ARISTA NETWORKS INC (ANET) Fundamental Analysis & Valuation
NYSE:ANET • US0404132054
139.4 USD
+4.57 (+3.39%)
At close: Mar 5, 2026
139.168 USD
-0.23 (-0.17%)
After Hours: 3/5/2026, 8:04:00 PM
This ANET fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 7 out of 10 to ANET. ANET was compared to 48 industry peers in the Communications Equipment industry. ANET gets an excellent profitability rating and is at the same time showing great financial health properties. ANET shows excellent growth, but is valued quite expensive already. This makes ANET very considerable for growth and quality investing!
1. ANET Profitability Analysis
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
- Looking at the Return On Assets, with a value of 18.05%, ANET belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
- ANET has a better Return On Equity (28.39%) than 91.67% of its industry peers.
- ANET has a Return On Invested Capital of 23.29%. This is amongst the best in the industry. ANET outperforms 97.92% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ANET is significantly above the industry average of 10.47%.
- The 3 year average ROIC (23.09%) for ANET is below the current ROIC(23.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.05% | ||
| ROE | 28.39% | ||
| ROIC | 23.29% |
ROA(3y)19.78%
ROA(5y)18.79%
ROE(3y)28.61%
ROE(5y)26.93%
ROIC(3y)23.09%
ROIC(5y)21.99%
1.3 Margins
- ANET has a Profit Margin of 38.99%. This is amongst the best in the industry. ANET outperforms 97.92% of its industry peers.
- In the last couple of years the Profit Margin of ANET has grown nicely.
- With an excellent Operating Margin value of 42.82%, 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 has a Gross Margin of 64.06%. This is amongst the best in the industry. ANET outperforms 85.42% 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 | 42.82% | ||
| PM (TTM) | 38.99% | ||
| GM | 64.06% |
OM growth 3Y7.1%
OM growth 5Y7.24%
PM growth 3Y8.1%
PM growth 5Y7.33%
GM growth 3Y1.6%
GM growth 5Y0.04%
2. ANET Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ANET is creating value.
- ANET has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ANET has more shares outstanding
- ANET has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 16.87 indicates that ANET is not in any danger for bankruptcy at the moment.
- ANET's Altman-Z score of 16.87 is amongst the best of the industry. ANET outperforms 93.75% 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 | 16.87 |
ROIC/WACC2.43
WACC9.58%
2.3 Liquidity
- ANET has a Current Ratio of 3.05. This indicates that ANET is financially healthy and has no problem in meeting its short term obligations.
- ANET's Current ratio of 3.05 is amongst the best of the industry. ANET outperforms 81.25% of its industry peers.
- ANET has a Quick Ratio of 2.63. This indicates that ANET is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 2.63, ANET belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.05 | ||
| Quick Ratio | 2.63 |
3. ANET Growth Analysis
3.1 Past
- ANET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.81%, which is quite impressive.
- ANET shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.17% yearly.
- Looking at the last year, ANET shows a very strong growth in Revenue. The Revenue has grown by 28.60%.
- ANET shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.19% yearly.
EPS 1Y (TTM)29.81%
EPS 3Y37.09%
EPS 5Y39.17%
EPS Q2Q%26.15%
Revenue 1Y (TTM)28.6%
Revenue growth 3Y27.15%
Revenue growth 5Y31.19%
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.
- The Revenue is expected to grow by 18.74% on average over the next years. This is quite good.
EPS Next Y15.65%
EPS Next 2Y17.79%
EPS Next 3Y20.02%
EPS Next 5Y19.96%
Revenue Next Year25.79%
Revenue Next 2Y23.09%
Revenue Next 3Y22.63%
Revenue Next 5Y18.74%
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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. ANET Valuation Analysis
4.1 Price/Earnings Ratio
- ANET is valuated quite expensively with a Price/Earnings ratio of 47.25.
- ANET's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of ANET to the average of the S&P500 Index (26.74), we can say ANET is valued expensively.
- ANET is valuated quite expensively with a Price/Forward Earnings ratio of 40.86.
- ANET's Price/Forward Earnings is on the same level as the industry average.
- ANET's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.25 | ||
| Fwd PE | 40.86 |
4.2 Price Multiples
- ANET's Enterprise Value to EBITDA ratio is in line with the industry average.
- ANET's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.28 | ||
| EV/EBITDA | 38.25 |
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 20.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.02
PEG (5Y)1.21
EPS Next 2Y17.79%
EPS Next 3Y20.02%
5. ANET Dividend Analysis
5.1 Amount
- ANET does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ANET Fundamentals: All Metrics, Ratios and Statistics
139.4
+4.57 (+3.39%)
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 Change0.17%
Ins Owners3.31%
Ins Owner Change1.57%
Market Cap175.55B
Revenue(TTM)9.01B
Net Income(TTM)3.51B
Analysts82.5
Price Target176.22 (26.41%)
Short Float %1.23%
Short Ratio1.57
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)4.61%
Min EPS beat(2)2.99%
Max EPS beat(2)6.23%
EPS beat(4)4
Avg EPS beat(4)6.79%
Min EPS beat(4)2.99%
Max EPS beat(4)10.22%
EPS beat(8)8
Avg EPS beat(8)8.75%
EPS beat(12)12
Avg EPS beat(12)9.61%
EPS beat(16)16
Avg EPS beat(16)10.29%
Revenue beat(2)2
Avg Revenue beat(2)1.41%
Min Revenue beat(2)0.49%
Max Revenue beat(2)2.34%
Revenue beat(4)3
Avg Revenue beat(4)1.28%
Min Revenue beat(4)-0.26%
Max Revenue beat(4)2.55%
Revenue beat(8)5
Avg Revenue beat(8)0.77%
Revenue beat(12)8
Avg Revenue beat(12)0.83%
Revenue beat(16)12
Avg Revenue beat(16)1.83%
PT rev (1m)6.17%
PT rev (3m)6.7%
EPS NQ rev (1m)6.85%
EPS NQ rev (3m)7.2%
EPS NY rev (1m)0%
EPS NY rev (3m)1.84%
Revenue NQ rev (1m)6.69%
Revenue NQ rev (3m)7.07%
Revenue NY rev (1m)3.33%
Revenue NY rev (3m)6.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.25 | ||
| Fwd PE | 40.86 | ||
| P/S | 19.49 | ||
| P/FCF | 41.28 | ||
| P/OCF | 40.15 | ||
| P/B | 14.19 | ||
| P/tB | 14.68 | ||
| EV/EBITDA | 38.25 |
EPS(TTM)2.95
EY2.12%
EPS(NY)3.41
Fwd EY2.45%
FCF(TTM)3.38
FCFY2.42%
OCF(TTM)3.47
OCFY2.49%
SpS7.15
BVpS9.82
TBVpS9.49
PEG (NY)3.02
PEG (5Y)1.21
Graham Number25.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.05% | ||
| ROE | 28.39% | ||
| ROCE | 27.4% | ||
| ROIC | 23.29% | ||
| ROICexc | 98.44% | ||
| ROICexgc | 112.51% | ||
| OM | 42.82% | ||
| PM (TTM) | 38.99% | ||
| GM | 64.06% | ||
| FCFM | 47.22% |
ROA(3y)19.78%
ROA(5y)18.79%
ROE(3y)28.61%
ROE(5y)26.93%
ROIC(3y)23.09%
ROIC(5y)21.99%
ROICexc(3y)81.66%
ROICexc(5y)72.48%
ROICexgc(3y)92.59%
ROICexgc(5y)84.92%
ROCE(3y)27.17%
ROCE(5y)25.87%
ROICexgc growth 3Y21.52%
ROICexgc growth 5Y8.24%
ROICexc growth 3Y23.08%
ROICexc growth 5Y12.69%
OM growth 3Y7.1%
OM growth 5Y7.24%
PM growth 3Y8.1%
PM growth 5Y7.33%
GM growth 3Y1.6%
GM growth 5Y0.04%
F-Score5
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 164.6% | ||
| Cap/Sales | 1.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 111.28% | ||
| Profit Quality | 121.1% | ||
| Current Ratio | 3.05 | ||
| Quick Ratio | 2.63 | ||
| Altman-Z | 16.87 |
F-Score5
WACC9.58%
ROIC/WACC2.43
Cap/Depr(3y)88.33%
Cap/Depr(5y)92.96%
Cap/Sales(3y)0.79%
Cap/Sales(5y)1.12%
Profit Quality(3y)115.27%
Profit Quality(5y)98.41%
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)28.6%
Revenue growth 3Y27.15%
Revenue growth 5Y31.19%
Sales Q2Q%28.87%
Revenue Next Year25.79%
Revenue Next 2Y23.09%
Revenue Next 3Y22.63%
Revenue Next 5Y18.74%
EBIT growth 1Y30.95%
EBIT growth 3Y36.17%
EBIT growth 5Y40.69%
EBIT Next Year27.96%
EBIT Next 3Y23.95%
EBIT Next 5Y21.53%
FCF growth 1Y15.67%
FCF growth 3Y111.71%
FCF growth 5Y42.66%
OCF growth 1Y17.9%
OCF growth 3Y107.01%
OCF growth 5Y42.84%
ARISTA NETWORKS INC / ANET FAQ
What is the ChartMill fundamental rating of ARISTA NETWORKS INC (ANET) stock?
ChartMill assigns a fundamental rating of 7 / 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.