ARISTA NETWORKS INC (ANET) Fundamental Analysis & Valuation
NYSE:ANET • US0404132054
Current stock price
172.7 USD
-0.01 (-0.01%)
At close:
174.073 USD
+1.37 (+0.8%)
After Hours:
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
- ANET had positive earnings in the past year.
- 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.
- The Return On Equity of ANET (28.39%) is better than 91.30% of its industry peers.
- With an excellent Return On Invested Capital value of 23.29%, ANET belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
- ANET had an Average Return On Invested Capital over the past 3 years of 23.09%. This is significantly above the industry average of 10.45%.
- 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 97.83% of its industry peers.
- ANET's Profit Margin has improved in the last couple of years.
- 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.
- ANET's Operating Margin has improved in the last couple of years.
- ANET's Gross Margin of 64.06% is amongst the best of the industry. ANET outperforms 84.78% of its industry peers.
- 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.
- The number of shares outstanding for ANET has been reduced compared to 1 year ago.
- The number of shares outstanding for ANET has been increased compared to 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 20.87 indicates that ANET is not in any danger for bankruptcy at the moment.
- ANET's Altman-Z score of 20.87 is amongst the best of the industry. ANET outperforms 95.65% of its industry peers.
- There is no outstanding debt for ANET. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 20.87 |
ROIC/WACC2.35
WACC9.89%
2.3 Liquidity
- ANET has a Current Ratio of 3.05. This indicates that ANET is financially healthy and has no problem in meeting its short term obligations.
- ANET's Current ratio of 3.05 is fine compared to the rest of the industry. ANET outperforms 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.
- ANET's Quick ratio of 2.63 is fine compared to the rest of the industry. ANET outperforms 78.26% of its industry peers.
| 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.
- 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.
- ANET shows a strong growth in Revenue. In the last year, 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 very strong growth in Earnings Per Share. The EPS will grow by 21.06% on average per year.
- 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
- With a Price/Earnings ratio of 58.54, ANET can be considered very expensive at the moment.
- ANET's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 26.64. ANET is valued rather expensively when compared to this.
- ANET is valuated quite expensively with a Price/Forward Earnings ratio of 48.07.
- ANET's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 21.36. ANET is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.54 | ||
| Fwd PE | 48.07 |
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 | 51.03 | ||
| EV/EBITDA | 50.27 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- ANET has an outstanding profitability rating, which 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
- No dividends for ANET!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ANET Fundamentals: All Metrics, Ratios and Statistics
172.7
-0.01 (-0.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Industry Strength92.55
Industry Growth94.41
Earnings (Last)02-12 2026-02-12/amc
Earnings (Next)05-05 2026-05-05/amc
Inst Owners71.57%
Inst Owner Change0.23%
Ins Owners3.33%
Ins Owner Change0.29%
Market Cap217.00B
Revenue(TTM)9.01B
Net Income(TTM)3.51B
Analysts82.42
Price Target176.19 (2.02%)
Short Float %1.68%
Short Ratio2.36
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)0.15%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.54 | ||
| Fwd PE | 48.07 | ||
| P/S | 24.1 | ||
| P/FCF | 51.03 | ||
| P/OCF | 49.64 | ||
| P/B | 17.54 | ||
| P/tB | 18.15 | ||
| EV/EBITDA | 50.27 |
EPS(TTM)2.95
EY1.71%
EPS(NY)3.59
Fwd EY2.08%
FCF(TTM)3.38
FCFY1.96%
OCF(TTM)3.48
OCFY2.01%
SpS7.17
BVpS9.84
TBVpS9.51
PEG (NY)2.69
PEG (5Y)1.49
Graham Number25.5628 (-85.2%)
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 | 20.87 |
F-Score5
WACC9.89%
ROIC/WACC2.35
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 58.54 and the Price/Book (PB) ratio is 17.54.
What is the financial health of ARISTA NETWORKS INC (ANET) stock?
The financial health rating of ARISTA NETWORKS INC (ANET) is 9 / 10.