JUNIPER NETWORKS INC (JNPR) Stock Fundamental Analysis
NYSE:JNPR - New York Stock Exchange, Inc. - US48203R1041 - Common Stock - Currency: USD
Overall JNPR gets a fundamental rating of 5 out of 10. We evaluated JNPR against 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 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.
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
With a decent Return On Assets value of 3.50%, JNPR is doing good in the industry, outperforming 74.00% of the companies in the same industry.
JNPR has a Return On Equity of 7.31%. This is in the better half of the industry: JNPR outperforms 78.00% of its industry peers.
The Return On Invested Capital of JNPR (4.51%) is better than 70.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for JNPR is significantly below the industry average of 14.31%.
| 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
JNPR has a better Profit Margin (6.78%) than 78.00% of its industry peers.
In the last couple of years the Profit Margin of JNPR has declined.
With a decent Operating Margin value of 8.75%, JNPR is doing good in the industry, outperforming 74.00% of the companies in the same industry.
In the last couple of years the Operating Margin of JNPR has declined.
JNPR's Gross Margin of 58.70% is amongst the best of 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.
Compared to 1 year ago, JNPR has more shares outstanding
JNPR has less shares outstanding than it did 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 2.06. 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.
JNPR has a Altman-Z score (2.06) which is comparable to the rest of the 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.
JNPR has a Debt to FCF ratio of 2.41. This is in the better half of the industry: JNPR outperforms 66.00% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that JNPR is not too dependend on debt financing.
The Debt to Equity ratio of JNPR (0.34) 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.
JNPR has a Current ratio of 1.49. This is in the lower half of the industry: JNPR underperforms 64.00% of its industry peers.
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.
JNPR's Quick ratio of 1.16 is in line compared to the rest of the industry. JNPR outperforms 42.00% 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.
JNPR shows a decrease in Revenue. In the last year, the revenue decreased by -2.56%.
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
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.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 21.48, which indicates a rather expensive current valuation of JNPR.
68.00% of the companies in the same industry are more expensive than JNPR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of JNPR to the average of the S&P500 Index (26.82), we can say JNPR is valued inline with the index average.
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.
The average S&P500 Price/Forward Earnings ratio is at 36.21. JNPR is valued rather cheaply when compared to this.
| 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.
72.00% of the companies in the same industry are more expensive than JNPR, based on the Price/Free Cash Flow ratio.
| 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.
JNPR's Dividend Yield is rather good when compared to the industry average which is at 3.71. JNPR pays more dividend than 86.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, JNPR has a dividend comparable with the average S&P500 company.
| 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.
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%
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 Change-0.04%
Ins Owners1.36%
Ins Owner Change-47.6%
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%