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Reasonable growth and debt and a high ROIC for ARISTA NETWORKS INC (NYSE:ANET).

By Mill Chart

Last update: Jan 7, 2025

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.


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Why NYSE:ANET may be interesting for quality investors.

  • 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 demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 90.32% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • 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.
  • ARISTA NETWORKS INC has experienced impressive EBIT growth over the past 5 years, with 27.18% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • ARISTA NETWORKS INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Zooming in on the fundamentals.

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 51 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. These ratings would make ANET suitable 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

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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