ARISTA NETWORKS INC (ANET) Fundamental Analysis & Valuation

NYSE:ANET • US0404132054

Current stock price

135.01 USD
+4.21 (+3.22%)
At close:
134.25 USD
-0.76 (-0.56%)
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

  • 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.
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

  • Looking at the Return On Assets, with a value of 18.05%, ANET belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
  • ANET has a better Return On Equity (28.39%) than 91.67% of its industry peers.
  • ANET's Return On Invested Capital of 23.29% is amongst the best of the industry. ANET outperforms 95.83% of its industry peers.
  • ANET had an Average Return On Invested Capital over the past 3 years of 23.09%. This is significantly above the industry average of 10.22%.
  • The 3 year average ROIC (23.09%) for ANET is below the current ROIC(23.29%), indicating increased profibility in the last year.
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

  • ANET has a Profit Margin of 38.99%. This is amongst the best in the industry. ANET outperforms 97.92% of its industry peers.
  • In the last couple of years the Profit Margin of ANET has grown nicely.
  • The Operating Margin of ANET (42.82%) is better than 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.
  • ANET's Gross Margin has been stable in the last couple of years.
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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • Compared to 1 year ago, ANET has less shares outstanding
  • 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

  • An Altman-Z score of 16.41 indicates that ANET is not in any danger for bankruptcy at the moment.
  • ANET has a better Altman-Z score (16.41) than 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 16.41
ROIC/WACC2.58
WACC9.03%
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.
  • The Quick ratio of ANET (2.63) is better than 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

More info and screens

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

9

3. ANET Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 29.81% over the past year.
  • ANET shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.17% yearly.
  • ANET shows a strong growth in Revenue. In the last year, 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

  • Based on estimates for the next years, ANET will show a very strong growth in Earnings Per Share. The EPS will grow by 21.06% on average per year.
  • The Revenue is expected to grow by 20.25% on average over the next years. This is a very strong growth
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.
  • Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of 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

More info and screens

Find the best growth stocksShow best growing peers

3

4. ANET Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 45.77, which means the current valuation is very expensive for ANET.
  • ANET's Price/Earnings is on the same level as the industry average.
  • The average S&P500 Price/Earnings ratio is at 25.61. ANET is valued rather expensively when compared to this.
  • Based on the Price/Forward Earnings ratio of 37.66, the valuation of ANET can be described as expensive.
  • ANET's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 22.79. ANET is valued rather expensively when compared to this.
Industry RankSector Rank
PE 45.77
Fwd PE 37.66
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

  • 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 RankSector Rank
P/FCF 39.89
EV/EBITDA 36.87
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 an expensive valuation of the company.
  • The excellent profitability rating of ANET may justify a higher PE ratio.
  • ANET's earnings are expected to grow with 21.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.13
PEG (5Y)1.17
EPS Next 2Y21%
EPS Next 3Y21.68%

More info and screens

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

0

5. ANET Dividend Analysis

5.1 Amount

  • ANET does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

ANET Fundamentals: All Metrics, Ratios and Statistics

ARISTA NETWORKS INC

NYSE:ANET (3/25/2026, 8:10:33 PM)

After market: 134.25 -0.76 (-0.56%)

135.01

+4.21 (+3.22%)

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 Cap169.65B
Revenue(TTM)9.01B
Net Income(TTM)3.51B
Analysts82.5
Price Target176.22 (30.52%)
Short Float %1.45%
Short Ratio1.82
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)6.07%
PT rev (3m)6.07%
EPS NQ rev (1m)6.61%
EPS NQ rev (3m)6.53%
EPS NY rev (1m)5.07%
EPS NY rev (3m)5.16%
Revenue NQ rev (1m)6.65%
Revenue NQ rev (3m)6.61%
Revenue NY rev (1m)4.97%
Revenue NY rev (3m)5.32%
Valuation
Industry RankSector Rank
PE 45.77
Fwd PE 37.66
P/S 18.84
P/FCF 39.89
P/OCF 38.8
P/B 13.71
P/tB 14.19
EV/EBITDA 36.87
EPS(TTM)2.95
EY2.19%
EPS(NY)3.58
Fwd EY2.66%
FCF(TTM)3.38
FCFY2.51%
OCF(TTM)3.48
OCFY2.58%
SpS7.17
BVpS9.84
TBVpS9.51
PEG (NY)2.13
PEG (5Y)1.17
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 16.41
F-Score5
WACC9.03%
ROIC/WACC2.58
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.


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 21.51% in the next year.