Arista Networks (ANET) Stock Analysis – Key Fundamentals

More and more people are talking about Arista Networks over the last few weeks. Is it worth buying the Communication Equipment stock at a price of $356.19? Only time will tell. The information below will give you a basic idea of what this investment may entail:

  • Arista Networks has moved 119.2% over the last year, and the S&P 500 logged a change of 22.6%

  • ANET has an average analyst rating of buy and is 7.31% away from its mean target price of $331.93 per share

  • Its trailing earnings per share (EPS) is $7.18

  • Arista Networks has a trailing 12 month Price to Earnings (P/E) ratio of 49.6 while the S&P 500 average is 27.65

  • Its forward earnings per share (EPS) is $9.05 and its forward P/E ratio is 39.4

  • The company has a Price to Book (P/B) ratio of 14.21 in contrast to the S&P 500's average ratio of 4.59

  • Arista Networks is part of the Telecommunications sector, which has an average P/E ratio of 22.69 and an average P/B of 1.97

  • ANET has reported YOY quarterly earnings growth of 44.2% and gross profit margins of 0.6%

  • The company has a free cash flow of $1.5 Billion, which refers to the total sum of all its inflows and outflows of cash over the last quarter

  • Arista Networks, Inc. engages in the development, marketing, and sale of data-driven, client to cloud networking solutions for data center, campus, and routing environments in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. Its cloud networking solutions consist of Extensible Operating System (EOS), a publish-subscribe state-sharing networking operating system offered in combination with a set of network applications. The company offers data center and cloud networking systems, including newer artificial intelligence (AI) ethernet switching platforms; campus wired and wireless products, and routing systems addressing Core Routing, Edge Routing, Data Center Interconnect (DCI), Multi-cloud and Wide Area Networking (WAN) use cases; and a suite of value-add software solutions that leverage EOS to provide end-to-end orchestration, automation, analytics, network monitoring, and security. It also provides post contract customer support services, such as technical support, hardware repair and replacement parts beyond standard warranty, bug fixes, patches, 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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.