NYSE:JNPR, an undervalued stock with good fundamentals.

Our stock screener has singled out JUNIPER NETWORKS INC (NYSE:JNPR) as a stellar value proposition. NYSE:JNPR not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Assessing Valuation for NYSE:JNPR

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:JNPR has achieved a 7 out of 10:

• Compared to the rest of the industry, the Price/Earnings ratio of JNPR indicates a somewhat cheap valuation: JNPR is cheaper than 77.59% of the companies listed in the same industry.
• The average S&P500 Price/Earnings ratio is at 26.17. JNPR is valued rather cheaply when compared to this.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of JNPR indicates a somewhat cheap valuation: JNPR is cheaper than 74.14% of the companies listed in the same industry.
• JNPR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.06.
• Based on the Enterprise Value to EBITDA ratio, JNPR is valued a bit cheaper than the industry average as 74.14% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, JNPR is valued cheaper than 87.93% of the companies 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.

Profitability Insights: 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:

• JNPR has a better Return On Assets (3.89%) than 72.41% of its industry peers.
• With a decent Return On Equity value of 8.46%, JNPR is doing good in the industry, outperforming 79.31% of the companies in the same industry.
• JNPR's Return On Invested Capital of 7.41% is fine compared to the rest of the industry. JNPR outperforms 79.31% of its industry peers.
• 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.
• The Profit Margin of JNPR (6.48%) is better than 75.86% of its industry peers.
• In the last couple of years the Profit Margin of JNPR has grown nicely.
• With an excellent Operating Margin value of 11.05%, JNPR belongs to the best of the industry, outperforming 84.48% of the companies in the same industry.
• JNPR has a Gross Margin of 57.04%. This is amongst the best in the industry. JNPR outperforms 81.03% of its industry peers.

How We Gauge Health for NYSE:JNPR

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:JNPR scores a 5 out of 10:

• Looking at the Altman-Z score, with a value of 1.78, JNPR is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
• 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 75.86% 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.
• Although JNPR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

ChartMill's Evaluation of Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:JNPR was assigned a score of 5 for growth:

• The Earnings Per Share has grown by an impressive 23.53% over the past year.
• Looking at the last year, JNPR shows a quite strong growth in Revenue. The Revenue has grown by 9.63% in the last year.
• JNPR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.87% yearly.
• 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.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of JNPR for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.