JUNIPER NETWORKS INC (JNPR) Stock Fundamental Analysis
NYSE:JNPR - New York Stock Exchange, Inc. - US48203R1041 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to JNPR. JNPR was compared to 49 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
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
JNPR's Return On Assets of 3.50% is fine compared to the rest of the industry. JNPR outperforms 73.47% of its industry peers.
JNPR has a Return On Equity of 7.31%. This is in the better half of the industry: JNPR outperforms 77.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.51%, JNPR is in the better half of the industry, outperforming 69.39% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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
JNPR has a Profit Margin of 6.78%. This is in the better half of the industry: JNPR outperforms 77.55% of its industry peers.
JNPR's Profit Margin has declined in the last couple of years.
The Operating Margin of JNPR (8.75%) is better than 73.47% of its industry peers.
In the last couple of years the Operating Margin of JNPR has declined.
Looking at the Gross Margin, with a value of 58.70%, JNPR belongs to the top of the industry, outperforming 81.63% 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 | 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
An Altman-Z score of 1.90 indicates that JNPR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of JNPR (1.90) is better than 61.22% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 2.41, JNPR is in the better half of the industry, outperforming 63.27% of the companies in the same industry.
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 | 1.9 |
ROIC/WACC0.47
WACC9.6%
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 65.31% 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 has a Quick ratio (1.16) which is in line with 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.
The Revenue has decreased by -2.56% in the past 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
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.
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
With a Price/Earnings ratio of 19.26, JNPR is valued on the expensive side.
69.39% of the companies in the same industry are more expensive than JNPR, based on the Price/Earnings ratio.
JNPR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.59.
A Price/Forward Earnings ratio of 15.97 indicates a correct valuation of JNPR.
JNPR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. JNPR is cheaper than 61.22% of the companies in the same industry.
JNPR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.26 | ||
| Fwd PE | 15.97 |
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 63.27% of the companies listed in the same industry.
71.43% 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 | 17.76 | ||
| EV/EBITDA | 18.83 |
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 2.46%, JNPR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.60, JNPR pays a better dividend. On top of this JNPR pays more dividend than 83.67% of the companies listed 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 | 2.46% |
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 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%
35.83
+0.07 (+0.2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners85.47%
Inst Owner Change4.95%
Ins Owners1.25%
Ins Owner Change6.82%
Market Cap11.98B
Analysts70
Price Target40.8 (13.87%)
Short Float %3.09%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
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)0.28%
EPS NQ rev (1m)-0.74%
EPS NQ rev (3m)-2.01%
EPS NY rev (1m)-1.64%
EPS NY rev (3m)-2.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.26 | ||
| Fwd PE | 15.97 | ||
| P/S | 2.3 | ||
| P/FCF | 17.76 | ||
| P/OCF | 15.37 | ||
| P/B | 2.48 | ||
| P/tB | 11.28 | ||
| EV/EBITDA | 18.83 |
EPS(TTM)1.86
EY5.19%
EPS(NY)2.24
Fwd EY6.26%
FCF(TTM)2.02
FCFY5.63%
OCF(TTM)2.33
OCFY6.51%
SpS15.57
BVpS14.44
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 | 1.9 |
F-Score6
WACC9.6%
ROIC/WACC0.47
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%