Arista Networks, Inc. develops, markets, and sells cloud networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. More Details
Flawless balance sheet with questionable track record.
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: ANET is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: ANET's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: ANET exceeded the US Communications industry which returned 29.9% over the past year.
Return vs Market: ANET underperformed the US Market which returned 53.9% over the past year.
Long-Term 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
2 weeks ago | Simply Wall StShould You Investigate Arista Networks, Inc. (NYSE:ANET) At US$308?
4 weeks ago | Simply Wall StArista Networks (NYSE:ANET) Shareholders Have Enjoyed A Whopping 387% Share Price Gain
1 month ago | Simply Wall StArista Networks, Inc. (NYSE:ANET) Analysts Are Pretty Bullish On The Stock After Recent Results
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: ANET ($316.67) is trading below our estimate of fair value ($356.82)
Significantly Below Fair Value: ANET is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: ANET is poor value based on its PE Ratio (37.9x) compared to the US Communications industry average (37.5x).
PE vs Market: ANET is poor value based on its PE Ratio (37.9x) compared to the US market (22.5x).
Price to Earnings Growth Ratio
PEG Ratio: ANET is poor value based on its PEG Ratio (3.5x)
Price to Book Ratio
PB vs Industry: ANET is overvalued based on its PB Ratio (7.3x) compared to the US Communications industry average (2.5x).
How is Arista Networks forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ANET's forecast earnings growth (11% per year) is above the savings rate (2%).
Earnings vs Market: ANET's earnings (11% per year) are forecast to grow slower than the US market (18.1% per year).
High Growth Earnings: ANET's earnings are forecast to grow, but not significantly.
Revenue vs Market: ANET's revenue (10.7% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: ANET's revenue (10.7% 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 low in 3 years time (17.2%).
How has Arista Networks performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ANET has high quality earnings.
Growing Profit Margin: ANET's current net profit margins (27.4%) are lower than last year (35.6%).
Past Earnings Growth Analysis
Earnings Trend: ANET's earnings have grown significantly by 33.6% per year over the past 5 years.
Accelerating Growth: ANET's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ANET had negative earnings growth (-26.1%) over the past year, making it difficult to compare to the Communications industry average (-4%).
Return on Equity
High ROE: ANET's Return on Equity (19.1%) is considered low.
How is Arista Networks's financial position?
Financial Position Analysis
Short Term Liabilities: ANET's short term assets ($3.8B) exceed its short term liabilities ($768.2M).
Long Term Liabilities: ANET's short term assets ($3.8B) exceed its long term liabilities ($650.4M).
Debt to Equity History and Analysis
Debt Level: ANET is debt free.
Reducing Debt: ANET has not had any debt for past 5 years.
Debt Coverage: ANET has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: ANET has no debt, therefore coverage of interest payments is not a concern.
What is Arista Networks's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ANET's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ANET's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ANET's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ANET's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ANET's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jayshree Ullal (59 yo)
Ms. Jayshree V. Ullal serves as President, Chief Executive Officer and Director at Arista Networks, Inc. since October 2008. Ms. Ullal serves as Director of Snowflake Inc. since June 2020. She is a network...
CEO Compensation Analysis
Compensation vs Market: Jayshree's total compensation ($USD1.38M) is below average for companies of similar size in the US market ($USD11.14M).
Compensation vs Earnings: Jayshree's compensation has been consistent with company performance over the past year.
Experienced Management: ANET's management team is seasoned and experienced (5.9 years average tenure).
Experienced Board: ANET's board of directors are considered experienced (7.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ANET insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Arista Networks, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Arista Networks, Inc.
- Ticker: ANET
- Exchange: NYSE
- Founded: 2004
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: US$24.062b
- Shares outstanding: 76.33m
- Website: https://www.arista.com
Number of Employees
- Arista Networks, Inc.
- 5453 Great America Parkway
- Santa Clara
- United States
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/16 22:49|
|End of Day Share Price||2021/04/16 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.