Shares of Large-cap technology company Arista Networks moved -0.3% this evening, and are now trading at $175.72 per share. The average analyst target price for the stock is $200.56.
Arista Networks, Inc. develops, markets, and sells cloud networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific.
Based on its trailing earning per share of 5.41, Arista Networks has a trailing 12 month Price to Earnings (P/E) ratio of 32.5 ANET has a forward P/E ratio of 25.8 based on its earnings guidance of $None.
The company has a price to earnings growth (PEG) ratio of 3.02. A number between 0 and 1 could mean that the market is undervaluing Arista Networks's estimated growth potential
Growing Revenues With Increasing Reinvestment in the Business
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $2,151 | $2,411 | $2,318 | $2,948 | $4,381 | $5,263 |
| Gross Margins | 64% | 64% | 64% | 64% | 61% | 60% |
| Operating Margins | 13.0% | 36.0% | 32.0% | 32.0% | 36.0% | 38.0% |
| Net Margins | 15.0% | 36.0% | 27.0% | 28.0% | 31.0% | 32.0% |
| Net Income (MM) | $328 | $860 | $635 | $841 | $1,352 | $1,709 |
| Net Interest Expense (MM) | $32 | $56 | $39 | $7 | $55 | $92 |
| Depreciation & Amort. (MM) | $28 | $33 | $35 | $50 | $63 | $74 |
| Earnings Per Share | $4.06 | $2.66 | $2.0 | $2.63 | $4.27 | $5.41 |
| EPS Growth | n/a | -34.48% | -24.81% | 31.5% | 62.36% | 26.7% |
| Diluted Shares (MM) | 81 | 324 | 318 | 319 | 316 | 312 |
| Free Cash Flow (MM) | $479 | $947 | $720 | $951 | $448 | $939 |
| Capital Expenditures (MM) | $24 | $16 | $15 | $65 | $45 | $45 |
| Net Current Assets (MM) | $1,776 | $2,181 | $2,418 | $3,057 | $3,661 | $4,523 |
| Long Term Debt (MM) | $0 | $282 | $247 | $116 | $0 | $0 |
| Net Debt / EBITDA | -2.05 | -0.93 | -0.83 | -0.51 | -0.41 | -0.61 |
Arista Networks benefits from growing revenues and increasing reinvestment in the business, low leverage, and wider gross margins than its peer group. The company's financial statements show decent operating margins with a positive growth rate and positive EPS growth. Furthermore, Arista Networks has irregular cash flows.
