Arista Networks, Inc.
ANET
Computer Communications Equipment
Mkt Cap
$96.12BPE
42.00Debt
-Cash
$2.093BEV
-FCF
$2.135BP/E Ratio
42.00Debt
-Cash
$2.093BEV
-FCF
$2.135BCharts data: {"Earnings":[{"time":"2014-12-30","value":68889000},{"time":"2015-12-30","value":119115000},{"time":"2016-12-30","value":182965000},{"time":"2017-12-30","value":422400000},{"time":"2018-12-30","value":327926000},{"time":"2019-12-30","value":859444000},{"time":"2020-12-30","value":634557000},{"time":"2021-12-30","value":840854000},{"time":"2022-12-30","value":1352446000},{"time":"2023-12-30","value":2087321000}],"Sales":[{"time":"2014-12-30","value":584106000},{"time":"2015-12-30","value":837591000},{"time":"2016-12-30","value":1129167000},{"time":"2017-12-30","value":1646186000},{"time":"2018-12-30","value":2151369000},{"time":"2019-12-30","value":2410706000},{"time":"2020-12-30","value":2317512000},{"time":"2021-12-30","value":2948037000},{"time":"2022-12-30","value":4381310000},{"time":"2023-12-30","value":5860168000}],"Net Margins":[{"time":"2014-12-30","value":0.11793920966399934},{"time":"2015-12-30","value":0.14221141344641955},{"time":"2016-12-30","value":0.16203537652092206},{"time":"2017-12-30","value":0.2565931188820704},{"time":"2018-12-30","value":0.1524266641380442},{"time":"2019-12-30","value":0.35651132904634575},{"time":"2020-12-30","value":0.2738095854519847},{"time":"2021-12-30","value":0.2852250497534461},{"time":"2022-12-30","value":0.30868530188459614},{"time":"2023-12-30","value":0.35618791133633027}],"Assets":[{"time":"2014-12-30","value":811023000},{"time":"2015-12-30","value":1159890000},{"time":"2016-12-30","value":1729007000},{"time":"2017-12-30","value":2460860000},{"time":"2018-12-30","value":3081983000},{"time":"2019-12-30","value":4185290000},{"time":"2020-12-30","value":4738919000},{"time":"2021-12-30","value":5734429000},{"time":"2022-12-30","value":6775410000},{"time":"2023-12-30","value":9946806000}],"Stockholders Equity":[{"time":"2014-12-30","value":555658000},{"time":"2015-12-30","value":788152000},{"time":"2016-12-30","value":1107820000},{"time":"2017-12-30","value":1661914000},{"time":"2018-12-30","value":2143389000},{"time":"2019-12-30","value":2894686000},{"time":"2020-12-30","value":3320291000},{"time":"2021-12-30","value":3978600000},{"time":"2022-12-30","value":4885820000},{"time":"2023-12-30","value":7219059000}],"ROE":[{"time":"2014-12-30","value":0.12397733857876607},{"time":"2015-12-30","value":0.1511320151442869},{"time":"2016-12-30","value":0.16515769709880668},{"time":"2017-12-30","value":0.25416477627602874},{"time":"2018-12-30","value":0.15299416018277598},{"time":"2019-12-30","value":0.2969040510784244},{"time":"2020-12-30","value":0.1911148751720858},{"time":"2021-12-30","value":0.21134419142411903},{"time":"2022-12-30","value":0.2768104432828062},{"time":"2023-12-30","value":0.2891403159331431}],"ROA":[{"time":"2014-12-30","value":0.15475886627136345},{"time":"2015-12-30","value":0.1287259998792989},{"time":"2016-12-30","value":0.14077964982212332},{"time":"2017-12-30","value":0.19292442479458402},{"time":"2018-12-30","value":0.09370622745161152},{"time":"2019-12-30","value":0.20602395532926035},{"time":"2020-12-30","value":0.15591382760498754},{"time":"2021-12-30","value":0.162331593956434},{"time":"2022-12-30","value":0.23346129606916777},{"time":"2023-12-30","value":0.24349786252994177}]}
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. The company serves a range of industries comprising internet companies, service providers, financial services organizations, government agencies, media and entertainment companies, telecommunication service providers, and others. It markets and sells its products through distributors, system integrators, value-added resellers, and original equipment manufacturer partners, as well as through its direct sales force. The company was formerly known as Arastra, Inc. and changed its name to Arista Networks, Inc. in October 2008. Arista Networks, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California.
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DCF
Discounted Cash Flow Valuation of Arista Networks, Inc.
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $2.135B | $2.758B | $3.489B | $4.32B | $5.233B | $6.198B | $7.174B | $8.111B | $8.952B | $9.641B | $10.12B | $101.2B |
| DCF | $2.399B | $2.638B | $2.841B | $2.992B | $3.081B | $3.101B | $3.049B | $2.927B | $2.74B | $2.502B | $25.02B | |
| Value | $53.29B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 39%
Earnings Stability 93%
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 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 14% | 16% | 26% | 15% | 36% | 27% | 29% | 31% | 36% | 38% |
| ROA | 13% | 14% | 19% | 9.4% | 21% | 16% | 16% | 23% | 24% | 25% |
| ROE | 15% | 17% | 25% | 15% | 30% | 19% | 21% | 28% | 29% | 29% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +28.88%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +2.53%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +18.25%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +2.39%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +23.64%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +1.83%.
Safety & Stabiliy
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 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | - | - | - | - | - | - | - | - | - |
| Debt Equity | - | - | - | - | - | - | - | - | - | - |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is -.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -.
What is the Graham’s Stability?
Graham’s Stability measure stands at 1.00.
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 | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 27% | 22% | 36% | 34% | -1.1% |
| Net Income | 42% | 45% | 49% | 54% | -4.2% |
| Stockholders Equity | 31% | 27% | 30% | 48% | -1.7% |
| FCF | 51% | 33% | 41% | 350% | 2.9% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +22.19%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -1.15%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +44.8%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -4.22%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +27.49%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -1.74%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +33.07%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +2.88%.