JUNIPER NETWORKS INC (JNPR)
US48203R1041 - Common Stock
We assign a fundamental rating of 6 out of 10 to JNPR. JNPR was compared to 54 industry peers in the Communications Equipment industry. While JNPR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. JNPR is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years JNPR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.26%, JNPR is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
With an excellent Return On Equity value of 6.90%, JNPR belongs to the best of the industry, outperforming 81.48% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.91%, JNPR is in the better half of the industry, outperforming 79.63% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for JNPR is below the industry average of 10.42%.
The last Return On Invested Capital (6.91%) for JNPR is above the 3 year average (6.39%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 6.9% | ||
| ROIC | 6.91% |
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
JNPR's Profit Margin of 5.57% is fine compared to the rest of the industry. JNPR outperforms 79.63% of its industry peers.
In the last couple of years the Profit Margin of JNPR has declined.
JNPR's Operating Margin of 10.21% is amongst the best of the industry. JNPR outperforms 85.19% of its industry peers.
JNPR's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 57.54%, JNPR belongs to the best of the industry, outperforming 83.33% 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 | 10.21% | ||
| PM (TTM) | 5.57% | ||
| GM | 57.54% |
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
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 reduced compared to 1 year ago.
The number of shares outstanding for JNPR has been reduced compared to 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 2.00. 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's Altman-Z score of 2.00 is fine compared to the rest of the industry. JNPR outperforms 66.67% of its industry peers.
The Debt to FCF ratio of JNPR is 2.27, which is a good value as it means it would take JNPR, 2.27 years of fcf income to pay off all of its debts.
JNPR has a Debt to FCF ratio of 2.27. This is in the better half of the industry: JNPR outperforms 68.52% of its industry peers.
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.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 2 |
ROIC/WACC0.72
WACC9.6%
2.3 Liquidity
A Current Ratio of 1.80 indicates that JNPR should not have too much problems paying its short term obligations.
The Current ratio of JNPR (1.80) is comparable to the rest of the industry.
A Quick Ratio of 1.35 indicates that JNPR should not have too much problems paying its short term obligations.
JNPR's Quick ratio of 1.35 is in line compared to the rest of the industry. JNPR outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.82% over the past year.
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.
Looking at the last year, JNPR shows a small growth in Revenue. The Revenue has grown by 4.97% in the last year.
The Revenue has been growing slightly by 3.67% on average over the past years.
EPS 1Y (TTM)15.82%
EPS 3Y13.32%
EPS 5Y3.73%
EPS growth Q2Q-6.15%
Revenue 1Y (TTM)4.97%
Revenue growth 3Y7.77%
Revenue growth 5Y3.67%
Revenue growth Q2Q-5.8%
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.
JNPR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.92% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 15.51 indicates a correct valuation of JNPR.
Based on the Price/Earnings ratio, JNPR is valued a bit cheaper than the industry average as 70.37% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 24.84. JNPR is valued slightly cheaper when compared to this.
JNPR is valuated correctly with a Price/Forward Earnings ratio of 15.52.
JNPR's Price/Forward Earnings is on the same level as the industry average.
JNPR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.51 | ||
| Fwd PE | 15.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of JNPR indicates a somewhat cheap valuation: JNPR is cheaper than 64.81% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of JNPR indicates a somewhat cheap valuation: JNPR is cheaper than 74.07% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.01 | ||
| EV/EBITDA | 15.11 |
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)4.16
EPS Next 2Y5.18%
EPS Next 3Y4.09%
5. Dividend
5.1 Amount
JNPR has a Yearly Dividend Yield of 2.54%.
Compared to an average industry Dividend Yield of 17.33, 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 2.41, 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 paid a dividend for at least 10 years, which is a reliable track record.
As JNPR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)3.39%
Div Incr Years2
Div Non Decr Years9
5.3 Sustainability
JNPR pays out 90.52% 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.
DP90.52%
EPS Next 2Y5.18%
EPS Next 3Y4.09%
JUNIPER NETWORKS INC
NYSE:JNPR (4/29/2024, 12:43:55 PM)
35.21
+0.5 (+1.44%)
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 Cap11.42B
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)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 15.51 | ||
| Fwd PE | 15.52 | ||
| 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)4.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 6.9% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.21% | ||
| PM (TTM) | 5.57% | ||
| GM | 57.54% | ||
| 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 Turnover0.58
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 | 1.8 | ||
| Quick Ratio | 1.35 | ||
| 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)15.82%
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)4.97%
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