ARISTA NETWORKS INC (ANET) Fundamental Analysis & Valuation
NYSE:ANET • US0404132054
Current stock price
172.55 USD
-5.18 (-2.91%)
At close:
174.53 USD
+1.98 (+1.15%)
Pre-Market:
This ANET fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ANET Profitability Analysis
1.1 Basic Checks
- In the past year ANET was profitable.
- In the past year ANET had a positive cash flow from operations.
- Each year in the past 5 years ANET has been profitable.
- ANET had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ANET has a better Return On Assets (18.05%) than 93.48% of its industry peers.
- ANET's Return On Equity of 28.39% is amongst the best of the industry. ANET outperforms 91.30% of its industry peers.
- ANET's Return On Invested Capital of 23.29% is amongst the best of the industry. ANET outperforms 95.65% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ANET is significantly above the industry average of 10.41%.
- The 3 year average ROIC (23.09%) for ANET is below the current ROIC(23.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.05% | ||
| ROE | 28.39% | ||
| ROIC | 23.29% |
ROA(3y)19.78%
ROA(5y)18.79%
ROE(3y)28.61%
ROE(5y)26.93%
ROIC(3y)23.09%
ROIC(5y)21.99%
1.3 Margins
- ANET has a Profit Margin of 38.99%. This is amongst the best in the industry. ANET outperforms 97.83% of its industry peers.
- In the last couple of years the Profit Margin of ANET has grown nicely.
- ANET has a better Operating Margin (42.82%) than 100.00% of its industry peers.
- ANET's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 64.06%, ANET belongs to the best of the industry, outperforming 84.78% of the companies in the same industry.
- ANET's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.82% | ||
| PM (TTM) | 38.99% | ||
| GM | 64.06% |
OM growth 3Y7.1%
OM growth 5Y7.24%
PM growth 3Y8.1%
PM growth 5Y7.33%
GM growth 3Y1.6%
GM growth 5Y0.04%
2. ANET Health Analysis
2.1 Basic Checks
- ANET has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, ANET has less shares outstanding
- ANET has more shares outstanding than it did 5 years ago.
- ANET has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 20.86 indicates that ANET is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 20.86, ANET belongs to the best of the industry, outperforming 93.48% of the companies in the same industry.
- ANET has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 20.86 |
ROIC/WACC2.37
WACC9.83%
2.3 Liquidity
- A Current Ratio of 3.05 indicates that ANET has no problem at all paying its short term obligations.
- ANET has a Current ratio of 3.05. This is in the better half of the industry: ANET outperforms 78.26% of its industry peers.
- A Quick Ratio of 2.63 indicates that ANET has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 2.63, ANET is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.05 | ||
| Quick Ratio | 2.63 |
3. ANET Growth Analysis
3.1 Past
- ANET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.81%, which is quite impressive.
- ANET shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.17% yearly.
- Looking at the last year, ANET shows a very strong growth in Revenue. The Revenue has grown by 28.60%.
- ANET shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.19% yearly.
EPS 1Y (TTM)29.81%
EPS 3Y37.09%
EPS 5Y39.17%
EPS Q2Q%26.15%
Revenue 1Y (TTM)28.6%
Revenue growth 3Y27.15%
Revenue growth 5Y31.19%
Sales Q2Q%28.87%
3.2 Future
- ANET is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.06% yearly.
- Based on estimates for the next years, ANET will show a very strong growth in Revenue. The Revenue will grow by 20.25% on average per year.
EPS Next Y21.78%
EPS Next 2Y21.53%
EPS Next 3Y21.94%
EPS Next 5Y21.06%
Revenue Next Year28.18%
Revenue Next 2Y24.95%
Revenue Next 3Y24.11%
Revenue Next 5Y20.25%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. ANET Valuation Analysis
4.1 Price/Earnings Ratio
- ANET is valuated quite expensively with a Price/Earnings ratio of 58.49.
- The rest of the industry has a similar Price/Earnings ratio as ANET.
- ANET is valuated expensively when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 48.03, which means the current valuation is very expensive for ANET.
- ANET's Price/Forward Earnings ratio is in line with the industry average.
- ANET is valuated expensively when we compare the Price/Forward Earnings ratio to 22.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.49 | ||
| Fwd PE | 48.03 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ANET is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ANET is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.99 | ||
| EV/EBITDA | 50.22 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of ANET may justify a higher PE ratio.
- ANET's earnings are expected to grow with 21.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.69
PEG (5Y)1.49
EPS Next 2Y21.53%
EPS Next 3Y21.94%
5. ANET Dividend Analysis
5.1 Amount
- ANET does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ANET Fundamentals: All Metrics, Ratios and Statistics
172.55
-5.18 (-2.91%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-12 2026-02-12/amc
Earnings (Next)05-05 2026-05-05/amc
Inst Owners71.57%
Inst Owner Change0.04%
Ins Owners3.33%
Ins Owner Change0.29%
Market Cap216.82B
Revenue(TTM)9.01B
Net Income(TTM)3.51B
Analysts82.42
Price Target176.19 (2.11%)
Short Float %1.64%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.61%
Min EPS beat(2)2.99%
Max EPS beat(2)6.23%
EPS beat(4)4
Avg EPS beat(4)6.79%
Min EPS beat(4)2.99%
Max EPS beat(4)10.22%
EPS beat(8)8
Avg EPS beat(8)8.75%
EPS beat(12)12
Avg EPS beat(12)9.61%
EPS beat(16)16
Avg EPS beat(16)10.29%
Revenue beat(2)2
Avg Revenue beat(2)1.41%
Min Revenue beat(2)0.49%
Max Revenue beat(2)2.34%
Revenue beat(4)3
Avg Revenue beat(4)1.28%
Min Revenue beat(4)-0.26%
Max Revenue beat(4)2.55%
Revenue beat(8)5
Avg Revenue beat(8)0.77%
Revenue beat(12)8
Avg Revenue beat(12)0.83%
Revenue beat(16)12
Avg Revenue beat(16)1.83%
PT rev (1m)-0.01%
PT rev (3m)6.15%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)6.91%
EPS NY rev (1m)0.22%
EPS NY rev (3m)5.3%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)6.61%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)5.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.49 | ||
| Fwd PE | 48.03 | ||
| P/S | 24.08 | ||
| P/FCF | 50.99 | ||
| P/OCF | 49.59 | ||
| P/B | 17.53 | ||
| P/tB | 18.14 | ||
| EV/EBITDA | 50.22 |
EPS(TTM)2.95
EY1.71%
EPS(NY)3.59
Fwd EY2.08%
FCF(TTM)3.38
FCFY1.96%
OCF(TTM)3.48
OCFY2.02%
SpS7.17
BVpS9.84
TBVpS9.51
PEG (NY)2.69
PEG (5Y)1.49
Graham Number25.5628 (-85.19%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.05% | ||
| ROE | 28.39% | ||
| ROCE | 27.4% | ||
| ROIC | 23.29% | ||
| ROICexc | 98.44% | ||
| ROICexgc | 112.51% | ||
| OM | 42.82% | ||
| PM (TTM) | 38.99% | ||
| GM | 64.06% | ||
| FCFM | 47.22% |
ROA(3y)19.78%
ROA(5y)18.79%
ROE(3y)28.61%
ROE(5y)26.93%
ROIC(3y)23.09%
ROIC(5y)21.99%
ROICexc(3y)81.66%
ROICexc(5y)72.48%
ROICexgc(3y)92.59%
ROICexgc(5y)84.92%
ROCE(3y)27.17%
ROCE(5y)25.87%
ROICexgc growth 3Y21.52%
ROICexgc growth 5Y8.24%
ROICexc growth 3Y23.08%
ROICexc growth 5Y12.69%
OM growth 3Y7.1%
OM growth 5Y7.24%
PM growth 3Y8.1%
PM growth 5Y7.33%
GM growth 3Y1.6%
GM growth 5Y0.04%
F-Score5
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 164.6% | ||
| Cap/Sales | 1.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 111.28% | ||
| Profit Quality | 121.1% | ||
| Current Ratio | 3.05 | ||
| Quick Ratio | 2.63 | ||
| Altman-Z | 20.86 |
F-Score5
WACC9.83%
ROIC/WACC2.37
Cap/Depr(3y)88.33%
Cap/Depr(5y)92.96%
Cap/Sales(3y)0.79%
Cap/Sales(5y)1.12%
Profit Quality(3y)115.27%
Profit Quality(5y)98.41%
High Growth Momentum
Growth
EPS 1Y (TTM)29.81%
EPS 3Y37.09%
EPS 5Y39.17%
EPS Q2Q%26.15%
EPS Next Y21.78%
EPS Next 2Y21.53%
EPS Next 3Y21.94%
EPS Next 5Y21.06%
Revenue 1Y (TTM)28.6%
Revenue growth 3Y27.15%
Revenue growth 5Y31.19%
Sales Q2Q%28.87%
Revenue Next Year28.18%
Revenue Next 2Y24.95%
Revenue Next 3Y24.11%
Revenue Next 5Y20.25%
EBIT growth 1Y30.95%
EBIT growth 3Y36.17%
EBIT growth 5Y40.69%
EBIT Next Year27.94%
EBIT Next 3Y23.95%
EBIT Next 5Y21.3%
FCF growth 1Y15.67%
FCF growth 3Y111.71%
FCF growth 5Y42.66%
OCF growth 1Y17.9%
OCF growth 3Y107.01%
OCF growth 5Y42.84%
ARISTA NETWORKS INC / ANET Fundamental Analysis FAQ
What is the ChartMill fundamental rating of ARISTA NETWORKS INC (ANET) stock?
ChartMill assigns a fundamental rating of 8 / 10 to ANET.
What is the valuation status of ARISTA NETWORKS INC (ANET) stock?
ChartMill assigns a valuation rating of 3 / 10 to ARISTA NETWORKS INC (ANET). This can be considered as Overvalued.
How profitable is ARISTA NETWORKS INC (ANET) stock?
ARISTA NETWORKS INC (ANET) has a profitability rating of 9 / 10.
What is the valuation of ARISTA NETWORKS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ARISTA NETWORKS INC (ANET) is 58.49 and the Price/Book (PB) ratio is 17.53.
What is the financial health of ARISTA NETWORKS INC (ANET) stock?
The financial health rating of ARISTA NETWORKS INC (ANET) is 9 / 10.