JUNIPER NETWORKS INC (JNPR) Stock Fundamental Analysis
NYSE:JNPR - New York Stock Exchange, Inc. - US48203R1041 - Common Stock
Overall JNPR gets a fundamental rating of 4 out of 10. We evaluated JNPR against 51 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 valuation in line with the averages, but on the other hand it scores bad on growth.
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.
JNPR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
JNPR's Return On Assets of 2.61% is fine compared to the rest of the industry. JNPR outperforms 74.51% of its industry peers.
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 11.02%.
| 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
With a decent Profit Margin value of 4.97%, JNPR is doing good in the industry, outperforming 76.47% of the companies in the same industry.
JNPR's Profit Margin has declined in the last couple of years.
JNPR has a better Operating Margin (6.59%) than 72.55% of its industry peers.
In the last couple of years the Operating Margin of JNPR has declined.
JNPR has a Gross Margin of 58.60%. This is amongst the best in the industry. JNPR outperforms 82.35% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), JNPR is destroying value.
Compared to 1 year ago, JNPR has less shares outstanding
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
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 comparable to the rest of the industry: JNPR outperforms 58.82% of its industry peers.
The Debt to FCF ratio of JNPR is 4.15, which is a neutral value as it means it would take JNPR, 4.15 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 4.15, JNPR perfoms like the industry average, outperforming 54.90% of the companies in the same industry.
JNPR has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
JNPR has a Debt to Equity ratio of 0.35. This is in the lower half of the industry: JNPR underperforms 60.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.15 | ||
| Altman-Z | 2.04 |
ROIC/WACC0.41
WACC9.7%
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.
JNPR has a Current ratio of 1.72. This is in the lower half of the industry: JNPR underperforms 62.75% of its industry peers.
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's Quick ratio of 1.30 is on the low side compared to the rest of the industry. JNPR is outperformed by 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.
The Revenue for JNPR has decreased by -10.87% in the past year. This is quite bad
JNPR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.67% yearly.
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
Based on estimates for the next years, JNPR will show a decrease in Earnings Per Share. The EPS will decrease by -3.48% on average per year.
JNPR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.95% yearly.
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-2.19%
Revenue Next 3Y-0.95%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.82, JNPR is valued on the expensive side.
JNPR's Price/Earnings ratio is a bit cheaper when compared to the industry. JNPR is cheaper than 76.47% of the companies in the same industry.
When comparing the Price/Earnings ratio of JNPR to the average of the S&P500 Index (28.29), we can say JNPR is valued inline with the index average.
JNPR is valuated rather expensively with a Price/Forward Earnings ratio of 19.08.
Based on the Price/Forward Earnings ratio, JNPR is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.44. JNPR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.82 | ||
| Fwd PE | 19.08 |
4.2 Price Multiples
JNPR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. JNPR is cheaper than 60.78% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, JNPR is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.25 | ||
| EV/EBITDA | 25.85 |
4.3 Compensation for Growth
The decent profitability rating of JNPR 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)6.12
EPS Next 2Y-5.62%
EPS Next 3Y-3.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.27%, 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 9.90. JNPR pays more dividend than 82.35% of the companies in the same industry.
JNPR's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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.
JNPR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.39%
Div Incr Years2
Div Non Decr Years10
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 (1/21/2025, 8:09:52 PM)
After market: 38.75 +0.18 (+0.47%)38.57
+0.14 (+0.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners82.13%
Inst Owner Change0.04%
Ins Owners1.23%
Ins Owner Change5.78%
Market Cap12.70B
Analysts69.52
Price Target40.34 (4.59%)
Short Float %3.89%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
Yearly Dividend0.87
Dividend Growth(5Y)3.39%
DP114.27%
Div Incr Years2
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.87%
Min EPS beat(2)-30.7%
Max EPS beat(2)6.97%
EPS beat(4)1
Avg EPS beat(4)-14.65%
Min EPS beat(4)-30.7%
Max EPS beat(4)6.97%
EPS beat(8)4
Avg EPS beat(8)-4.94%
EPS beat(12)6
Avg EPS beat(12)-2.84%
EPS beat(16)9
Avg EPS beat(16)-0.6%
Revenue beat(2)1
Avg Revenue beat(2)-1.63%
Min Revenue beat(2)-6.84%
Max Revenue beat(2)3.58%
Revenue beat(4)1
Avg Revenue beat(4)-4.37%
Min Revenue beat(4)-9.39%
Max Revenue beat(4)3.58%
Revenue beat(8)2
Avg Revenue beat(8)-2.95%
Revenue beat(12)4
Avg Revenue beat(12)-1.88%
Revenue beat(16)6
Avg Revenue beat(16)-1.56%
PT rev (1m)0%
PT rev (3m)-0.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.02%
EPS NY rev (1m)0%
EPS NY rev (3m)6.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.82 | ||
| Fwd PE | 19.08 | ||
| P/S | 2.52 | ||
| P/FCF | 32.25 | ||
| P/OCF | 24.54 | ||
| P/B | 2.73 | ||
| P/tB | 14.85 | ||
| EV/EBITDA | 25.85 |
EPS(TTM)1.69
EY4.38%
EPS(NY)2.02
Fwd EY5.24%
FCF(TTM)1.2
FCFY3.1%
OCF(TTM)1.57
OCFY4.08%
SpS15.29
BVpS14.1
TBVpS2.6
PEG (NY)N/A
PEG (5Y)6.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.61% | ||
| ROE | 5.39% | ||
| ROCE | 4.39% | ||
| ROIC | 3.96% | ||
| ROICexc | 4.73% | ||
| ROICexgc | 11.83% | ||
| OM | 6.59% | ||
| PM (TTM) | 4.97% | ||
| GM | 58.6% | ||
| FCFM | 7.82% |
ROA(3y)3.72%
ROA(5y)3.56%
ROE(3y)7.76%
ROE(5y)7.29%
ROIC(3y)6.39%
ROIC(5y)6.06%
ROICexc(3y)7.63%
ROICexc(5y)7.58%
ROICexgc(3y)21.83%
ROICexgc(5y)22.88%
ROCE(3y)7.08%
ROCE(5y)6.72%
ROICexcg growth 3Y-5.13%
ROICexcg growth 5Y-21.27%
ROICexc growth 3Y5.76%
ROICexc growth 5Y-8.95%
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%
F-Score4
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.15 | ||
| Debt/EBITDA | 3.28 | ||
| Cap/Depr | 74.12% | ||
| Cap/Sales | 2.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.79% | ||
| Profit Quality | 157.35% | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 2.04 |
F-Score4
WACC9.7%
ROIC/WACC0.41
Cap/Depr(3y)57.42%
Cap/Depr(5y)54.33%
Cap/Sales(3y)2.32%
Cap/Sales(5y)2.34%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-26.84%
EPS 3Y13.32%
EPS 5Y3.73%
EPS Q2Q%-20%
EPS Next Y-24.4%
EPS Next 2Y-5.62%
EPS Next 3Y-3.48%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.87%
Revenue growth 3Y7.77%
Revenue growth 5Y3.67%
Sales Q2Q%-4.78%
Revenue Next Year-9.15%
Revenue Next 2Y-2.19%
Revenue Next 3Y-0.95%
Revenue Next 5YN/A
EBIT growth 1Y-46.88%
EBIT growth 3Y10.5%
EBIT growth 5Y-0.4%
EBIT Next Year-10.76%
EBIT Next 3Y4%
EBIT Next 5YN/A
FCF growth 1Y4076.77%
FCF growth 3Y11.72%
FCF growth 5Y-0.01%
OCF growth 1Y450.43%
OCF growth 3Y12.56%
OCF growth 5Y0.27%