Juniper Networks Inc
Exchange: NYSESector: TechnologyIndustry: Communication Equipment
Juniper Networks is leading the convergence of AI and networking. Juniper’s Mist™ AI-native networking platform is purpose-built to run AI workloads and simplify IT operations assuring exceptional secure user and application experiences—from the edge, to the data center, to the cloud.
Did you know?
Earnings per share grew at a -1.0% CAGR.
Current Price
$39.95
+0.00%GoodMoat Value
$27.73
30.6% overvaluedProfile
Valuation (TTM)
Market Cap$13.31B
P/E37.73
EV$13.65B
P/B2.78
Shares Out333.19M
P/Sales2.56
Revenue$5.20B
EV/EBITDA24.92
Juniper Networks Inc (JNPR) Stock Analysis
GoodMoat Analysis
Juniper Networks appears to lack a durable competitive moat and trades at a significant premium to its estimated fair value. The current price of $39.95 is 44% above the GoodMoat Target of $27.73, indicating an unfavourable valuation.
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Juniper Networks designs and sells networking hardware, software, and services for data centers and telecommunications providers. Applying the GoodMoat framework, the company's moat score is likely low. While it may have some switching costs and niche dominance in enterprise routing, the industry is highly competitive with low differentiation, and the company shows no evidence of the high-margin, scalable advantages like network effects or proprietary data that define a durable moat. Key quality indicators are also weak: a P/E of 37.7x is high for a company with single-digit ROE (7.4%) and profit margin (6.8%), and the 5.1% FCF yield is modest. The Decision Framework's first step is a 'Moat & Quality Gate.' With a probable moat score below 5 and multiple unfavourable quality metrics, the business fails this initial gate, suggesting it lacks the fundamental strength and durable advantage required for further valuation analysis. Even if one proceeded, the valuation is severely unfavourable, with the market price offering a negative margin of safety relative to the target. For a value investor, this combination of weak business fundamentals and high price makes it an unfavourable candidate for deeper investigation. Analysis based on data as of 2024-05-15.
Market Cap$13.31B
Current Price$39.95
P/E Ratio37.73
Forward P/E—
PEG Ratio1.47
EPS$0.86
Book Value$14.36
P/B Ratio2.78
JNPR Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -1.0% FCF growth (CAGR)
Cash vs Debt
Net Debt: 526M
Revenue
4.6B
FY18
4.4B
FY19
4.4B
FY20
4.7B
FY21
5.3B
FY22
5.6B
FY23
5.1B
FY24
Net Income
567M
FY18
345M
FY19
258M
FY20
253M
FY21
471M
FY22
310M
FY23
288M
FY24
JNPR 52-Week Range
$33.83
$39.95
50-Day MA: $36.18200-Day MA: —
Did you know?
Free cash flow has been growing at -1.0% annually.
Juniper Networks Inc (JNPR) Financial Summary
Juniper Networks Inc (JNPR) is a Technology company in the Communication Equipment industry, listed on NYSE. The stock currently trades at $39.95 with a market capitalization of $13.31B.
Key valuation metrics include a P/E ratio of 37.73, price-to-book ratio of 2.78, and EPS of $0.86. The company reports a profit margin of 6.8% and return on equity of 7.4%.
JNPR Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $13.31B |
| P/E Ratio | 37.73 |
| EPS | $0.86 |
| P/B Ratio | 2.78 |
| P/S Ratio | 2.56 |
| EV/EBITDA | 24.92 |
| Dividend Yield | 2.17% |
| Profit Margin | 6.8% |
| Return on Equity | 7.4% |
| Debt/Equity | 0.37 |
JNPR Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY18 | $4.65B | $566.90M |
| FY19 | $4.45B | $345.00M |
| FY20 | $4.45B | $257.80M |
| FY21 | $4.74B | $252.70M |
| FY22 | $5.30B | $471.00M |
| FY23 | $5.56B | $310.20M |
| FY24 | $5.07B | $287.90M |
Juniper Networks Inc (JNPR) Valuation
Based on GoodMoat's DCF model, Juniper Networks Inc has a fair value estimate of $27.73. At the current price of $39.95, the stock appears 44.1% overvalued relative to our intrinsic value estimate.
JNPR Quality Indicators
Juniper Networks Inc maintains a profit margin of 6.8% and an operating margin of 5.8%. Return on equity stands at 7.4%. The current ratio is 1.46. Debt-to-equity ratio is 0.37.
About Juniper Networks Inc
Juniper Networks is leading the convergence of AI and networking. Juniper’s Mist™ AI-native networking platform is purpose-built to run AI workloads and simplify IT operations assuring exceptional secure user and application experiences—from the edge, to the data center, to the cloud.
JNPR Free Cash Flow
Juniper Networks Inc generated $672.60M in trailing twelve-month free cash flow, representing an FCF yield of 5.05%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
JNPR Shares Outstanding
Juniper Networks Inc has 0.33 billion shares outstanding at a share price of $39.95, giving it a market capitalization of $13.31B.