NYSE:JNPR

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Excellent balance sheet and fair value.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.4%

JNPR

12.8%

US Communications

12.5%

US Market


1 Year Return

-26.7%

JNPR

-28.7%

US Communications

-12.7%

US Market

Return vs Industry: JNPR exceeded the US Communications industry which returned -28.7% over the past year.

Return vs Market: JNPR underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

JNPRIndustryMarket
7 Day15.4%12.8%12.5%
30 Day-6.0%-4.5%-14.7%
90 Day-19.0%-18.9%-21.5%
1 Year-24.3%-26.7%-27.2%-28.7%-10.9%-12.7%
3 Year-22.4%-28.1%9.6%2.7%12.6%5.4%
5 Year-2.3%-12.2%40.1%25.0%31.9%17.5%

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?

24.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JNPR ($19.94) is trading below our estimate of fair value ($26.26)

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


Price To Earnings Ratio

PE vs Industry: JNPR is good value based on its PE Ratio (19.8x) compared to the Communications industry average (21.6x).

PE vs Market: JNPR is poor value based on its PE Ratio (19.8x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: JNPR is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: JNPR is overvalued based on its PB Ratio (1.5x) compared to the US Communications industry average (1.3x).


Next Steps

Future Growth

How is Juniper Networks forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JNPR's forecast earnings growth (10.3% per year) is above the savings rate (1.7%).

Earnings vs Market: JNPR's earnings (10.3% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: JNPR's revenue (1.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: JNPR's revenue (1.2% 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 (11.8%).


Next Steps

Past Performance

How has Juniper Networks performed over the past 5 years?

23.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JNPR has high quality earnings.

Growing Profit Margin: JNPR's current net profit margins (7.8%) are lower than last year (12.2%).


Past Earnings Growth Analysis

Earnings Trend: JNPR has become profitable over the past 5 years, growing earnings by 23.6% per year.

Accelerating Growth: JNPR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: JNPR had negative earnings growth (-39.1%) over the past year, making it difficult to compare to the Communications industry average (-13.2%).


Return on Equity

High ROE: JNPR's Return on Equity (7.5%) is considered low.


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 ($1.5B).

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 (36.6%) is considered satisfactory.

Reducing Debt: JNPR's debt to equity ratio has increased from 27.6% to 36.6% over the past 5 years.

Debt Coverage: JNPR's debt is well covered by operating cash flow (31.4%).

Interest Coverage: JNPR's interest payments on its debt are well covered by EBIT (51.5x 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?

4.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JNPR's dividend (4.01%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: JNPR's dividend (4.01%) is low compared to the top 25% of dividend payers in the US market (5.49%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.6%), JNPR's 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 (39.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Rami Rahim (48yo)

5.33s

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 ($USD9.98M) is above average for companies of similar size in the US market ($USD7.36M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Rami Rahim
President5.33yrsUS$9.98m0.23% $14.9m
Kenneth Miller
Executive VP4yrsUS$3.16m0.030% $2.0m
Manoj Leelanivas
Executive VP & Chief Product Officer2yrsUS$5.46m0.010% $664.3k
Anand Athreya
Executive VP & Chief Development Officer2.58yrsUS$3.13m0.027% $1.8m
Thomas Austin
VP, Corporate Controller & Chief Accounting Officer0.50yrno datano data
Raj Yavatkar
Senior VP & Chief Technology Officer0.25yrno datano data
Robert Worrall
Chief Information Officer & Senior VP4.67yrsno datano data
Jess Lubert
Vice President of Investor Relationsno datano datano data
Brian Martin
Senior VP4.42yrsUS$3.78m0.016% $1.1m
Michael Marcellin
Chief Marketing Officer & Senior VPno datano datano data

3.3yrs

Average Tenure

54yo

Average Age

Experienced Management: JNPR's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rami Rahim
President5.33yrsUS$9.98m0.23% $14.9m
William Stensrud
Independent Director23.42yrsUS$295.05k0.046% $3.1m
Scott Kriens
Independent Chairman of the Board23.42yrsUS$350.05k0.72% $47.2m
Janet Haugen
Director0.83yrno datano data
Gary Daichendt
Lead Independent Director5yrsUS$340.05k0.014% $926.0k
Kevin DeNuccio
Independent Director5.83yrsUS$290.05k0.0050% $327.6k
James Dolce
Independent Director5yrsUS$290.05k0.011% $755.3k
Rahul Merchant
Independent Director5yrsUS$295.05k0.011% $745.4k
Christine Gorjanc
Director0.83yrno datano data
Anne DelSanto
Independent Director1yrno data0.00049% $32.3k

5.0yrs

Average Tenure

60.5yo

Average Age

Experienced Board: JNPR's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$6.591b
  • Shares outstanding: 330.53m
  • 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
JNPXTRA (XETRA Trading Platform)YesCommon StockDEEURJun 1999
0JPHLSE (London Stock Exchange)YesCommon StockGBUSDJun 1999
JNPR-UETLX (Eurotlx)YesCommon StockITEURJun 1999
J1NP34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

Juniper Networks, Inc. designs, develops, and sells network products and services worldwide. The company offers routing products, such as ACX series universal access routers to deploy high-bandwidth services; MX series Ethernet routers that function as a universal edge platform; PTX series packet transport routers; cloud customer premises equipment; and NorthStar controllers. It also provides switching products, including EX series Ethernet switches to address the access, aggregation, and core layer switching requirements of micro branch, branch office, and campus environments; QFX series of core, spine, and top-of-rack data center switches; and mist access points, which provide wireless access and performance. In addition, the company offers security products comprising SRX series services gateways for the data center; Branch SRX family provides an integrated firewall and next-generation firewall; virtual firewall that delivers various features of physical firewalls; and advanced malware protection, a cloud-based service and Juniper ATP. Further, it offers Junos OS, a network operating system; Contrail networking and cloud platform, which provides an open-source and standards-based platform for SDN and NFV; Contrail Insights, an optimization and management software platform for public, private, and hybrid clouds; and Marvis Actions and AI-driven Virtual Network Assistant, which identifies the root cause of issues across the information technology, domains and automatically resolves issues. Additionally, the company provides technical support, maintenance, and professional services, as well as education and training programs. It sells its products through direct sales, distributors, value-added resellers, and original equipment manufacturer partners to end-users in the cloud, service provider, and enterprise markets. The company was founded in 1996 and is headquartered in Sunnyvale, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 01:21
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.