ARISTA NETWORKS INC (ANET)
US0404131064 - Common Stock
Overall ANET gets a fundamental rating of 7 out of 10. We evaluated ANET against 51 industry peers in the Communications Equipment industry. ANET has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ANET shows excellent growth, but is valued quite expensive already. 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.
ANET had a positive operating cash flow in the past year.
ANET had positive earnings in each of the past 5 years.
In the past 5 years ANET always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ANET (20.74%) is better than 98.04% of its industry peers.
ANET's Return On Equity of 28.82% is amongst the best of the industry. ANET outperforms 94.12% of its industry peers.
The Return On Invested Capital of ANET (22.96%) is better than 94.12% 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 10.16%.
The last Return On Invested Capital (22.96%) for ANET is above the 3 year average (21.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.74% | ||
| ROE | 28.82% | ||
| ROIC | 22.96% |
ROA(3y)18.54%
ROA(5y)17.91%
ROE(3y)25.91%
ROE(5y)25.31%
ROIC(3y)21.73%
ROIC(5y)19.92%
1.3 Margins
ANET's Profit Margin of 40.29% is amongst the best of 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's Operating Margin of 42.11% is amongst the best of the industry. ANET outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of ANET has grown nicely.
ANET has a Gross Margin of 64.41%. This is amongst the best in the industry. ANET outperforms 88.24% of its industry peers.
In the last couple of years the Gross Margin of ANET has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.11% | ||
| PM (TTM) | 40.29% | ||
| GM | 64.41% |
OM growth 3Y8.46%
OM growth 5Y4.09%
PM growth 3Y9.16%
PM growth 5Y18.5%
GM growth 3Y-1.05%
GM growth 5Y-0.6%
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.
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.
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 22.75 indicates that ANET is not in any danger for bankruptcy at the moment.
ANET's Altman-Z score of 22.75 is amongst the best of the industry. ANET outperforms 100.00% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 22.75 |
ROIC/WACC2.46
WACC9.35%
2.3 Liquidity
ANET has a Current Ratio of 4.47. This indicates that ANET is financially healthy and has no problem in meeting its short term obligations.
ANET has a better Current ratio (4.47) than 88.24% of its industry peers.
ANET has a Quick Ratio of 3.69. This indicates that ANET is financially healthy and has no problem in meeting its short term obligations.
ANET has a better Quick ratio (3.69) than 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.47 | ||
| Quick Ratio | 3.69 |
3. Growth
3.1 Past
ANET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.12%, 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 28.34% on average per year.
ANET shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.19%.
Measured over the past years, ANET shows a very strong growth in Revenue. The Revenue has been growing by 22.19% on average per year.
EPS 1Y (TTM)37.12%
EPS 3Y45.21%
EPS 5Y28.34%
EPS Q2Q%31.15%
Revenue 1Y (TTM)18.19%
Revenue growth 3Y36.24%
Revenue growth 5Y22.19%
Sales Q2Q%19.97%
3.2 Future
Based on estimates for the next years, ANET will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.23% on average per year.
ANET is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.26% yearly.
EPS Next Y23.32%
EPS Next 2Y18.62%
EPS Next 3Y18.2%
EPS Next 5Y18.23%
Revenue Next Year16.99%
Revenue Next 2Y17.76%
Revenue Next 3Y17.67%
Revenue Next 5Y17.26%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 47.25, which means the current valuation is very expensive for ANET.
Compared to the rest of the industry, the Price/Earnings ratio of ANET is on the same level as its industry peers.
When comparing the Price/Earnings ratio of ANET to the average of the S&P500 Index (28.65), we can say ANET is valued expensively.
With a Price/Forward Earnings ratio of 41.59, ANET can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ANET is on the same level as its industry peers.
ANET's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.25 | ||
| Fwd PE | 41.59 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ANET.
ANET's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ANET is cheaper than 60.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.03 | ||
| EV/EBITDA | 38.03 |
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 18.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.03
PEG (5Y)1.67
EPS Next 2Y18.62%
EPS Next 3Y18.2%
5. Dividend
5.1 Amount
No dividends for ANET!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ARISTA NETWORKS INC
NYSE:ANET (11/21/2024, 4:10:00 PM)
After market: 404.97 0 (0%)404.97
+23.26 (+6.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap127.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.25 | ||
| Fwd PE | 41.59 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.03
PEG (5Y)1.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.74% | ||
| ROE | 28.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 42.11% | ||
| PM (TTM) | 40.29% | ||
| GM | 64.41% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.47 | ||
| Quick Ratio | 3.69 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)37.12%
EPS 3Y45.21%
EPS 5Y
EPS Q2Q%
EPS Next Y23.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)18.19%
Revenue growth 3Y36.24%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y