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For those who appreciate value investing, NYSE:JNPR is a compelling option with its solid fundamentals.

By Mill Chart

Last update: Dec 1, 2023

Our stock screening tool has pinpointed JUNIPER NETWORKS INC (NYSE:JNPR) as an undervalued stock. NYSE:JNPR maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Assessing Valuation for NYSE:JNPR

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:JNPR, the assigned 7 reflects its valuation:

  • Compared to the rest of the industry, the Price/Earnings ratio of JNPR indicates a somewhat cheap valuation: JNPR is cheaper than 78.33% of the companies listed in the same industry.
  • JNPR is valuated cheaply when we compare the Price/Earnings ratio to 24.69, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 11.89, the valuation of JNPR can be described as very reasonable.
  • Based on the Price/Forward Earnings ratio, JNPR is valued a bit cheaper than 63.33% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 19.79, JNPR is valued a bit cheaper.
  • Based on the Enterprise Value to EBITDA ratio, JNPR is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
  • 88.33% of the companies in the same industry are more expensive than JNPR, based on the Price/Free Cash Flow ratio.
  • 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.

Profitability Assessment of NYSE:JNPR

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:JNPR has achieved a 7:

  • The Return On Assets of JNPR (3.89%) is better than 73.33% of its industry peers.
  • The Return On Equity of JNPR (8.46%) is better than 81.67% of its industry peers.
  • With a decent Return On Invested Capital value of 7.41%, JNPR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
  • The 3 year average ROIC (5.51%) for JNPR is below the current ROIC(7.41%), indicating increased profibility in the last year.
  • Looking at the Profit Margin, with a value of 6.48%, JNPR is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
  • In the last couple of years the Profit Margin of JNPR has grown nicely.
  • JNPR's Operating Margin of 11.05% is amongst the best of the industry. JNPR outperforms 85.00% of its industry peers.
  • The Gross Margin of JNPR (57.04%) is better than 80.00% of its industry peers.

Analyzing Health Metrics

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:JNPR has earned a 5 out of 10:

  • The Altman-Z score of JNPR (1.74) is better than 66.67% of its industry peers.
  • The Debt to FCF ratio of JNPR is 1.92, which is an excellent value as it means it would take JNPR, only 1.92 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 1.92, JNPR is doing good in the industry, outperforming 75.00% of the companies in the same industry.
  • JNPR has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
  • Although JNPR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

Growth Analysis for NYSE:JNPR

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:JNPR scores a 5 out of 10:

  • JNPR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.53%, which is quite impressive.
  • JNPR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.63%.
  • Based on estimates for the next years, JNPR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.47% on average per year.
  • 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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Our latest full fundamental report of JNPR contains the most current fundamental analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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JUNIPER NETWORKS INC

NYSE:JNPR (2/26/2024, 7:04:00 PM)

After market: 37.08 0 (0%)

37.08

-0.1 (-0.27%)

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