ARISTA NETWORKS INC (ANET) Stock Fundamental Analysis

NYSE:ANET • US0404132054

135.12 USD
-5.54 (-3.94%)
At close: Feb 12, 2026
151.95 USD
+16.83 (+12.46%)
After Hours: 2/12/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

8

We assign a fundamental rating of 8 out of 10 to ANET. ANET was compared to 48 industry peers in the Communications Equipment industry. ANET gets an excellent profitability rating and is at the same time showing great financial health properties. ANET shows excellent growth, but is valued quite expensive already. These ratings could make ANET a good candidate for growth and quality investing.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • In the past year ANET was profitable.
  • In the past year ANET had a positive cash flow from operations.
  • In the past 5 years ANET has always been profitable.
  • In the past 5 years ANET always reported a positive cash flow from operatings.
ANET Yearly Net Income VS EBIT VS OCF VS FCFANET Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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 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.
  • Measured over the past 3 years, the Average Return On Invested Capital for ANET is significantly above the industry average of 11.29%.
Industry RankSector 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%
ANET Yearly ROA, ROE, ROICANET Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

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.
  • ANET's Operating Margin of 42.88% is amongst the best of the industry. ANET outperforms 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 RankSector 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%
ANET Yearly Profit, Operating, Gross MarginsANET Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

9

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.
  • ANET has more shares outstanding than it did 1 year ago.
  • 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.
ANET Yearly Shares OutstandingANET Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
ANET Yearly Total Debt VS Total AssetsANET Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

2.2 Solvency

  • An Altman-Z score of 19.84 indicates that ANET is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of ANET (19.84) is better than 91.67% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 19.84
ROIC/WACC2.49
WACC9.43%
ANET Yearly LT Debt VS Equity VS FCFANET Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

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.
  • The Current ratio of ANET (3.25) is better than 83.33% of its industry peers.
  • 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.
  • 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 RankSector Rank
Current Ratio 3.25
Quick Ratio 2.79
ANET Yearly Current Assets VS Current LiabilitesANET Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

9

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.
  • The Earnings Per Share has been growing by 30.17% on average over the past years. This is a very strong growth
  • Looking at the last year, ANET shows a very strong growth in Revenue. The Revenue has grown by 27.75%.
  • 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
  • The Revenue is expected to grow by 21.06% on average over the next years. This is a very strong growth
EPS Next Y28.73%
EPS Next 2Y22.53%
EPS Next 3Y21.67%
EPS Next 5Y21.87%
Revenue Next Year27.48%
Revenue Next 2Y24.63%
Revenue Next 3Y23%
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
ANET Yearly Revenue VS EstimatesANET Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B
ANET Yearly EPS VS EstimatesANET Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6

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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • ANET is valuated quite expensively with a Price/Earnings ratio of 48.60.
  • ANET's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 27.67, ANET is valued quite expensively.
  • A Price/Forward Earnings ratio of 39.60 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 27.69, ANET is valued a bit more expensive.
Industry RankSector Rank
PE 48.6
Fwd PE 39.6
ANET Price Earnings VS Forward Price EarningsANET Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • ANET's Enterprise Value to EBITDA is on the same level as the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ANET is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 42.06
EV/EBITDA 43.18
ANET Per share dataANET EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

  • ANET's 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)1.69
PEG (5Y)1.61
EPS Next 2Y22.53%
EPS Next 3Y21.67%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • ANET does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

ARISTA NETWORKS INC

NYSE:ANET (2/12/2026, 8:04:00 PM)

After market: 151.95 +16.83 (+12.46%)

135.12

-5.54 (-3.94%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)11-04
Earnings (Next)02-12
Inst Owners70.22%
Inst Owner Change-2.02%
Ins Owners3.31%
Ins Owner Change0.24%
Market Cap170.16B
Revenue(TTM)8.45B
Net Income(TTM)3.36B
Analysts81.88
Price Target166.13 (22.95%)
Short Float %1.36%
Short Ratio1.91
Dividend
Industry RankSector 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 RankSector Rank
PE 48.6
Fwd PE 39.6
P/S 20.14
P/FCF 42.06
P/OCF 41.09
P/B 14.29
P/tB 14.81
EV/EBITDA 43.18
EPS(TTM)2.78
EY2.06%
EPS(NY)3.41
Fwd EY2.53%
FCF(TTM)3.21
FCFY2.38%
OCF(TTM)3.29
OCFY2.43%
SpS6.71
BVpS9.46
TBVpS9.12
PEG (NY)1.69
PEG (5Y)1.61
Graham Number24.32
Profitability
Industry RankSector 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 RankSector 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 19.84
F-Score5
WACC9.43%
ROIC/WACC2.49
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 Year27.48%
Revenue Next 2Y24.63%
Revenue Next 3Y23%
Revenue Next 5Y21.06%
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 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.