ARISTA NETWORKS INC (ANET) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ANET • US0404132054
133.175 USD
-6.21 (-4.46%)
Last: Feb 4, 2026, 12:12 PM
ANET gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 48 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. These ratings would make ANET suitable for growth and quality investing!
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.
- 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
- 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.
- The Return On Equity of ANET (28.19%) is better than 93.75% of its industry peers.
- ANET's Return On Invested Capital of 23.49% is amongst the best of the industry. ANET outperforms 97.92% 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 11.74%.
| Industry Rank | Sector 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%
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.
- ANET's Profit Margin has improved in the last couple of years.
- ANET's Operating Margin of 42.88% 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 better Gross Margin (64.34%) than 85.42% of its industry peers.
- ANET's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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.
- 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 19.69. This indicates that ANET is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of ANET (19.69) is better than 91.67% 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 | 19.69 |
ROIC/WACC2.38
WACC9.89%
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.
- ANET has a Current ratio of 3.25. This is amongst the best in the industry. ANET outperforms 83.33% of its industry peers.
- A Quick Ratio of 2.79 indicates that ANET has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 2.79, ANET belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.25 | ||
| Quick Ratio | 2.79 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 29.75% 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 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
- ANET is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.87% yearly.
- ANET is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.06% yearly.
EPS Next Y28.73%
EPS Next 2Y22.53%
EPS Next 3Y21.67%
EPS Next 5Y21.87%
Revenue Next Year27.41%
Revenue Next 2Y24.57%
Revenue Next 3Y22.94%
Revenue Next 5Y21.06%
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
- A Price/Earnings ratio of 47.90 indicates a quite expensive valuation of ANET.
- Compared to the rest of the industry, the Price/Earnings ratio of ANET is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 28.18, ANET is valued quite expensively.
- With a Price/Forward Earnings ratio of 39.03, ANET can be considered very expensive at the moment.
- ANET's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.51. ANET is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.9 | ||
| Fwd PE | 39.03 |
4.2 Price Multiples
- ANET's Enterprise Value to EBITDA ratio is in line with the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ANET.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.45 | ||
| EV/EBITDA | 42.75 |
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)1.67
PEG (5Y)1.59
EPS Next 2Y22.53%
EPS Next 3Y21.67%
5. Dividend
5.1 Amount
- No dividends for ANET!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:ANET (2/4/2026, 12:12:04 PM)
133.175
-6.21 (-4.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)11-04 2025-11-04/amc
Earnings (Next)02-12 2026-02-12/amc
Inst Owners70.22%
Inst Owner Change-2.23%
Ins Owners3.31%
Ins Owner Change0.24%
Market Cap167.71B
Revenue(TTM)8.45B
Net Income(TTM)3.36B
Analysts81.88
Price Target165.98 (24.63%)
Short Float %1.36%
Short Ratio1.91
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)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)0.41%
PT rev (3m)1.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4%
EPS NY rev (1m)0%
EPS NY rev (3m)2.1%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)2.49%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.9 | ||
| Fwd PE | 39.03 | ||
| P/S | 19.85 | ||
| P/FCF | 41.45 | ||
| P/OCF | 40.5 | ||
| P/B | 14.08 | ||
| P/tB | 14.59 | ||
| EV/EBITDA | 42.75 |
EPS(TTM)2.78
EY2.09%
EPS(NY)3.41
Fwd EY2.56%
FCF(TTM)3.21
FCFY2.41%
OCF(TTM)3.29
OCFY2.47%
SpS6.71
BVpS9.46
TBVpS9.12
PEG (NY)1.67
PEG (5Y)1.59
Graham Number24.32
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 19.69 |
F-Score5
WACC9.89%
ROIC/WACC2.38
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 Year27.41%
Revenue Next 2Y24.57%
Revenue Next 3Y22.94%
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.