Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Arista Networks, Inc. (NYSE:ANET) due to its excellent fundamentals in more than one area. ANET is a company with strong financial health as well as a excellent growth outlook. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Arista Networks here.
Flawless balance sheet with high growth potential
Investors in search for stocks with room to flourish should look no further than ANET, with its expected earnings growth of 28% underlying the notable 23% return on equity over the next few years leading up to 2022. ANET is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that ANET manages its cash and cost levels well, which is a key determinant of the company’s health. ANET's has produced operating cash levels of 14.2x total debt over the past year, which implies that ANET's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For Arista Networks, I've put together three relevant aspects you should further examine:
- Historical Performance: What has ANET's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Valuation: What is ANET worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ANET is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ANET? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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