ARISTA NETWORKS INC (ANET) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ANET - US0404132054 - Common Stock
130.76 USD
+0.17 (+0.13%)
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 is valued quite expensively, but it does show have an excellent growth rating. These ratings could make ANET a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
- In the past year ANET was profitable.
- ANET had a positive operating cash flow in the past year.
- In the past 5 years ANET has always been profitable.
- Each year in the past 5 years ANET had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of ANET (18.60%) is better than 95.83% of its industry peers.
- ANET has a better Return On Equity (28.19%) than 93.75% of its industry peers.
- 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 12.15%.
| 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
- ANET's Profit Margin of 39.73% 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.
- The Operating Margin of ANET (42.88%) is better than 100.00% of its industry peers.
- In the last couple of years the Operating Margin of ANET has grown nicely.
- The Gross Margin of ANET (64.34%) is better than 85.42% 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 | 42.88% | ||
| 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ANET is creating value.
- The number of shares outstanding for ANET has been increased compared to 1 year ago.
- Compared to 5 years ago, ANET has more shares outstanding
- 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 18.60 indicates that ANET is not in any danger for bankruptcy at the moment.
- The Altman-Z score of ANET (18.60) is better than 93.75% 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 | 18.6 |
ROIC/WACC2.42
WACC9.7%
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 better Current ratio (3.25) than 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.
- With an excellent Quick ratio value of 2.79, ANET belongs to the best 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.
- Looking at the last year, ANET shows a very strong growth in Revenue. The Revenue has grown by 27.75%.
- ANET shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.77% yearly.
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
- 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 Year27.42%
Revenue Next 2Y24.61%
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 47.04, the valuation of ANET can be described as expensive.
- ANET's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.54. ANET is valued rather expensively when compared to this.
- Based on the Price/Forward Earnings ratio of 38.33, the valuation of ANET can be described as expensive.
- ANET's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.31, ANET is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.04 | ||
| Fwd PE | 38.33 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ANET is on the same level as its industry peers.
- ANET's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.7 | ||
| EV/EBITDA | 39.74 |
4.3 Compensation for Growth
- ANET's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ANET has an outstanding profitability rating, which 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)1.64
PEG (5Y)1.56
EPS Next 2Y22.53%
EPS Next 3Y21.67%
5. Dividend
5.1 Amount
- ANET does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:ANET (1/16/2026, 12:23:55 PM)
130.76
+0.17 (+0.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)11-04 2025-11-04/amc
Earnings (Next)02-16 2026-02-16/amc
Inst Owners70.22%
Inst Owner Change0.04%
Ins Owners3.31%
Ins Owner Change0.23%
Market Cap164.66B
Revenue(TTM)8.45B
Net Income(TTM)3.36B
Analysts81.88
Price Target165.3 (26.41%)
Short Float %1.45%
Short Ratio2
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)-0.5%
PT rev (3m)5.78%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)4.26%
EPS NY rev (1m)0.04%
EPS NY rev (3m)2.17%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)2.61%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.04 | ||
| Fwd PE | 38.33 | ||
| P/S | 19.49 | ||
| P/FCF | 40.7 | ||
| P/OCF | 39.76 | ||
| P/B | 13.83 | ||
| P/tB | 14.33 | ||
| EV/EBITDA | 39.74 |
EPS(TTM)2.78
EY2.13%
EPS(NY)3.41
Fwd EY2.61%
FCF(TTM)3.21
FCFY2.46%
OCF(TTM)3.29
OCFY2.51%
SpS6.71
BVpS9.46
TBVpS9.12
PEG (NY)1.64
PEG (5Y)1.56
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 | 18.6 |
F-Score5
WACC9.7%
ROIC/WACC2.42
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 Year27.42%
Revenue Next 2Y24.61%
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 3Y24.4%
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.