Arista Networks Inc (ANET, Financial), a leading player in the hardware industry, has been making waves in the stock market. As of August 1, 2023, the company's stock price stands at $184.71, with a market capitalization of $56.9 billion. The stock has seen a significant gain of 19.1% today and a 14.25% increase over the past four weeks. The company's impressive performance is reflected in its GF Score of 99 out of 100, indicating the highest outperformance potential.
Financial Strength: A Solid Foundation
Arista Networks Inc's Financial Strength rank is 8 out of 10, indicating a robust financial situation. The company's low debt to revenue ratio of 0.01 and a high Altman Z score of 15.20 contribute to this strong ranking, demonstrating the company's minimal debt burden and low bankruptcy risk.
Profitability Rank: Consistently High
The company's Profitability Rank is a perfect 10 out of 10. This is due to its high operating margin of 36.12%, a solid Piotroski F-Score of 7, and a consistent profitability trend over the past 10 years. The company's profitability has been consistent, with a 10-year profitability streak and a predictability rank of 3.
Growth Rank: Steady and Impressive
Arista Networks Inc also boasts a Growth Rank of 10 out of 10, reflecting its strong revenue and profitability growth. The company's 5-year revenue growth rate stands at 18.20%, and its 3-year revenue growth rate is 22.90%. The 5-year EBITDA growth rate is an impressive 29.60%, indicating a consistent and robust growth trajectory.
GF Value Rank: Fairly Valued
The company's GF Value Rank is 7 out of 10, suggesting that the stock is fairly valued. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on the company's past returns and growth.
Momentum Rank: Strong Momentum
The Momentum Rank of Arista Networks Inc is 9 out of 10, indicating strong momentum in the company's stock price. This rank is determined using the standardized momentum ratio and other momentum indicators.
Comparison with Competitors
When compared to its competitors in the hardware industry, Arista Networks Inc stands out with its high GF Score. Dell Technologies Inc (DELL, Financial) has a GF Score of 71 and a market cap of $38.94 billion. HP Inc (HPQ, Financial) has a GF Score of 86 and a market cap of $32.48 billion. Western Digital Corp (WDC, Financial) has a GF Score of 62 and a market cap of $13.59 billion.
Conclusion
In conclusion, Arista Networks Inc's high GF Score of 99, coupled with its strong financial strength, profitability, growth, value, and momentum ranks, make it a compelling choice for investors. The company's consistent performance and potential for future growth further enhance its appeal. However, as with any investment, it's crucial to conduct thorough research and consider various factors before making a decision.
