Should Quality Investors Include NYSE:ANET in Their Portfolio?

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.

What matters 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.
• The ROIC excluding cash and goodwill of ARISTA NETWORKS INC stands at 90.32%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• The Debt/Free Cash Flow Ratio of ARISTA NETWORKS INC stands at 0.0, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• 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 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.
• ARISTA NETWORKS INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

How does the complete fundamental picture look for NYSE:ANET?

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

ANET gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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 expensively, but it does show have an excellent growth rating. These ratings would make ANET suitable for growth and quality investing!

Check the latest full fundamental report of ANET for a complete fundamental analysis.

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

Keep in mind

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.