JUNIPER NETWORKS INC (JNPR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:JNPR - US48203R1041 - Common Stock
39.95 USD
+0.02 (+0.05%)
40 USD
+0.05 (+0.13%)
JNPR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. JNPR has an average financial health and profitability rating. 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.
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
Looking at the Return On Assets, with a value of 3.50%, JNPR is in the better half of the industry, outperforming 74.00% of the companies in the same industry.
JNPR has a better Return On Equity (7.31%) than 78.00% of its industry peers.
With a decent Return On Invested Capital value of 4.51%, JNPR is doing good in the industry, outperforming 70.00% of the companies in the same industry.
JNPR had an Average Return On Invested Capital over the past 3 years of 5.28%. This is significantly below the industry average of 12.15%.
| 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
With a decent Profit Margin value of 6.78%, JNPR is doing good in the industry, outperforming 78.00% of the companies in the same industry.
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.
JNPR's Operating Margin has declined in the last couple of years.
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.
The number of shares outstanding for JNPR has been increased compared to 1 year ago.
Compared to 5 years ago, JNPR has less shares outstanding
Compared to 1 year ago, JNPR has an improved debt to assets ratio.
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 of 2.06. This is comparable to the rest of the industry: JNPR outperforms 60.00% of its industry peers.
JNPR has a debt to FCF ratio of 2.41. This is a good value and a sign of high solvency as JNPR would need 2.41 years to pay back of all of its debts.
The Debt to FCF ratio of JNPR (2.41) is better than 66.00% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that JNPR is not too dependend on debt financing.
JNPR's Debt to Equity ratio of 0.34 is in line compared 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/WACC0.46
WACC9.78%
2.3 Liquidity
A Current Ratio of 1.49 indicates that JNPR should not have too much problems paying its short term obligations.
The Current ratio of JNPR (1.49) is worse than 64.00% of its industry peers.
A Quick Ratio of 1.16 indicates that JNPR should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.16, JNPR perfoms like the industry average, 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
The earnings per share for JNPR have decreased strongly by -10.58% in the last year.
Looking at the last year, JNPR shows a decrease in Revenue. The Revenue has decreased by -2.56% 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)-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.
Based on estimates for the next years, JNPR will show a small growth in Revenue. The Revenue will grow by 5.26% on average per year.
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
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
With a Price/Earnings ratio of 21.48, JNPR is valued on the expensive side.
68.00% of the companies in the same industry are more expensive than JNPR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.00, JNPR is valued a bit 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.
JNPR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.70, which is the current average of the S&P500 Index.
| 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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of JNPR indicates a somewhat cheap valuation: JNPR is cheaper than 72.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.8 | ||
| EV/EBITDA | 21.11 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
JNPR has a very decent profitability rating, which 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 2.20%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.78, JNPR pays a better dividend. On top of this JNPR pays more dividend than 86.00% of the companies listed in the same industry.
JNPR's Dividend Yield is comparable with the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
5.2 History
The dividend of JNPR has a limited annual growth rate of 3.01%.
JNPR has been paying a dividend for at least 10 years, so it has 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.
The dividend of JNPR is growing, but earnings are growing more, so the dividend growth is 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 Change0%
Ins Owners1.36%
Ins Owner Change0%
Market Cap13.36B
Revenue(TTM)5.20B
Net Income(TTM)352.80M
Analysts70
Price Target40.8 (2.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
Yearly Dividend0.88
Dividend Growth(5Y)3.01%
DP82.37%
Div Incr Years0
Div Non Decr Years10
Ex-DateN/A
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)-1.84%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
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 | 21.11 |
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
Graham NumberN/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%
ROICexgc growth 3Y-12.85%
ROICexgc 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
WACC9.78%
ROIC/WACC0.46
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%
JUNIPER NETWORKS INC / JNPR FAQ
What is the fundamental rating for JNPR stock?
ChartMill assigns a fundamental rating of 5 / 10 to JNPR.
What is the valuation status for JNPR stock?
ChartMill assigns a valuation rating of 4 / 10 to JUNIPER NETWORKS INC (JNPR). This can be considered as Fairly Valued.
What is the profitability of JNPR stock?
JUNIPER NETWORKS INC (JNPR) has a profitability rating of 6 / 10.
What is the valuation of JUNIPER NETWORKS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for JUNIPER NETWORKS INC (JNPR) is 21.48 and the Price/Book (PB) ratio is 2.77.
Is the dividend of JUNIPER NETWORKS INC sustainable?
The dividend rating of JUNIPER NETWORKS INC (JNPR) is 6 / 10 and the dividend payout ratio is 82.37%.