Is ARISTA NETWORKS INC (NYSE:ANET) suited for quality investing?

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.

Looking into the quality metrics of ARISTA NETWORKS INC

• ARISTA NETWORKS INC has demonstrated significant revenue growth over the past 5 years, with a 22.19% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• ARISTA NETWORKS INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 72.52% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• ARISTA NETWORKS INC maintains a healthy Debt/Free Cash Flow Ratio of 0.0, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• The Profit Quality (5-year) of ARISTA NETWORKS INC stands at 93.14%, 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 27.18%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• 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.

Fundamental analysis of 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 56 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 valued quite expensive, but it does show an excellent growth. 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.

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.