ARISTA NETWORKS INC (ANET) Stock Fundamental Analysis
NYSE:ANET • US0404132054
141.59 USD
+6.47 (+4.79%)
At close: Feb 13, 2026
141.16 USD
-0.43 (-0.3%)
After Hours: 2/13/2026, 8:04:00 PM
ANET gets a fundamental rating of 6 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. While showing a medium growth rate, ANET is valued expensive at the moment. With these ratings, ANET could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
- ANET had positive earnings in the past year.
- In the past year ANET had a positive cash flow from operations.
- Of the past 5 years ANET 4 years were profitable.
- Of the past 5 years ANET 4 years had a positive operating cash flow.
1.2 Ratios
- ANET has a Return On Assets of 18.60%. This is amongst the best in the industry. ANET outperforms 95.83% of its industry peers.
- Looking at the Return On Equity, with a value of 28.19%, ANET belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 23.49%, ANET belongs to the best of the industry, outperforming 97.92% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ANET is significantly above the industry average of 11.31%.
| 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 has a Profit Margin of 39.73%. This is amongst the best in the industry. ANET outperforms 100.00% of its industry peers.
- ANET's Profit Margin has improved in the last couple of years.
- The Operating Margin of ANET (42.88%) is better than 100.00% of its industry peers.
- In the last couple of years the Operating Margin of ANET has grown nicely.
- ANET's Gross Margin of 64.34% is amongst the best of the industry. ANET outperforms 85.42% 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 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
- ANET has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- 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.
2.2 Solvency
- An Altman-Z score of 19.16 indicates that ANET is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 19.16, ANET belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
- 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 | 19.16 |
ROIC/WACC2.53
WACC9.28%
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 has a better Current ratio (3.25) than 83.33% of its industry peers.
- A Quick Ratio of 2.79 indicates that ANET has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 2.79, ANET belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
| 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 29.81% over the past year.
- ANET shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.17% yearly.
EPS 1Y (TTM)29.81%
EPS 3Y37.09%
EPS 5Y39.17%
EPS Q2Q%26.15%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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.
- Based on estimates for the next years, ANET will show a quite strong growth in Revenue. The Revenue will grow by 18.74% on average per year.
EPS Next Y15.65%
EPS Next 2Y17.79%
EPS Next 3Y20.02%
EPS Next 5Y19.96%
Revenue Next Year21.85%
Revenue Next 2Y20.82%
Revenue Next 3Y20.86%
Revenue Next 5Y18.74%
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.
4. Valuation
4.1 Price/Earnings Ratio
- ANET is valuated quite expensively with a Price/Earnings ratio of 48.00.
- The rest of the industry has a similar Price/Earnings ratio as ANET.
- Compared to an average S&P500 Price/Earnings ratio of 27.97, ANET is valued quite expensively.
- The Price/Forward Earnings ratio is 41.50, which means the current valuation is very expensive for ANET.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ANET is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 27.96, ANET is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48 | ||
| Fwd PE | 41.5 |
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.
- ANET's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.07 | ||
| EV/EBITDA | 41.29 |
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 20.02% in the coming years.
PEG (NY)3.07
PEG (5Y)1.23
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% |
141.59
+6.47 (+4.79%)
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 Change-2.02%
Ins Owners3.31%
Ins Owner Change0.24%
Market Cap178.30B
Revenue(TTM)N/A
Net Income(TTM)3.36B
Analysts82.5
Price Target166.13 (17.33%)
Short Float %1.36%
Short Ratio1.91
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)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)0.5%
PT rev (3m)1.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.72%
EPS NY rev (1m)0%
EPS NY rev (3m)2.04%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.96%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48 | ||
| Fwd PE | 41.5 | ||
| P/S | 21.11 | ||
| P/FCF | 44.07 | ||
| P/OCF | 43.06 | ||
| P/B | 14.97 | ||
| P/tB | 15.52 | ||
| EV/EBITDA | 41.29 |
EPS(TTM)2.95
EY2.08%
EPS(NY)3.41
Fwd EY2.41%
FCF(TTM)3.21
FCFY2.27%
OCF(TTM)3.29
OCFY2.32%
SpS6.71
BVpS9.46
TBVpS9.12
PEG (NY)3.07
PEG (5Y)1.23
Graham Number25.05
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 | 19.16 |
F-Score5
WACC9.28%
ROIC/WACC2.53
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)29.81%
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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%28.87%
Revenue Next Year21.85%
Revenue Next 2Y20.82%
Revenue Next 3Y20.86%
Revenue Next 5Y18.74%
EBIT growth 1Y30.09%
EBIT growth 3Y47.12%
EBIT growth 5Y29.59%
EBIT Next Year35.36%
EBIT Next 3Y24.41%
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 6 / 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 8 / 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.