Arista Networks (NYSE:ANET), a profitable tech company, has been witnessing impressive growth in its earnings per share (EPS) over the past three years. The company's EPS has grown by a compound 31% per year, a trend that has caught the attention of many investors. If Arista Networks can maintain this level of growth, shareholders are likely to be satisfied.
Over the last year, Arista Networks has not only grown its revenues but also improved its earnings before interest and tax (EBIT) margins by 3.6 percentage points to 36%. Both metrics are positive indicators for potential growth.
Insiders at Arista Networks have shown their confidence in the company by investing heavily in it. Despite being a large $61 billion company, insiders hold an impressive stake worth $11 billion, which amounts to 19% of the company's shares. This substantial investment is seen as a strong endorsement of the company's strategy and future prospects.
The CEO compensation at Arista Networks also appears reasonable when compared with similar-sized companies. The median total compensation for CEOs of companies of similar size, with market caps over $8.0 billion, is around $12 million. The CEO of Arista Networks received a total compensation package worth $11 million in the year leading up to December 2022, which is below the average for similar-sized companies.
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