Arista Networks, Inc. develops, markets, and sells cloud networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific.
Outstanding track record with flawless balance sheet.
Share Price & News
How has Arista Networks's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 117 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: 117 underperformed the German Communications industry which returned 11.5% over the past year.
Return vs Market: 117 underperformed the German Market which returned 15% over the past year.
Price Volatility Vs. Market
How volatile is Arista Networks's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Arista Networks undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 117 (€203.8) is trading below our estimate of fair value (€246.68)
Significantly Below Fair Value: 117 is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: 117 is poor value based on its PE Ratio (19.8x) compared to the Communications industry average (19.1x).
PE vs Market: 117 is good value based on its PE Ratio (19.8x) compared to the German market (21.1x).
Price to Earnings Growth Ratio
PEG Ratio: 117's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: 117 is overvalued based on its PB Ratio (5.9x) compared to the DE Communications industry average (3.1x).
How is Arista Networks forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 117's earnings are forecast to decline over the next 3 years (-7.2% per year).
Earnings vs Market: 117's earnings are forecast to decline over the next 3 years (-7.2% per year).
High Growth Earnings: 117's earnings are forecast to decline over the next 3 years.
Revenue vs Market: 117's revenue (7% per year) is forecast to grow faster than the German market (5% per year).
High Growth Revenue: 117's revenue (7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 117's Return on Equity is forecast to be high in 3 years time (20%)
How has Arista Networks performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 117 has high quality earnings.
Growing Profit Margin: 117's current net profit margins (35.7%) are higher than last year (15.2%).
Past Earnings Growth Analysis
Earnings Trend: 117's earnings have grown significantly by 42% per year over the past 5 years.
Accelerating Growth: 117's earnings growth over the past year (162.1%) exceeds its 5-year average (42% per year).
Earnings vs Industry: 117 earnings growth over the past year (162.1%) exceeded the Communications industry 49.1%.
Return on Equity
High ROE: 117's Return on Equity (29.7%) is considered high.
Return on Assets
Return on Capital Employed
How is Arista Networks's financial position?
Financial Position Analysis
Short Term Liabilities: 117's short term assets ($3.5B) exceed its short term liabilities ($597.1M).
Long Term Liabilities: 117's short term assets ($3.5B) exceed its long term liabilities ($693.5M).
Debt to Equity History and Analysis
Debt Level: 117 is debt free.
Reducing Debt: 117 had no debt 5 years ago.
Debt Coverage: 117 has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: 117 has no debt, therefore coverage of interest payments is not a concern.
Inventory Level: 117 has a low level of unsold assets or inventory.
Debt Coverage by Assets: 117's debt is not covered by short term assets (assets are -2.4429466556197E+17x debt).
What is Arista Networks's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate 117's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate 117's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if 117's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if 117's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 117's dividend in 3 years as they are not forecast to pay a notable one for the German market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jayshree Ullal (58yo)
Ms. Jayshree V. Ullal serves as President, Chief Executive Officer and Director at Arista Networks, Inc. since October 2008. Ms. Ullal is responsible for building its business in cloud networking. She is a ...
CEO Compensation Analysis
Compensation vs Market: Jayshree's total compensation ($USD7.55M) is above average for companies of similar size in the German market ($USD4.37M).
Compensation vs Earnings: Jayshree's compensation has been consistent with company performance over the past year.
|CFO , Senior VP & Principal Accounting Officer||4.8yrs||US$3.85m||0.010% $1.6m|
|Senior VP & COO||0.9yrs||US$5.74m||0.0067% $1.1m|
|MD of Development & Operations and Head of Technology Centre||0yrs||no data||no data|
|Head of Corporate & Investor Development||0yrs||no data||no data|
|Senior VP & General Counsel||7yrs||US$2.14m||0.0071% $1.1m|
|Senior Vice President of Global Operations & Marketing||0yrs||no data||no data|
|Chief Sales Officer||0yrs||no data||no data|
Experienced Management: 117's management team is seasoned and experienced (7 years average tenure).
|Independent Director||6.8yrs||US$97.00k||0.11% $17.3m|
|Independent Director||2.7yrs||US$95.00k||0.0057% $901.6k|
|Independent Director||6.7yrs||US$100.00k||0.0034% $539.1k|
|Lead Independent Director||1yrs||US$97.00k||0.010% $1.6m|
|Independent Director||5.9yrs||US$95.00k||0.0047% $742.4k|
Experienced Board: 117's board of directors are considered experienced (6.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.
Arista Networks, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Arista Networks, Inc.
- Ticker: 117
- Exchange: DB
- Founded: 2004
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: US$17.091b
- Listing Market Cap: US$15.763b
- Shares outstanding: 76.48m
- Website: https://www.arista.com
Number of Employees
- Arista Networks, Inc.
- 5453 Great America Parkway
- Santa Clara
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|ANET||NYSE (New York Stock Exchange)||Yes||Common shares||US||USD||Jun 2014|
|117||DB (Deutsche Boerse AG)||Yes||Common shares||DE||EUR||Jun 2014|
|0HHR||LSE (London Stock Exchange)||Yes||Common shares||GB||USD||Jun 2014|
|ANET *||BMV (Bolsa Mexicana de Valores)||Yes||Common shares||MX||MXN||Jun 2014|
|ANET||WBAG (Wiener Boerse AG)||Yes||Common shares||AT||EUR||Jun 2014|
|A1NE34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 4 REPR 1 COM||BR||BRL||Jan 2020|
Arista Networks, Inc. develops, markets, and sells cloud networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company’s cloud networking solutions consist of extensible operating systems, a set of network applications, as well as gigabit Ethernet switching and routing platforms, including universal leaf, spline, and universal spine products. It also provides post contract customer support services, such as technical support, hardware repair and parts replacement beyond standard warranty, bug fix, patch, and upgrade services. The company serves a range of industries comprising Internet companies, service providers, financial services organizations, government agencies, media and entertainment companies, and others. It markets and sells its products through distributors, value-added resellers, system integrators, and original equipment manufacturer partners, as well as through its direct sales force. The company was formerly known as Arastra, Inc. and changed its name to Arista Networks, Inc. in October 2008. Arista Networks, Inc. was founded in 2004 and is headquartered in Santa Clara, California.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/16 22:11|
|End of Day Share Price||2020/02/14 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.