ARISTA NETWORKS INC (ANET)
US0404131064 - Common Stock
Taking everything into account, ANET scores 7 out of 10 in our fundamental rating. ANET was compared to 51 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 growing strongly while it is still valued neutral. This is a good combination! This makes ANET very considerable 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.
ANET had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 20.74%, ANET belongs to the top of the industry, outperforming 98.04% of the companies in the same industry.
ANET has a Return On Equity of 28.82%. This is amongst the best in the industry. ANET outperforms 96.08% of its industry peers.
ANET's Return On Invested Capital of 22.96% is amongst the best of the industry. ANET outperforms 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 11.02%.
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 has a better Profit Margin (40.29%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of ANET has grown nicely.
The Operating Margin of ANET (42.11%) is better than 100.00% of its industry peers.
ANET's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 64.41%, ANET belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
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.
ANET has more shares outstanding than it did 1 year ago.
ANET has more shares outstanding than it did 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 26.45 indicates that ANET is not in any danger for bankruptcy at the moment.
ANET has a better Altman-Z score (26.45) than 100.00% 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 | 26.45 |
ROIC/WACC2.34
WACC9.8%
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 Current ratio of 4.47. This is amongst the best in the industry. ANET outperforms 84.31% of its industry peers.
A Quick Ratio of 3.69 indicates that ANET has no problem at all paying its short term obligations.
The Quick ratio of ANET (3.69) is better than 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.47 | ||
| Quick Ratio | 3.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.12% 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 28.34% on average per year.
Looking at the last year, ANET shows a quite strong growth in Revenue. The Revenue has grown by 18.19% in the last year.
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 decrease in Earnings Per Share. The EPS will decrease by -9.96% on average per year.
The Revenue is expected to grow by 17.90% on average over the next years. This is quite good.
EPS Next Y-67.79%
EPS Next 2Y-39.87%
EPS Next 3Y-24.92%
EPS Next 5Y-9.96%
Revenue Next Year19.04%
Revenue Next 2Y18.8%
Revenue Next 3Y18.36%
Revenue Next 5Y17.9%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 13.16, the valuation of ANET can be described as correct.
Based on the Price/Earnings ratio, ANET is valued cheaply inside the industry as 88.24% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.73, ANET is valued rather cheaply.
The Price/Forward Earnings ratio is 45.09, which means the current valuation is very expensive for ANET.
ANET's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, ANET is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.16 | ||
| Fwd PE | 45.09 |
4.2 Price Multiples
ANET's Enterprise Value to EBITDA is on the same level as the industry average.
ANET's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.72 | ||
| EV/EBITDA | 45.83 |
4.3 Compensation for Growth
The excellent profitability rating of ANET may justify a higher PE ratio.
A cheap valuation may be justified as ANET's earnings are expected to decrease with -24.92% in the coming years.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y-39.87%
EPS Next 3Y-24.92%
5. Dividend
5.1 Amount
ANET does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ARISTA NETWORKS INC
NYSE:ANET (12/20/2024, 8:04:00 PM)
After market: 113.41 +0.6 (+0.53%)112.81
+3.74 (+3.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners70.76%
Inst Owner Change-0.22%
Ins Owners3.55%
Ins Owner Change-0.21%
Market Cap142.11B
Analysts81.33
Price TargetN/A
Short Float %N/A
Short Ratio0.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)9.34%
Min EPS beat(2)5.76%
Max EPS beat(2)12.91%
EPS beat(4)4
Avg EPS beat(4)12.62%
Min EPS beat(4)5.76%
Max EPS beat(4)19.75%
EPS beat(8)8
Avg EPS beat(8)11.26%
EPS beat(12)12
Avg EPS beat(12)11.27%
EPS beat(16)16
Avg EPS beat(16)9.47%
Revenue beat(2)2
Avg Revenue beat(2)1.09%
Min Revenue beat(2)0.32%
Max Revenue beat(2)1.85%
Revenue beat(4)2
Avg Revenue beat(4)0.05%
Min Revenue beat(4)-1.44%
Max Revenue beat(4)1.85%
Revenue beat(8)6
Avg Revenue beat(8)1.19%
Revenue beat(12)10
Avg Revenue beat(12)2.27%
Revenue beat(16)13
Avg Revenue beat(16)1.9%
PT rev (1m)13.49%
PT rev (3m)18.95%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)11.41%
EPS NY rev (1m)-73.88%
EPS NY rev (3m)-73.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.04%
Revenue NY rev (1m)1.75%
Revenue NY rev (3m)2.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.16 | ||
| Fwd PE | 45.09 | ||
| P/S | 21.49 | ||
| P/FCF | 44.72 | ||
| P/OCF | 44.36 | ||
| P/B | 15.37 | ||
| P/tB | 15.95 | ||
| EV/EBITDA | 45.83 |
EPS(TTM)8.57
EY7.6%
EPS(NY)2.5
Fwd EY2.22%
FCF(TTM)2.52
FCFY2.24%
OCF(TTM)2.54
OCFY2.25%
SpS5.25
BVpS7.34
TBVpS7.07
PEG (NY)N/A
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.74% | ||
| ROE | 28.82% | ||
| ROCE | 26.75% | ||
| ROIC | 22.96% | ||
| ROICexc | 80.11% | ||
| ROICexgc | 90.32% | ||
| OM | 42.11% | ||
| PM (TTM) | 40.29% | ||
| GM | 64.41% | ||
| FCFM | 48.06% |
ROA(3y)18.54%
ROA(5y)17.91%
ROE(3y)25.91%
ROE(5y)25.31%
ROIC(3y)21.73%
ROIC(5y)19.92%
ROICexc(3y)60.85%
ROICexc(5y)63.47%
ROICexgc(3y)73.6%
ROICexgc(5y)77.57%
ROCE(3y)25.31%
ROCE(5y)23.2%
ROICexcg growth 3Y-1.75%
ROICexcg growth 5Y-12.71%
ROICexc growth 3Y5.35%
ROICexc growth 5Y-10.62%
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%
F-Score7
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 41.92% | ||
| Cap/Sales | 0.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 112.57% | ||
| Profit Quality | 119.27% | ||
| Current Ratio | 4.47 | ||
| Quick Ratio | 3.69 | ||
| Altman-Z | 26.45 |
F-Score7
WACC9.8%
ROIC/WACC2.34
Cap/Depr(3y)82.84%
Cap/Depr(5y)66.24%
Cap/Sales(3y)1.27%
Cap/Sales(5y)1.02%
Profit Quality(3y)80.68%
Profit Quality(5y)93.14%
High Growth Momentum
Growth
EPS 1Y (TTM)37.12%
EPS 3Y45.21%
EPS 5Y28.34%
EPS Q2Q%31.15%
EPS Next Y-67.79%
EPS Next 2Y-39.87%
EPS Next 3Y-24.92%
EPS Next 5Y-9.96%
Revenue 1Y (TTM)18.19%
Revenue growth 3Y36.24%
Revenue growth 5Y22.19%
Sales Q2Q%19.97%
Revenue Next Year19.04%
Revenue Next 2Y18.8%
Revenue Next 3Y18.36%
Revenue Next 5Y17.9%
EBIT growth 1Y33.49%
EBIT growth 3Y47.76%
EBIT growth 5Y27.18%
EBIT Next Year31.56%
EBIT Next 3Y21.18%
EBIT Next 5Y25.18%
FCF growth 1Y401.2%
FCF growth 3Y40.58%
FCF growth 5Y33.07%
OCF growth 1Y372.82%
OCF growth 3Y40.39%
OCF growth 5Y32.23%