ARISTA NETWORKS INC (ANET) Fundamental Analysis & Valuation
NYSE:ANET • US0404132054
Current stock price
164.23 USD
+3.22 (+2%)
At close:
164.5 USD
+0.27 (+0.16%)
After Hours:
This ANET fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ANET Profitability Analysis
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.
- ANET had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 18.05%, ANET belongs to the best of the industry, outperforming 93.62% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 28.39%, ANET belongs to the top of the industry, outperforming 91.49% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 23.29%, ANET belongs to the top of the industry, outperforming 95.74% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ANET is significantly above the industry average of 10.41%.
- 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
- With an excellent Profit Margin value of 38.99%, ANET belongs to the best of the industry, outperforming 97.87% of the companies in the same industry.
- 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.
- In the last couple of years the Operating Margin of ANET has grown nicely.
- ANET has a better Gross Margin (64.06%) than 85.11% of its industry peers.
- 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.
- The number of shares outstanding for ANET has been increased compared to 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 19.97 indicates that ANET is not in any danger for bankruptcy at the moment.
- ANET has a better Altman-Z score (19.97) than 93.62% 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 | 19.97 |
ROIC/WACC2.41
WACC9.65%
2.3 Liquidity
- A Current Ratio of 3.05 indicates that ANET has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 3.05, ANET is in the better half of the industry, outperforming 78.72% of the companies in the same industry.
- 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 is in the better half of the industry, outperforming 78.72% 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
- The Earnings Per Share has grown by an impressive 29.81% over the past year.
- 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%.
- 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
- ANET is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.06% yearly.
- ANET is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.25% yearly.
EPS Next Y21.78%
EPS Next 2Y21.53%
EPS Next 3Y21.94%
EPS Next 5Y21.06%
Revenue Next Year28.18%
Revenue Next 2Y24.95%
Revenue Next 3Y24.11%
Revenue Next 5Y20.25%
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. ANET Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 55.67 indicates a quite expensive valuation of ANET.
- The rest of the industry has a similar Price/Earnings ratio as ANET.
- ANET's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.87.
- Based on the Price/Forward Earnings ratio of 45.71, the valuation of ANET can be described as expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as ANET.
- ANET is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 38.51, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.67 | ||
| Fwd PE | 45.71 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ANET is on the same level as its industry peers.
- ANET's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.53 | ||
| EV/EBITDA | 47.56 |
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.
- A more expensive valuation may be justified as ANET's earnings are expected to grow with 21.94% in the coming years.
PEG (NY)2.56
PEG (5Y)1.42
EPS Next 2Y21.53%
EPS Next 3Y21.94%
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
164.23
+3.22 (+2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-12 2026-02-12/amc
Earnings (Next)05-05 2026-05-05/amc
Inst Owners71.57%
Inst Owner Change0.04%
Ins Owners3.33%
Ins Owner Change0.29%
Market Cap206.36B
Revenue(TTM)9.01B
Net Income(TTM)3.51B
Analysts82.42
Price Target176.19 (7.28%)
Short Float %1.64%
Short Ratio2.21
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)-0.01%
PT rev (3m)6.15%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)6.91%
EPS NY rev (1m)0.22%
EPS NY rev (3m)5.3%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)6.61%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)5.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.67 | ||
| Fwd PE | 45.71 | ||
| P/S | 22.91 | ||
| P/FCF | 48.53 | ||
| P/OCF | 47.2 | ||
| P/B | 16.68 | ||
| P/tB | 17.26 | ||
| EV/EBITDA | 47.56 |
EPS(TTM)2.95
EY1.8%
EPS(NY)3.59
Fwd EY2.19%
FCF(TTM)3.38
FCFY2.06%
OCF(TTM)3.48
OCFY2.12%
SpS7.17
BVpS9.84
TBVpS9.51
PEG (NY)2.56
PEG (5Y)1.42
Graham Number25.5628 (-84.43%)
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 | 19.97 |
F-Score5
WACC9.65%
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 Y21.78%
EPS Next 2Y21.53%
EPS Next 3Y21.94%
EPS Next 5Y21.06%
Revenue 1Y (TTM)28.6%
Revenue growth 3Y27.15%
Revenue growth 5Y31.19%
Sales Q2Q%28.87%
Revenue Next Year28.18%
Revenue Next 2Y24.95%
Revenue Next 3Y24.11%
Revenue Next 5Y20.25%
EBIT growth 1Y30.95%
EBIT growth 3Y36.17%
EBIT growth 5Y40.69%
EBIT Next Year27.94%
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 Fundamental Analysis 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.
How profitable is ARISTA NETWORKS INC (ANET) stock?
ARISTA NETWORKS INC (ANET) has a profitability rating of 9 / 10.
What is the valuation of ARISTA NETWORKS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ARISTA NETWORKS INC (ANET) is 55.67 and the Price/Book (PB) ratio is 16.68.
What is the financial health of ARISTA NETWORKS INC (ANET) stock?
The financial health rating of ARISTA NETWORKS INC (ANET) is 9 / 10.