Arista Networks (ANET) Stock Analysis
This is a peer-relative look at Arista Networks (ANET): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Technology Hardware & Equipment peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | ANET |
|---|---|
| Name | Arista Networks, Inc. |
| Country/Region | United States |
| GICS Sector | Information Technology |
| GICS Industry Group | Technology Hardware & Equipment |
| GICS Industry | Communications Equipment |
| GICS Sub-Industry | Communications Equipment |
| Market Capitalization | 219.83 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | June 6, 2014 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: ANET | Industry group median |
|---|---|---|
| Total Return (1Y) | 56.42% | 50.82% |
| Total Return (3Y, Annualized) | 59.64% | 23.86% |
| Total Return (5Y, Annualized) | 50.05% | 14.34% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: ANET | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 55.20% | 55.04% |
| Beta (5Y) | 1.60 | 1.32 |
| Max Drawdown (5Y) | -50.42% | -55.60% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: ANET | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 0.95 | 0.95 |
| Sortino Ratio (1Y) | 1.43 | 1.40 |
Profitability
ROE (TTM)
Arista Networks (ANET) posts ROE of 31.52%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.
ANET
Technology Hardware & Equipment industry group
31.52%
Group distribution
- Max
- 44.16%
- ANET
- 31.52%
- Q3
- 18.89%
- Median
- 10.96%
- Q1
- 0.11%
- Min
- -25.92%
Largest peers
- STX
- 1,787.97%
- AAPL
- 141.47%
- SNDK
- 39.30%
- APH
- 36.83%
- ANET
- 31.52%
- CSCO
- 25.23%
- DELL
- --
Net Margin (TTM)
Arista Networks (ANET) keeps 38.32% of revenue as net profit on net margin, above the industry benchmark range. That is unusually strong bottom-line conversion, though tax effects, asset sales, or other one-off gains should be checked before treating it as durable.
ANET
Technology Hardware & Equipment industry group
38.32%
Group distribution
- ANET
- 38.32%
- Max
- 27.15%
- Q3
- 12.01%
- Median
- 4.40%
- Q1
- 0.00%
- Min
- -14.09%
Largest peers
- ANET
- 38.32%
- SNDK
- 34.19%
- AAPL
- 27.15%
- STX
- 21.60%
- CSCO
- 19.69%
- APH
- 17.24%
- DELL
- 6.28%
Operating Margin (TTM)
Arista Networks (ANET) turns 42.74% of revenue into operating profit on operating margin, above the industry benchmark range. Core operations are retaining an unusually large share before interest and taxes, which points to pricing power or tight cost control if the margin is sustainable.
ANET
Technology Hardware & Equipment industry group
42.74%
Group distribution
- ANET
- 42.74%
- Max
- 32.28%
- Q3
- 15.14%
- Median
- 6.42%
- Q1
- 1.49%
- Min
- -18.45%
Largest peers
- SNDK
- 69.98%
- ANET
- 42.74%
- STX
- 35.67%
- AAPL
- 32.28%
- APH
- 27.31%
- CSCO
- 24.99%
- DELL
- 8.86%
Profitability Metrics
| Metric | Current stock: ANET | Industry group median |
|---|---|---|
| ROE (TTM) | 31.52% | 10.96% |
| ROA (TTM) | 14.36% | 4.19% |
| Net Margin (TTM) | 38.32% | 4.40% |
| Operating Margin (TTM) | 42.74% | 6.42% |
| Gross Margin (TTM) | 63.54% | 38.91% |
Growth
Revenue Growth
Arista Networks (ANET) grew revenue 28.60%, in the upper peer quartile. The top line is expanding faster than at most industry peers, which points to share gains or stronger pricing.
EPS Growth
Arista Networks (ANET) grew earnings per share 23.32%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.
Growth Metrics
| Metric | Current stock: ANET | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 28.60% | 8.73% |
| Revenue Growth (3Y CAGR) | 27.15% | 1.90% |
| EPS Growth (YoY) | 23.32% | 10.07% |
| EPS Growth (3Y CAGR) | 37.08% | 3.15% |
Financial Strength
Current Ratio (MRQ)
Arista Networks (ANET) has current ratio of 2.83, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.
ANET
Technology Hardware & Equipment industry group
2.83
Group distribution
- Max
- 5.80
- Q3
- 3.15
- ANET
- 2.83
- Median
- 1.96
- Q1
- 1.29
- Min
- 0.40
Largest peers
- SNDK
- 4.78
- ANET
- 2.83
- APH
- 1.71
- STX
- 1.33
- AAPL
- 1.07
- DELL
- 0.95
- CSCO
- 0.93
Debt / Equity (MRQ)
No usable debt-to-equity ratio is available for Arista Networks (ANET) this period, so the balance-sheet leverage read is skipped.
ANET
Technology Hardware & Equipment industry group
--
Group distribution
- Max
- 2.02
- Q3
- 0.88
- Median
- 0.31
- Q1
- 0.06
- Min
- 0.00
- ANET
- --
Largest peers
- STX
- 3.82
- APH
- 1.33
- AAPL
- 0.80
- CSCO
- 0.68
- SNDK
- 0.02
- ANET
- --
- DELL
- --
Financial Strength Metrics
| Metric | Current stock: ANET | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 2.83 | 1.96 |
| Debt / Equity (MRQ) | -- | 0.31 |
| Net Debt / EBITDA | -2.92 | 0.95 |
Dividends
Dividend Yield (TTM)
Arista Networks (ANET) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.
ANET
Technology Hardware & Equipment industry group
0.00%
Group distribution
- Max
- 0.84%
- Q3
- 0.36%
- ANET
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- CSCO
- 1.49%
- DELL
- 0.58%
- APH
- 0.55%
- STX
- 0.36%
- AAPL
- 0.32%
- ANET
- 0.00%
- SNDK
- 0.00%
Dividend Payout Ratio (TTM)
Arista Networks (ANET) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.
ANET
Technology Hardware & Equipment industry group
0.00%
Group distribution
- Max
- 37.10%
- Q3
- 15.24%
- ANET
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- CSCO
- 55.00%
- STX
- 27.70%
- APH
- 23.85%
- DELL
- 17.57%
- AAPL
- 12.59%
- ANET
- 0.00%
- SNDK
- 0.00%
Dividend Metrics
| Metric | Current stock: ANET | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Arista Networks (ANET) trades at P/E ratio of 58.19, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
ANET
Technology Hardware & Equipment industry group
58.19
Group distribution
- Max
- 144.77
- Q3
- 72.63
- ANET
- 58.19
- Median
- 37.17
- Q1
- 22.68
- Min
- 8.96
Largest peers
- STX
- 76.36
- ANET
- 58.19
- SNDK
- 47.62
- APH
- 43.24
- AAPL
- 39.53
- CSCO
- 37.39
- DELL
- 30.39
P/S Ratio (TTM)
Arista Networks (ANET) trades at 22.64 on P/S ratio, above the industry benchmark range. The stock is being valued at an unusually rich price per dollar of trailing revenue.
ANET
Technology Hardware & Equipment industry group
22.64
Group distribution
- ANET
- 22.64
- Max
- 16.05
- Q3
- 7.77
- Median
- 3.47
- Q1
- 1.40
- Min
- 0.00
Largest peers
- ANET
- 22.64
- STX
- 18.33
- SNDK
- 17.85
- AAPL
- 10.66
- APH
- 7.49
- CSCO
- 7.28
- DELL
- 1.95
P/B Ratio (MRQ)
Arista Networks (ANET) trades at 16.30 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.
ANET
Technology Hardware & Equipment industry group
16.30
Group distribution
- Max
- 17.07
- ANET
- 16.30
- Q3
- 8.65
- Median
- 3.87
- Q1
- 2.08
- Min
- -0.84
Largest peers
- STX
- 182.75
- AAPL
- 45.14
- SNDK
- 17.07
- ANET
- 16.30
- APH
- 13.88
- CSCO
- 9.05
- DELL
- -186.85
Valuation Metrics
| Metric | Current stock: ANET | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 58.19 | 37.17 |
| P/S Ratio (TTM) | 22.64 | 3.47 |
| P/B Ratio (MRQ) | 16.30 | 3.87 |
| Free Cash Flow Yield (TTM) | 1.98% | 1.98% |