Juniper Networks Inc

JNPR

Computer Communications Equipment

Mkt Cap

$11.1B

PE

49.57

Debt

$1.7B

Cash

$1.086B

EV

$11.72B

FCF

$854.2M

Market Cap

$11.1B

P/E Ratio

49.57

Debt

$1.7B

Cash

$1.086B

EV

$11.72B

FCF

$854.2M

Charts data: {"Earnings":[{"time":"2014-12-30","value":-334300000},{"time":"2015-12-30","value":633700000},{"time":"2016-12-30","value":592700000},{"time":"2017-12-30","value":306200000},{"time":"2018-12-30","value":566900000},{"time":"2019-12-30","value":345000000},{"time":"2020-12-30","value":257800000},{"time":"2021-12-30","value":252700000},{"time":"2022-12-30","value":471000000},{"time":"2023-12-30","value":310200000}],"Sales":[{"time":"2014-12-30","value":4627100000},{"time":"2015-12-30","value":4857800000},{"time":"2016-12-30","value":4990100000},{"time":"2017-12-30","value":5027200000},{"time":"2018-12-30","value":4647500000},{"time":"2019-12-30","value":4445400000},{"time":"2020-12-30","value":4445100000},{"time":"2021-12-30","value":4735400000},{"time":"2022-12-30","value":5301200000},{"time":"2023-12-30","value":5564500000}],"Net Margins":[{"time":"2014-12-30","value":-0.0722482764582568},{"time":"2015-12-30","value":0.13044999794145498},{"time":"2016-12-30","value":0.11877517484619547},{"time":"2017-12-30","value":0.06090865690642903},{"time":"2018-12-30","value":0.12197955890263583},{"time":"2019-12-30","value":0.07760831421244432},{"time":"2020-12-30","value":0.057996445524285165},{"time":"2021-12-30","value":0.05336402415846602},{"time":"2022-12-30","value":0.08884780804346186},{"time":"2023-12-30","value":0.05574624853985084}],"Assets":[{"time":"2014-12-30","value":8403100000},{"time":"2015-12-30","value":8619200000},{"time":"2016-12-30","value":9656500000},{"time":"2017-12-30","value":9833800000},{"time":"2018-12-30","value":9363300000},{"time":"2019-12-30","value":8837700000},{"time":"2020-12-30","value":9378300000},{"time":"2021-12-30","value":8887000000},{"time":"2022-12-30","value":9326700000},{"time":"2023-12-30","value":9518500000}],"Stockholders Equity":[{"time":"2014-12-30","value":4919100000},{"time":"2015-12-30","value":4574400000},{"time":"2016-12-30","value":4962500000},{"time":"2017-12-30","value":4680900000},{"time":"2018-12-30","value":4823200000},{"time":"2019-12-30","value":4610600000},{"time":"2020-12-30","value":4543500000},{"time":"2021-12-30","value":4316900000},{"time":"2022-12-30","value":4475100000},{"time":"2023-12-30","value":4492700000}],"ROE":[{"time":"2014-12-30","value":-0.06795958610314895},{"time":"2015-12-30","value":0.13853182931094787},{"time":"2016-12-30","value":0.11943576826196474},{"time":"2017-12-30","value":0.06541477066376124},{"time":"2018-12-30","value":0.11753607563443356},{"time":"2019-12-30","value":0.07482757124886132},{"time":"2020-12-30","value":0.05674039837129966},{"time":"2021-12-30","value":0.0585373763580347},{"time":"2022-12-30","value":0.1052490447140846},{"time":"2023-12-30","value":0.0690453402185768}],"ROA":[{"time":"2014-12-30","value":-0.010270019397603266},{"time":"2015-12-30","value":0.10581028401707815},{"time":"2016-12-30","value":0.09213483146067415},{"time":"2017-12-30","value":0.08624336472167422},{"time":"2018-12-30","value":0.06111093311118943},{"time":"2019-12-30","value":0.050035642757731084},{"time":"2020-12-30","value":0.03765074693707815},{"time":"2021-12-30","value":0.043603015640823674},{"time":"2022-12-30","value":0.06378461835375857},{"time":"2023-12-30","value":0.04938803382885959}]}

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; wide-area network SDN controllers; and session smart routers. 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 juniper access points, which provide Wi-Fi 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 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, which provides an open-source and standards-based platform for SDN; Mist AI-driven Wired, Wireless, and WAN assurance solutions to set and measure key metrics; Mist AI-driven Marvis Virtual Network Assistant, which identifies the root cause of issues; Juniper Paragon Automation, a modular portfolio of cloud-native software applications; and Juniper Apstra to automate the network lifecycle in a single system. Additionally, the company provides software-as-a-service, 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 manufacturers to end-users in the cloud, service provider, and enterprise markets. The company was incorporated in 1996 and is headquartered in Sunnyvale, California.

Sector

10-Q
9/30/23
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10-K
12/31/22
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10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Juniper Networks Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$854.2M	$800M	$749.3M	$701.7M	$657.2M	$615.5M	$576.5M	$539.9M	$505.6M	$473.6M	$443.5M	$4.435B
DCF		$695.7M	$566.5M	$461.4M	$375.8M	$306M	$249.2M	$203M	$165.3M	$134.6M	$109.6M	$1.096B
Value	$4.363B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -7.5%

Earnings Stability 20%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	13%	12%	6.1%	12%	7.8%	5.8%	5.3%	8.9%	5.6%	4.2%
ROA	11%	9.2%	8.6%	6.1%	5%	3.8%	4.4%	6.4%	4.9%	3.6%
ROE	14%	12%	6.5%	12%	7.5%	5.7%	5.9%	11%	6.9%	5%

What is the average Net Margin?

The average Net Margin over the past 5 years is +7.59%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.86%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +5.09%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.03%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +8.03%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -0.43%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	2.86	2.41	1.94	3.50	4.05	4.98	2.88	-226.67	2.38	1.99
Debt Equity	0.43	0.43	0.46	0.52	0.37	0.56	0.39	0.38	0.38	0.38
MIN
Graham Stability	-	-	100%	100%	71%	63%	65%	100%	95%	63%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 1.99.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -20.00.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.63.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	1.6%	3.7%	7.8%	5%	0.78%
Net Income	-8.8%	-11%	6.4%	-34%	2.8%
Stockholders Equity	-1.4%	-1.4%	-0.37%	0.39%	0.2%
FCF	-3.1%	-0.0084%	12%	-	-3.4%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +3.67%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.78%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -11.36%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +2.77%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -1.41%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.2%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -0.01%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -3.42%.