Arista Networks, Inc. (ANET) on Decifer

Decifer ranks ANET number 6 of 277 tracked names on durable business quality.

Why it ranks here

• It earns strong returns on the money it puts to work, around 23% and those returns have been improving and it turns most of its profit into real cash.
• Revenue is expected to grow about 30% a year, profits grew 23% over the past year, and growth is speeding up, not slowing down.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power, with profitability widening as it grows.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• It is not watering down its owners with new shares and it returns cash to shareholders.
• Our durability check found pressure on this name, which costs it a few points.
• One of only 2 credible cluster network switching suppliers with returns around 23% and the AI buildout only partly priced in, this is highly investable with momentum of 17, actually 22.

The current read

The evidence on ANET lines up on the supportive side: the intelligence feed flags this name as connected to what is moving markets now. The independent signals we track are telling the same story.

Themes

• Cloud & Data Platform Migration: Enterprises are still mid-cycle in migrating compute, storage and applications off legacy on-prem stacks toward hybrid and public cloud architectures.

Read the full ANET research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.