JUNIPER NETWORKS INC (JNPR)
US48203R1041 - Common Stock
JNPR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 54 industry peers in the Communications Equipment industry. JNPR has only an average score on both its financial health and profitability. JNPR has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years JNPR has been profitable.
JNPR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
JNPR's Return On Assets of 2.36% is fine compared to the rest of the industry. JNPR outperforms 77.78% of its industry peers.
JNPR has a better Return On Equity (5.00%) than 77.78% of its industry peers.
JNPR has a better Return On Invested Capital (5.70%) than 77.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for JNPR is below the industry average of 10.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 5% | ||
| ROIC | 5.7% |
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
The Profit Margin of JNPR (4.19%) is better than 77.78% of its industry peers.
JNPR's Profit Margin has declined in the last couple of years.
The Operating Margin of JNPR (8.82%) is better than 85.19% of its industry peers.
JNPR's Operating Margin has declined in the last couple of years.
The Gross Margin of JNPR (58.25%) is better than 83.33% 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 | 8.82% | ||
| PM (TTM) | 4.19% | ||
| GM | 58.25% |
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.
The number of shares outstanding for JNPR has been reduced compared to 1 year ago.
Compared to 5 years ago, JNPR has less shares outstanding
JNPR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.93 indicates that JNPR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of JNPR (1.93) is better than 64.81% of its industry peers.
JNPR has a debt to FCF ratio of 1.88. This is a very positive value and a sign of high solvency as it would only need 1.88 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.88, JNPR is in the better half of the industry, outperforming 68.52% of the companies in the same industry.
JNPR has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.36, JNPR is doing worse than 68.52% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for JNPR, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 1.88 | ||
| Altman-Z | 1.93 |
ROIC/WACC0.62
WACC9.26%
2.3 Liquidity
JNPR has a Current Ratio of 1.74. 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 1.74, JNPR is in line with its industry, outperforming 44.44% of the companies in the same industry.
JNPR has a Quick Ratio of 1.27. 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 1.27, JNPR is in line with its industry, outperforming 42.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The earnings per share for JNPR have decreased by -2.35% in the last year.
JNPR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.73% yearly.
JNPR shows a decrease in Revenue. In the last year, the revenue decreased by -2.96%.
Measured over the past years, JNPR shows a small growth in Revenue. The Revenue has been growing by 3.67% on average per year.
EPS 1Y (TTM)-2.35%
EPS 3Y13.32%
EPS 5Y3.73%
EPS growth Q2Q-39.58%
Revenue 1Y (TTM)-2.96%
Revenue growth 3Y7.77%
Revenue growth 5Y3.67%
Revenue growth Q2Q-16.25%
3.2 Future
Based on estimates for the next years, JNPR will show a small growth in Earnings Per Share. The EPS will grow by 4.09% on average per year.
The Revenue is expected to grow by 0.92% on average over the next years.
EPS Next Y-0.05%
EPS Next 2Y5.18%
EPS Next 3Y4.09%
EPS Next 5YN/A
Revenue Next Year-3.48%
Revenue Next 2Y0.36%
Revenue Next 3Y0.92%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 16.65, JNPR is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of JNPR indicates a somewhat cheap valuation: JNPR is cheaper than 68.52% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.60, JNPR is valued a bit cheaper.
JNPR is valuated correctly with a Price/Forward Earnings ratio of 13.79.
The rest of the industry has a similar Price/Forward Earnings ratio as JNPR.
JNPR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.65 | ||
| Fwd PE | 13.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, JNPR is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
JNPR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. JNPR is cheaper than 81.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.18 | ||
| EV/EBITDA | 17.29 |
4.3 Compensation for Growth
JNPR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.46
EPS Next 2Y5.18%
EPS Next 3Y4.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.54%, JNPR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 17.32, JNPR pays a better dividend. On top of this JNPR pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, JNPR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
5.2 History
The dividend of JNPR has a limited annual growth rate of 3.39%.
JNPR has been paying a dividend for at least 10 years, so it has a reliable track record.
JNPR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)3.39%
Div Incr Years2
Div Non Decr Years9
5.3 Sustainability
JNPR pays out 125.71% 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.
DP125.71%
EPS Next 2Y5.18%
EPS Next 3Y4.09%
JUNIPER NETWORKS INC
NYSE:JNPR (5/17/2024, 6:07:44 PM)
After market: 34.64 0 (0%)34.64
-0.07 (-0.2%)
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 Cap11.26B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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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 | 16.65 | ||
| Fwd PE | 13.79 | ||
| 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)4.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.82% | ||
| PM (TTM) | 4.19% | ||
| GM | 58.25% | ||
| 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 Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.27 | ||
| 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)
Growth
EPS 1Y (TTM)-2.35%
EPS 3Y13.32%
EPS 5Y
EPS growth Q2Q
EPS Next Y-0.05%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.96%
Revenue growth 3Y7.77%
Revenue growth 5Y
Revenue growth 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