NYSE:ANET

Stock Analysis Report

Executive Summary

Arista Networks, Inc. develops, markets, and sells cloud networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific.

Snowflake

Fundamentals

Outstanding track record with flawless balance sheet.


Similar Companies

Share Price & News

How has Arista Networks's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.1%

ANET

2.6%

US Communications

0.07%

US Market


1 Year Return

6.9%

ANET

3.2%

US Communications

8.9%

US Market

Return vs Industry: ANET exceeded the US Communications industry which returned 3.2% over the past year.

Return vs Market: ANET matched the US Market which returned 8.9% over the past year.


Shareholder returns

ANETIndustryMarket
7 Day2.1%2.6%0.07%
30 Day3.6%-2.8%-0.3%
90 Day-9.7%-14.1%-1.6%
1 Year6.9%6.9%5.6%3.2%11.3%8.9%
3 Year191.5%191.5%53.8%44.0%46.3%36.8%
5 Year233.8%233.8%94.0%72.9%62.1%44.3%

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

Valuation

Is Arista Networks undervalued compared to its fair value and its price relative to the market?

25.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ANET ($246.61) is trading above our estimate of fair value ($224.04)

Significantly Below Fair Value: ANET is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ANET is good value based on its PE Ratio (25.6x) compared to the Communications industry average (29.6x).

PE vs Market: ANET is poor value based on its PE Ratio (25.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: ANET is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: ANET is overvalued based on its PB Ratio (7.5x) compared to the US Communications industry average (1.8x).


Next Steps

Future Growth

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

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ANET's forecast earnings growth (7.1% per year) is above the savings rate (2.7%).

Earnings vs Market: ANET's earnings (7.1% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: ANET's earnings are forecast to grow, but not significantly.

Revenue vs Market: ANET's revenue (13.2% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: ANET's revenue (13.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ANET's Return on Equity is forecast to be high in 3 years time (25.3%)


Next Steps

Past Performance

How has Arista Networks performed over the past 5 years?

40.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ANET's earnings have grown significantly by 40.5% per year over the past 5 years.

Accelerating Growth: ANET's earnings growth over the past year (221.7%) exceeds its 5-year average (40.5% per year).

Earnings vs Industry: ANET earnings growth over the past year (221.7%) exceeded the Communications industry 23.8%.


Return on Equity

High ROE: ANET's Return on Equity (28.9%) is considered high.


Return on Assets

ROA vs Industry: ANET has a higher Return on Assets than the Communications industry average last year.


Return on Capital Employed

ROCE Improving: ANET has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Arista Networks's financial position?


Financial Position Analysis

Short Term Liabilities: ANET's short term assets ($3.0B) exceeds its short term liabilities ($525.0M)

Long Term Liabilities: ANET's short term assets (3.0B) exceeds its long term liabilities (390.7M)


Debt to Equity History and Analysis

Debt Level: ANET is debt free.

Reducing Debt: ANET had no debt 5 years ago.

Debt Coverage: ANET has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ANET has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: ANET has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if ANET's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate ANET's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ANET's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if ANET's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ANET'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 ANET's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

6.7yrs

Average management tenure


CEO

Jayshree Ullal (58yo)

11yrs

Tenure

US$7,550,074

Compensation

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 ($USD7.55M) is below average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Jayshree's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.7yrs

Average Tenure

51yo

Average Age

Experienced Management: ANET's management team is seasoned and experienced (6.7 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

59yo

Average Age

Experienced Board: ANET's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Andy Bechtolsheim (63yo)

    Co-Founder

    • Tenure: 15.8yrs
    • Compensation: US$7.54m
  • Jayshree Ullal (58yo)

    President

    • Tenure: 11yrs
    • Compensation: US$7.55m
  • Ken Duda (47yo)

    Co-Founder

    • Tenure: 8.1yrs
    • Compensation: US$4.95m
  • Marc Taxay (50yo)

    Senior VP & General Counsel

    • Tenure: 6.7yrs
    • Compensation: US$2.14m
  • Mark Foss

    Senior Vice President of Global Operations & Marketing

    • Tenure: 0yrs
  • Anshul Sadana (42yo)

    Senior VP & COO

    • Tenure: 0.6yrs
    • Compensation: US$5.74m
  • Ita Brennan (52yo)

    CFO & Senior VP

    • Tenure: 4.4yrs
    • Compensation: US$3.85m
  • Amod Dani

    MD of Development & Operations and Head of Technology Centre

    • Tenure: 0yrs
  • Charles Yager

    Director of Product & Investor Advocacy

    • Tenure: 0yrs
  • Ciarán Kennedy

    Chief Sales Officer

    • Tenure: 0yrs

Board Members

  • Charlie Giancarlo (61yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$97.00k
  • Mark Templeton (66yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$95.00k
  • Ann Mather (59yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$100.00k
  • Andy Bechtolsheim (63yo)

    Co-Founder

    • Tenure: 15.8yrs
    • Compensation: US$7.54m
  • Jayshree Ullal (58yo)

    President

    • Tenure: 11yrs
    • Compensation: US$7.55m
  • Dan Scheinman (56yo)

    Lead Independent Director

    • Tenure: 0.7yrs
    • Compensation: US$97.00k
  • Nikos Theodosopoulos (56yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$95.00k

Company Information

Arista Networks, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Arista Networks, Inc.
  • Ticker: ANET
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$18.901b
  • Shares outstanding: 76.64m
  • Website: https://www.arista.com

Number of Employees


Location

  • Arista Networks, Inc.
  • 5453 Great America Parkway
  • Santa Clara
  • California
  • 95054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ANETNYSE (New York Stock Exchange)YesCommon sharesUSUSDJun 2014
117DB (Deutsche Boerse AG)YesCommon sharesDEEURJun 2014
0HHRLSE (London Stock Exchange)YesCommon sharesGBUSDJun 2014
ANET *BMV (Bolsa Mexicana de Valores)YesCommon sharesMXMXNJun 2014
ANETWBAG (Wiener Boerse AG)YesCommon sharesATEURJun 2014

Biography

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 ext ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/24 00:46
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.