ARISTA NETWORKS INC (ANET) Fundamental Analysis & Valuation
NYSE:ANET • US0404132054
132.89 USD
-6.51 (-4.67%)
At close: Mar 6, 2026
132.9 USD
+0.01 (+0.01%)
After Hours: 3/6/2026, 8:04:00 PM
This ANET fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
ANET gets a fundamental rating of 7 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 expensive, but it does show an excellent growth. This makes ANET very considerable for growth and quality investing!
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.
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 has a Return On Equity of 28.39%. This is amongst the best in the industry. ANET outperforms 91.67% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 23.29%, ANET belongs to the top of the industry, outperforming 97.92% of the companies in the same industry.
- ANET had an Average Return On Invested Capital over the past 3 years of 23.09%. This is significantly above the industry average of 10.47%.
- 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 Rank | Sector 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%
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.
- ANET has a Operating Margin of 42.82%. This is amongst the best in the industry. ANET outperforms 100.00% of its industry peers.
- In the last couple of years the Operating Margin of ANET has grown nicely.
- 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 Rank | Sector 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%
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.
- The number of shares outstanding for ANET has been reduced 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
- ANET has an Altman-Z score of 17.36. This indicates that ANET is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 17.36, ANET belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
- 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 | 17.36 |
ROIC/WACC2.42
WACC9.63%
2.3 Liquidity
- A Current Ratio of 3.05 indicates that ANET has no problem at all paying its short term obligations.
- The Current ratio of ANET (3.05) is better than 81.25% of its industry peers.
- ANET has a Quick Ratio of 2.63. This indicates that ANET is financially healthy and has no problem in meeting its short term obligations.
- The Quick ratio of ANET (2.63) is better than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.05 | ||
| Quick Ratio | 2.63 |
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%.
- Measured over the past years, ANET shows a very strong growth in Revenue. The Revenue has been growing by 31.19% on average per year.
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 19.96% on average over the next years. This is quite good.
- ANET is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.74% yearly.
EPS Next Y15.65%
EPS Next 2Y17.79%
EPS Next 3Y20.02%
EPS Next 5Y19.96%
Revenue Next Year25.79%
Revenue Next 2Y23.09%
Revenue Next 3Y22.63%
Revenue Next 5Y18.74%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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.
4. ANET Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 45.05 indicates a quite expensive valuation of ANET.
- The rest of the industry has a similar Price/Earnings ratio as ANET.
- ANET's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.29.
- The Price/Forward Earnings ratio is 38.95, which means the current valuation is very expensive for ANET.
- The rest of the industry has a similar Price/Forward Earnings ratio as ANET.
- ANET is valuated expensively when we compare the Price/Forward Earnings ratio to 24.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.05 | ||
| Fwd PE | 38.95 |
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 | 39.35 | ||
| EV/EBITDA | 39.71 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 20.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.88
PEG (5Y)1.15
EPS Next 2Y17.79%
EPS Next 3Y20.02%
5. ANET Dividend Analysis
5.1 Amount
- No dividends for ANET!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ANET Fundamentals: All Metrics, Ratios and Statistics
132.89
-6.51 (-4.67%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-12 2026-02-12/amc
Earnings (Next)05-04 2026-05-04/amc
Inst Owners70.22%
Inst Owner Change0.17%
Ins Owners3.31%
Ins Owner Change1.57%
Market Cap167.35B
Revenue(TTM)9.01B
Net Income(TTM)3.51B
Analysts82.5
Price Target176.22 (32.61%)
Short Float %1.23%
Short Ratio1.57
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)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)6.17%
PT rev (3m)6.7%
EPS NQ rev (1m)6.85%
EPS NQ rev (3m)7.2%
EPS NY rev (1m)0%
EPS NY rev (3m)1.84%
Revenue NQ rev (1m)6.69%
Revenue NQ rev (3m)7.07%
Revenue NY rev (1m)3.33%
Revenue NY rev (3m)6.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.05 | ||
| Fwd PE | 38.95 | ||
| P/S | 18.58 | ||
| P/FCF | 39.35 | ||
| P/OCF | 38.28 | ||
| P/B | 13.53 | ||
| P/tB | 14 | ||
| EV/EBITDA | 39.71 |
EPS(TTM)2.95
EY2.22%
EPS(NY)3.41
Fwd EY2.57%
FCF(TTM)3.38
FCFY2.54%
OCF(TTM)3.47
OCFY2.61%
SpS7.15
BVpS9.82
TBVpS9.49
PEG (NY)2.88
PEG (5Y)1.15
Graham Number25.53
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 17.36 |
F-Score5
WACC9.63%
ROIC/WACC2.42
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 Y15.65%
EPS Next 2Y17.79%
EPS Next 3Y20.02%
EPS Next 5Y19.96%
Revenue 1Y (TTM)28.6%
Revenue growth 3Y27.15%
Revenue growth 5Y31.19%
Sales Q2Q%28.87%
Revenue Next Year25.79%
Revenue Next 2Y23.09%
Revenue Next 3Y22.63%
Revenue Next 5Y18.74%
EBIT growth 1Y30.95%
EBIT growth 3Y36.17%
EBIT growth 5Y40.69%
EBIT Next Year27.96%
EBIT Next 3Y23.95%
EBIT Next 5Y21.53%
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 FAQ
What is the ChartMill fundamental rating of ARISTA NETWORKS INC (ANET) stock?
ChartMill assigns a fundamental rating of 7 / 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 15.65% in the next year.