ARISTA NETWORKS INC (ANET) Fundamental Analysis & Valuation
NYSE:ANET • US0404132054
137.17 USD
+4.28 (+3.22%)
At close: Mar 9, 2026
138 USD
+0.83 (+0.61%)
Pre-Market: 3/10/2026, 7:16:11 AM
This ANET fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall ANET gets a fundamental rating of 8 out of 10. We evaluated ANET against 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. With these ratings, ANET could be worth investigating further for growth and quality investing!.
1. ANET Profitability Analysis
1.1 Basic Checks
- ANET had positive earnings in the past year.
- In the past year ANET had a positive cash flow from operations.
- Each year in the past 5 years ANET has been profitable.
- Each year in the past 5 years ANET had a positive operating cash flow.
1.2 Ratios
- ANET's Return On Assets of 18.05% is amongst the best of the industry. ANET outperforms 93.75% of its industry peers.
- With an excellent Return On Equity value of 28.39%, ANET belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 23.29%, ANET belongs to the best of the industry, outperforming 97.92% of the companies in the same industry.
- ANET had an Average Return On Invested Capital over the past 3 years of 23.09%. This is significantly above the industry average of 10.39%.
- 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.
- ANET's Profit Margin has improved in the last couple of years.
- ANET's Operating Margin of 42.82% 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.
- With an excellent Gross Margin value of 64.06%, ANET belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
- ANET's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ANET is creating value.
- ANET has less shares outstanding than it did 1 year ago.
- ANET has more shares outstanding than it did 5 years ago.
- 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 17.09 indicates that ANET is not in any danger for bankruptcy at the moment.
- ANET has a better Altman-Z score (17.09) than 93.75% 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 | 17.09 |
ROIC/WACC2.41
WACC9.66%
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 has a Current ratio of 3.05. This is amongst the best in the industry. ANET outperforms 81.25% of its industry peers.
- A Quick Ratio of 2.63 indicates that ANET has no problem at all paying 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.
- The Earnings Per Share has been growing by 39.17% on average over the past years. This is a very strong growth
- Looking at the last year, ANET shows a very strong growth in Revenue. The Revenue has grown by 28.60%.
- Measured over the past years, ANET shows a very strong growth in Revenue. The Revenue has been growing by 31.19% on average per year.
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 21.06% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 20.25% on average over the next years. This is a very strong growth
EPS Next Y21.51%
EPS Next 2Y21%
EPS Next 3Y21.68%
EPS Next 5Y21.06%
Revenue Next Year27.87%
Revenue Next 2Y24.44%
Revenue Next 3Y23.89%
Revenue Next 5Y20.25%
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.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. ANET Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 46.50, ANET can be considered very expensive at the moment.
- ANET's Price/Earnings is on the same level as the industry average.
- ANET is valuated expensively when we compare the Price/Earnings ratio to 26.45, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 38.27, which means the current valuation is very expensive for ANET.
- 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 (24.65), we can say ANET is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.5 | ||
| Fwd PE | 38.27 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.53 | ||
| EV/EBITDA | 38.9 |
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.
- ANET's earnings are expected to grow with 21.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.16
PEG (5Y)1.19
EPS Next 2Y21%
EPS Next 3Y21.68%
5. ANET Dividend Analysis
5.1 Amount
- No dividends for ANET!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ANET Fundamentals: All Metrics, Ratios and Statistics
137.17
+4.28 (+3.22%)
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 Owners71.32%
Inst Owner Change0.15%
Ins Owners3.33%
Ins Owner Change1.57%
Market Cap172.36B
Revenue(TTM)9.01B
Net Income(TTM)3.51B
Analysts82.5
Price Target176.22 (28.47%)
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)6.07%
PT rev (3m)6.07%
EPS NQ rev (1m)6.85%
EPS NQ rev (3m)6.76%
EPS NY rev (1m)5.07%
EPS NY rev (3m)5.16%
Revenue NQ rev (1m)6.69%
Revenue NQ rev (3m)7.07%
Revenue NY rev (1m)4.94%
Revenue NY rev (3m)5.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.5 | ||
| Fwd PE | 38.27 | ||
| P/S | 19.14 | ||
| P/FCF | 40.53 | ||
| P/OCF | 39.42 | ||
| P/B | 13.93 | ||
| P/tB | 14.42 | ||
| EV/EBITDA | 38.9 |
EPS(TTM)2.95
EY2.15%
EPS(NY)3.58
Fwd EY2.61%
FCF(TTM)3.38
FCFY2.47%
OCF(TTM)3.48
OCFY2.54%
SpS7.17
BVpS9.84
TBVpS9.51
PEG (NY)2.16
PEG (5Y)1.19
Graham Number25.56
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 | 17.09 |
F-Score5
WACC9.66%
ROIC/WACC2.41
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 Y21.51%
EPS Next 2Y21%
EPS Next 3Y21.68%
EPS Next 5Y21.06%
Revenue 1Y (TTM)28.6%
Revenue growth 3Y27.15%
Revenue growth 5Y31.19%
Sales Q2Q%28.87%
Revenue Next Year27.87%
Revenue Next 2Y24.44%
Revenue Next 3Y23.89%
Revenue Next 5Y20.25%
EBIT growth 1Y30.95%
EBIT growth 3Y36.17%
EBIT growth 5Y40.69%
EBIT Next Year27.96%
EBIT Next 3Y23.95%
EBIT Next 5Y21.3%
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 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 21.51% in the next year.