NYSE:ANET

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with solid track record.


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

Stable Share Price: ANET has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.1%

ANET

-1.7%

US Communications

-1.4%

US Market


1 Year Return

-12.4%

ANET

-12.9%

US Communications

17.8%

US Market

Return vs Industry: ANET matched the US Communications industry which returned -12.9% over the past year.

Return vs Market: ANET underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

ANETIndustryMarket
7 Day-5.1%-1.7%-1.4%
30 Day7.8%0.5%4.7%
90 Day-9.6%-13.7%8.2%
1 Year-12.4%-12.4%-10.5%-12.9%20.5%17.8%
3 Year9.4%9.4%15.1%7.1%42.2%32.7%
5 Year231.7%231.7%36.7%21.2%83.4%62.7%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ANET ($213.97) is trading below our estimate of fair value ($433.54)

Significantly Below Fair Value: ANET is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ANET is good value based on its PE Ratio (21.7x) compared to the US Communications industry average (46.8x).

PE vs Market: ANET is poor value based on its PE Ratio (21.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: ANET is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: ANET is overvalued based on its PB Ratio (5.4x) 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 27 analysts?

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ANET's forecast earnings growth (13.5% per year) is above the savings rate (2.2%).

Earnings vs Market: ANET's earnings (13.5% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: ANET's revenue (12.5% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: ANET's revenue (12.5% 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 (20.9%)


Next Steps

Past Performance

How has Arista Networks performed over the past 5 years?

39.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ANET has high quality earnings.

Growing Profit Margin: ANET's current net profit margins (33.1%) are higher than last year (30.8%).


Past Earnings Growth Analysis

Earnings Trend: ANET's earnings have grown significantly by 39.4% per year over the past 5 years.

Accelerating Growth: ANET's earnings growth over the past year (3.2%) is below its 5-year average (39.4% per year).

Earnings vs Industry: ANET earnings growth over the past year (3.2%) exceeded the Communications industry -28.9%.


Return on Equity

High ROE: ANET's Return on Equity (24.8%) is considered high.


Next Steps

Financial Health

How is Arista Networks's financial position?


Financial Position Analysis

Short Term Liabilities: ANET's short term assets ($3.6B) exceed its short term liabilities ($640.2M).

Long Term Liabilities: ANET's short term assets ($3.6B) exceed its long term liabilities ($659.2M).


Debt to Equity History and Analysis

Debt Level: ANET is debt free.

Reducing Debt: ANET has no debt compared to 5 years ago when its debt to equity ratio was 0.02%.

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


Next Steps

Dividend

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average management tenure


CEO

Jayshree Ullal (59 yo)

12yrs

Tenure

US$1,384,171

Compensation

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 ($USD1.38M) is below average for companies of similar size in the US market ($USD11.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andreas Bechtolsheim
Co-Founder16.75yrsno data16.56%
$ 2.7b
Jayshree Ullal
President12yrsUS$1.38m4.7%
$ 764.3m
Kenneth Duda
Co-Founder9.08yrsUS$3.40m0.91%
$ 147.8m
Ita Brennan
CFO , Senior VP & Principal Accounting Officer5.42yrsUS$2.65m0.013%
$ 2.1m
Anshul Sadana
Senior VP & COO1.58yrsUS$7.55m0.0055%
$ 889.8k
Marc Taxay
Senior VP & General Counsel7.67yrsUS$2.65m0.00094%
$ 152.9k
Curtis McKee
Head of Corporate & Investor Developmentno datano datano data
Mark Foss
Senior Vice President of Global Operations & Marketingno datano datano data
Ciarán Kennedy
Chief Sales Officerno datano datano data
Isabelle Bertin-Bailly
Vice President of Global Human Resourcesno datano datano data
Christopher Schmidt
Senior Vice President of World Wide Sales0.75yrno datano data
Amod Dani
MD of Development & Operations and Head of Technology Centre4.83yrsno datano data

5.4yrs

Average Tenure

52yo

Average Age

Experienced Management: ANET's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andreas Bechtolsheim
Co-Founder16.75yrsno data16.56%
$ 2.7b
Jayshree Ullal
President12yrsUS$1.38m4.7%
$ 764.3m
Charles Giancarlo
Independent Director7.5yrsUS$764.04k0.10%
$ 17.0m
Mark Templeton
Independent Director3.33yrsUS$95.00k0.0072%
$ 1.2m
Ann Mather
Independent Director7.33yrsUS$767.04k0.00063%
$ 102.5k
Kelly Battles
Independent Director0.25yrno data0.00034%
$ 55.3k
Daniel Scheinman
Lead Independent Director1.67yrsUS$797.79k0.011%
$ 1.8m
Nikos Theodosopoulos
Independent Director6.58yrsUS$95.00k0.0059%
$ 964.6k

7.0yrs

Average Tenure

59.5yo

Average Age

Experienced Board: ANET's board of directors are considered experienced (7 years average tenure).


Ownership

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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$16.267b
  • Shares outstanding: 76.03m
  • 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
A1NE34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

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 Analysis2020/10/23 00:15
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.