ANET · Verdict

A summary of rules, not a profit forecast — don’t buy just because of a green verdict.

• ▼ P/E 53.3 — expensive for this stock (over 10 y: from 19.1 to 54.7)
• ▼ P/E 53.3 vs peer median 29.2 — more expensive than peers
• ▼ P/S 20.2 — expensive for this stock (over 10 y: from 6.3 to 20.2)
• ▼ P/S 20.2 vs peer median 10.1 — more expensive than peers
• ▼ EV/EBITDA 43.0 vs peer median 21.6 — more expensive than peers
• ▼ FCF yield 2.0% — expensive for this stock (over 8 y: from 1.2% to 5.8%)
• ▼ Cyclical company at peak earnings: P/E 53.3 is understated; on average earnings over 10 y it is 164.6
• ▲ Forward P/E 32.3 is below the current one — earnings growth expected

• ▲ ROE 31% — high return on equity
• ▲ Net margin rose: 30.9% → 39.0%
• ▲ Debt / equity 0.01 — moderate debt
• ▲ Free cash flow positive every year

• ▲ Revenue grows 31.2% per year (5 y)
• ▲ Earnings per share grows 40.6% per year (5 y)
• ▲ Analysts raised the earnings forecast by +13.2% in 90 days

• ▼ Over 6 mo weaker than its sector (XLK) by 15%
• ▲ Price above SMA200 — long-term uptrend
• ▲ SMA50 above SMA200 — trend up

• ▼ Earnings in 1 d — the price may move sharply (≈ ±10.2%)
• ▼ Risk/reward 1:1.0 — the target is closer than the stop
• ▼ Volatility 55% per year — much higher than the market (13%)
• ▼ Max drawdown in the period -50% — deep
• ▼ Beta 1.60 — moves more than the market

• ▲ Consensus of 29 analysts — buy
• ▲ Mean analyst target +44% from the current price
• ▼ Insiders selling over 6 mo

• ▲ S&P 500 above SMA200 — the market is in an uptrend
• ▲ Sector (XLK) above SMA200 — in an uptrend