ARISTA NETWORKS INC (ANET) Fundamental Analysis & Valuation

NYSE:ANET • US0404132054

Current stock price

122.78 USD
+6.65 (+5.73%)
At close:
124 USD
+1.22 (+0.99%)
After Hours:

This ANET fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. ANET Profitability Analysis

1.1 Basic Checks

  • In the past year ANET was profitable.
  • ANET had a positive operating cash flow in the past year.
  • Each year in the past 5 years ANET has been profitable.
  • In the past 5 years ANET always reported a positive cash flow from operatings.
ANET Yearly Net Income VS EBIT VS OCF VS FCFANET Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

1.2 Ratios

  • With an excellent Return On Assets value of 18.05%, ANET belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
  • ANET's Return On Equity of 28.39% is amongst the best of the industry. ANET outperforms 91.67% of its industry peers.
  • The Return On Invested Capital of ANET (23.29%) is better than 95.83% 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 10.22%.
  • The last Return On Invested Capital (23.29%) for ANET is above the 3 year average (23.09%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 18.05%
ROE 28.39%
ROIC 23.29%
ROA(3y)19.78%
ROA(5y)18.79%
ROE(3y)28.61%
ROE(5y)26.93%
ROIC(3y)23.09%
ROIC(5y)21.99%
ANET Yearly ROA, ROE, ROICANET Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • With an excellent Profit Margin value of 38.99%, ANET belongs to the best of the industry, outperforming 97.92% of the companies in the same industry.
  • ANET's Profit Margin has improved in the last couple of years.
  • ANET has a Operating Margin of 42.82%. This is amongst the best in the industry. ANET outperforms 100.00% of its industry peers.
  • ANET's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 64.06%, ANET belongs to the top of the industry, outperforming 85.42% 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 RankSector Rank
OM 42.82%
PM (TTM) 38.99%
GM 64.06%
OM growth 3Y7.1%
OM growth 5Y7.24%
PM growth 3Y8.1%
PM growth 5Y7.33%
GM growth 3Y1.6%
GM growth 5Y0.04%
ANET Yearly Profit, Operating, Gross MarginsANET Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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9

2. ANET Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ANET is creating value.
  • ANET has less 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.
ANET Yearly Shares OutstandingANET Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
ANET Yearly Total Debt VS Total AssetsANET Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • ANET has an Altman-Z score of 14.85. This indicates that ANET is financially healthy and has little risk of bankruptcy at the moment.
  • ANET has a better Altman-Z score (14.85) 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 14.85
ROIC/WACC2.59
WACC8.99%
ANET Yearly LT Debt VS Equity VS FCFANET Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • ANET has a Current Ratio of 3.05. This indicates that ANET is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 3.05, ANET is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
  • A Quick Ratio of 2.63 indicates that ANET has no problem at all paying its short term obligations.
  • ANET's Quick ratio of 2.63 is fine compared to the rest of the industry. ANET outperforms 79.17% of its industry peers.
Industry RankSector Rank
Current Ratio 3.05
Quick Ratio 2.63
ANET Yearly Current Assets VS Current LiabilitesANET Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

9

3. ANET Growth Analysis

3.1 Past

  • ANET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.81%, which is quite impressive.
  • The Earnings Per Share has been growing by 39.17% on average over the past years. This is a very strong growth
  • Looking at the last year, ANET shows a very strong growth in Revenue. The Revenue has grown by 28.60%.
  • The Revenue has been growing by 31.19% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)29.81%
EPS 3Y37.09%
EPS 5Y39.17%
EPS Q2Q%26.15%
Revenue 1Y (TTM)28.6%
Revenue growth 3Y27.15%
Revenue growth 5Y31.19%
Sales Q2Q%28.87%

3.2 Future

  • The Earnings Per Share is expected to grow by 21.06% 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 20.25% yearly.
EPS Next Y21.51%
EPS Next 2Y21%
EPS Next 3Y21.68%
EPS Next 5Y21.06%
Revenue Next Year27.91%
Revenue Next 2Y24.61%
Revenue Next 3Y23.89%
Revenue Next 5Y20.25%

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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
ANET Yearly Revenue VS EstimatesANET Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B
ANET Yearly EPS VS EstimatesANET Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6

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3

4. ANET Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 41.62, the valuation of ANET can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of ANET is on the same level as its industry peers.
  • The average S&P500 Price/Earnings ratio is at 25.35. ANET is valued rather expensively when compared to this.
  • ANET is valuated quite expensively with a Price/Forward Earnings ratio of 34.25.
  • 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 22.61, ANET is valued quite expensively.
Industry RankSector Rank
PE 41.62
Fwd PE 34.25
ANET Price Earnings VS Forward Price EarningsANET Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as ANET.
  • 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 RankSector Rank
P/FCF 36.28
EV/EBITDA 32.17
ANET Per share dataANET EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

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.
  • A more expensive valuation may be justified as ANET's earnings are expected to grow with 21.68% in the coming years.
PEG (NY)1.93
PEG (5Y)1.06
EPS Next 2Y21%
EPS Next 3Y21.68%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ANET Dividend Analysis

5.1 Amount

  • No dividends for ANET!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

ANET Fundamentals: All Metrics, Ratios and Statistics

ARISTA NETWORKS INC

NYSE:ANET (3/31/2026, 8:19:29 PM)

After market: 124 +1.22 (+0.99%)

122.78

+6.65 (+5.73%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-12
Earnings (Next)05-04
Inst Owners71.32%
Inst Owner Change0.16%
Ins Owners3.33%
Ins Owner Change1.61%
Market Cap154.28B
Revenue(TTM)9.01B
Net Income(TTM)3.51B
Analysts82.5
Price Target176.09 (43.42%)
Short Float %1.49%
Short Ratio1.92
Dividend
Industry RankSector 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)4.61%
Min EPS beat(2)2.99%
Max EPS beat(2)6.23%
EPS beat(4)4
Avg EPS beat(4)6.79%
Min EPS beat(4)2.99%
Max EPS beat(4)10.22%
EPS beat(8)8
Avg EPS beat(8)8.75%
EPS beat(12)12
Avg EPS beat(12)9.61%
EPS beat(16)16
Avg EPS beat(16)10.29%
Revenue beat(2)2
Avg Revenue beat(2)1.41%
Min Revenue beat(2)0.49%
Max Revenue beat(2)2.34%
Revenue beat(4)3
Avg Revenue beat(4)1.28%
Min Revenue beat(4)-0.26%
Max Revenue beat(4)2.55%
Revenue beat(8)5
Avg Revenue beat(8)0.77%
Revenue beat(12)8
Avg Revenue beat(12)0.83%
Revenue beat(16)12
Avg Revenue beat(16)1.83%
PT rev (1m)-0.07%
PT rev (3m)6.53%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)6.88%
EPS NY rev (1m)5.07%
EPS NY rev (3m)5.07%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)6.65%
Revenue NY rev (1m)1.68%
Revenue NY rev (3m)5.01%
Valuation
Industry RankSector Rank
PE 41.62
Fwd PE 34.25
P/S 17.13
P/FCF 36.28
P/OCF 35.29
P/B 12.47
P/tB 12.91
EV/EBITDA 32.17
EPS(TTM)2.95
EY2.4%
EPS(NY)3.58
Fwd EY2.92%
FCF(TTM)3.38
FCFY2.76%
OCF(TTM)3.48
OCFY2.83%
SpS7.17
BVpS9.84
TBVpS9.51
PEG (NY)1.93
PEG (5Y)1.06
Graham Number25.56
Profitability
Industry RankSector Rank
ROA 18.05%
ROE 28.39%
ROCE 27.4%
ROIC 23.29%
ROICexc 98.44%
ROICexgc 112.51%
OM 42.82%
PM (TTM) 38.99%
GM 64.06%
FCFM 47.22%
ROA(3y)19.78%
ROA(5y)18.79%
ROE(3y)28.61%
ROE(5y)26.93%
ROIC(3y)23.09%
ROIC(5y)21.99%
ROICexc(3y)81.66%
ROICexc(5y)72.48%
ROICexgc(3y)92.59%
ROICexgc(5y)84.92%
ROCE(3y)27.17%
ROCE(5y)25.87%
ROICexgc growth 3Y21.52%
ROICexgc growth 5Y8.24%
ROICexc growth 3Y23.08%
ROICexc growth 5Y12.69%
OM growth 3Y7.1%
OM growth 5Y7.24%
PM growth 3Y8.1%
PM growth 5Y7.33%
GM growth 3Y1.6%
GM growth 5Y0.04%
F-Score5
Asset Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 164.6%
Cap/Sales 1.33%
Interest Coverage 250
Cash Conversion 111.28%
Profit Quality 121.1%
Current Ratio 3.05
Quick Ratio 2.63
Altman-Z 14.85
F-Score5
WACC8.99%
ROIC/WACC2.59
Cap/Depr(3y)88.33%
Cap/Depr(5y)92.96%
Cap/Sales(3y)0.79%
Cap/Sales(5y)1.12%
Profit Quality(3y)115.27%
Profit Quality(5y)98.41%
High Growth Momentum
Growth
EPS 1Y (TTM)29.81%
EPS 3Y37.09%
EPS 5Y39.17%
EPS Q2Q%26.15%
EPS Next Y21.51%
EPS Next 2Y21%
EPS Next 3Y21.68%
EPS Next 5Y21.06%
Revenue 1Y (TTM)28.6%
Revenue growth 3Y27.15%
Revenue growth 5Y31.19%
Sales Q2Q%28.87%
Revenue Next Year27.91%
Revenue Next 2Y24.61%
Revenue Next 3Y23.89%
Revenue Next 5Y20.25%
EBIT growth 1Y30.95%
EBIT growth 3Y36.17%
EBIT growth 5Y40.69%
EBIT Next Year27.96%
EBIT Next 3Y23.95%
EBIT Next 5Y21.3%
FCF growth 1Y15.67%
FCF growth 3Y111.71%
FCF growth 5Y42.66%
OCF growth 1Y17.9%
OCF growth 3Y107.01%
OCF growth 5Y42.84%

ARISTA NETWORKS INC / ANET Fundamental Analysis 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.


How profitable is ARISTA NETWORKS INC (ANET) stock?

ARISTA NETWORKS INC (ANET) has a profitability rating of 9 / 10.


What is the valuation of ARISTA NETWORKS INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ARISTA NETWORKS INC (ANET) is 41.62 and the Price/Book (PB) ratio is 12.47.


What is the financial health of ARISTA NETWORKS INC (ANET) stock?

The financial health rating of ARISTA NETWORKS INC (ANET) is 9 / 10.