In this article we will dive into ARISTA NETWORKS INC (NYSE:ANET) as a possible candidate for quality investing. Investors should always do their own research, but we noticed ARISTA NETWORKS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.
Some of the quality metrics of NYSE:ANET highlighted
ARISTA NETWORKS INC has shown strong performance in revenue growth over the past 5 years, with a 21.63% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
With a notable ROIC excluding cash and goodwill at 76.34%, ARISTA NETWORKS INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
ARISTA NETWORKS INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.0, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
ARISTA NETWORKS INC demonstrates consistent Profit Quality over the past 5 years, with a strong 103.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
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.
How does the complete fundamental picture look for NYSE:ANET?
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. ANET gets an excellent profitability rating and is at the same time showing great financial health properties. ANET is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make ANET suitable for growth and quality investing!
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.