ARISTA NETWORKS INC (ANET) Stock Fundamental Analysis
NYSE:ANET - US0404132054 - Common Stock
133.68 USD
+0.43 (+0.32%)
Overall ANET gets a fundamental rating of 7 out of 10. We evaluated ANET 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 expensive, but it does show an excellent growth. With these ratings, ANET could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year ANET was profitable.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 19.67%, ANET belongs to the top of the industry, outperforming 97.92% of the companies in the same industry.
Looking at the Return On Equity, with a value of 29.83%, ANET belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
ANET has a better Return On Invested Capital (23.84%) than 97.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ANET is significantly above the industry average of 13.56%.
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 Rank | Sector 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%
1.3 Margins
ANET has a Profit Margin of 40.89%. This is amongst the best in the industry. ANET outperforms 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 43.14% 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.
The Gross Margin of ANET (64.24%) is better than 87.50% of its industry peers.
ANET's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ANET is creating value.
The number of shares outstanding for ANET has been increased compared to 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 20.39 indicates that ANET is not in any danger for bankruptcy at the moment.
ANET has a better Altman-Z score (20.39) than 95.83% 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 | 20.39 |
ROIC/WACC2.34
WACC10.18%
2.3 Liquidity
A Current Ratio of 3.33 indicates that ANET has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.33, ANET is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
ANET has a Quick Ratio of 2.82. This indicates that ANET is financially healthy and has no problem in meeting its short term obligations.
ANET's Quick ratio of 2.82 is amongst the best of the industry. ANET outperforms 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.82 |
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.
Looking at the last year, ANET shows a very strong growth in Revenue. 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
The Earnings Per Share is expected to grow by 19.55% on average over the next years. This is quite good.
Based on estimates for the next years, ANET will show a quite strong growth in Revenue. The Revenue will grow by 19.68% on average per year.
EPS Next Y25.4%
EPS Next 2Y20.53%
EPS Next 3Y19.9%
EPS Next 5Y19.55%
Revenue Next Year25.23%
Revenue Next 2Y21.81%
Revenue Next 3Y20.34%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 50.83, the valuation of ANET can be described as expensive.
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 27.24, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 40.49 indicates a quite expensive valuation of ANET.
The rest of the industry has a similar Price/Forward Earnings ratio as ANET.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.81, ANET is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.83 | ||
| Fwd PE | 40.49 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ANET.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ANET is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.27 | ||
| EV/EBITDA | 43.59 |
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 19.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)2
PEG (5Y)1.68
EPS Next 2Y20.53%
EPS Next 3Y19.9%
5. Dividend
5.1 Amount
ANET does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:ANET (8/25/2025, 2:40:07 PM)
133.68
+0.43 (+0.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners69.86%
Inst Owner Change-1.34%
Ins Owners3.35%
Ins Owner Change-0.98%
Market Cap168.02B
Analysts81.18
Price Target143.4 (7.27%)
Short Float %1.74%
Short Ratio1.87
Dividend
| Industry Rank | Sector 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)29.87%
PT rev (3m)31.13%
EPS NQ rev (1m)12.13%
EPS NQ rev (3m)10.6%
EPS NY rev (1m)8.97%
EPS NY rev (3m)9.47%
Revenue NQ rev (1m)6.31%
Revenue NQ rev (3m)6.02%
Revenue NY rev (1m)4.26%
Revenue NY rev (3m)4.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.83 | ||
| Fwd PE | 40.49 | ||
| P/S | 21.13 | ||
| P/FCF | 42.27 | ||
| P/OCF | 41.51 | ||
| P/B | 15.41 | ||
| P/tB | 16.02 | ||
| EV/EBITDA | 43.59 |
EPS(TTM)2.63
EY1.97%
EPS(NY)3.3
Fwd EY2.47%
FCF(TTM)3.16
FCFY2.37%
OCF(TTM)3.22
OCFY2.41%
SpS6.33
BVpS8.67
TBVpS8.34
PEG (NY)2
PEG (5Y)1.68
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 20.39 |
F-Score6
WACC10.18%
ROIC/WACC2.34
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 Year25.23%
Revenue Next 2Y21.81%
Revenue Next 3Y20.34%
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%