JUNIPER NETWORKS INC (JNPR) Stock Fundamental Analysis
NYSE:JNPR - New York Stock Exchange, Inc. - US48203R1041 - Common Stock - Currency: USD
JNPR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 51 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
JNPR's Return On Assets of 2.88% is fine compared to the rest of the industry. JNPR outperforms 72.00% of its industry peers.
JNPR has a Return On Equity of 6.02%. This is in the better half of the industry: JNPR outperforms 74.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.90%, JNPR is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for JNPR is significantly below the industry average of 11.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 6.02% | ||
| ROIC | 3.9% |
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's Profit Margin of 5.67% is fine compared to the rest of the industry. JNPR outperforms 76.00% of its industry peers.
JNPR's Profit Margin has declined in the last couple of years.
JNPR has a Operating Margin of 7.17%. This is in the better half of the industry: JNPR outperforms 72.00% of its industry peers.
JNPR's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 58.77%, JNPR belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
JNPR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.17% | ||
| PM (TTM) | 5.67% | ||
| GM | 58.77% |
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.
Compared to 1 year ago, JNPR has more shares outstanding
Compared to 5 years ago, JNPR has less shares outstanding
JNPR has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of JNPR is 2.40, which is a good value as it means it would take JNPR, 2.40 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of JNPR (2.40) is better than 62.00% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that JNPR is not too dependend on debt financing.
JNPR has a Debt to Equity ratio (0.25) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | N/A |
ROIC/WACC0.42
WACC9.22%
2.3 Liquidity
JNPR has a Current Ratio of 1.46. 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 1.46. This is in the lower half of the industry: JNPR underperforms 66.00% of its industry peers.
JNPR has a Quick Ratio of 1.14. This is a normal value and indicates that JNPR is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of JNPR (1.14) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
JNPR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.23%.
Looking at the last year, JNPR shows a decrease in Revenue. The Revenue has decreased by -8.82% in the last 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)-24.23%
EPS 3Y-0.57%
EPS 5Y0%
EPS Q2Q%4.92%
Revenue 1Y (TTM)-8.82%
Revenue growth 3Y2.33%
Revenue growth 5Y2.68%
Sales Q2Q%2.88%
3.2 Future
JNPR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.85% yearly.
Based on estimates for the next years, JNPR will show a small growth in Revenue. The Revenue will grow by 3.55% on average per year.
EPS Next Y24.12%
EPS Next 2Y15.58%
EPS Next 3Y12.85%
EPS Next 5YN/A
Revenue Next Year5.58%
Revenue Next 2Y3.55%
Revenue Next 3YN/A
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 accelerating.
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 20.92 indicates a rather expensive valuation of JNPR.
Based on the Price/Earnings ratio, JNPR is valued a bit cheaper than 72.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, JNPR is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.86, the valuation of JNPR can be described as correct.
Based on the Price/Forward Earnings ratio, JNPR is valued a bit cheaper than 68.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. JNPR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.92 | ||
| Fwd PE | 16.86 |
4.2 Price Multiples
64.00% of the companies in the same industry are more expensive than JNPR, based on the Enterprise Value to EBITDA ratio.
JNPR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. JNPR is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.61 | ||
| EV/EBITDA | 22.94 |
4.3 Compensation for Growth
JNPR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of JNPR may justify a higher PE ratio.
A more expensive valuation may be justified as JNPR's earnings are expected to grow with 12.85% in the coming years.
PEG (NY)0.87
PEG (5Y)N/A
EPS Next 2Y15.58%
EPS Next 3Y12.85%
5. Dividend
5.1 Amount
JNPR has a Yearly Dividend Yield of 2.42%.
Compared to an average industry Dividend Yield of 11.69, JNPR pays a better dividend. On top of this JNPR pays more dividend than 82.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, JNPR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
5.2 History
The dividend of JNPR has a limited annual growth rate of 3.06%.
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)3.06%
Div Incr Years2
Div Non Decr Years10
5.3 Sustainability
100.24% of the earnings are spent on dividend by JNPR. This is not a sustainable payout ratio.
The dividend of JNPR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP100.24%
EPS Next 2Y15.58%
EPS Next 3Y12.85%
35.99
-0.08 (-0.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners82.13%
Inst Owner Change-7.49%
Ins Owners1.23%
Ins Owner Change5.14%
Market Cap11.85B
Analysts69.47
Price Target40.19 (11.67%)
Short Float %3%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
Yearly Dividend0.89
Dividend Growth(5Y)3.06%
DP100.24%
Div Incr Years2
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.41%
Min EPS beat(2)6.97%
Max EPS beat(2)7.86%
EPS beat(4)2
Avg EPS beat(4)-11.18%
Min EPS beat(4)-30.7%
Max EPS beat(4)7.86%
EPS beat(8)5
Avg EPS beat(8)-3.77%
EPS beat(12)6
Avg EPS beat(12)-2.47%
EPS beat(16)9
Avg EPS beat(16)-0.17%
Revenue beat(2)1
Avg Revenue beat(2)1.2%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)3.58%
Revenue beat(4)1
Avg Revenue beat(4)-3.46%
Min Revenue beat(4)-9.39%
Max Revenue beat(4)3.58%
Revenue beat(8)2
Avg Revenue beat(8)-2.59%
Revenue beat(12)3
Avg Revenue beat(12)-2.01%
Revenue beat(16)5
Avg Revenue beat(16)-1.66%
PT rev (1m)-0.39%
PT rev (3m)-1.07%
EPS NQ rev (1m)13.95%
EPS NQ rev (3m)5.6%
EPS NY rev (1m)5.59%
EPS NY rev (3m)5.59%
Revenue NQ rev (1m)4.14%
Revenue NQ rev (3m)4.23%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.92 | ||
| Fwd PE | 16.86 | ||
| P/S | 2.33 | ||
| P/FCF | 17.61 | ||
| P/OCF | 15.03 | ||
| P/B | 2.48 | ||
| P/tB | 11.76 | ||
| EV/EBITDA | 22.94 |
EPS(TTM)1.72
EY4.78%
EPS(NY)2.13
Fwd EY5.93%
FCF(TTM)2.04
FCFY5.68%
OCF(TTM)2.39
OCFY6.65%
SpS15.41
BVpS14.53
TBVpS3.06
PEG (NY)0.87
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 6.02% | ||
| ROCE | 4.94% | ||
| ROIC | 3.9% | ||
| ROICexc | 4.8% | ||
| ROICexgc | 13.04% | ||
| OM | 7.17% | ||
| PM (TTM) | 5.67% | ||
| GM | 58.77% | ||
| FCFM | 13.26% |
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-Score5
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.4 | ||
| Debt/EBITDA | 2.33 | ||
| Cap/Depr | 73.61% | ||
| Cap/Sales | 2.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 151.35% | ||
| Profit Quality | 233.62% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | N/A |
F-Score5
WACC9.22%
ROIC/WACC0.42
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)-24.23%
EPS 3Y-0.57%
EPS 5Y0%
EPS Q2Q%4.92%
EPS Next Y24.12%
EPS Next 2Y15.58%
EPS Next 3Y12.85%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.82%
Revenue growth 3Y2.33%
Revenue growth 5Y2.68%
Sales Q2Q%2.88%
Revenue Next Year5.58%
Revenue Next 2Y3.55%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-35.96%
EBIT growth 3Y-5.45%
EBIT growth 5Y-5.29%
EBIT Next Year49.8%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-5.72%
FCF growth 3Y4.48%
FCF growth 5Y9.91%
OCF growth 1Y-9.7%
OCF growth 3Y4.55%
OCF growth 5Y8.3%