROE | 29.2% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 41.23% | ||
| PM (TTM) | 39.01% | ||
| GM | 64.01% | ||
| 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 Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.55 | ||
| Quick Ratio | 3.7 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)41.09%
EPS 3Y45.21%
EPS 5Y
EPS Q2Q%
EPS Next Y21.73%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)19.93%
Revenue growth 3Y36.24%
Revenue growth 5Y
Sales 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
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y