Arista Networks, Inc. (ANET) Stock Analysis

Analysis from 10-Q filed 2025-11-05. Data as of Q4 2025.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 28.9%. FCF margin 48.5%. D/E 0.0x. Source: 10-Q filed 2025-11-05.

Metric	Value	Context
ROIC	28.9%	Above industry average
FCF Margin	48.5%	Strong cash generation
Debt/Equity	0.0x	Conservative leverage

ROIC 28.9% — Top 10% of sector peers. FCF margin 48.5% — Top 5%.

Explore Arista Networks, Inc.: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for ANET: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: Arista Networks, Inc. earns 28.9% ROIC, Top 10% in Technology

ROIC TTM 28.9%, sector median 4.6%, Top 10%. DuPont: NOPAT margin 35.4% × asset turnover 0.5x. Gross margin 64.1%. Operating margin 42.8%. Source: 10-Q filed 2025-11-05.

Metric	ANET	Rating	Context
Return on Invested Capital (ROIC)	28.9%	Excellent	Above sector median of 4.6%
Return on Equity (ROE)	31.8%	Excellent	Efficient use of shareholder equity
Gross Margin	64.1%	Excellent	Strong pricing power
Operating Margin	42.8%	Excellent	Efficient operations

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Cash Flow: Arista Networks, Inc. generates $4.4B FCF at 48.5% margin, positive NaN/8 quarters

FCF TTM $4.4B. FCF margin 48.5%, Top 5%. OCF/Net income 1.2x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-05.

Metric	ANET	Rating	Context
Free Cash Flow Margin	48.5%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$4.4B	Good	Positive cash generation
OCF/Net Income	1.2x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: Arista Networks, Inc. at 0.0x leverage

Debt/Equity 0.0x. Source: 10-Q filed 2025-11-05.

Metric	ANET	Rating	Context
Debt to Equity	0.0x	Excellent	Conservative capital structure

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Valuation: Arista Networks, Inc. trades at 46.8x earnings

P/E 46.8x. EV/Sales 17.3x. FCF yield 2.7%. Source: 10-Q filed 2025-11-05.

Metric	ANET	Rating	Context
P/E Ratio	46.8x	Adequate	Premium valuation
EV/Sales	17.3x	Warning	Growth premium priced in
FCF Yield	2.7%	Adequate	Lower cash yield

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Capital Allocation: Arista Networks, Inc. returns 1.0% shareholder yield

Total shareholder yield 1.0% (buyback 1.0%). Capital returned $1.6B TTM. Source: 10-Q filed 2025-11-05.

Metric	ANET	Rating	Context
Total Shareholder Yield	1.0%	Adequate	Dividend + buyback yield combined
Buyback Yield	1.0%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$1.6B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	28.9%	Top 10%	6.2x above
Free Cash Flow Margin	48.5%	Top 5%	5.7x above
Gross Margin	64.1%	Top 50%	1.3x above
Operating Margin	42.8%	Top 5%	8.9x above
Return on Equity (ROE)	31.8%	Top 25%	6.2x above
P/E Ratio	46.8x	N/A	-

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Financial Scorecard

Metric	ANET	Rating	Sector Context
Return on Invested Capital (ROIC)	28.9%	Excellent	Top 10% of sector (median: 4.6%)
Free Cash Flow Margin	48.5%	Excellent	Top 5% of sector (median: 8.5%)
Gross Margin	64.1%	Excellent	Top 50% of sector (median: 51.0%)
Debt to Equity Ratio	0.0%	Excellent	Conservative capital structure
P/E Ratio (Price-to-Earnings)	46.8x	Adequate	High expectations priced in
Free Cash Flow Yield	2.7%	Warning	Growth-focused valuation

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Frequently Asked Questions

Q: What is Arista Networks, Inc.'s Return on Invested Capital (ROIC)?

Arista Networks, Inc. (ANET) has a trailing twelve-month Return on Invested Capital (ROIC) of 28.9%. Sector median 4.6%. Source: 10-Q filed 2025-11-05.

Q: What is Arista Networks, Inc.'s Free Cash Flow Margin?

Arista Networks, Inc. (ANET) has a free cash flow margin of 48.5%, generating $4.4 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-05.

Q: What is Arista Networks, Inc.'s P/E ratio and how does it compare to peers?

Arista Networks, Inc. (ANET) trades at a P/E ratio of 46.8x, which is above the sector median of N/A. EV/Sales 17.3x. FCF yield 2.7%. Source: 10-Q filed 2025-11-05.

Q: What is Arista Networks, Inc.'s revenue and earnings growth?

Arista Networks, Inc. (ANET) grew revenue by 28.6% year-over-year. EPS +23.8% YoY. Source: 10-Q filed 2025-11-05.

Q: Is Arista Networks, Inc. buying back stock?

Arista Networks, Inc. (ANET) repurchased $1.6 billion of stock over the trailing twelve months. This represents a buyback yield of 1.0%. Source: 10-Q filed 2025-11-05.

Q: How does Arista Networks, Inc. compare to competitors in Technology?

Compared to other companies in Technology, Arista Networks, Inc. (ANET) shows: ROIC 28.9%, sector median 4.6% (Top 10%). FCF margin 48.5%, sector median 8.5% (Top 5%). Gross margin 64.1%, 13.0pp above sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.

Q: What warning signs should I watch for with Arista Networks, Inc.?

No quantitative warning flags fired for Arista Networks, Inc. (ANET) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-11-05.

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Data Source: Data sourced from 10-Q filed 2025-11-05. TTM metrics as of Q4 2025.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.