JUNIPER NETWORKS INC (JNPR)
US48203R1041 - Common Stock
We assign a fundamental rating of 4 out of 10 to JNPR. JNPR was compared to 51 industry peers in the Communications Equipment industry. JNPR has an average financial health and profitability rating. JNPR has a valuation in line with the averages, but it does not seem to be growing.
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.
Each year in the past 5 years JNPR has been profitable.
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 2.61%, JNPR is doing good in the industry, outperforming 76.47% of the companies in the same industry.
JNPR has a Return On Equity of 5.39%. This is in the better half of the industry: JNPR outperforms 76.47% of its industry peers.
JNPR has a better Return On Invested Capital (3.96%) than 68.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for JNPR is below the industry average of 10.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.61% | ||
| ROE | 5.39% | ||
| ROIC | 3.96% |
ROA(3y)3.72%
ROA(5y)3.56%
ROE(3y)7.76%
ROE(5y)7.29%
ROIC(3y)6.39%
ROIC(5y)6.06%
1.3 Margins
Looking at the Profit Margin, with a value of 4.97%, JNPR belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
JNPR's Profit Margin has declined in the last couple of years.
JNPR has a Operating Margin of 6.59%. This is in the better half of the industry: JNPR outperforms 72.55% of its industry peers.
JNPR's Operating Margin has declined in the last couple of years.
JNPR has a Gross Margin of 58.60%. This is amongst the best in the industry. JNPR outperforms 84.31% of its industry peers.
JNPR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.59% | ||
| PM (TTM) | 4.97% | ||
| GM | 58.6% |
OM growth 3Y2.53%
OM growth 5Y-3.92%
PM growth 3Y-1.31%
PM growth 5Y-14.5%
GM growth 3Y-0.21%
GM growth 5Y-0.49%
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.
Compared to 1 year ago, JNPR has less shares outstanding
Compared to 5 years ago, JNPR has less shares outstanding
Compared to 1 year ago, JNPR has an improved debt to assets ratio.
2.2 Solvency
JNPR has an Altman-Z score of 2.04. 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 2.04. This is in the better half of the industry: JNPR outperforms 66.67% of its industry peers.
JNPR has a debt to FCF ratio of 4.15. This is a neutral value as JNPR would need 4.15 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.15, JNPR is in line with its industry, outperforming 58.82% of the companies in the same industry.
A Debt/Equity ratio of 0.35 indicates that JNPR is not too dependend on debt financing.
JNPR has a Debt to Equity ratio of 0.35. This is comparable to the rest of the industry: JNPR outperforms 43.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.15 | ||
| Altman-Z | 2.04 |
ROIC/WACC0.43
WACC9.32%
2.3 Liquidity
JNPR has a Current Ratio of 1.72. This is a normal value and indicates that JNPR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.72, JNPR is doing worse than 64.71% of the companies in the same industry.
JNPR has a Quick Ratio of 1.30. This is a normal value and indicates that JNPR is financially healthy and should not expect problems in meeting its short term obligations.
JNPR has a worse Quick ratio (1.30) than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
JNPR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.84%.
Measured over the past 5 years, JNPR shows a small growth in Earnings Per Share. The EPS has been growing by 3.73% on average per year.
Looking at the last year, JNPR shows a very negative growth in Revenue. The Revenue has decreased by -10.87% in the last year.
The Revenue has been growing slightly by 3.67% on average over the past years.
EPS 1Y (TTM)-26.84%
EPS 3Y13.32%
EPS 5Y3.73%
EPS Q2Q%-20%
Revenue 1Y (TTM)-10.87%
Revenue growth 3Y7.77%
Revenue growth 5Y3.67%
Sales Q2Q%-4.78%
3.2 Future
The Earnings Per Share is expected to decrease by -3.48% on average over the next years.
Based on estimates for the next years, JNPR will show a decrease in Revenue. The Revenue will decrease by -1.15% on average per year.
EPS Next Y-24.4%
EPS Next 2Y-5.62%
EPS Next 3Y-3.48%
EPS Next 5YN/A
Revenue Next Year-9.15%
Revenue Next 2Y-2.34%
Revenue Next 3Y-1.15%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.60, JNPR is valued on the expensive side.
Based on the Price/Earnings ratio, JNPR is valued a bit cheaper than 74.51% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.53. JNPR is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 18.06, JNPR is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of JNPR indicates a somewhat cheap valuation: JNPR is cheaper than 62.75% 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 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.6 | ||
| Fwd PE | 18.06 |
4.2 Price Multiples
62.75% of the companies in the same industry are more expensive than JNPR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, JNPR is valued a bit cheaper than 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.52 | ||
| EV/EBITDA | 25.83 |
4.3 Compensation for Growth
JNPR has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as JNPR's earnings are expected to decrease with -3.48% in the coming years.
PEG (NY)N/A
PEG (5Y)5.79
EPS Next 2Y-5.62%
EPS Next 3Y-3.48%
5. Dividend
5.1 Amount
JNPR has a Yearly Dividend Yield of 2.26%.
JNPR's Dividend Yield is rather good when compared to the industry average which is at 10.56. JNPR pays more dividend than 82.35% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.21, JNPR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
5.2 History
The dividend of JNPR has a limited annual growth rate of 3.39%.
JNPR has paid a dividend for at least 10 years, which is a reliable track record.
As JNPR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)3.39%
Div Incr Years2
Div Non Decr Years9
5.3 Sustainability
114.27% of the earnings are spent on dividend by JNPR. This is not a sustainable payout ratio.
The Dividend Rate of JNPR has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP114.27%
EPS Next 2Y-5.62%
EPS Next 3Y-3.48%
JUNIPER NETWORKS INC
NYSE:JNPR (11/15/2024, 8:21:01 PM)
After market: 36.6 +0.09 (+0.25%)36.51
-1.9 (-4.95%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.02B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.6 | ||
| Fwd PE | 18.06 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)5.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.61% | ||
| ROE | 5.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.59% | ||
| PM (TTM) | 4.97% | ||
| GM | 58.6% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-26.84%
EPS 3Y13.32%
EPS 5Y
EPS Q2Q%
EPS Next Y-24.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.87%
Revenue growth 3Y7.77%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y