In a market where value is scarce, NYSE:JNPR offers a refreshing opportunity with its solid fundamentals.

Last update: Nov 8, 2023

Discover JUNIPER NETWORKS INC (NYSE:JNPR)—an undervalued stock our stock screener has picked out. NYSE:JNPR demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

A Closer Look at Valuation for NYSE:JNPR

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:JNPR was assigned a score of 7 for valuation:

The Price/Earnings ratio is 11.66, which indicates a very decent valuation of JNPR.
Based on the Price/Earnings ratio, JNPR is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 23.44. JNPR is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.26, the valuation of JNPR can be described as very reasonable.
Based on the Price/Forward Earnings ratio, JNPR is valued a bit cheaper than 70.00% of the companies in the same industry.
JNPR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 18.82.
Based on the Enterprise Value to EBITDA ratio, JNPR is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of JNPR indicates a rather cheap valuation: JNPR is cheaper than 91.67% of the companies listed in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of JNPR may justify a higher PE ratio.

How do we evaluate the Profitability for NYSE:JNPR?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:JNPR has achieved a 7:

With a decent Return On Assets value of 3.89%, JNPR is doing good in the industry, outperforming 66.67% of the companies in the same industry.
With a decent Return On Equity value of 8.46%, JNPR is doing good in the industry, outperforming 75.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.41%, JNPR is in the better half of the industry, outperforming 78.33% of the companies in the same industry.
The last Return On Invested Capital (7.41%) for JNPR is above the 3 year average (5.51%), which is a sign of increasing profitability.
JNPR has a Profit Margin of 6.48%. This is in the better half of the industry: JNPR outperforms 71.67% of its industry peers.
JNPR's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 11.05%, JNPR belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
The Gross Margin of JNPR (57.04%) is better than 80.00% of its industry peers.

Assessing Health for NYSE:JNPR

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:JNPR, the assigned 5 reflects its health status:

JNPR's Altman-Z score of 1.68 is fine compared to the rest of the industry. JNPR outperforms 65.00% of its industry peers.
The Debt to FCF ratio of JNPR is 1.92, which is an excellent value as it means it would take JNPR, only 1.92 years of fcf income to pay off all of its debts.
JNPR has a Debt to FCF ratio of 1.92. This is in the better half of the industry: JNPR outperforms 76.67% of its industry peers.
JNPR has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
Even though the debt/equity ratio score it not favorable for JNPR, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

Exploring NYSE:JNPR's Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:JNPR has received a 5 out of 10:

JNPR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.53%, which is quite impressive.
Looking at the last year, JNPR shows a quite strong growth in Revenue. The Revenue has grown by 9.63% in the last year.
The Earnings Per Share is expected to grow by 8.47% on average over the next years. This is quite good.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of JNPR

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.