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Exploring ARISTA NETWORKS INC (NYSE:ANET)s quality characteristics.

By Mill Chart

Last update: Oct 10, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if ARISTA NETWORKS INC (NYSE:ANET) is suited for quality investing. Investors should of course do their own research, but we spotted ARISTA NETWORKS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

  • ARISTA NETWORKS INC has achieved substantial revenue growth over the past 5 years, with a 21.63% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • ARISTA NETWORKS INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 69.14% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • The Debt/Free Cash Flow Ratio of ARISTA NETWORKS INC stands at 0.0, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • With a favorable Profit Quality (5-year) ratio of 103.0%, ARISTA NETWORKS INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • The 5-year EBIT growth of ARISTA NETWORKS INC has been remarkable, with 26.56% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • The EBIT 5-year growth of ARISTA NETWORKS INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

What is the full fundamental picture of NYSE:ANET telling us.

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to ANET. ANET was compared to 60 industry peers in the Communications Equipment industry. Both the health and profitability get an excellent rating, making ANET a very profitable company, without any liquidiy or solvency issues. ANET is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make ANET suitable for growth and quality investing!

Our latest full fundamental report of ANET contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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