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Arista Networks Inc ANET

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Stock XNYS Rating as of
$262.76 −0.44 (0.17%)
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As of Delayed Price Post-Trading: $263.00 0.00
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Company Report

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Arista Holds a Vaunted High-Speed Switching Portfolio and Wide Moat

William Kerwin

We view Arista Networks as the technology leader in high-speed switching for enterprise networking. We expect Arista to maintain its top market of high-speed ports above 100 gigabits and for it to augment its share in lower speeds and campus applications where it has historically been less penetrated. In our view, Arista’s software gives it a structural and durable competitive advantage over competitors in winning new customers, both in the cloud and in the enterprise. We believe this software-led approach provides the firm with a wide economic moat.

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Price vs Fair Value

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ANET is trading at a 35% premium.
Price
$263.20
Fair Value
$972.00
Uncertainty
High
1-Star Price
$122.98
5-Star Price
$739.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Arista Networks has gained a top market share position in high-speed switching, resulting, in our view, from technology leadership, and it continues to gain share.

Bears

Arista Networks has a weaker position in areas of networking outside high-speed switching and may struggle to expand into adjacent markets.

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Trading Information

Previous Close Price
$263.20
Day Range
$262.00–267.20
52-Week Range
$131.68–307.74
Bid/Ask
$260.10 / $264.00
Market Cap
$82.15 Bil
Volume/Avg
2.2 Mil / 2.7 Mil

Key Statistics

Price/Earnings (Normalized)
42.60
Price/Sales
15.95
Dividend Yield (Trailing)
—
Dividend Yield (Forward)
—
Total Yield
0.12%

Company Profile

Arista Networks Inc is a networking equipment provider that primarily sells Ethernet switches and software to data centers. Its marquee product is its extensible operating system, or EOS, that runs a single image across every single one of its devices. The firm operates as one reportable segment. It has steadily gained market share since its founding in 2004, with a focus on high-speed applications. Arista counts Microsoft and Meta Platforms as its largest customers and derives roughly three quarters of its sales from North America.
Sector
Technology
Industry
Computer Hardware
Stock Style Box
Large Growth
Total Number of Employees
4,023
Website
https://www.arista.com

Competitors

Valuation

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Metric
ANET
HPE
DELL
Price/Earnings (Normalized)
 42.608.9717.30
Price/Book Value
 12.751.09—
Price/Sales
 15.950.841.03
Price/Cash Flow
 45.604.4211.50
Price/Earnings
ANET
HPE
DELL

Financial Strength

Metric
ANET
HPE
DELL
Quick Ratio
 3.160.490.44
Current Ratio
 4.390.890.74
Interest Coverage
 —10.543.39
Quick Ratio
ANET
HPE
DELL

Profitability

Metric
ANET
HPE
DELL
Return on Assets (Normalized)
 26.49%4.66%6.17%
Return on Equity (Normalized)
 36.91%12.75%—
Return on Invested Capital (Normalized)
 34.52%8.37%24.55%
Return on Assets
ANET
HPE
DELL
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