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ANET

Arista Networks NYSE:ANET Stock Report

Last Price

US$108.65

Market Cap

US$33.5b

7D

-2.1%

1Y

33.2%

Updated

15 May, 2022

Data

Company Financials +
ANET fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance5/6
Financial Health6/6
Dividends0/6

ANET Stock Overview

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

Arista Networks Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Arista Networks
Historical stock prices
Current Share PriceUS$108.65
52 Week HighUS$148.57
52 Week LowUS$79.63
Beta1.28
1 Month Change-14.17%
3 Month Change-11.54%
1 Year Change33.16%
3 Year Change73.76%
5 Year Change201.66%
Change since IPO690.18%

Recent News & Updates

May 15
Is There An Opportunity With Arista Networks, Inc.'s (NYSE:ANET) 35% Undervaluation?

Is There An Opportunity With Arista Networks, Inc.'s (NYSE:ANET) 35% Undervaluation?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Arista Networks, Inc...

May 02
Is It Too Late To Consider Buying Arista Networks, Inc. (NYSE:ANET)?

Is It Too Late To Consider Buying Arista Networks, Inc. (NYSE:ANET)?

Arista Networks, Inc. ( NYSE:ANET ) received a lot of attention from a substantial price movement on the NYSE over the...

Shareholder Returns

ANETUS CommunicationsUS Market
7D-2.1%-0.3%-2.5%
1Y33.2%-3.3%-10.4%

Return vs Industry: ANET exceeded the US Communications industry which returned -3.3% over the past year.

Return vs Market: ANET exceeded the US Market which returned -10.4% over the past year.

Price Volatility

Is ANET's price volatile compared to industry and market?
ANET volatility
ANET Average Weekly Movement7.1%
Communications Industry Average Movement7.2%
Market Average Movement7.8%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: ANET is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ANET's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20042,993Jayshree Ullalhttps://www.arista.com

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. 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.

Arista Networks Fundamentals Summary

How do Arista Networks's earnings and revenue compare to its market cap?
ANET fundamental statistics
Market CapUS$33.49b
Earnings (TTM)US$932.75m
Revenue (TTM)US$3.16b

35.9x

P/E Ratio

10.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ANET income statement (TTM)
RevenueUS$3.16b
Cost of RevenueUS$1.15b
Gross ProfitUS$2.01b
Other ExpensesUS$1.08b
EarningsUS$932.75m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.03
Gross Margin63.64%
Net Profit Margin29.54%
Debt/Equity Ratio0%

How did ANET perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


34.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ANET ($108.65) is trading below our estimate of fair value ($166.24)

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


Price To Earnings Ratio

PE vs Industry: ANET is poor value based on its PE Ratio (35.9x) compared to the US Communications industry average (21.7x).

PE vs Market: ANET is poor value based on its PE Ratio (35.9x) compared to the US market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: ANET is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: ANET is overvalued based on its PB Ratio (8.1x) compared to the US Communications industry average (1.6x).


Future Growth

How is Arista Networks forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ANET's forecast earnings growth (12.3% per year) is above the savings rate (1.9%).

Earnings vs Market: ANET's earnings (12.3% per year) are forecast to grow slower than the US market (12.6% 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 (8% 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 (21.4%)


Past Performance

How has Arista Networks performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


21.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ANET has high quality earnings.

Growing Profit Margin: ANET's current net profit margins (29.5%) are higher than last year (27.5%).


Past Earnings Growth Analysis

Earnings Trend: ANET's earnings have grown significantly by 21.9% per year over the past 5 years.

Accelerating Growth: ANET's earnings growth over the past year (37.9%) exceeds its 5-year average (21.9% per year).

Earnings vs Industry: ANET earnings growth over the past year (37.9%) underperformed the Communications industry 38.2%.


Return on Equity

High ROE: ANET's Return on Equity (22.5%) is considered high.


Financial Health

How is Arista Networks's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ANET's short term assets ($5.1B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: ANET's short term assets ($5.1B) exceed its long term liabilities ($586.0M).


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.


Balance Sheet


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

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.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ANET has not reported any payouts.


Next Steps

Management

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

8.1yrs

Average management tenure


CEO

Jayshree Ullal (60 yo)

13.58yrs

Tenure

US$15,993,632

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 ($USD15.99M) is about average for companies of similar size in the US market ($USD13.26M).

Compensation vs Earnings: Jayshree's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ANET's management team is seasoned and experienced (8.1 years average tenure).


Board Members

Experienced Board: ANET's board of directors are considered experienced (8.9 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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Arista Networks, Inc.
  • Ticker: ANET
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Communications Equipment
  • Sector: Tech
  • Implied Market Cap: US$33.493b
  • Shares outstanding: 308.26m
  • Website: https://www.arista.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/15 00:00
End of Day Share Price2022/05/13 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.