ARISTA NETWORKS INC (ANET) Stock Fundamental Analysis
NYSE:ANET • US0404132054
133.5 USD
+3.25 (+2.5%)
At close: Feb 27, 2026
132.322 USD
-1.18 (-0.88%)
After Hours: 2/27/2026, 8:04:00 PM
ANET gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. ANET has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ANET shows excellent growth, but is valued quite expensive already. 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.
- In the past 5 years ANET always reported a positive cash flow from operatings.
1.2 Ratios
- ANET has a better Return On Assets (18.05%) than 95.83% of its industry peers.
- With an excellent Return On Equity value of 28.39%, ANET belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 23.29%, ANET belongs to the top of the industry, outperforming 97.92% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ANET is significantly above the industry average of 11.10%.
- The last Return On Invested Capital (23.29%) for ANET is above the 3 year average (23.09%), which is a sign of increasing profitability.
| 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 better Profit Margin (38.99%) than 100.00% of its industry peers.
- In the last couple of years the Profit Margin of ANET has grown nicely.
- Looking at the Operating Margin, with a value of 42.82%, ANET belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of ANET has grown nicely.
- Looking at the Gross Margin, with a value of 64.06%, ANET belongs to the top of the industry, outperforming 85.42% of the companies in the same industry.
- In the last couple of years the Gross Margin of ANET has remained more or less at the same level.
| 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. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ANET is creating value.
- The number of shares outstanding for ANET has been reduced compared to 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.
2.2 Solvency
- An Altman-Z score of 16.73 indicates that ANET is not in any danger for bankruptcy at the moment.
- ANET's Altman-Z score of 16.73 is amongst the best of the industry. ANET outperforms 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 | 16.73 |
ROIC/WACC2.43
WACC9.6%
2.3 Liquidity
- A Current Ratio of 3.05 indicates that ANET has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 3.05, ANET belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- A Quick Ratio of 2.63 indicates that ANET has no problem at all paying its short term obligations.
- ANET has a Quick ratio of 2.63. This is amongst the best in the industry. ANET outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.05 | ||
| Quick Ratio | 2.63 |
3. Growth
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.
- 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
- Based on estimates for the next years, ANET will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.96% on average per year.
- ANET is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.74% yearly.
EPS Next Y15.65%
EPS Next 2Y17.79%
EPS Next 3Y20.02%
EPS Next 5Y19.96%
Revenue Next Year25.79%
Revenue Next 2Y23.09%
Revenue Next 3Y22.63%
Revenue Next 5Y18.74%
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 45.25 indicates a quite expensive valuation of ANET.
- ANET's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.10, ANET is valued quite expensively.
- The Price/Forward Earnings ratio is 39.13, which means the current valuation is very expensive for ANET.
- ANET's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, ANET is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.25 | ||
| Fwd PE | 39.13 |
4.2 Price Multiples
- ANET's Enterprise Value to EBITDA is on the same level as the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ANET.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.53 | ||
| EV/EBITDA | 37.82 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ANET does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of ANET may justify a higher PE ratio.
- ANET's earnings are expected to grow with 20.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.89
PEG (5Y)1.16
EPS Next 2Y17.79%
EPS Next 3Y20.02%
5. Dividend
5.1 Amount
- ANET does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
133.5
+3.25 (+2.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-12 2026-02-12/amc
Earnings (Next)05-04 2026-05-04/amc
Inst Owners70.22%
Inst Owner Change0.1%
Ins Owners3.31%
Ins Owner Change-0.13%
Market Cap168.12B
Revenue(TTM)9.01B
Net Income(TTM)3.51B
Analysts82.5
Price Target176.22 (32%)
Short Float %1.23%
Short Ratio1.65
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)6.17%
PT rev (3m)6.7%
EPS NQ rev (1m)6.85%
EPS NQ rev (3m)7.2%
EPS NY rev (1m)0%
EPS NY rev (3m)1.84%
Revenue NQ rev (1m)6.69%
Revenue NQ rev (3m)7.07%
Revenue NY rev (1m)3.33%
Revenue NY rev (3m)6.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.25 | ||
| Fwd PE | 39.13 | ||
| P/S | 18.67 | ||
| P/FCF | 39.53 | ||
| P/OCF | 38.45 | ||
| P/B | 13.59 | ||
| P/tB | 14.06 | ||
| EV/EBITDA | 37.82 |
EPS(TTM)2.95
EY2.21%
EPS(NY)3.41
Fwd EY2.56%
FCF(TTM)3.38
FCFY2.53%
OCF(TTM)3.47
OCFY2.6%
SpS7.15
BVpS9.82
TBVpS9.49
PEG (NY)2.89
PEG (5Y)1.16
Graham Number25.53
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 | 16.73 |
F-Score5
WACC9.6%
ROIC/WACC2.43
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 Y15.65%
EPS Next 2Y17.79%
EPS Next 3Y20.02%
EPS Next 5Y19.96%
Revenue 1Y (TTM)28.6%
Revenue growth 3Y27.15%
Revenue growth 5Y31.19%
Sales Q2Q%28.87%
Revenue Next Year25.79%
Revenue Next 2Y23.09%
Revenue Next 3Y22.63%
Revenue Next 5Y18.74%
EBIT growth 1Y30.95%
EBIT growth 3Y36.17%
EBIT growth 5Y40.69%
EBIT Next Year27.96%
EBIT Next 3Y23.95%
EBIT Next 5Y21.53%
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 FAQ
What is the ChartMill fundamental rating of ARISTA NETWORKS INC (ANET) stock?
ChartMill assigns a fundamental rating of 7 / 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.
What is the profitability of ANET stock?
ARISTA NETWORKS INC (ANET) has a profitability rating of 9 / 10.
What is the expected EPS growth for ARISTA NETWORKS INC (ANET) stock?
The Earnings per Share (EPS) of ARISTA NETWORKS INC (ANET) is expected to grow by 15.65% in the next year.