Arista Networks, Inc.

Telecommunications
Computer Communications Equipment
www.arista.com

Earnings Score
Moat Score

Market Cap $114.11B
PE 40
Debt -
Cash $2.76B
EV -
FCF $3.68B

Earnings

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Sales & Net Margins

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Earnings	$2.85B
EBIT	$3.27B
ROE	29%
ROA	23%
FCF	$3.68B
Equity	$9.99B
Growth Stability	100%
PE	40.01
PEG	1
PB	11.42
P/FCF	31.04
P/S	16.29
Price/Cash	0.02
Net Margins	41%
Gross Margins	64%
Op. Margins	47%
Earnings CAGR	37%
Sales Growth YoY	25%
Sales Growth QoQ	7%
Sales CAGR	24%
FCF CAGR	29%
Equity CAGR	30%
Earnings Stability	0.92
Earnings Growth YoY	31%

Earnings Growth QoQ	7%
Earnings CAGR 5Y	40%
Sales CAGR 5Y	32%
FCF CAGR 5Y	30%
Equity CAGR 5Y	30%
Earnings CAGR 3Y	32%
Sales CAGR 3Y	32%
FCF CAGR 3Y	103%
Equity CAGR 3Y	42%
Market Cap	$114.11B
Revenue	$7.00B
Assets	$14.04B
Cash	$2.76B
Shares Outstanding	1.26B
Earnings Score	95%
Moat Score	97%
Working Capital	9.18B
Current Ratio	4.36
Gross Profit	$4.49B
Shares Growth 3y	1%
Equity Growth QoQ	8%
Equity Growth YoY	38%

Assets & ROA

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Stockholders Equity & ROE

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Arista Networks is a software and hardware provider for the networking solutions sector. Operating as one business unit, software, switching, and router products are targeted for high-performance networking applications, while service revenue comes from technical support. Customer markets include data centers, enterprises, service providers, and campuses. The company is headquartered in Santa Clara, California, and generates most of its revenue in the Americas. It also sells into Europe, the Middle East, Africa, and Asia-Pacific.

SEC Filings

Direct access to Arista Networks, Inc. (ANET) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Arista Networks, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Arista Networks, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 37%

Stability 92%

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Arista Networks, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Arista Networks, Inc..

Years

Calculation mode

= $286B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$3.7B	$4.8B	$6.2B	$8B	$10B	$13B	$17B	$22B	$29B	$37B	$48B	$483B
DCF		$4.3B	$5.1B	$6B	$7B	$8.3B	$9.7B	$11B	$13B	$16B	$19B	$186B
Value	$286B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	14%	16%	26%	15%	36%	27%	29%	31%	36%	41%	41%
ROA	-	14%	19%	9%	21%	16%	16%	23%	24%	23%	23%
ROE	-	17%	25%	15%	30%	19%	21%	28%	29%	29%	29%

Good Net Margins (40.73%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	-	-	-	-	-	-	-	-	-	-
Debt over Equity	-	-	-	-	-	-	-	-	-	-	-
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%	100%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	35%	46%	31%	12%	-4%	27%	49%	34%	20%	32%
Earnings YoY growth	-	54%	131%	-22%	162%	-26%	33%	61%	54%	37%	40%
Equity YoY growth	-	41%	50%	29%	35%	15%	20%	23%	48%	38%	30%
FCF YoY growth	-	-39%	460%	-22%	98%	-24%	32%	-53%	346%	84%	30%