10Y annualized return is
positive but below market average
at 3.1% per year
JNPR has met or exceeded earnings expectations in
some
recent quarters (6/10)
Price to Sales Ratio
Debt to Equity Ratio
Strong Gross Profit Margin
Return on Equity
Strong Liquidity Ratios
Interest Coverage Ratio
📈 Strong Performance in Enterprise Sector
🌐 Competitive Advantage in AI-Driven Solutions
💪 Resilient Services Business
🚀 Growth in AI Cluster Opportunities
📊 Expected Revenue Growth in 2024
High PE Ratio
High EV/EBITDA Ratio
Low Net Profit Margin
Operating Profit Margin
High Dividend Payout Ratio
Cash Ratio
📉 Challenges in Cloud and Service Provider Segments
⏳ Uncertainty in Cloud and Service Provider Recovery
Overall, Juniper Networks demonstrates a solid business model with strong performance in the Enterprise sector and a robust services business. However, challenges in the Cloud and Service Provider segments present risks. Future prospects are bolstered by growth opportunities in AI clusters and an optimistic outlook for 2024, despite some uncertainties.
Analysis Date: October 26, 2023
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Juniper Networks, Inc. is a company that makes products to help connect computers and devices over the internet. They offer various devices like routers and switches, which direct internet traffic and help businesses stay connected. Juniper also provides security tools to protect networks from threats and software to manage and improve network performance. Overall, they help companies build and maintain strong and secure internet systems.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$27.87
Current Market Price: $34.57
IV/P Ratio: 0.81x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-24.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for JNPR
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (38.58)
P/B ratio ≤ 1.5 (2.32)
Current ratio ≥ 2.0 (1.46x)
Long-term debt < Net current assets (1.12x)
Margin of safety (-24.0%)
JNPR does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
6.26%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
58.76%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
5.67%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
The gross profit margin of 58.76% indicates that JNPR retains a substantial portion of its sales revenue after accounting for the cost of goods sold, reflecting strong pricing power.
A return on equity of 6.26% shows that JNPR is generating a reasonable return on shareholders' equity, which is a positive indicator of profitability.
The net profit margin of 5.67% is relatively low, indicating that after all expenses, the company retains a smaller portion of sales as profit, which could raise concerns about overall profitability.
With an operating profit margin of 6.60%, JNPR's efficiency in turning revenue into operating profit is modest, indicating potential operational inefficiencies.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.37x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.46x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
JNPR has a current ratio of 1.46 and a quick ratio of 1.14, indicating a solid ability to meet short-term liabilities with its short-term assets.
An interest coverage ratio of 4.12 reflects a strong capacity to cover interest expenses, suggesting that the company is in a sound financial position to manage its debt.
The dividend payout ratio of 100.24% indicates that JNPR is paying out more in dividends than it earns, which may not be sustainable in the long term.
A cash ratio of 0.46 suggests that JNPR may have limited cash reserves relative to its short-term liabilities, which could pose liquidity concerns.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Juniper Networks has seen substantial growth in its Enterprise business, which accounted for over 50% of total revenue for the first time, with nearly 40% year-over-year growth. This strong performance highlights the effectiveness of their diversification strategy and the appeal of their AI-driven solutions.
Juniper's focus on AI-driven operations and experience-first networking offers a competitive edge, as they have demonstrated significant reductions in operational issues and deployment times for customers, making their solutions more attractive in a cost-sensitive market.
The services segment of Juniper Networks has shown robust growth, contributing over 35% of total revenue. This recurring revenue model provides stability and opportunities for margin expansion.
The Cloud and Service Provider segments faced significant declines due to customers digesting previous orders and tightening budgets. This has resulted in a year-over-year revenue decline of 28% in the Cloud segment.
There is significant optimism surrounding the adoption of Ethernet for AI clusters, which is expected to become a critical component in data center solutions. This trend presents a substantial growth opportunity for Juniper as they leverage their technology and customer relationships.
Despite current challenges, Juniper anticipates overall revenue growth in 2024 driven by strong enterprise momentum and expected recovery in Cloud and Service Provider segments, with all verticals projected to experience year-over-year growth.
The timeline for recovery in the Cloud and Service Provider segments remains uncertain, as customers continue to digest existing inventory. This could lead to continued pressure on revenue in these verticals for several quarters.
