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Arista Networks

NYSE:ANET
Snowflake Description

Flawless balance sheet with high growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ANET
NYSE
$23B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Arista Networks, Inc. develops, markets, and sells cloud networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The last earnings update was 34 days ago. More info.


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  • Arista Networks has significant price volatility in the past 3 months.
ANET Share Price and Events
7 Day Returns
2%
NYSE:ANET
1.7%
US Communications
1.2%
US Market
1 Year Returns
9%
NYSE:ANET
13%
US Communications
3%
US Market
ANET Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Arista Networks (ANET) 2% 10.7% 54.5% 9% 405.8% -
US Communications 1.7% 5.5% 21.9% 13% 77.2% 86.1%
US Market 1.2% 2.1% 14.6% 3% 39% 43.5%
1 Year Return vs Industry and Market
  • ANET underperformed the Communications industry which returned 13% over the past year.
  • ANET outperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
ANET
Industry
5yr Volatility vs Market

ANET Value

 Is Arista Networks undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Arista Networks to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Arista Networks.

NYSE:ANET Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 29 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:ANET
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.085 (1 + (1- 21%) (0.16%))
1.058
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.06
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.058 * 5.96%)
9.03%

Discounted Cash Flow Calculation for NYSE:ANET using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Arista Networks is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:ANET DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.03%)
2019 759.28 Analyst x8 696.37
2020 888.55 Analyst x8 747.42
2021 993.22 Est @ 11.78% 766.25
2022 1,083.25 Est @ 9.06% 766.47
2023 1,160.86 Est @ 7.16% 753.34
2024 1,228.58 Est @ 5.83% 731.23
2025 1,288.81 Est @ 4.9% 703.53
2026 1,343.60 Est @ 4.25% 672.68
2027 1,394.59 Est @ 3.79% 640.36
2028 1,443.05 Est @ 3.48% 607.72
Present value of next 10 years cash flows $7,085.38
NYSE:ANET DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,443.05 × (1 + 2.73%) ÷ (9.03% – 2.73%)
$23,519.82
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $23,519.82 ÷ (1 + 9.03%)10
$9,905.03
NYSE:ANET Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $7,085.38 + $9,905.03
$16,990.41
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $16,990.41 / 75.73
$224.35
NYSE:ANET Discount to Share Price
Calculation Result
Value per share (USD) From above. $224.35
Current discount Discount to share price of $298.45
= -1 x ($298.45 - $224.35) / $224.35
-33%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Arista Networks is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Arista Networks's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Arista Networks's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:ANET PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $4.39
NYSE:ANET Share Price ** NYSE (2019-03-20) in USD $298.45
United States of America Communications Industry PE Ratio Median Figure of 33 Publicly-Listed Communications Companies 30.4x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Arista Networks.

NYSE:ANET PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ANET Share Price ÷ EPS (both in USD)

= 298.45 ÷ 4.39

68.03x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arista Networks is overvalued based on earnings compared to the US Communications industry average.
  • Arista Networks is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Arista Networks's expected growth come at a high price?
Raw Data
NYSE:ANET PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 68.03x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 29 Analysts
28.4%per year
United States of America Communications Industry PEG Ratio Median Figure of 21 Publicly-Listed Communications Companies 1.37x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NYSE:ANET PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 68.03x ÷ 28.4%

2.39x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arista Networks is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Arista Networks's assets?
Raw Data
NYSE:ANET PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $28.33
NYSE:ANET Share Price * NYSE (2019-03-20) in USD $298.45
United States of America Communications Industry PB Ratio Median Figure of 67 Publicly-Listed Communications Companies 1.84x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.89x
NYSE:ANET PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ANET Share Price ÷ Book Value per Share (both in USD)

= 298.45 ÷ 28.33

10.54x

* Primary Listing of Arista Networks.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arista Networks is overvalued based on assets compared to the US Communications industry average.
X
Value checks
We assess Arista Networks's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. Arista Networks has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ANET Future Performance

 How is Arista Networks expected to perform in the next 1 to 3 years based on estimates from 29 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
28.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Arista Networks expected to grow at an attractive rate?
  • Arista Networks's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Arista Networks's earnings growth is expected to exceed the United States of America market average.
  • Arista Networks's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:ANET Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:ANET Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 29 Analysts 28.4%
NYSE:ANET Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 29 Analysts 15.2%
United States of America Communications Industry Earnings Growth Rate Market Cap Weighted Average 15.2%
United States of America Communications Industry Revenue Growth Rate Market Cap Weighted Average 4.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:ANET Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 29 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:ANET Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 4,850 2
2022-12-31 4,273 2
2021-12-31 3,726 763 9
2020-12-31 3,186 930 796 29
2019-12-31 2,651 806 665 29
NYSE:ANET Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 2,151 503 328
2018-09-30 2,024 391 261
2018-06-30 1,898 716 227
2018-03-31 1,783 664 484
2017-12-31 1,646 632 422
2017-09-30 1,506 514 377
2017-06-30 1,359 274 295
2017-03-31 1,222 260 231
2016-12-31 1,129 174 183
2016-09-30 1,047 225 168
2016-06-30 974 269 145
2016-03-31 901 257 130

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Arista Networks's earnings are expected to grow significantly at over 20% yearly.
  • Arista Networks's revenue is expected to grow by 15.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:ANET Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 29 Analyst Estimates (S&P Global) See Below

All data from Arista Networks Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ANET Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 8.85 8.85 8.85 1.00
2020-12-31 9.49 10.99 7.95 9.00
2019-12-31 8.03 8.96 7.24 9.00
NYSE:ANET Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 4.39
2018-09-30 3.52
2018-06-30 3.08
2018-03-31 6.63
2017-12-31 5.85
2017-09-30 5.28
2017-06-30 4.18
2017-03-31 3.31
2016-12-31 2.66
2016-09-30 2.47
2016-06-30 2.15
2016-03-31 1.95

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Arista Networks is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Arista Networks's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Arista Networks has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ANET Past Performance

  How has Arista Networks performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Arista Networks's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Arista Networks has delivered over 20% year on year earnings growth in the past 5 years.
  • Arista Networks's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Arista Networks's 1-year earnings growth is negative, it can't be compared to the US Communications industry average.
Earnings and Revenue History
Arista Networks's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Arista Networks Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ANET Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,151.37 327.93 249.06 442.47
2018-09-30 2,023.51 261.46 250.25 431.21
2018-06-30 1,897.83 226.54 247.20 393.23
2018-03-31 1,783.20 484.16 244.54 370.35
2017-12-31 1,646.19 422.40 241.90 349.59
2017-09-30 1,506.29 377.13 242.57 313.81
2017-06-30 1,358.92 294.57 235.14 304.85
2017-03-31 1,222.45 230.74 222.47 292.68
2016-12-31 1,129.17 182.97 206.13 273.58
2016-09-30 1,046.64 167.73 194.22 259.60
2016-06-30 973.93 145.06 193.17 247.70
2016-03-31 900.74 130.00 188.99 228.62
2015-12-31 837.59 119.12 184.80 209.45
2015-09-30 765.63 104.20 168.54 196.38
2015-06-30 703.55 96.50 147.69 173.86
2015-03-31 645.94 86.56 130.44 158.80
2014-12-31 584.11 68.89 117.67 148.91
2014-09-30 525.38 47.46 108.19 135.92
2014-06-30 471.55 32.70 97.10 126.32
2014-03-31 417.08 24.01 85.82 112.52
2013-12-31 361.22 20.78 73.80 98.59
2013-09-30 303.80 16.80 61.95 85.78
2012-12-31 193.41 9.62 37.10 55.16

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Arista Networks has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Arista Networks used its assets more efficiently than the US Communications industry average last year based on Return on Assets.
  • Arista Networks has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Arista Networks's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Arista Networks has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ANET Health

 How is Arista Networks's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Arista Networks's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Arista Networks is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Arista Networks's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Arista Networks's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 76.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Arista Networks Company Filings, last reported 2 months ago.

NYSE:ANET Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 2,143.39 35.43 1,956.15
2018-09-30 1,945.88 36.04 1,661.80
2018-06-30 1,719.97 36.59 1,860.40
2018-03-31 1,845.04 37.14 1,738.04
2017-12-31 1,661.91 37.67 1,535.56
2017-09-30 1,524.55 38.20 1,343.11
2017-06-30 1,357.75 38.67 1,124.84
2017-03-31 1,228.37 39.14 1,043.24
2016-12-31 1,107.82 39.59 867.83
2016-09-30 1,011.42 40.04 800.15
2016-06-30 916.83 40.44 823.82
2016-03-31 849.86 40.83 762.25
2015-12-31 788.15 42.50 687.33
2015-09-30 723.17 42.86 568.62
2015-06-30 665.54 43.12 551.76
2015-03-31 610.47 43.38 484.34
2014-12-31 555.66 43.63 449.46
2014-09-30 492.92 43.90 408.60
2014-06-30 461.19 44.10 397.20
2014-03-31 96.43 143.39 129.52
2013-12-31 77.73 142.76 117.66
2013-09-30 55.78 141.16 120.02
2012-12-31 18.91 122.93 88.66
  • Arista Networks's level of debt (1.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (183.2% vs 1.7% today).
  • Debt is well covered by operating cash flow (1420%, greater than 20% of total debt).
  • Arista Networks earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Arista Networks's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Arista Networks has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ANET Dividends

 What is Arista Networks's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Arista Networks dividends. Estimated to be 0% next year.
If you bought $2,000 of Arista Networks shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Arista Networks's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Arista Networks's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:ANET Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 29 Analyst Estimates (S&P Global) See Below
United States of America Communications Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 2.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:ANET Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 5.00
2020-12-31 0.00 6.00
2019-12-31 0.00 6.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Arista Networks has not reported any payouts.
  • Unable to verify if Arista Networks's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Arista Networks's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Arista Networks has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Arista Networks's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Arista Networks's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Arista Networks afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Arista Networks has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ANET Management

 What is the CEO of Arista Networks's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jayshree Ullal
COMPENSATION $7,923,779
AGE 57
TENURE AS CEO 10.4 years
CEO Bio

Ms. Jayshree V. Ullal has been President, Chief Executive Officer and Director of Arista Networks, Inc. since October 2008. Ms. Ullal is responsible for building its business in cloud networking. Ms. Ullal is a networking executive veteran with 25 years of experience. She served as Senior Vice President of Data Center, Switching & Security Technology Group of Cisco Systems, Inc. since July 2005. She served as Senior Vice President of Security Technology Group at Cisco Systems Inc., from July 2004 to July 2005. She oversaw nearly 20 mergers and acquisitions for Cisco in the enterprise sector. Prior to her 15 years at Cisco, she served as the Vice President of Marketing at Crescendo Communications, Cisco's first acquisition. Ms. Ullal served as the Senior Vice President of the Optical Networking Group and co-leader of the Service Provider Business Council. She streamlined and doubled the metro optical business and forged key alliances with major service provider customers during the past three years. Prior to that, she served as Vice President and General Manager of the LAN Switching in the Enterprise Line of Business. She serves as a Director and Member of Advisory Board of StorSimple, Inc. She served as Director of Zscaler, Inc., She served as Director of Nishan Systems, Inc. since 2005. She served as Director of Movius Interactive Corporation. She was named as one of the 50 Most Powerful People in Network World. Ms. Ullal was nominated as one of the 20 most powerful Women to Watch in 2001 by Newsweek. She holds a B.S. in electrical engineering from California State University, San Francisco and a M.S. degree in engineering management from Santa Clara University.

CEO Compensation
  • Jayshree's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Jayshree's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Arista Networks management team in years:

6.1
Average Tenure
51
Average Age
  • The average tenure for the Arista Networks management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Andy Bechtolsheim

TITLE
Co-Founder
COMPENSATION
$8M
AGE
62

Jayshree Ullal

TITLE
President
COMPENSATION
$8M
AGE
57
TENURE
10.4 yrs

Ita Brennan

TITLE
CFO & Senior VP
COMPENSATION
$2M
AGE
51
TENURE
3.8 yrs

Anshul Sadana

TITLE
Senior VP & COO
COMPENSATION
$3M
AGE
41

John McCool

TITLE
Chief Platform Officer & Senior VP of Engineering Operations
COMPENSATION
$7M
AGE
58
TENURE
2 yrs

Ken Duda

TITLE
Co-Founder
COMPENSATION
$1M
AGE
46
TENURE
7.5 yrs

Amod Dani

TITLE
MD of Development & Operations and Head of Technology Centre

Charles Yager

TITLE
Director of Product & Investor Advocacy

Marc Taxay

TITLE
Senior VP & General Counsel
COMPENSATION
$2M
AGE
49
TENURE
6.1 yrs

Mark Foss

TITLE
Senior Vice President of Global Operations & Marketing
Board of Directors Tenure

Average tenure and age of the Arista Networks board of directors in years:

5.9
Average Tenure
58
Average Age
  • The tenure for the Arista Networks board of directors is about average.
Board of Directors

Andy Bechtolsheim

TITLE
Co-Founder
COMPENSATION
$8M
AGE
62
TENURE
15.2 yrs

Jayshree Ullal

TITLE
President
COMPENSATION
$8M
AGE
57
TENURE
10.4 yrs

Dan Scheinman

TITLE
Independent Director
COMPENSATION
$97K
AGE
55
TENURE
7.4 yrs

Charlie Giancarlo

TITLE
Independent Director
COMPENSATION
$97K
AGE
60
TENURE
5.9 yrs

Ann Mather

TITLE
Independent Director
COMPENSATION
$100K
AGE
58
TENURE
5.8 yrs

Nikos Theodosopoulos

TITLE
Director
COMPENSATION
$873K
AGE
55
TENURE
5 yrs

Mark Templeton

TITLE
Director
COMPENSATION
$834K
AGE
65
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. Sep 18 Sell Andreas Bechtolsheim Individual 04. Sep 18 04. Sep 18 -3,477 $290.06 $-1,008,533
X
Management checks
We assess Arista Networks's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Arista Networks has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ANET News

Simply Wall St News

Is Arista Networks, Inc.'s (NYSE:ANET) Liquidity Good Enough?

(NYSE:ANET), a large-cap worth US$22b, comes to mind for investors seeking a strong and reliable stock investment. … Most investors favour these big stocks due to their strong balance sheet and high market liquidity, meaning there are an abundance of stock in the public market available for trading. … Today I will analyse the latest financial data for ANET to determine is solvency and liquidity and whether the stock is a sound investment.

Simply Wall St -

Should You Be Impressed By Arista Networks, Inc.'s (NYSE:ANET) ROE?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … To keep the lesson grounded in practicality, we'll use ROE to better understand Arista Networks, Inc. … That means that for every $1 worth of shareholders' equity, it generated $0.15 in profit.

Simply Wall St -

Is Arista Networks, Inc. (NYSE:ANET) Worth US$271 Based On Intrinsic Value?

by estimating the company's future cash flows and discounting them to their present value. … Discounted Cash Flows (DCF) … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model.

Simply Wall St -

Arista Networks, Inc. (NYSE:ANET) Is Employing Capital Very Effectively

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

How Many Insiders Sold Arista Networks, Inc. (NYSE:ANET) Shares?

Arista Networks Insider Transactions Over The Last Year. … In the last twelve months, the biggest single sale by an insider was when Co-Founder Andreas Bechtolsheim sold US$1.0m worth of shares at a price of US$290 per share. … So it may not tell us anything about how insiders feel about the current share price

Simply Wall St -

Is Arista Networks, Inc.'s (NYSE:ANET) High P/E Ratio A Problem For Investors?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … How Do I Calculate Arista Networks's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Arista Networks, Inc. (NYSE:ANET): An Investing Strategy To Help You Win

has fared well over time in a volatile stock market, which is why it’s my top pick to invest in. … Below I take a look at three key characteristics of what makes a strong defensive stock investment: its size, financial health and track record. … Check out our latest analysis for Arista Networks.

Simply Wall St -

At US$219, Is Arista Networks Inc (NYSE:ANET) Worth Looking At Closely?

received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $308.58 at one point, and dropping to the lows of $215.46. … A question to answer is whether Arista Networks's current trading price of $219.24 reflective of the actual value of the? … Let’s take a look at Arista Networks’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Boasting A 13% Return On Equity, Is Arista Networks Inc (NYSE:ANET) A Top Quality Stock?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.13. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Does Arista Networks Inc's (NYSE:ANET) CEO Pay Reflect Performance?

This analysis aims first to contrast CEO compensation with other large companies. … See our latest analysis for Arista Networks? … Our data indicates that Arista Networks Inc is worth US$17.1b, and total annual CEO compensation is US$8m.

Simply Wall St -

ANET Company Info

Description

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.

Details
Name: Arista Networks, Inc.
ANET
Exchange: NYSE
Founded: 2004
$22,601,879,046
75,730,873
Website: http://www.arista.com
Address: Arista Networks, Inc.
5453 Great America Parkway,
Santa Clara,
California, 95054,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ANET Common shares New York Stock Exchange US USD 06. Jun 2014
DB 117 Common shares Deutsche Boerse AG DE EUR 06. Jun 2014
LSE 0HHR Common shares London Stock Exchange GB USD 06. Jun 2014
BMV ANET * Common shares Bolsa Mexicana de Valores MX MXN 06. Jun 2014
Number of employees
Current staff
Staff numbers
2,300
Arista Networks employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/21 00:48
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/19
Last earnings filing: 2019/02/15
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.