ARISTA NETWORKS INC (ANET) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ANET - US0404132054 - Common Stock
131.84 USD
+1.07 (+0.82%)
131.69 USD
-0.15 (-0.11%)
Taking everything into account, ANET scores 8 out of 10 in our fundamental rating. 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.
ANET had a positive operating cash flow in the past year.
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's Return On Assets of 18.60% is amongst the best of the industry. ANET outperforms 95.83% of its industry peers.
The Return On Equity of ANET (28.19%) is better than 93.75% of its industry peers.
The Return On Invested Capital of ANET (23.49%) is better than 97.92% of its industry peers.
ANET had an Average Return On Invested Capital over the past 3 years of 23.71%. This is significantly above the industry average of 12.15%.
| 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.
In the last couple of years the Profit Margin of ANET has grown nicely.
ANET has a better Operating Margin (42.88%) than 100.00% of its industry peers.
ANET's Operating Margin has improved in the last couple of years.
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 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ANET is creating value.
Compared to 1 year ago, ANET has more shares outstanding
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
ANET has an Altman-Z score of 18.76. This indicates that ANET is financially healthy and has little risk of bankruptcy at the moment.
ANET's Altman-Z score of 18.76 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 | 18.76 |
ROIC/WACC2.41
WACC9.74%
2.3 Liquidity
A Current Ratio of 3.25 indicates that ANET has no problem at all paying 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.
ANET has a Quick ratio of 2.79. This is amongst the best in the industry. ANET outperforms 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.
ANET shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.17% yearly.
The Revenue has grown by 27.75% in the past year. This is a very strong growth!
Measured over the past years, ANET shows a very strong growth in Revenue. The Revenue has been growing by 23.77% on average per year.
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
ANET is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.06% yearly.
EPS Next Y28.73%
EPS Next 2Y22.53%
EPS Next 3Y21.67%
EPS Next 5Y21.87%
Revenue Next Year27.42%
Revenue Next 2Y24.61%
Revenue Next 3Y22.94%
Revenue Next 5Y21.06%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 47.42, ANET can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of ANET is on the same level as its industry peers.
ANET's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.92.
A Price/Forward Earnings ratio of 38.64 indicates a quite expensive valuation of ANET.
The rest of the industry has a similar Price/Forward Earnings ratio as ANET.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, ANET is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.42 | ||
| Fwd PE | 38.64 |
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 | 41.03 | ||
| EV/EBITDA | 40.17 |
4.3 Compensation for Growth
The 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.
ANET's earnings are expected to grow with 21.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.65
PEG (5Y)1.57
EPS Next 2Y22.53%
EPS Next 3Y21.67%
5. Dividend
5.1 Amount
No dividends for ANET!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
131.84
+1.07 (+0.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners70.2%
Inst Owner Change1.88%
Ins Owners3.31%
Ins Owner Change-0.76%
Market Cap166.02B
Revenue(TTM)8.45B
Net Income(TTM)3.36B
Analysts81.88
Price Target165.3 (25.38%)
Short Float %1.39%
Short Ratio1.75
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)0.09%
PT rev (3m)10.66%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)4.22%
EPS NY rev (1m)2.04%
EPS NY rev (3m)2.17%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)2.49%
Revenue NY rev (1m)1.77%
Revenue NY rev (3m)1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.42 | ||
| Fwd PE | 38.64 | ||
| P/S | 19.65 | ||
| P/FCF | 41.03 | ||
| P/OCF | 40.09 | ||
| P/B | 13.94 | ||
| P/tB | 14.45 | ||
| EV/EBITDA | 40.17 |
EPS(TTM)2.78
EY2.11%
EPS(NY)3.41
Fwd EY2.59%
FCF(TTM)3.21
FCFY2.44%
OCF(TTM)3.29
OCFY2.49%
SpS6.71
BVpS9.46
TBVpS9.12
PEG (NY)1.65
PEG (5Y)1.57
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 | 18.76 |
F-Score5
WACC9.74%
ROIC/WACC2.41
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 Y28.73%
EPS Next 2Y22.53%
EPS Next 3Y21.67%
EPS Next 5Y21.87%
Revenue 1Y (TTM)27.75%
Revenue growth 3Y33.43%
Revenue growth 5Y23.77%
Sales Q2Q%27.46%
Revenue Next Year27.42%
Revenue Next 2Y24.61%
Revenue Next 3Y22.94%
Revenue Next 5Y21.06%
EBIT growth 1Y30.09%
EBIT growth 3Y47.12%
EBIT growth 5Y29.59%
EBIT Next Year35.36%
EBIT Next 3Y24.4%
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 28.73% in the next year.