JUNIPER NETWORKS INC (JNPR) Stock Fundamental Analysis
NYSE:JNPR - New York Stock Exchange, Inc. - US48203R1041 - Common Stock - Currency: USD
Taking everything into account, JNPR scores 5 out of 10 in our fundamental rating. JNPR was compared to 49 industry peers in the Communications Equipment industry. JNPR has only an average score on both its financial health and profitability. JNPR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
JNPR had positive earnings in the past year.
JNPR had a positive operating cash flow in the past year.
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 3.50% is fine compared to the rest of the industry. JNPR outperforms 71.43% of its industry peers.
With a decent Return On Equity value of 7.31%, JNPR is doing good in the industry, outperforming 75.51% of the companies in the same industry.
JNPR has a Return On Invested Capital of 4.51%. This is in the better half of the industry: JNPR outperforms 69.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for JNPR is significantly below the industry average of 13.73%.
| 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
The Profit Margin of JNPR (6.78%) is better than 77.55% of its industry peers.
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 71.43% of the companies in the same industry.
JNPR's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 58.70%, JNPR belongs to the best of the industry, outperforming 81.63% of the companies in the same industry.
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
JNPR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
JNPR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for JNPR has been reduced compared to 5 years ago.
Compared to 1 year ago, JNPR has an improved debt to assets ratio.
2.2 Solvency
JNPR has an Altman-Z score of 1.92. 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 1.92 is fine compared to the rest of the industry. JNPR outperforms 63.27% 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.
JNPR's Debt to FCF ratio of 2.41 is fine compared to the rest of the industry. JNPR outperforms 61.22% of its industry peers.
JNPR has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
JNPR has a Debt to Equity ratio (0.34) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.46
WACC9.74%
2.3 Liquidity
A Current Ratio of 1.49 indicates that JNPR should not have too much problems paying its short term obligations.
JNPR has a Current ratio of 1.49. This is in the lower half of the industry: JNPR underperforms 67.35% of its industry peers.
A Quick Ratio of 1.16 indicates that JNPR should not have too much problems paying its short term obligations.
JNPR has a worse Quick ratio (1.16) than 61.22% of its industry peers.
| 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.
The Revenue has been growing slightly by 2.68% on average over the past years.
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
Based on estimates for the next years, JNPR will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.03% on average per year.
JNPR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.26% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.35, which indicates a rather expensive current valuation of JNPR.
Based on the Price/Earnings ratio, JNPR is valued a bit cheaper than the industry average as 69.39% of the companies are valued more expensively.
JNPR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.04, the valuation of JNPR can be described as correct.
JNPR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. JNPR is cheaper than 65.31% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.94. JNPR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.35 | ||
| Fwd PE | 16.04 |
4.2 Price Multiples
JNPR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. JNPR is cheaper than 63.27% of the companies 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 67.35% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.83 | ||
| EV/EBITDA | 19 |
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.
JNPR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.91
PEG (5Y)N/A
EPS Next 2Y14.2%
EPS Next 3Y11.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.43%, 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 3.60. JNPR pays more dividend than 83.67% of the companies in the same industry.
JNPR's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
5.2 History
The dividend of JNPR has a limited annual growth rate of 3.01%.
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)3.01%
Div Incr Years2
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.
JNPR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP82.37%
EPS Next 2Y14.2%
EPS Next 3Y11.03%
35.99
-0.15 (-0.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners85.47%
Inst Owner Change4.87%
Ins Owners1.25%
Ins Owner Change4.86%
Market Cap12.03B
Analysts70
Price Target40.8 (13.36%)
Short Float %2.84%
Short Ratio3.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
Yearly Dividend0.88
Dividend Growth(5Y)3.01%
DP82.37%
Div Incr Years2
Div Non Decr Years10
Ex-Date
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)0.31%
PT rev (3m)1.52%
EPS NQ rev (1m)-1.84%
EPS NQ rev (3m)-2.57%
EPS NY rev (1m)-1.64%
EPS NY rev (3m)-2.3%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.35 | ||
| Fwd PE | 16.04 | ||
| P/S | 2.31 | ||
| P/FCF | 17.83 | ||
| P/OCF | 15.43 | ||
| P/B | 2.49 | ||
| P/tB | 11.32 | ||
| EV/EBITDA | 19 |
EPS(TTM)1.86
EY5.17%
EPS(NY)2.24
Fwd EY6.23%
FCF(TTM)2.02
FCFY5.61%
OCF(TTM)2.33
OCFY6.48%
SpS15.57
BVpS14.45
TBVpS3.18
PEG (NY)0.91
PEG (5Y)N/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%
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-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 | 1.92 |
F-Score6
WACC9.74%
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 Year54.04%
EBIT Next 3Y20.5%
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%