NYSE:JNPR

Stock Analysis Report

Executive Summary

Juniper Networks, Inc. designs, develops, and sells network products and services worldwide.

Rewards

Trading at 35.8% below its fair value

Earnings are forecast to grow 13.98% per year

Earnings grew by 62.8% over the past year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has Juniper Networks's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JNPR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.5%

JNPR

-1.9%

US Communications

0.7%

US Market


1 Year Return

-13.4%

JNPR

-6.1%

US Communications

18.2%

US Market

Return vs Industry: JNPR underperformed the US Communications industry which returned -6.1% over the past year.

Return vs Market: JNPR underperformed the US Market which returned 18.2% over the past year.


Shareholder returns

JNPRIndustryMarket
7 Day-3.5%-1.9%0.7%
30 Day-8.6%-8.2%1.5%
90 Day-2.4%-9.7%5.0%
1 Year-10.7%-13.4%-3.9%-6.1%20.8%18.2%
3 Year-8.4%-14.6%37.4%28.6%45.2%35.8%
5 Year24.6%12.5%64.3%45.9%71.6%52.7%

Price Volatility Vs. Market

How volatile is Juniper Networks's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Juniper Networks undervalued compared to its fair value and its price relative to the market?

35.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JNPR ($23.92) is trading below our estimate of fair value ($37.29)

Significantly Below Fair Value: JNPR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: JNPR is poor value based on its PE Ratio (22.4x) compared to the Communications industry average (20.8x).

PE vs Market: JNPR is poor value based on its PE Ratio (22.4x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: JNPR is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: JNPR is good value based on its PB Ratio (1.8x) compared to the US Communications industry average (1.8x).


Next Steps

Future Growth

How is Juniper Networks forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JNPR's forecast earnings growth (14% per year) is above the savings rate (1.7%).

Earnings vs Market: JNPR's earnings (14% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: JNPR's earnings are forecast to grow, but not significantly.

Revenue vs Market: JNPR's revenue (2% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: JNPR's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JNPR's Return on Equity is forecast to be low in 3 years time (12.4%).


Next Steps

Past Performance

How has Juniper Networks performed over the past 5 years?

19.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JNPR has high quality earnings.

Growing Profit Margin: JNPR's current net profit margins (8.3%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: JNPR's earnings have grown by 19.9% per year over the past 5 years.

Accelerating Growth: JNPR's earnings growth over the past year (62.8%) exceeds its 5-year average (19.9% per year).

Earnings vs Industry: JNPR earnings growth over the past year (62.8%) exceeded the Communications industry 17.3%.


Return on Equity

High ROE: JNPR's Return on Equity (7.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Juniper Networks's financial position?


Financial Position Analysis

Short Term Liabilities: JNPR's short term assets ($3.2B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: JNPR's short term assets ($3.2B) exceed its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: JNPR's debt to equity ratio (36.3%) is considered satisfactory.

Reducing Debt: JNPR's debt to equity ratio has increased from 21.8% to 36.3% over the past 5 years.

Debt Coverage: JNPR's debt is well covered by operating cash flow (38.3%).

Interest Coverage: JNPR's interest payments on its debt are well covered by EBIT (64x coverage).


Balance Sheet

Inventory Level: JNPR has a low level of unsold assets or inventory.

Debt Coverage by Assets: JNPR's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

What is Juniper Networks's current dividend yield, its reliability and sustainability?

3.18%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%1.4%markettop25%3.7%industryaverage3.2%forecastin3Years3.2%

Current dividend yield vs market & industry

Notable Dividend: JNPR's dividend (3.18%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: JNPR's dividend (3.18%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, JNPR has been paying a dividend for less than 10 years.

Growing Dividend: JNPR's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.3%), JNPR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JNPR's dividends in 3 years are forecast to be well covered by earnings (31.2% payout ratio).


Next Steps

Management

What is the CEO of Juniper Networks's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Rami Rahim (48yo)

5.1yrs

Tenure

US$9,984,326

Compensation

Mr. Rami Rahim has been the Chief Executive Officer of Juniper Networks, Inc. since November 2014 and serves as its President. Mr. Rahim served as an Executive Vice President and General Manager of Platfor ...


CEO Compensation Analysis

Compensation vs Market: Rami's total compensation ($USD9.98M) is above average for companies of similar size in the US market ($USD6.70M).

Compensation vs Earnings: Rami's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.1yrs

Average Tenure

50.5yo

Average Age

Experienced Management: JNPR's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: JNPR's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: JNPR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$382,50018 Nov 19
William Stensrud
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceUS$25.50
SellUS$1,135,62806 Nov 19
Brian Martin
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares44,154
Max PriceUS$25.72
SellUS$240,00022 Aug 19
William Stensrud
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$24.00
SellUS$67,65001 Aug 19
Rahul Merchant
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$27.06
SellUS$910,47610 May 19
William Stensrud
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares35,000
Max PriceUS$26.01
SellUS$556,01203 May 19
Kevin DeNuccio
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$27.80
SellUS$267,63403 May 19
Manoj Leelanivas
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Product Officer
Shares9,641
Max PriceUS$27.76

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Brian Martin (57yo)

    Senior VP

    • Tenure: 4.2yrs
    • Compensation: US$3.78m
  • Jess Lubert

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Bob Worrall (58yo)

    Chief Information Officer & Senior VP

    • Tenure: 4.4yrs
  • Mike Marcellin

    Chief Marketing Officer & Senior VP

    • Tenure: 0yrs
  • Manoj Leelanivas (49yo)

    Executive VP & Chief Product Officer

    • Tenure: 1.8yrs
    • Compensation: US$5.46m
  • Rami Rahim (48yo)

    President

    • Tenure: 5.1yrs
    • Compensation: US$9.98m
  • Ken Miller (48yo)

    Executive VP

    • Tenure: 3.8yrs
    • Compensation: US$3.16m
  • Andy Athreya (56yo)

    Executive VP & Chief Development Officer

    • Tenure: 2.3yrs
    • Compensation: US$3.13m
  • Bikash Koley (46yo)

    Executive VP & CTO

    • Tenure: 2.3yrs
    • Compensation: US$8.76m
  • Thomas Austin (52yo)

    VP, Corporate Controller & Chief Accounting Officer

    • Tenure: 0.3yrs

Board Members

  • Bill Stensrud (68yo)

    Independent Director

    • Tenure: 23.2yrs
    • Compensation: US$295.05k
  • Scott Kriens (61yo)

    Independent Chairman of the Board

    • Tenure: 23.2yrs
    • Compensation: US$350.05k
  • Janet Haugen (60yo)

    Director

    • Tenure: 0.6yrs
  • Gary Daichendt (68yo)

    Lead Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$340.05k
  • Kevin DeNuccio (60yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$290.05k
  • Jim Dolce (56yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$290.05k
  • Rahul Merchant (63yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$295.05k
  • Christine Gorjanc (62yo)

    Director

    • Tenure: 0.6yrs
  • Rami Rahim (48yo)

    President

    • Tenure: 5.1yrs
    • Compensation: US$9.98m
  • Anne DelSanto (55yo)

    Independent Director

    • Tenure: 0.8yrs

Company Information

Juniper Networks, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Juniper Networks, Inc.
  • Ticker: JNPR
  • Exchange: NYSE
  • Founded: 1996
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$8.006b
  • Shares outstanding: 334.71m
  • Website: https://www.juniper.net

Number of Employees


Location

  • Juniper Networks, Inc.
  • 1133 Innovation Way
  • Sunnyvale
  • California
  • 94089
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JNPRNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1999
JNPDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1999
0JPHLSE (London Stock Exchange)YesCommon StockGBUSDJun 1999
JNPR-UETLX (Eurotlx)YesCommon StockITEURJun 1999

Biography

Juniper Networks, Inc. designs, develops, and sells network products and services worldwide. The company offers various routing products, such as ACX series universal access routers to deploy new high-band ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 23:39
End of Day Share Price2019/12/09 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.