ANET Arista Networks Inc - Fundamental Analysis
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Relative to the sector average P/E of 121x, ANET appears dramatically undervalued, even after adjusting for cyclicality, especially given its superior margins and growth compared to peers like ACN (P/E 20.2) and AMAT (P/E 26.1).
- Forward P/E of 13.50x is highly attractive for a company growing revenues at 27.5%
- Price/Sales of 19.58x, while high in absolute terms, is justified by margins and growth
- Trailing P/E of 49.95x appears stretched and could invite multiple compression if growth falters
- Missing EV/EBITDA and cash/debt data limits full valuation triangulation
Revenue and earnings growth remain strong amid favorable AI-driven infrastructure tailwinds, and price momentum remains positive over 1Y/3Y/5Y horizons despite a recent 8.4% correction, suggesting underlying demand resilience.
- 27.5% YoY revenue growth driven by AI/ML and cloud infrastructure demand
- Forward P/E of 13.5x suggests market is underappreciating future earnings power
- Q/Q EPS decline of 8.2% raises near-term execution concerns
- Potential saturation in cloud networking capex could limit long-term growth runway
ANET has delivered one of the most consistent earnings records in tech hardware, with margins expanding and ROE averaging over 30%, all while generating +669% total return over five years—outperforming nearly all peers including AMAT (+22.8% 1Y) and APH (+85.8% 1Y).
- 24 of last 25 quarters beat EPS estimates, with an average beat of +12.4% over the last four
- Profit margins and ROE have remained consistently high, demonstrating pricing power and operational discipline
- Most recent quarter showed a Q/Q EPS decline of 8.2%, breaking a long streak of sequential growth
- Long-term growth sustainability untested in a downturn given limited history in weak macro environments
ANET’s balance sheet appears fortress-like with no leverage and strong liquidity, outperforming sector peers like ACN (D/E 0.25) and APH (D/E 0.64), though incomplete data prevents a definitive assessment.
- Current ratio of 3.25 and quick ratio of 2.48 indicate strong short-term liquidity
- No reported debt and high cash balance suggest zero financial distress risk
- Total cash and total debt figures are listed as N/A, limiting full transparency into capital structure
- Lack of free cash flow data prevents assessment of cash conversion efficiency
ANET does not pay a dividend, which is common for growth-oriented tech hardware firms reinvesting in R&D and market expansion, but may deter conservative or yield-seeking investors despite strong cash generation potential.
- No dividend policy in place, limiting appeal to income investors
- Payout ratio of 0.00% indicates no current return of capital via dividends
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for ANET and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
ANET
Arista Networks Inc
Primary
|
+669.2% | +296.1% | +36.1% | +36.2% | -8.4% | -2.4% |
|
APH
Amphenol Corporation
Peer
|
+343.8% | +244.7% | +85.8% | +54.4% | +6.5% | -3.9% |
|
NOW
ServiceNow, Inc.
Peer
|
+69.3% | +102.7% | -18.2% | -18.2% | -5.8% | -1.3% |
|
ACN
Accenture plc
Peer
|
+7.5% | -12.3% | -31.3% | -22.4% | +2.3% | -0.2% |
|
AMAT
Applied Materials, Inc.
Peer
|
+217.2% | +110.3% | +22.8% | +37.3% | -0.7% | -1.8% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Technology Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
ANET
Arista Networks Inc
|
BULLISH | $165.43B | 49.95 | 31.7% | 39.7% | $131.37 | |
|
APH
Amphenol Corporation
|
BULLISH | $165.55B | 44.58 | 34.8% | 18.2% | $133.74 | |
|
NOW
ServiceNow, Inc.
|
BULLISH | $176.45B | 103.21 | 16.8% | 13.7% | $850.43 | |
|
ACN
Accenture plc
|
NEUTRAL | $153.53B | 20.2 | 25.5% | 11.0% | $245.21 | |
|
AMAT
Applied Materials, Inc.
|
BULLISH | $180.05B | 26.1 | 35.5% | 24.7% | $226.01 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-11-03 | GIANCARLO CHARLES H | Director | Sale | 8,000 | $1,256,957 |
| 2025-10-17 | DUDA KENNETH | President | Sale | 56,000 | $7,993,813 |
| 2025-10-17 | DUDA KENNETH | President | Option Exercise | 30,000 | $105,450 |
| 2025-10-01 | GIANCARLO CHARLES H | Director | Sale | 8,000 | $1,179,890 |
| 2025-09-19 | GIANCARLO CHARLES H | Director | Sale | 58,000 | $8,608,365 |
| 2025-09-17 | DUDA KENNETH | President | Sale | 56,000 | $7,940,524 |
| 2025-09-17 | DUDA KENNETH | President | Option Exercise | 30,000 | $105,450 |
| 2025-09-10 | ULLAL JAYSHREE | Chief Executive Officer | Sale | 1,247,688 | $185,323,061 |
| 2025-09-08 | ULLAL JAYSHREE | Chief Executive Officer | Sale | 56,548 | $8,117,895 |
| 2025-09-05 | ULLAL JAYSHREE | Chief Executive Officer | Sale | 438,764 | $63,113,566 |
| 2025-08-25 | ULLAL JAYSHREE | Chief Executive Officer | Sale | 24,040 | $3,191,740 |
| 2025-08-20 | TEMPLETON MARK B | Director | Stock Award | 971 | - |
| 2025-08-20 | CHEW LEWIS | Director | Stock Award | 971 | - |
| 2025-08-20 | SCHEINMAN DANIEL | Director | Stock Award | 971 | - |
| 2025-08-20 | ULLAL JAYSHREE | Chief Executive Officer | Stock Award | 48,256 | - |
Wall Street Analysts
Professional analyst ratings and price targets