ARISTA NETWORKS INC (ANET) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ANET - US0404132054 - Common Stock
128.55 USD
+0.75 (+0.59%)
129.52 USD
+0.97 (+0.75%)
ANET gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 48 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make ANET a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
ANET had positive earnings in the past year.
ANET had a positive operating cash flow in the past year.
ANET had positive earnings in each of the past 5 years.
Each year in the past 5 years ANET had a positive operating cash flow.
1.2 Ratios
ANET has a better Return On Assets (18.60%) than 95.83% of its industry peers.
The Return On Equity of ANET (28.19%) is better than 93.75% of its industry peers.
ANET has a better Return On Invested Capital (23.49%) than 97.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ANET is significantly above the industry average of 12.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.6% | ||
| ROE | 28.19% | ||
| ROIC | 23.49% |
ROA(3y)20.41%
ROA(5y)17.86%
ROE(3y)28.38%
ROE(5y)25.08%
ROIC(3y)23.71%
ROIC(5y)20.75%
1.3 Margins
ANET's Profit Margin of 39.73% is amongst the best of the industry. ANET outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of ANET has grown nicely.
The Operating Margin of ANET (42.88%) is better than 100.00% of its industry peers.
ANET's Operating Margin has improved in the last couple of years.
ANET's Gross Margin of 64.34% is amongst the best of the industry. ANET outperforms 87.50% of its industry peers.
ANET's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.88% | ||
| PM (TTM) | 39.73% | ||
| GM | 64.34% |
OM growth 3Y10.26%
OM growth 5Y4.7%
PM growth 3Y12.61%
PM growth 5Y2.7%
GM growth 3Y0.17%
GM growth 5Y0.02%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ANET is creating value.
ANET has more shares outstanding than it did 1 year ago.
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
ANET has an Altman-Z score of 18.35. This indicates that ANET is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ANET (18.35) is better than 93.75% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 18.35 |
ROIC/WACC2.56
WACC9.17%
2.3 Liquidity
ANET has a Current Ratio of 3.25. This indicates that ANET is financially healthy and has no problem in meeting its short term obligations.
ANET's Current ratio of 3.25 is amongst the best of the industry. ANET outperforms 81.25% of its industry peers.
ANET has a Quick Ratio of 2.79. This indicates that ANET is financially healthy and has no problem in meeting its short term obligations.
ANET has a better Quick ratio (2.79) than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.25 | ||
| Quick Ratio | 2.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.75% over the past year.
The Earnings Per Share has been growing by 30.17% on average over the past years. This is a very strong growth
ANET shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.75%.
The Revenue has been growing by 23.77% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)29.75%
EPS 3Y46.94%
EPS 5Y30.17%
EPS Q2Q%25%
Revenue 1Y (TTM)27.75%
Revenue growth 3Y33.43%
Revenue growth 5Y23.77%
Sales Q2Q%27.46%
3.2 Future
The Earnings Per Share is expected to grow by 21.87% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 21.06% on average over the next years. This is a very strong growth
EPS Next Y26.16%
EPS Next 2Y21.42%
EPS Next 3Y20.92%
EPS Next 5Y21.87%
Revenue Next Year25.2%
Revenue Next 2Y22.94%
Revenue Next 3Y21.75%
Revenue Next 5Y21.06%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 46.24, which means the current valuation is very expensive for ANET.
Based on the Price/Earnings ratio, ANET is valued a bit cheaper than the industry average as 60.42% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ANET to the average of the S&P500 Index (26.41), we can say ANET is valued expensively.
ANET is valuated quite expensively with a Price/Forward Earnings ratio of 38.37.
ANET's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of ANET to the average of the S&P500 Index (35.40), we can say ANET is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.24 | ||
| Fwd PE | 38.37 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.01 | ||
| EV/EBITDA | 39.04 |
4.3 Compensation for Growth
ANET's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 20.92% in the coming years.
PEG (NY)1.77
PEG (5Y)1.53
EPS Next 2Y21.42%
EPS Next 3Y20.92%
5. Dividend
5.1 Amount
No dividends for ANET!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
128.55
+0.75 (+0.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners69.05%
Inst Owner Change1.86%
Ins Owners3.35%
Ins Owner Change-0.9%
Market Cap161.88B
Revenue(TTM)8.45B
Net Income(TTM)3.36B
Analysts82.42
Price Target165.15 (28.47%)
Short Float %1.32%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)6.6%
Min EPS beat(2)2.99%
Max EPS beat(2)10.22%
EPS beat(4)4
Avg EPS beat(4)8.25%
Min EPS beat(4)2.99%
Max EPS beat(4)12.07%
EPS beat(8)8
Avg EPS beat(8)10.44%
EPS beat(12)12
Avg EPS beat(12)10.26%
EPS beat(16)16
Avg EPS beat(16)10.51%
Revenue beat(2)2
Avg Revenue beat(2)1.52%
Min Revenue beat(2)0.49%
Max Revenue beat(2)2.55%
Revenue beat(4)2
Avg Revenue beat(4)0.55%
Min Revenue beat(4)-0.6%
Max Revenue beat(4)2.55%
Revenue beat(8)4
Avg Revenue beat(8)0.3%
Revenue beat(12)8
Avg Revenue beat(12)0.98%
Revenue beat(16)12
Avg Revenue beat(16)1.84%
PT rev (1m)5.68%
PT rev (3m)15.17%
EPS NQ rev (1m)3.76%
EPS NQ rev (3m)5.34%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)2.23%
Revenue NQ rev (3m)2.54%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.24 | ||
| Fwd PE | 38.37 | ||
| P/S | 19.16 | ||
| P/FCF | 40.01 | ||
| P/OCF | 39.09 | ||
| P/B | 13.6 | ||
| P/tB | 14.09 | ||
| EV/EBITDA | 39.04 |
EPS(TTM)2.78
EY2.16%
EPS(NY)3.35
Fwd EY2.61%
FCF(TTM)3.21
FCFY2.5%
OCF(TTM)3.29
OCFY2.56%
SpS6.71
BVpS9.46
TBVpS9.12
PEG (NY)1.77
PEG (5Y)1.53
Graham Number24.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.6% | ||
| ROE | 28.19% | ||
| ROCE | 27.07% | ||
| ROIC | 23.49% | ||
| ROICexc | 95.95% | ||
| ROICexgc | 109.92% | ||
| OM | 42.88% | ||
| PM (TTM) | 39.73% | ||
| GM | 64.34% | ||
| FCFM | 47.89% |
ROA(3y)20.41%
ROA(5y)17.86%
ROE(3y)28.38%
ROE(5y)25.08%
ROIC(3y)23.71%
ROIC(5y)20.75%
ROICexc(3y)67.83%
ROICexc(5y)64.95%
ROICexgc(3y)77.58%
ROICexgc(5y)79.18%
ROCE(3y)27.32%
ROCE(5y)23.92%
ROICexgc growth 3Y3.57%
ROICexgc growth 5Y0.83%
ROICexc growth 3Y8.79%
ROICexc growth 5Y0.97%
OM growth 3Y10.26%
OM growth 5Y4.7%
PM growth 3Y12.61%
PM growth 5Y2.7%
GM growth 3Y0.17%
GM growth 5Y0.02%
F-Score5
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 145.66% | ||
| Cap/Sales | 1.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 112.28% | ||
| Profit Quality | 120.54% | ||
| Current Ratio | 3.25 | ||
| Quick Ratio | 2.79 | ||
| Altman-Z | 18.35 |
F-Score5
WACC9.17%
ROIC/WACC2.56
Cap/Depr(3y)57.2%
Cap/Depr(5y)66.94%
Cap/Sales(3y)0.69%
Cap/Sales(5y)0.98%
Profit Quality(3y)85.94%
Profit Quality(5y)96.87%
High Growth Momentum
Growth
EPS 1Y (TTM)29.75%
EPS 3Y46.94%
EPS 5Y30.17%
EPS Q2Q%25%
EPS Next Y26.16%
EPS Next 2Y21.42%
EPS Next 3Y20.92%
EPS Next 5Y21.87%
Revenue 1Y (TTM)27.75%
Revenue growth 3Y33.43%
Revenue growth 5Y23.77%
Sales Q2Q%27.46%
Revenue Next Year25.2%
Revenue Next 2Y22.94%
Revenue Next 3Y21.75%
Revenue Next 5Y21.06%
EBIT growth 1Y30.09%
EBIT growth 3Y47.12%
EBIT growth 5Y29.59%
EBIT Next Year29.88%
EBIT Next 3Y22%
EBIT Next 5Y23.27%
FCF growth 1Y168.1%
FCF growth 3Y56.94%
FCF growth 5Y31.15%
OCF growth 1Y167.5%
OCF growth 3Y53.97%
OCF growth 5Y30.95%
ARISTA NETWORKS INC / ANET 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 for ANET stock?
ChartMill assigns a valuation rating of 3 / 10 to ARISTA NETWORKS INC (ANET). This can be considered as Overvalued.
What is the profitability of ANET stock?
ARISTA NETWORKS INC (ANET) has a profitability rating of 9 / 10.
How financially healthy is ARISTA NETWORKS INC?
The financial health rating of ARISTA NETWORKS INC (ANET) is 9 / 10.
What is the earnings growth outlook for ARISTA NETWORKS INC?
The Earnings per Share (EPS) of ARISTA NETWORKS INC (ANET) is expected to grow by 26.16% in the next year.