ARISTA NETWORKS INC (ANET) Fundamental Analysis & Valuation
NYSE:ANET • US0404132054
Current stock price
164.23 USD
+3.22 (+2%)
At close:
164.5 USD
+0.27 (+0.16%)
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.
- 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
- ANET has a Return On Assets of 18.05%. This is amongst the best in the industry. ANET outperforms 93.62% of its industry peers.
- With an excellent Return On Equity value of 28.39%, ANET belongs to the best of the industry, outperforming 91.49% of the companies in the same industry.
- ANET has a better Return On Invested Capital (23.29%) than 95.74% 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 10.41%.
- The 3 year average ROIC (23.09%) for ANET is below the current ROIC(23.29%), indicating increased profibility in the last year.
| 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
- Looking at the Profit Margin, with a value of 38.99%, ANET belongs to the top of the industry, outperforming 97.87% of the companies in the same industry.
- In the last couple of years the Profit Margin of ANET has grown nicely.
- ANET has a better Operating Margin (42.82%) than 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 (64.06%) is better than 85.11% 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
- 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 less shares outstanding
- Compared to 5 years ago, ANET has more shares outstanding
- 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 19.63. This indicates that ANET is financially healthy and has little risk of bankruptcy at the moment.
- ANET's Altman-Z score of 19.63 is amongst the best of the industry. ANET outperforms 93.62% 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 | 19.63 |
ROIC/WACC2.41
WACC9.65%
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 78.72% 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.
- Looking at the Quick ratio, with a value of 2.63, ANET is in the better half of the industry, outperforming 78.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.05 | ||
| Quick Ratio | 2.63 |
3. ANET Growth Analysis
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.
- Looking at the last year, ANET shows a very strong growth in Revenue. The Revenue has grown by 28.60%.
- Measured over the past years, ANET shows a very strong growth in Revenue. The Revenue has been growing by 31.19% on average per year.
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
- The Earnings Per Share is expected to grow by 21.06% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 20.25% on average over the next years. This is a very strong growth
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
- The Price/Earnings ratio is 55.67, which means the current valuation is very expensive for ANET.
- ANET's Price/Earnings is on the same level as the industry average.
- ANET's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.87.
- The Price/Forward Earnings ratio is 45.71, which means the current valuation is very expensive for ANET.
- ANET's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 38.51. ANET is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.67 | ||
| Fwd PE | 45.71 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as ANET.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ANET.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.53 | ||
| EV/EBITDA | 46.53 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ANET does not grow enough to justify the current Price/Earnings ratio.
- 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)2.56
PEG (5Y)1.42
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
164.23
+3.22 (+2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-12 2026-02-12/amc
Earnings (Next)05-05 2026-05-05/amc
Inst Owners71.57%
Inst Owner Change0.06%
Ins Owners3.33%
Ins Owner Change1.61%
Market Cap206.36B
Revenue(TTM)9.01B
Net Income(TTM)3.51B
Analysts82.42
Price Target175.53 (6.88%)
Short Float %1.64%
Short Ratio2.21
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)-0.39%
PT rev (3m)6.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.85%
EPS NY rev (1m)0.22%
EPS NY rev (3m)5.3%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)6.61%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)5.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.67 | ||
| Fwd PE | 45.71 | ||
| P/S | 22.91 | ||
| P/FCF | 48.53 | ||
| P/OCF | 47.2 | ||
| P/B | 16.68 | ||
| P/tB | 17.26 | ||
| EV/EBITDA | 46.53 |
EPS(TTM)2.95
EY1.8%
EPS(NY)3.59
Fwd EY2.19%
FCF(TTM)3.38
FCFY2.06%
OCF(TTM)3.48
OCFY2.12%
SpS7.17
BVpS9.84
TBVpS9.51
PEG (NY)2.56
PEG (5Y)1.42
Graham Number25.5628 (-84.43%)
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 | 19.63 |
F-Score5
WACC9.65%
ROIC/WACC2.41
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 55.67 and the Price/Book (PB) ratio is 16.68.
What is the financial health of ARISTA NETWORKS INC (ANET) stock?
The financial health rating of ARISTA NETWORKS INC (ANET) is 9 / 10.