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Should Quality-Oriented Investors Explore ARISTA NETWORKS INC (NYSE:ANET)?

By Mill Chart

Last update: Jan 24, 2024

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.

  • The 5-year revenue growth of ARISTA NETWORKS INC has been remarkable, with 21.63% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • With a robust ROIC excluding cash and goodwill at 76.34%, ARISTA NETWORKS INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • With a favorable Debt/Free Cash Flow Ratio of 0.0, ARISTA NETWORKS INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • The Profit Quality (5-year) of ARISTA NETWORKS INC stands at 103.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • ARISTA NETWORKS INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 26.56%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, ARISTA NETWORKS INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

Fundamental Analysis Observations

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.

ANET gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 58 industry peers in the Communications Equipment industry. ANET scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ANET is growing strongly while it is still valued neutral. This is a good combination! With these ratings, ANET could be worth investigating further for growth and quality investing!.

For an up to date full fundamental analysis you can check the fundamental report of ANET

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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