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Why ARISTA NETWORKS INC (NYSE:ANET) should be investigated by quality investors.

By Mill Chart

Last update: May 9, 2024

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.

Why NYSE:ANET may be interesting for quality investors.

  • ARISTA NETWORKS INC has shown strong performance in revenue growth over the past 5 years, with a 22.19% 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 72.52%, 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.
  • With a robust Profit Quality (5-year) ratio of 93.14%, ARISTA NETWORKS INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • The 5-year EBIT growth of ARISTA NETWORKS INC has been remarkable, with 27.18% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • ARISTA NETWORKS INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

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

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Overall ANET gets a fundamental rating of 7 out of 10. We evaluated ANET against 54 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 valued quite expensive, but it does show an excellent growth. These ratings could make ANET a good candidate 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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