ARISTA NETWORKS INC (ANET) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ANET - US0404132054 - Common Stock
129.83 USD
-0.76 (-0.58%)
129.5 USD
-0.33 (-0.25%)
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. Both the health and profitability get an excellent rating, making ANET a very profitable company, without any liquidiy or solvency issues. ANET is valued quite expensively, but it does show have an excellent growth rating. 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.
- In the past 5 years ANET has always been profitable.
- In the past 5 years ANET always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 18.60%, ANET belongs to the top of the industry, outperforming 95.83% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 28.19%, ANET belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
- The Return On Invested Capital of ANET (23.49%) is better 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 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
- Looking at the Profit Margin, with a value of 39.73%, 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 Profit Margin of ANET has grown nicely.
- With an excellent Operating Margin value of 42.88%, ANET belongs to the best 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.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ANET is creating value.
- Compared to 1 year ago, ANET has more 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 18.60 indicates that ANET is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 18.60, ANET belongs to the best of the industry, outperforming 93.75% 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 | 18.6 |
ROIC/WACC2.41
WACC9.74%
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.
- With an excellent Current ratio value of 3.25, ANET belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- ANET has a Quick Ratio of 2.79. This indicates that ANET is financially healthy and has no problem in meeting 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
- ANET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.75%, 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 30.17% on average per year.
- The Revenue has grown by 27.75% in the past year. This is a very strong growth!
- ANET shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.77% yearly.
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
- ANET is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.87% yearly.
- Based on estimates for the next years, ANET will show a very strong growth in Revenue. The Revenue will grow by 21.06% on average per year.
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
- 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.
- 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 46.70, 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.
- Compared to an average S&P500 Price/Earnings ratio of 27.47, ANET is valued quite expensively.
- With a Price/Forward Earnings ratio of 38.05, 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 (24.26), we can say ANET is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.7 | ||
| Fwd PE | 38.05 |
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 | 40.41 | ||
| EV/EBITDA | 39.74 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 21.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.63
PEG (5Y)1.55
EPS Next 2Y22.53%
EPS Next 3Y21.67%
5. Dividend
5.1 Amount
- No dividends for ANET!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
129.83
-0.76 (-0.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)11-04 2025-11-04/amc
Earnings (Next)02-16 2026-02-16/amc
Inst Owners70.22%
Inst Owner Change0.04%
Ins Owners3.31%
Ins Owner Change0.23%
Market Cap163.49B
Revenue(TTM)8.45B
Net Income(TTM)3.36B
Analysts81.88
Price Target165.3 (27.32%)
Short Float %1.45%
Short Ratio2
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)5.78%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)4.26%
EPS NY rev (1m)0.04%
EPS NY rev (3m)2.17%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)2.61%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.7 | ||
| Fwd PE | 38.05 | ||
| P/S | 19.35 | ||
| P/FCF | 40.41 | ||
| P/OCF | 39.48 | ||
| P/B | 13.73 | ||
| P/tB | 14.23 | ||
| EV/EBITDA | 39.74 |
EPS(TTM)2.78
EY2.14%
EPS(NY)3.41
Fwd EY2.63%
FCF(TTM)3.21
FCFY2.47%
OCF(TTM)3.29
OCFY2.53%
SpS6.71
BVpS9.46
TBVpS9.12
PEG (NY)1.63
PEG (5Y)1.55
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 | 18.6 |
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 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 28.73% in the next year.