Arista Networks' (NYSE:ANET) Five-year Total Shareholder Returns Outpace the Underlying Earnings Growth
Arista Networks' (NYSE:ANET) Five-year Total Shareholder Returns Outpace the Underlying Earnings Growth
For many, the main point of investing in the stock market is to achieve spectacular returns. While the best companies are hard to find, but they can generate massive returns over long periods. Don't believe it? Then look at the Arista Networks, Inc. (NYSE:ANET) share price. It's 406% higher than it was five years ago. This just goes to show the value creation that some businesses can achieve. On top of that, the share price is up 36% in about a quarter.
许多人投资股票市场的主要目的是获得惊人的回报。尽管最好的企业很难找到,但它们可以在长期内获得巨大的回报。不相信吗?那就看看Arista Networks, Inc. (纽交所:ANET)的股价吧。它比五年前高出406%。这显示了一些企业可以创造的价值。此外,股价在大约一个季度内上涨了36%。
Although Arista Networks has shed US$3.6b from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.
虽然Arista Networks上周市值缩水了36亿美元,但让我们来看看它的长期基本趋势,然后再看看它是否带来了回报。
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
虽然一些人仍然相信有效市场假说,但已经证明市场是过度反应的动态系统,投资者并不总是理性的。一个不完美但简单的方法来考虑公司市场看法的变化是比较每股收益(EPS)的变化和股价的波动。
During five years of share price growth, Arista Networks achieved compound earnings per share (EPS) growth of 42% per year. This EPS growth is reasonably close to the 38% average annual increase in the share price. That suggests that the market sentiment around the company hasn't changed much over that time. Rather, the share price has approximately tracked EPS growth.
在五年的股价增长期间,Arista Networks每股收益增长了42%。这种每股收益增长与股价平均年增长率38%相当接近。这表明公司的市场情绪在那段时间内没有太大变化。相反,股价大约跟随每股收益增长。
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
下面可以看到每股收益随时间的变化情况(通过点击图像来查看确切数值)。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240724/0-c3a34600a1aaafa11c65421ae2d6cfa8-0-1104009ccb408d35d2888724dda57c7b.png/big)
It is of course excellent to see how Arista Networks has grown profits over the years, but the future is more important for shareholders. If you are thinking of buying or selling Arista Networks stock, you should check out this FREE detailed report on its balance sheet.
看到Arista Networks这些年来利润的增长当然非常出色,但未来对于股东更加重要。如果您想买或卖Arista Networks的股票,您应该查看其资产负债表的这份免费详细报告。
A Different Perspective
不同的观点
We're pleased to report that Arista Networks shareholders have received a total shareholder return of 99% over one year. That gain is better than the annual TSR over five years, which is 38%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Arista Networks better, we need to consider many other factors. Even so, be aware that Arista Networks is showing 1 warning sign in our investment analysis , you should know about...
我们很高兴地报道,Arista Networks的股东在一年内获得了99%的股东回报。这种收益优于五年的年度总股东回报率,为38%。因此,似乎近期围绕该公司的情绪一直是积极的。有乐观的角度可以认为,近期的TSR的改善表明该企业本身正在变得越来越好。
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
当然,您可能在其他地方找到一家出色的企业进行投资。因此,请查看我们预计将实现盈利增长的公司的免费列表。
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
请注意,本文所引述的市场回报反映了目前在美国交易所上市的股票的市场加权平均回报。
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
对本文有任何反馈?对内容有任何疑虑?请直接与我们联系。或者,发送电子邮件至editorial-team@simplywallst.com。
这篇文章是Simply Wall St的一般性文章。我们根据历史数据和分析师预测提供评论,只使用公正的方法论,我们的文章并不意味着提供任何金融建议。文章不构成买卖任何股票的建议,也不考虑您的目标或您的财务状况。我们的目标是带给您基本数据驱动的长期关注分析。请注意,我们的分析可能不考虑最新的价格敏感公司公告或定性材料。Simply Wall St没有任何股票头寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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