JUNIPER NETWORKS INC (JNPR) Stock Fundamental Analysis
NYSE:JNPR - New York Stock Exchange, Inc. - US48203R1041 - Common Stock - Currency: USD
Taking everything into account, JNPR scores 5 out of 10 in our fundamental rating. JNPR was compared to 49 industry peers in the Communications Equipment industry. Both the profitability and the financial health of JNPR get a neutral evaluation. Nothing too spectacular is happening here. JNPR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
JNPR had positive earnings in the past year.
In the past year JNPR had a positive cash flow from operations.
JNPR had positive earnings in each of the past 5 years.
In the past 5 years JNPR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of JNPR (2.88%) is better than 71.43% of its industry peers.
Looking at the Return On Equity, with a value of 6.02%, JNPR is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
JNPR has a Return On Invested Capital of 3.90%. This is in the better half of the industry: JNPR outperforms 67.35% of its industry peers.
JNPR had an Average Return On Invested Capital over the past 3 years of 5.28%. This is significantly below the industry average of 10.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 6.02% | ||
| ROIC | 3.9% |
ROA(3y)3.73%
ROA(5y)3.36%
ROE(3y)7.82%
ROE(5y)6.99%
ROIC(3y)5.28%
ROIC(5y)5.06%
1.3 Margins
The Profit Margin of JNPR (5.67%) is better than 73.47% of its industry peers.
In the last couple of years the Profit Margin of JNPR has declined.
JNPR's Operating Margin of 7.17% is fine compared to the rest of the industry. JNPR outperforms 69.39% of its industry peers.
In the last couple of years the Operating Margin of JNPR has declined.
JNPR's Gross Margin of 58.77% is amongst the best of the industry. JNPR outperforms 81.63% of its industry peers.
JNPR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.17% | ||
| PM (TTM) | 5.67% | ||
| GM | 58.77% |
OM growth 3Y-7.6%
OM growth 5Y-7.76%
PM growth 3Y2.07%
PM growth 5Y-6.07%
GM growth 3Y0.52%
GM growth 5Y-0.03%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so JNPR is destroying value.
JNPR has more shares outstanding than it did 1 year ago.
JNPR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for JNPR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.82 indicates that JNPR is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 1.82, JNPR is doing good in the industry, outperforming 65.31% of the companies in the same industry.
JNPR has a debt to FCF ratio of 2.40. This is a good value and a sign of high solvency as JNPR would need 2.40 years to pay back of all of its debts.
JNPR's Debt to FCF ratio of 2.40 is fine compared to the rest of the industry. JNPR outperforms 61.22% of its industry peers.
JNPR has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
JNPR has a Debt to Equity ratio (0.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | 1.82 |
ROIC/WACC0.41
WACC9.47%
2.3 Liquidity
JNPR has a Current Ratio of 1.46. This is a normal value and indicates that JNPR is financially healthy and should not expect problems in meeting its short term obligations.
JNPR's Current ratio of 1.46 is on the low side compared to the rest of the industry. JNPR is outperformed by 71.43% of its industry peers.
A Quick Ratio of 1.14 indicates that JNPR should not have too much problems paying its short term obligations.
JNPR has a worse Quick ratio (1.14) than 65.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The earnings per share for JNPR have decreased strongly by -24.23% in the last year.
The Revenue has decreased by -8.82% in the past year.
Measured over the past years, JNPR shows a small growth in Revenue. The Revenue has been growing by 2.68% on average per year.
EPS 1Y (TTM)-24.23%
EPS 3Y-0.57%
EPS 5Y0%
EPS Q2Q%4.92%
Revenue 1Y (TTM)-8.82%
Revenue growth 3Y2.33%
Revenue growth 5Y2.68%
Sales Q2Q%2.88%
3.2 Future
Based on estimates for the next years, JNPR will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.85% on average per year.
JNPR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.08% yearly.
EPS Next Y23.3%
EPS Next 2Y15.23%
EPS Next 3Y12.85%
EPS Next 5YN/A
Revenue Next Year6.65%
Revenue Next 2Y5.3%
Revenue Next 3Y5.08%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.13, the valuation of JNPR can be described as rather expensive.
Based on the Price/Earnings ratio, JNPR is valued a bit cheaper than the industry average as 67.35% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.33, JNPR is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.33, which indicates a correct valuation of JNPR.
JNPR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. JNPR is cheaper than 61.22% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.37. JNPR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.13 | ||
| Fwd PE | 16.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of JNPR is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, JNPR is valued a bit cheaper than 67.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.21 | ||
| EV/EBITDA | 22.37 |
4.3 Compensation for Growth
JNPR's 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.
A more expensive valuation may be justified as JNPR's earnings are expected to grow with 12.85% in the coming years.
PEG (NY)0.86
PEG (5Y)N/A
EPS Next 2Y15.23%
EPS Next 3Y12.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.56%, JNPR has a reasonable but not impressive dividend return.
JNPR's Dividend Yield is rather good when compared to the industry average which is at 3.74. JNPR pays more dividend than 83.67% of the companies in the same industry.
JNPR's Dividend Yield is comparable with the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
5.2 History
The dividend of JNPR has a limited annual growth rate of 3.01%.
JNPR has been paying a dividend for at least 10 years, so it has a reliable track record.
JNPR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.01%
Div Incr Years2
Div Non Decr Years10
5.3 Sustainability
100.24% of the earnings are spent on dividend by JNPR. This is not a sustainable payout ratio.
The dividend of JNPR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP100.24%
EPS Next 2Y15.23%
EPS Next 3Y12.85%
34.63
+0.59 (+1.73%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners85.47%
Inst Owner Change0.05%
Ins Owners1.25%
Ins Owner Change7.65%
Market Cap11.58B
Analysts70
Price Target40.67 (17.44%)
Short Float %2.61%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Yearly Dividend0.88
Dividend Growth(5Y)3.01%
DP100.24%
Div Incr Years2
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.41%
Min EPS beat(2)6.97%
Max EPS beat(2)7.86%
EPS beat(4)2
Avg EPS beat(4)-11.18%
Min EPS beat(4)-30.7%
Max EPS beat(4)7.86%
EPS beat(8)5
Avg EPS beat(8)-3.77%
EPS beat(12)6
Avg EPS beat(12)-2.47%
EPS beat(16)9
Avg EPS beat(16)-0.17%
Revenue beat(2)1
Avg Revenue beat(2)1.2%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)3.58%
Revenue beat(4)1
Avg Revenue beat(4)-3.46%
Min Revenue beat(4)-9.39%
Max Revenue beat(4)3.58%
Revenue beat(8)2
Avg Revenue beat(8)-2.59%
Revenue beat(12)3
Avg Revenue beat(12)-2.01%
Revenue beat(16)5
Avg Revenue beat(16)-1.66%
PT rev (1m)0%
PT rev (3m)0.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13.76%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)4.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.3%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.13 | ||
| Fwd PE | 16.33 | ||
| P/S | 2.28 | ||
| P/FCF | 17.21 | ||
| P/OCF | 14.69 | ||
| P/B | 2.42 | ||
| P/tB | 11.49 | ||
| EV/EBITDA | 22.37 |
EPS(TTM)1.72
EY4.97%
EPS(NY)2.12
Fwd EY6.12%
FCF(TTM)2.01
FCFY5.81%
OCF(TTM)2.36
OCFY6.81%
SpS15.18
BVpS14.31
TBVpS3.01
PEG (NY)0.86
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 6.02% | ||
| ROCE | 4.94% | ||
| ROIC | 3.9% | ||
| ROICexc | 4.8% | ||
| ROICexgc | 13.04% | ||
| OM | 7.17% | ||
| PM (TTM) | 5.67% | ||
| GM | 58.77% | ||
| FCFM | 13.26% |
ROA(3y)3.73%
ROA(5y)3.36%
ROE(3y)7.82%
ROE(5y)6.99%
ROIC(3y)5.28%
ROIC(5y)5.06%
ROICexc(3y)6.32%
ROICexc(5y)6.19%
ROICexgc(3y)16.91%
ROICexgc(5y)18.5%
ROCE(3y)6.68%
ROCE(5y)6.4%
ROICexcg growth 3Y-12.85%
ROICexcg growth 5Y-8.88%
ROICexc growth 3Y-6.56%
ROICexc growth 5Y-7.42%
OM growth 3Y-7.6%
OM growth 5Y-7.76%
PM growth 3Y2.07%
PM growth 5Y-6.07%
GM growth 3Y0.52%
GM growth 5Y-0.03%
F-Score5
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.4 | ||
| Debt/EBITDA | 2.33 | ||
| Cap/Depr | 73.61% | ||
| Cap/Sales | 2.28% | ||
| Interest Coverage | 4.4 | ||
| Cash Conversion | 151.35% | ||
| Profit Quality | 233.62% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 1.82 |
F-Score5
WACC9.47%
ROIC/WACC0.41
Cap/Depr(3y)67.92%
Cap/Depr(5y)58.63%
Cap/Sales(3y)2.37%
Cap/Sales(5y)2.3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-24.23%
EPS 3Y-0.57%
EPS 5Y0%
EPS Q2Q%4.92%
EPS Next Y23.3%
EPS Next 2Y15.23%
EPS Next 3Y12.85%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.82%
Revenue growth 3Y2.33%
Revenue growth 5Y2.68%
Sales Q2Q%2.88%
Revenue Next Year6.65%
Revenue Next 2Y5.3%
Revenue Next 3Y5.08%
Revenue Next 5YN/A
EBIT growth 1Y-35.96%
EBIT growth 3Y-5.45%
EBIT growth 5Y-5.29%
EBIT Next Year54.04%
EBIT Next 3Y20.5%
EBIT Next 5YN/A
FCF growth 1Y-5.72%
FCF growth 3Y4.48%
FCF growth 5Y9.91%
OCF growth 1Y-9.7%
OCF growth 3Y4.55%
OCF growth 5Y8.3%