NYSE:JNPR

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet and good 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


Market Performance


7 Day Return

-0.1%

JNPR

-1.4%

US Communications

1.0%

US Market


1 Year Return

-14.7%

JNPR

2.4%

US Communications

6.7%

US Market

Return vs Industry: JNPR underperformed the US Communications industry which returned 2.4% over the past year.

Return vs Market: JNPR underperformed the US Market which returned 6.7% over the past year.


Share holder returns

JNPRIndustryMarket
7 Day-0.1%-1.4%1.0%
30 Day-2.4%-5.7%-1.8%
90 Day-13.2%-16.0%-1.8%
1 Year-12.2%-14.7%4.7%2.4%9.1%6.7%
3 Year12.9%5.6%51.6%42.1%46.1%36.6%
5 Year32.1%19.6%95.1%74.7%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

26%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: JNPR ($23.69) is trading below our estimate of fair value ($31.87)

Significantly Undervalued: JNPR is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: JNPR is good value based on its PE Ratio (16.6x) compared to the Communications industry average (30.1x).

PE vs Market: JNPR is good value based on its PE Ratio (16.6x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: JNPR is poor value based on its PEG Ratio (1x)


Price Based on Value of Assets

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 expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

16.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: JNPR's forecast earnings growth (16.3% per year) is above the savings rate (2.7%).

Earnings vs Market: JNPR's earnings (16.3% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: JNPR's revenue (2.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: JNPR's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: JNPR's Return on Equity is forecast to be low in 3 years time (14.2%).


Next Steps

Past Performance

How has Juniper Networks performed over the past 5 years?

16.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: JNPR's earnings have grown by 16.5% per year over the past 5 years.

Accelerating Growth: JNPR's earnings growth over the past year (192.8%) exceeds its 5-year average (16.5% per year).

Earnings vs Industry: JNPR earnings growth over the past year (192.8%) exceeded the Communications industry 22.8%.


Return on Equity

High ROE: JNPR's Return on Equity (10.7%) is considered low.


Return on Assets

ROA vs Industry: JNPR has a higher Return on Assets than the Communications industry average last year.


Return on Capital Employed

ROCE Improving: JNPR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Juniper Networks's financial position?


Financial Position Analysis

Short Term Liabilities: JNPR's short term assets ($3.8B) exceeds its short term liabilities ($1.8B)

Long Term Liabilities: JNPR's short term assets ($3.8B) exceeds its long term liabilities ($2.5B)


Debt to Equity History and Analysis

Debt Level: JNPR's debt to equity ratio (39%) is considered satisfactory

Reducing Debt: JNPR's debt to equity ratio has increased from 20.4% to 39% over the past 5 years.

Debt Coverage: JNPR's debt is well covered by operating cash flow (37.3%).

Interest Coverage: JNPR's interest payments on its debt are well covered by EBIT (42.9x 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 2.099770x debt).


Next Steps

Dividend

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

3.14%

Expected Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%1.5%markettop25%3.8%industryaverage2.6%forecastin3Years3.1%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: JNPR's dividend (3.21%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: JNPR's dividend (3.21%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 (52%), 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 (37.3% 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?

2.9yrs

Average management tenure


CEO

Rami Rahim (48yo)

4.9yrs

Tenure

US$9,984,326

Compensation

Mr. Rami Rahim has been the Chief Executive Officer of Juniper Networks, Inc. since November 2014. Mr. Rahim served as an Executive Vice President and General Manager of Platform Systems Division at Junipe ...


CEO Compensation Analysis

Compensation vs. Market: Rami's total compensation ($USD9.98M) is about average for companies of similar size in the US market ($USD6.81M).

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


Management Age and Tenure

2.9yrs

Average Tenure

50.5yo

Average Age

Experienced Management: JNPR's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

4.6yrs

Average Tenure

60.5yo

Average Age

Experienced Board: JNPR's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

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
SellUS$304,20009 Nov 18
William Stensrud
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$30.42
SellUS$3,357,15702 Nov 18
Anand Athreya
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Development Officer
Shares113,039
Max PriceUS$29.70

Ownership Breakdown


Management Team

  • Brian Martin (57yo)

    Senior VP

    • Tenure: 4yrs
    • Compensation: US$3.78m
  • Jess Lubert

    Vice President of Investor Relations

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

    Chief Information Officer & Senior VP

    • Tenure: 4.3yrs
  • Mike Marcellin

    Chief Marketing Officer & Senior VP

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

    Executive VP & Chief Product Officer

    • Tenure: 1.6yrs
    • Compensation: US$5.46m
  • Rami Rahim (48yo)

    CEO & Director

    • Tenure: 4.9yrs
    • Compensation: US$9.98m
  • Ken Miller (48yo)

    Executive VP & CFO

    • Tenure: 3.7yrs
    • Compensation: US$3.16m
  • Andy Athreya (56yo)

    Executive VP & Chief Development Officer

    • Tenure: 2.2yrs
    • Compensation: US$3.13m
  • Bikash Koley (46yo)

    Executive VP & CTO

    • Tenure: 2.1yrs
    • Compensation: US$8.76m
  • Thomas Austin (52yo)

    VP, Corporate Controller & Chief Accounting Officer

    • Tenure: 0.08yrs

Board Members

  • Bill Stensrud (68yo)

    Independent Director

    • Tenure: 23yrs
    • Compensation: US$295.05k
  • Scott Kriens (61yo)

    Independent Chairman of the Board

    • Tenure: 23yrs
    • Compensation: US$350.05k
  • Janet Haugen (60yo)

    Director

    • Tenure: 0.4yrs
  • Gary Daichendt (68yo)

    Lead Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$340.05k
  • Kevin DeNuccio (60yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$290.05k
  • Jim Dolce (56yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$290.05k
  • Rahul Merchant (63yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$295.05k
  • Christine Gorjanc (62yo)

    Director

    • Tenure: 0.4yrs
  • Rami Rahim (48yo)

    CEO & Director

    • Tenure: 4.9yrs
    • Compensation: US$9.98m
  • Anne DelSanto (55yo)

    Independent Director

    • Tenure: 0.6yrs

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$8.192b
  • Shares outstanding: 345.82m
  • 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

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 Analysis2019/10/14 01:21
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
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.

© 2018 SIMPLY WALL STREET PTY LTD, COMMUNITY DESIGN 2845206, US DESIGN PATENT #29/544/281, EUROPEAN DESIGN REGISTRATION #2845206, STANDARD & POOR’S FINANCIAL SERVICES LLC. ALL RIGHTS RESERVED.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Copyright © 2018, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2018)