ARISTA NETWORKS INC (ANET) Stock Fundamental Analysis
USA - NYSE:ANET - US0404132054 - Common Stock
149.61 USD
+2.95 (+2.01%)
149.55 USD
-0.06 (-0.04%)
Overall ANET gets a fundamental rating of 7 out of 10. We evaluated ANET against 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 expensive, but it does show an excellent growth. With these ratings, ANET could be worth investigating further 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.
Each year in the past 5 years ANET had a positive operating cash flow.
1.2 Ratios
ANET's Return On Assets of 19.67% is amongst the best of the industry. ANET outperforms 97.92% of its industry peers.
With an excellent Return On Equity value of 29.83%, ANET belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
ANET has a better Return On Invested Capital (23.84%) 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 13.71%.
The 3 year average ROIC (23.71%) for ANET is below the current ROIC(23.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.67% | ||
| ROE | 29.83% | ||
| ROIC | 23.84% |
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
The Profit Margin of ANET (40.89%) is better than 100.00% of its industry peers.
ANET's Profit Margin has improved in the last couple of years.
ANET has a better Operating Margin (43.14%) than 100.00% of its industry peers.
ANET's Operating Margin has improved in the last couple of years.
ANET's Gross Margin of 64.24% is amongst the best of the industry. ANET outperforms 87.50% of its industry peers.
ANET's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.14% | ||
| PM (TTM) | 40.89% | ||
| GM | 64.24% |
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.
The number of shares outstanding for ANET has been increased compared to 1 year ago.
The number of shares outstanding for ANET has been increased compared to 5 years ago.
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
ANET has an Altman-Z score of 22.58. This indicates that ANET is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 22.58, ANET belongs to the top of the industry, outperforming 95.83% of the companies in the same industry.
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 | 22.58 |
ROIC/WACC2.39
WACC9.97%
2.3 Liquidity
ANET has a Current Ratio of 3.33. This indicates that ANET is financially healthy and has no problem in meeting its short term obligations.
ANET's Current ratio of 3.33 is amongst the best of the industry. ANET outperforms 81.25% of its industry peers.
ANET has a Quick Ratio of 2.82. This indicates that ANET is financially healthy and has no problem in meeting its short term obligations.
ANET has a Quick ratio of 2.82. This is in the better half of the industry: ANET outperforms 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.50% over the past year.
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.
ANET shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.97%.
ANET shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.77% yearly.
EPS 1Y (TTM)31.5%
EPS 3Y46.94%
EPS 5Y30.17%
EPS Q2Q%39.05%
Revenue 1Y (TTM)25.97%
Revenue growth 3Y33.43%
Revenue growth 5Y23.77%
Sales Q2Q%30.43%
3.2 Future
The Earnings Per Share is expected to grow by 19.55% on average over the next years. This is quite good.
The Revenue is expected to grow by 19.68% on average over the next years. This is quite good.
EPS Next Y25.4%
EPS Next 2Y20.53%
EPS Next 3Y19.9%
EPS Next 5Y19.55%
Revenue Next Year25.58%
Revenue Next 2Y22.33%
Revenue Next 3Y21.09%
Revenue Next 5Y19.68%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 56.89, which means the current valuation is very expensive for ANET.
The rest of the industry has a similar Price/Earnings ratio as ANET.
The average S&P500 Price/Earnings ratio is at 27.38. ANET is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 45.32 indicates a quite expensive valuation of ANET.
ANET's Price/Forward Earnings is on the same level as the industry average.
ANET's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.89 | ||
| Fwd PE | 45.32 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.3 | ||
| EV/EBITDA | 49.49 |
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 19.90% in the coming years.
PEG (NY)2.24
PEG (5Y)1.89
EPS Next 2Y20.53%
EPS Next 3Y19.9%
5. Dividend
5.1 Amount
ANET does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
149.61
+2.95 (+2.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners69.86%
Inst Owner Change-1.34%
Ins Owners3.35%
Ins Owner Change-0.69%
Market Cap188.04B
Analysts81.82
Price Target149.37 (-0.16%)
Short Float %1.22%
Short Ratio1.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)8.98%
Min EPS beat(2)7.74%
Max EPS beat(2)10.22%
EPS beat(4)4
Avg EPS beat(4)10.73%
Min EPS beat(4)7.74%
Max EPS beat(4)12.91%
EPS beat(8)8
Avg EPS beat(8)11.75%
EPS beat(12)12
Avg EPS beat(12)11.47%
EPS beat(16)16
Avg EPS beat(16)10.73%
Revenue beat(2)1
Avg Revenue beat(2)1.15%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)2.55%
Revenue beat(4)2
Avg Revenue beat(4)0.89%
Min Revenue beat(4)-0.6%
Max Revenue beat(4)2.55%
Revenue beat(8)4
Avg Revenue beat(8)0.24%
Revenue beat(12)8
Avg Revenue beat(12)1.68%
Revenue beat(16)11
Avg Revenue beat(16)1.77%
PT rev (1m)32.44%
PT rev (3m)39.48%
EPS NQ rev (1m)1.74%
EPS NQ rev (3m)14.66%
EPS NY rev (1m)0%
EPS NY rev (3m)9.27%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)7.74%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)4.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.89 | ||
| Fwd PE | 45.32 | ||
| P/S | 23.65 | ||
| P/FCF | 47.3 | ||
| P/OCF | 46.46 | ||
| P/B | 17.25 | ||
| P/tB | 17.93 | ||
| EV/EBITDA | 49.49 |
EPS(TTM)2.63
EY1.76%
EPS(NY)3.3
Fwd EY2.21%
FCF(TTM)3.16
FCFY2.11%
OCF(TTM)3.22
OCFY2.15%
SpS6.33
BVpS8.67
TBVpS8.34
PEG (NY)2.24
PEG (5Y)1.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.67% | ||
| ROE | 29.83% | ||
| ROCE | 27.48% | ||
| ROIC | 23.84% | ||
| ROICexc | 81.79% | ||
| ROICexgc | 92.37% | ||
| OM | 43.14% | ||
| PM (TTM) | 40.89% | ||
| GM | 64.24% | ||
| FCFM | 50% |
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%
ROICexcg growth 3Y3.57%
ROICexcg 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-Score6
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 124.95% | ||
| Cap/Sales | 0.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 116.05% | ||
| Profit Quality | 122.26% | ||
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.82 | ||
| Altman-Z | 22.58 |
F-Score6
WACC9.97%
ROIC/WACC2.39
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)31.5%
EPS 3Y46.94%
EPS 5Y30.17%
EPS Q2Q%39.05%
EPS Next Y25.4%
EPS Next 2Y20.53%
EPS Next 3Y19.9%
EPS Next 5Y19.55%
Revenue 1Y (TTM)25.97%
Revenue growth 3Y33.43%
Revenue growth 5Y23.77%
Sales Q2Q%30.43%
Revenue Next Year25.58%
Revenue Next 2Y22.33%
Revenue Next 3Y21.09%
Revenue Next 5Y19.68%
EBIT growth 1Y31.8%
EBIT growth 3Y47.12%
EBIT growth 5Y29.59%
EBIT Next Year20.52%
EBIT Next 3Y18.69%
EBIT Next 5Y22.49%
FCF growth 1Y320.65%
FCF growth 3Y56.94%
FCF growth 5Y31.15%
OCF growth 1Y311.66%
OCF growth 3Y53.97%
OCF growth 5Y30.95%