Juniper Networks, Inc.
Juniper Networks, Inc. Fundamental Analysis
Juniper Networks, Inc. (JNPR) shows weak financial fundamentals with a PE ratio of 41.78, profit margin of 7.94%, and ROE of 6.71%. The company generates $4.0B in annual revenue with weak year-over-year growth of -8.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 30.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze JNPR's fundamental strength across five key dimensions:
Efficiency Score
WeakJNPR struggles to generate sufficient returns from assets.
Valuation Score
ModerateJNPR shows balanced valuation metrics.
Growth Score
WeakJNPR faces weak or negative growth trends.
Financial Health Score
ExcellentJNPR maintains a strong and stable balance sheet.
Profitability Score
WeakJNPR struggles to sustain strong margins.
Key Financial Metrics
Is JNPR Expensive or Cheap?
P/E Ratio
JNPR trades at 41.78 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, JNPR's PEG of 1.91 indicates fair valuation.
Price to Book
The market values Juniper Networks, Inc. at 2.76 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 23.86 times EBITDA. This signals the market has high growth expectations.
How Well Does JNPR Make Money?
Net Profit Margin
For every $100 in sales, Juniper Networks, Inc. keeps $7.94 as profit after all expenses.
Operating Margin
Core operations generate 8.73 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.71 in profit for every $100 of shareholder equity.
ROA
Juniper Networks, Inc. generates $3.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Juniper Networks, Inc. produces operating cash flow of $791.06M, showing steady but balanced cash generation.
Free Cash Flow
Juniper Networks, Inc. generates strong free cash flow of $709.20M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.12 in free cash annually.
FCF Yield
JNPR converts 5.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
41.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.91
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.39
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.49
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How JNPR Stacks Against Its Sector Peers
| Metric | JNPR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 41.78 | 35.19 | Worse (Expensive) |
| ROE | 6.71% | 1155.00% | Weak |
| Net Margin | 7.94% | -127067.00% (disorted) | Weak |
| Debt/Equity | 0.39 | 0.41 | Neutral |
| Current Ratio | 1.49 | 4.71 | Neutral |
| ROA | 3.16% | -314918.00% (disorted) | Weak |
JNPR outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Juniper Networks, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
19.71%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-12.47%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
56.29%
Industry Style: Growth, Innovation, High Beta
High Growth