JUNIPER NETWORKS INC (JNPR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:JNPR - US48203R1041 - Common Stock
39.95 USD
+0.02 (+0.05%)
40 USD
+0.05 (+0.13%)
We assign a fundamental rating of 5 out of 10 to JNPR. JNPR was compared to 48 industry peers in the Communications Equipment industry. JNPR has only an average score on both its financial health and profitability. JNPR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year JNPR was profitable.
In the past year JNPR had a positive cash flow from operations.
JNPR had positive earnings in each of the past 5 years.
Each year in the past 5 years JNPR had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.50%, JNPR is doing good in the industry, outperforming 74.00% of the companies in the same industry.
With a decent Return On Equity value of 7.31%, JNPR is doing good in the industry, outperforming 78.00% of the companies in the same industry.
JNPR's Return On Invested Capital of 4.51% is fine compared to the rest of the industry. JNPR outperforms 70.00% 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 12.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 7.31% | ||
| ROIC | 4.51% |
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
JNPR has a better Profit Margin (6.78%) than 78.00% of its industry peers.
In the last couple of years the Profit Margin of JNPR has declined.
JNPR has a Operating Margin of 8.75%. This is in the better half of the industry: JNPR outperforms 74.00% of its industry peers.
In the last couple of years the Operating Margin of JNPR has declined.
JNPR has a better Gross Margin (58.70%) than 82.00% of its industry peers.
JNPR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.75% | ||
| PM (TTM) | 6.78% | ||
| GM | 58.7% |
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
JNPR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for JNPR has been increased compared to 1 year ago.
Compared to 5 years ago, JNPR has less shares outstanding
The debt/assets ratio for JNPR has been reduced compared to a year ago.
2.2 Solvency
JNPR has an Altman-Z score of 2.06. This is not the best score and indicates that JNPR is in the grey zone with still only limited risk for bankruptcy at the moment.
JNPR has a Altman-Z score of 2.06. This is comparable to the rest of the industry: JNPR outperforms 60.00% of its industry peers.
The Debt to FCF ratio of JNPR is 2.41, which is a good value as it means it would take JNPR, 2.41 years of fcf income to pay off all of its debts.
JNPR has a Debt to FCF ratio of 2.41. This is in the better half of the industry: JNPR outperforms 66.00% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that JNPR is not too dependend on debt financing.
The Debt to Equity ratio of JNPR (0.34) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 2.06 |
ROIC/WACC0.46
WACC9.78%
2.3 Liquidity
A Current Ratio of 1.49 indicates that JNPR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.49, JNPR is doing worse than 64.00% of the companies in the same industry.
A Quick Ratio of 1.16 indicates that JNPR should not have too much problems paying its short term obligations.
JNPR has a Quick ratio (1.16) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
JNPR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.58%.
JNPR shows a decrease in Revenue. In the last year, the revenue decreased by -2.56%.
The Revenue has been growing slightly by 2.68% on average over the past years.
EPS 1Y (TTM)-10.58%
EPS 3Y-0.57%
EPS 5Y0%
EPS Q2Q%48.28%
Revenue 1Y (TTM)-2.56%
Revenue growth 3Y2.33%
Revenue growth 5Y2.68%
Sales Q2Q%11.43%
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 11.03% on average per year.
JNPR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.26% yearly.
EPS Next Y21.27%
EPS Next 2Y14.2%
EPS Next 3Y11.03%
EPS Next 5YN/A
Revenue Next Year6.69%
Revenue Next 2Y5.29%
Revenue Next 3Y5.26%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
JNPR is valuated rather expensively with a Price/Earnings ratio of 21.48.
Compared to the rest of the industry, the Price/Earnings ratio of JNPR indicates a somewhat cheap valuation: JNPR is cheaper than 68.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, JNPR is valued at the same level.
With a Price/Forward Earnings ratio of 17.81, JNPR is valued on the expensive side.
JNPR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. JNPR is cheaper than 62.00% of the companies in the same industry.
JNPR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.48 | ||
| Fwd PE | 17.81 |
4.2 Price Multiples
JNPR's Enterprise Value to EBITDA ratio is in line with the industry average.
72.00% of the companies in the same industry are more expensive than JNPR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.8 | ||
| EV/EBITDA | 21.11 |
4.3 Compensation for Growth
JNPR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of JNPR may justify a higher PE ratio.
PEG (NY)1.01
PEG (5Y)N/A
EPS Next 2Y14.2%
EPS Next 3Y11.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.20%, JNPR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.35, JNPR pays a better dividend. On top of this JNPR pays more dividend than 86.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, JNPR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
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 Years0
Div Non Decr Years10
5.3 Sustainability
JNPR pays out 82.37% of its income as dividend. This is not a sustainable payout ratio.
JNPR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP82.37%
EPS Next 2Y14.2%
EPS Next 3Y11.03%
39.95
+0.02 (+0.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners87.39%
Inst Owner Change-96.99%
Ins Owners1.36%
Ins Owner Change-55.46%
Market Cap13.36B
Revenue(TTM)5.20B
Net Income(TTM)352.80M
Analysts70
Price Target40.8 (2.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
Yearly Dividend0.88
Dividend Growth(5Y)3.01%
DP82.37%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.79%
Min EPS beat(2)-2.27%
Max EPS beat(2)7.86%
EPS beat(4)2
Avg EPS beat(4)-4.54%
Min EPS beat(4)-30.7%
Max EPS beat(4)7.86%
EPS beat(8)4
Avg EPS beat(8)-5.17%
EPS beat(12)6
Avg EPS beat(12)-2.33%
EPS beat(16)8
Avg EPS beat(16)-1.33%
Revenue beat(2)0
Avg Revenue beat(2)-1.69%
Min Revenue beat(2)-2.2%
Max Revenue beat(2)-1.19%
Revenue beat(4)1
Avg Revenue beat(4)-1.66%
Min Revenue beat(4)-6.84%
Max Revenue beat(4)3.58%
Revenue beat(8)1
Avg Revenue beat(8)-2.91%
Revenue beat(12)3
Avg Revenue beat(12)-2.09%
Revenue beat(16)5
Avg Revenue beat(16)-1.78%
PT rev (1m)0%
PT rev (3m)0.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.84%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.48 | ||
| Fwd PE | 17.81 | ||
| P/S | 2.57 | ||
| P/FCF | 19.8 | ||
| P/OCF | 17.14 | ||
| P/B | 2.77 | ||
| P/tB | 12.57 | ||
| EV/EBITDA | 21.11 |
EPS(TTM)1.86
EY4.66%
EPS(NY)2.24
Fwd EY5.61%
FCF(TTM)2.02
FCFY5.05%
OCF(TTM)2.33
OCFY5.84%
SpS15.57
BVpS14.44
TBVpS3.18
PEG (NY)1.01
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 7.31% | ||
| ROCE | 6% | ||
| ROIC | 4.51% | ||
| ROICexc | 5.6% | ||
| ROICexgc | 13.53% | ||
| OM | 8.75% | ||
| PM (TTM) | 6.78% | ||
| GM | 58.7% | ||
| FCFM | 12.96% |
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%
ROICexgc growth 3Y-12.85%
ROICexgc 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-Score6
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.41 | ||
| Debt/EBITDA | 2.69 | ||
| Cap/Depr | 70.38% | ||
| Cap/Sales | 2.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 128.99% | ||
| Profit Quality | 191.21% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 2.06 |
F-Score6
WACC9.78%
ROIC/WACC0.46
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)-10.58%
EPS 3Y-0.57%
EPS 5Y0%
EPS Q2Q%48.28%
EPS Next Y21.27%
EPS Next 2Y14.2%
EPS Next 3Y11.03%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.56%
Revenue growth 3Y2.33%
Revenue growth 5Y2.68%
Sales Q2Q%11.43%
Revenue Next Year6.69%
Revenue Next 2Y5.29%
Revenue Next 3Y5.26%
Revenue Next 5YN/A
EBIT growth 1Y-3.38%
EBIT growth 3Y-5.45%
EBIT growth 5Y-5.29%
EBIT Next Year49.52%
EBIT Next 3Y18.79%
EBIT Next 5YN/A
FCF growth 1Y2674.81%
FCF growth 3Y4.48%
FCF growth 5Y9.91%
OCF growth 1Y712.08%
OCF growth 3Y4.55%
OCF growth 5Y8.3%
JUNIPER NETWORKS INC / JNPR FAQ
What is the ChartMill fundamental rating of JUNIPER NETWORKS INC (JNPR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to JNPR.
What is the valuation status of JUNIPER NETWORKS INC (JNPR) stock?
ChartMill assigns a valuation rating of 4 / 10 to JUNIPER NETWORKS INC (JNPR). This can be considered as Fairly Valued.
What is the profitability of JNPR stock?
JUNIPER NETWORKS INC (JNPR) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for JNPR stock?
The Price/Earnings (PE) ratio for JUNIPER NETWORKS INC (JNPR) is 21.48 and the Price/Book (PB) ratio is 2.77.
What is the financial health of JUNIPER NETWORKS INC (JNPR) stock?
The financial health rating of JUNIPER NETWORKS INC (JNPR) is 5 / 10.