ARISTA NETWORKS INC (ANET) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ANET - US0404132054 - Common Stock
130.59 USD
+5.5 (+4.4%)
130.85 USD
+0.26 (+0.2%)
Overall ANET gets a fundamental rating of 8 out of 10. We evaluated ANET against 48 industry peers in the Communications Equipment industry. ANET gets an excellent profitability rating and is at the same time showing great financial health properties. ANET is valued quite expensive, but it does show an excellent growth. These ratings would make ANET suitable 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.
- 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
- 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.
- With an excellent Return On Equity value of 28.19%, ANET belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 23.49%, ANET belongs to the top of the industry, outperforming 97.92% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years 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.
- ANET's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 42.88%, ANET belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- 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.
- 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
- ANET has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for ANET has been increased compared to 1 year ago.
- ANET has more shares outstanding than it did 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
- An Altman-Z score of 17.93 indicates that ANET is not in any danger for bankruptcy at the moment.
- ANET has a Altman-Z score of 17.93. This is amongst the best in the industry. ANET outperforms 93.75% 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 | 17.93 |
ROIC/WACC2.42
WACC9.7%
2.3 Liquidity
- A Current Ratio of 3.25 indicates that ANET has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 3.25, ANET belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- ANET has a Quick Ratio of 2.79. This indicates that ANET is financially healthy and has no problem in meeting its short term obligations.
- The Quick ratio of ANET (2.79) is better than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.25 | ||
| Quick Ratio | 2.79 |
3. Growth
3.1 Past
- ANET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.75%, 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 30.17% on average per year.
- The Revenue has grown by 27.75% in the past year. This is a very strong growth!
- The Revenue has been growing by 23.77% on average over the past years. This is a very strong growth!
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.
- The Revenue is expected to grow by 21.06% on average over the next years. This is a very strong growth
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.
- 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 46.97 indicates a quite expensive valuation of ANET.
- ANET's Price/Earnings ratio is a bit cheaper when compared to the industry. ANET is cheaper than 60.42% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.54, ANET is valued quite expensively.
- ANET is valuated quite expensively with a Price/Forward Earnings ratio of 38.28.
- ANET's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of ANET to the average of the S&P500 Index (24.31), we can say ANET is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.97 | ||
| Fwd PE | 38.28 |
4.2 Price Multiples
- ANET's Enterprise Value to EBITDA is on the same level as the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ANET.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.65 | ||
| EV/EBITDA | 37.86 |
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)1.63
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% |
130.59
+5.5 (+4.4%)
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 Cap164.45B
Revenue(TTM)8.45B
Net Income(TTM)3.36B
Analysts81.88
Price Target165.3 (26.58%)
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 | 46.97 | ||
| Fwd PE | 38.28 | ||
| P/S | 19.47 | ||
| P/FCF | 40.65 | ||
| P/OCF | 39.71 | ||
| P/B | 13.81 | ||
| P/tB | 14.31 | ||
| EV/EBITDA | 37.86 |
EPS(TTM)2.78
EY2.13%
EPS(NY)3.41
Fwd EY2.61%
FCF(TTM)3.21
FCFY2.46%
OCF(TTM)3.29
OCFY2.52%
SpS6.71
BVpS9.46
TBVpS9.12
PEG (NY)1.63
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 | 17.93 |
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.