ARISTA NETWORKS INC (ANET) Fundamental Analysis & Valuation

NYSE:ANET • US0404132054

Current stock price

172.47 USD
-4.44 (-2.51%)
At close:
172.4 USD
-0.07 (-0.04%)
After Hours:

This ANET fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. ANET Profitability Analysis

1.1 Basic Checks

  • ANET had positive earnings in the past year.
  • In the past year ANET had a positive cash flow from operations.
  • In the past 5 years ANET has always been profitable.
  • In the past 5 years ANET always reported a positive cash flow from operatings.
ANET Yearly Net Income VS EBIT VS OCF VS FCFANET Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

1.2 Ratios

  • With an excellent Return On Assets value of 18.05%, ANET belongs to the best of the industry, outperforming 93.48% of the companies in the same industry.
  • ANET has a better Return On Equity (28.39%) than 91.30% of its industry peers.
  • ANET has a better Return On Invested Capital (23.29%) than 95.65% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ANET is significantly above the industry average of 10.45%.
  • The 3 year average ROIC (23.09%) for ANET is below the current ROIC(23.29%), indicating increased profibility in the last year.
Industry RankSector 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%
ANET Yearly ROA, ROE, ROICANET Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • With an excellent Profit Margin value of 38.99%, ANET belongs to the best of the industry, outperforming 97.83% of the companies in the same industry.
  • 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.
  • In the last couple of years the Operating Margin of ANET has grown nicely.
  • The Gross Margin of ANET (64.06%) is better than 84.78% of its industry peers.
  • In the last couple of years the Gross Margin of ANET has remained more or less at the same level.
Industry RankSector 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%
ANET Yearly Profit, Operating, Gross MarginsANET Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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9

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.
  • ANET has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, ANET has more shares outstanding
  • ANET has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
ANET Yearly Shares OutstandingANET Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
ANET Yearly Total Debt VS Total AssetsANET Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • ANET has an Altman-Z score of 21.32. This indicates that ANET is financially healthy and has little risk of bankruptcy at the moment.
  • ANET's Altman-Z score of 21.32 is amongst the best of the industry. ANET outperforms 95.65% of its industry peers.
  • ANET has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 21.32
ROIC/WACC2.37
WACC9.84%
ANET Yearly LT Debt VS Equity VS FCFANET Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 3.05 indicates that ANET has no problem at all paying its short term obligations.
  • The Current ratio of ANET (3.05) is better than 78.26% of its industry peers.
  • ANET has a Quick Ratio of 2.63. This indicates that ANET is financially healthy and has no problem in meeting its short term obligations.
  • With a decent Quick ratio value of 2.63, ANET is doing good in the industry, outperforming 78.26% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.05
Quick Ratio 2.63
ANET Yearly Current Assets VS Current LiabilitesANET Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

9

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.
  • Measured over the past years, ANET shows a very strong growth in Earnings Per Share. The EPS has been growing by 39.17% on average per year.
  • The Revenue has grown by 28.60% in the past year. This is a very strong growth!
  • 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

  • The Earnings Per Share is expected to grow by 21.06% on average over the next years. This is a very strong growth
  • ANET is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.25% yearly.
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

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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.
ANET Yearly Revenue VS EstimatesANET Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B
ANET Yearly EPS VS EstimatesANET Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6

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3

4. ANET Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 58.46 indicates a quite expensive valuation of ANET.
  • The rest of the industry has a similar Price/Earnings ratio as ANET.
  • Compared to an average S&P500 Price/Earnings ratio of 27.35, ANET is valued quite expensively.
  • Based on the Price/Forward Earnings ratio of 48.01, the valuation of ANET can be described as expensive.
  • ANET's Price/Forward Earnings ratio is in line with the industry average.
  • ANET's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.23.
Industry RankSector Rank
PE 58.46
Fwd PE 48.01
ANET Price Earnings VS Forward Price EarningsANET Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • ANET's Enterprise Value to EBITDA ratio is in line with the industry average.
  • ANET's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 50.96
EV/EBITDA 51.61
ANET Per share dataANET EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

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.
  • A more expensive valuation may be justified as ANET's earnings are expected to grow with 21.94% in the coming years.
PEG (NY)2.68
PEG (5Y)1.49
EPS Next 2Y21.53%
EPS Next 3Y21.94%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ANET Dividend Analysis

5.1 Amount

  • No dividends for ANET!.
Industry RankSector Rank
Dividend Yield 0%

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ANET Fundamentals: All Metrics, Ratios and Statistics

ARISTA NETWORKS INC

NYSE:ANET (4/27/2026, 8:04:00 PM)

After market: 172.4 -0.07 (-0.04%)

172.47

-4.44 (-2.51%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-12
Earnings (Next)05-05
Inst Owners71.57%
Inst Owner Change0.23%
Ins Owners3.33%
Ins Owner Change0.29%
Market Cap216.72B
Revenue(TTM)9.01B
Net Income(TTM)3.51B
Analysts82.42
Price Target176.19 (2.16%)
Short Float %1.64%
Short Ratio2.21
Dividend
Industry RankSector 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)0.15%
EPS NQ rev (3m)7.04%
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 RankSector Rank
PE 58.46
Fwd PE 48.01
P/S 24.06
P/FCF 50.96
P/OCF 49.57
P/B 17.52
P/tB 18.13
EV/EBITDA 51.61
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)2.68
PEG (5Y)1.49
Graham Number25.5628 (-85.18%)
Profitability
Industry RankSector 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 RankSector 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 21.32
F-Score5
WACC9.84%
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 58.46 and the Price/Book (PB) ratio is 17.52.


What is the financial health of ARISTA NETWORKS INC (ANET) stock?

The financial health rating of ARISTA NETWORKS INC (ANET) is 9 / 10.