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 50 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 has a decent growth rate and is not valued too expensively.
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.
JNPR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
JNPR's Return On Assets of 3.50% is fine compared to the rest of the industry. JNPR outperforms 74.00% of its industry peers.
JNPR has a better Return On Equity (7.31%) than 78.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.51%, JNPR is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for JNPR is significantly below the industry average of 13.82%.
| 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
The Profit Margin of JNPR (6.78%) is better than 78.00% of its industry peers.
JNPR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 8.75%, JNPR is in the better half of the industry, outperforming 74.00% of the companies in the same industry.
In the last couple of years the Operating Margin of JNPR has declined.
JNPR's Gross Margin of 58.70% is amongst the best of the industry. JNPR outperforms 82.00% of its industry peers.
In the last couple of years the Gross Margin of JNPR has remained more or less at the same level.
| 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
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.
The number of shares outstanding for JNPR has been reduced compared to 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 2.06 indicates that JNPR is not a great score, but indicates only limited risk for bankruptcy at the moment.
JNPR has a Altman-Z score (2.06) which is in line with 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.
Looking at the Debt to FCF ratio, with a value of 2.41, JNPR is in the better half of the industry, outperforming 66.00% of the companies in the same industry.
A Debt/Equity ratio of 0.34 indicates that JNPR is not too dependend on debt financing.
JNPR has a Debt to Equity ratio of 0.34. This is comparable to the rest of the industry: JNPR outperforms 42.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 2.06 |
ROIC/WACC0.45
WACC9.94%
2.3 Liquidity
A Current Ratio of 1.49 indicates that JNPR should not have too much problems paying its short term obligations.
JNPR has a worse Current ratio (1.49) than 64.00% of its industry peers.
JNPR has a Quick Ratio of 1.16. 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 Quick ratio, with a value of 1.16, JNPR is in line with its industry, outperforming 42.00% of the companies in the same industry.
| 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%.
The Revenue has decreased by -2.56% in the past year.
JNPR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.68% yearly.
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
The Earnings Per Share is expected to grow by 11.03% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.26% on average over the next years.
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
A Price/Earnings ratio of 21.48 indicates a rather expensive valuation of JNPR.
Based on the Price/Earnings ratio, JNPR is valued a bit cheaper than 68.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of JNPR to the average of the S&P500 Index (27.21), we can say JNPR is valued slightly cheaper.
JNPR is valuated rather expensively with a Price/Forward Earnings ratio of 17.81.
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.
When comparing the Price/Forward Earnings ratio of JNPR to the average of the S&P500 Index (21.70), we can say JNPR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.48 | ||
| Fwd PE | 17.81 |
4.2 Price Multiples
JNPR's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, JNPR is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.8 | ||
| EV/EBITDA | 21.1 |
4.3 Compensation for Growth
The 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
JNPR has a Yearly Dividend Yield of 2.38%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.49, JNPR pays a better dividend. On top of this JNPR pays more dividend than 88.00% of the companies listed in the same industry.
JNPR's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
5.2 History
The dividend of JNPR has a limited annual growth rate of 3.01%.
JNPR has paid a dividend for at least 10 years, which is a reliable track record.
JNPR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.01%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
82.37% of the earnings are spent on dividend by JNPR. 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 Change4.95%
Ins Owners1.36%
Ins Owner Change4.6%
Market Cap13.36B
Analysts70
Price Target40.8 (2.13%)
Short Float %2.4%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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)-2.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.05%
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 | 21.1 |
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
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%
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-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
WACC9.94%
ROIC/WACC0.45
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%