JUNIPER NETWORKS INC (JNPR) Stock Fundamental Analysis
USA - NYSE:JNPR - US48203R1041 - Common Stock
39.95 USD
+0.02 (+0.05%)
40 USD
+0.05 (+0.13%)
We assign a fundamental rating of 5 out of 10 to JNPR. JNPR was compared to 48 industry peers in the Communications Equipment industry. Both the profitability and the financial health of JNPR get a neutral evaluation. Nothing too spectacular is happening here. 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.
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
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.
With a decent Return On Equity value of 7.31%, JNPR is doing good in the industry, outperforming 78.00% of the companies in the same industry.
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 13.71%.
| 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
Looking at the Profit Margin, with a value of 6.78%, JNPR is in the better half of the industry, outperforming 78.00% of the companies in the same industry.
In the last couple of years the Profit Margin of JNPR has declined.
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 has a Gross Margin of 58.70%. This is amongst the best in the industry. JNPR outperforms 82.00% of its industry peers.
JNPR's Gross Margin has been stable in the last couple of years.
| 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.
JNPR has less shares outstanding than it did 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 2.06. 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.
Looking at the Altman-Z score, with a value of 2.06, JNPR is in line with its industry, outperforming 60.00% of the companies in the same industry.
The Debt to FCF ratio of JNPR is 2.41, which is a good value as it means it would take JNPR, 2.41 years of fcf income to pay off 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 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 | 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.
With a Current ratio value of 1.49, JNPR is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
JNPR has a Quick Ratio of 1.16. This is a normal value and indicates that JNPR is financially healthy and should not expect problems in meeting 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
JNPR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.58%.
Looking at the last year, JNPR shows a decrease in Revenue. The Revenue has decreased by -2.56% in the last year.
Measured over the past years, JNPR shows a small growth in Revenue. The Revenue has been growing by 2.68% on average per year.
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
JNPR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.03% yearly.
The Revenue is expected to grow by 5.26% on average over the next years.
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
Based on the Price/Earnings ratio of 21.48, the valuation of JNPR can be described as rather expensive.
68.00% of the companies in the same industry are more expensive than JNPR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.20. JNPR is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.81, which indicates a rather expensive current valuation of JNPR.
Based on the Price/Forward Earnings ratio, JNPR is valued a bit cheaper than the industry average as 62.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of JNPR to the average of the S&P500 Index (22.71), we can say JNPR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.48 | ||
| Fwd PE | 17.81 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as JNPR.
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.
The decent profitability rating of JNPR 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
With a Yearly Dividend Yield of 2.20%, 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 3.64. JNPR pays more dividend than 86.00% of the companies in the same industry.
JNPR's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| 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 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)3.01%
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 Change7.07%
Ins Owners1.36%
Ins Owner Change-49.58%
Market Cap13.36B
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-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%
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
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 | 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%