Why is Arista Networks, Inc. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 25.72%
- Healthy long term growth as Net Sales has grown by an annual rate of 28.49% and Operating profit at 36.60%
- Company has a low Debt to Equity ratio (avg) at times
2
The company has declared Positive results for the last 17 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 4,047.22 MM
- NET SALES(Q) Highest at USD 2,204.8 MM
- OPERATING PROFIT(Q) Highest at USD 999 MM
3
With ROE of 29.82%, it has a fair valuation with a 12.07 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 25.33%, its profits have risen by 33%
4
Market Beating Performance
- The stock has generated a return of 25.33% in the last 1 year, much higher than market (S&P 500) returns of 14.11%
How much should you buy?
- Overall Portfolio exposure to Arista Networks, Inc. should be less than 10%
- Overall Portfolio exposure to IT - Hardware should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Arista Networks, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Arista Networks, Inc.
88.02%
1.41
57.28%
S&P 500
25.41%
0.70
20.15%
Quality key factors
Factor
Value
Sales Growth (5y)
31.19%
EBIT Growth (5y)
40.69%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.81
Sales to Capital Employed (avg)
0.75
Tax Ratio
13.41%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
73.43%
ROCE (avg)
132.47%
ROE (avg)
25.72%
Valuation Key Factors 
Factor
Value
P/E Ratio
43
Industry P/E
Price to Book Value
12.27
EV to EBIT
36.57
EV to EBITDA
35.89
EV to Capital Employed
86.64
EV to Sales
15.66
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
236.93%
ROE (Latest)
28.39%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
20What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 5,423.7 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -91.59 %
INVENTORY TURNOVER RATIO(HY)
Highest at 1.63 times
NET SALES(Q)
Highest at USD 2,709 MM
OPERATING PROFIT(Q)
Highest at USD 1,181.1 MM
CASH AND EQV(HY)
Highest at USD 23,096.2 MM
PRE-TAX PROFIT(Q)
Highest at USD 1,271.4 MM
NET PROFIT(Q)
Highest at USD 1,022.9 MM
EPS(Q)
Highest at USD 0.8
-3What is not working for the Company
ROCE(HY)
Lowest at 31.52%
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.78 times
Here's what is working for Arista Networks, Inc.
Operating Cash Flow
Highest at USD 5,423.7 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 2,709 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Operating Profit
Highest at USD 1,181.1 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (USD MM)
Debt-Equity Ratio
Lowest at -91.59 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 1.63 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Net Sales
At USD 2,709 MM has Grown at 35.13%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Pre-Tax Profit
Highest at USD 1,271.4 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 1,022.9 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.8
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Cash and Eqv
Highest at USD 23,096.2 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Depreciation
Highest at USD 23.3 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Arista Networks, Inc.
Debtors Turnover Ratio
Lowest at 5.78 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






