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Arista Networks, Inc. (NYSE:ANET) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of ANET, it is a company with robust financial health as well as an optimistic future outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Arista Networks here.
Flawless balance sheet with reasonable growth potential
Investors seeking high cash growth potential should consider ANET, with forecasted operating cash flow growth of triple-digits in the upcoming year. This underlies the notable 24% return on equity over the next few years leading up to 2022. ANET's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that ANET manages its cash and cost levels well, which is a key determinant of the company’s health. Looking at ANET's capital structure, the company has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is rather impressive for a US$21b market cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
For Arista Networks, I've put together three pertinent factors you should further research:
- Historical Performance: What has ANET's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Valuation: What is ANET worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ANET is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ANET? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.