ARISTA NETWORKS INC (ANET) Stock Fundamental Analysis
NYSE:ANET • US0404132054
140.52 USD
-2.06 (-1.44%)
Last: Feb 18, 2026, 01:12 PM
We assign a fundamental rating of 7 out of 10 to ANET. ANET was compared to 48 industry peers in the Communications Equipment industry. ANET scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ANET is valued quite expensively, but it does show have an excellent growth rating. This makes ANET very considerable for growth and 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.
- 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 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.
- ANET has a better Return On Invested Capital (23.08%) than 97.92% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ANET is significantly above the industry average of 11.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.6% | ||
| ROE | 28.19% | ||
| ROIC | 23.08% |
ROA(3y)19.78%
ROA(5y)18.79%
ROE(3y)28.61%
ROE(5y)26.93%
ROIC(3y)23.17%
ROIC(5y)22.06%
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.
- ANET has a Operating Margin of 42.88%. This is amongst the best in the industry. ANET outperforms 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 (64.34%) is better than 85.42% 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 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
- ANET has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, ANET has about the same amount of shares outstanding.
- Compared to 5 years ago, ANET has more shares outstanding
- 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 20.08 indicates that ANET is not in any danger for bankruptcy at the moment.
- ANET has a better Altman-Z score (20.08) than 93.75% 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 | 20.08 |
ROIC/WACC2.45
WACC9.42%
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 Current ratio of 3.25. This is amongst the best in the industry. ANET outperforms 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.
- The Quick ratio of ANET (2.79) is better than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.25 | ||
| Quick Ratio | 2.79 |
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.
- ANET shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.17% yearly.
- 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 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 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
- With a Price/Earnings ratio of 47.63, ANET can be considered very expensive at the moment.
- ANET's Price/Earnings is on the same level as the industry average.
- ANET is valuated expensively when we compare the Price/Earnings ratio to 27.16, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 41.19, ANET can be considered very expensive at the moment.
- 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 (28.10), we can say ANET is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.63 | ||
| Fwd PE | 41.19 |
4.2 Price Multiples
- ANET's Enterprise Value to EBITDA is on the same level as the industry average.
- ANET's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.74 | ||
| EV/EBITDA | 43.83 |
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)3.04
PEG (5Y)1.22
EPS Next 2Y17.79%
EPS Next 3Y20.02%
5. Dividend
5.1 Amount
- No dividends for ANET!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:ANET (2/18/2026, 1:12:09 PM)
140.52
-2.06 (-1.44%)
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-1.62%
Ins Owners3.31%
Ins Owner Change0.24%
Market Cap176.96B
Revenue(TTM)9.01B
Net Income(TTM)3.36B
Analysts82.5
Price Target166.13 (18.23%)
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)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%
Revenue NQ rev (3m)0.96%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.63 | ||
| Fwd PE | 41.19 | ||
| P/S | 20.95 | ||
| P/FCF | 43.74 | ||
| P/OCF | 42.73 | ||
| P/B | 14.86 | ||
| P/tB | 15.4 | ||
| EV/EBITDA | 43.83 |
EPS(TTM)2.95
EY2.1%
EPS(NY)3.41
Fwd EY2.43%
FCF(TTM)3.21
FCFY2.29%
OCF(TTM)3.29
OCFY2.34%
SpS6.71
BVpS9.46
TBVpS9.12
PEG (NY)3.04
PEG (5Y)1.22
Graham Number25.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.6% | ||
| ROE | 28.19% | ||
| ROCE | 27.07% | ||
| ROIC | 23.08% | ||
| ROICexc | 94.28% | ||
| ROICexgc | 108% | ||
| OM | 42.88% | ||
| PM (TTM) | 39.73% | ||
| GM | 64.34% | ||
| FCFM | 47.89% |
ROA(3y)19.78%
ROA(5y)18.79%
ROE(3y)28.61%
ROE(5y)26.93%
ROIC(3y)23.17%
ROIC(5y)22.06%
ROICexc(3y)81.91%
ROICexc(5y)72.7%
ROICexgc(3y)92.88%
ROICexgc(5y)85.18%
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 Turnover0.47
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 | 20.08 |
F-Score5
WACC9.42%
ROIC/WACC2.45
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 1Y30.09%
EBIT growth 3Y36.17%
EBIT growth 5Y40.69%
EBIT Next Year22.35%
EBIT Next 3Y21.81%
EBIT Next 5Y21.55%
FCF growth 1Y27.31%
FCF growth 3Y111.71%
FCF growth 5Y42.66%
OCF growth 1Y29.25%
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.