Computer Communications Equipment
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.
Discounted Cash Flow Valuation of Juniper Networks Inc
Growth
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Discount
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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 |
In the chart Earnings are multiplied by this value.
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.
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% |
The average Net Margin over the past 5 years is +7.59%.
The trend of Net Margin over the past 5 years is -0.86%.
The average ROA over the past 5 years is +5.09%.
The trend of ROA over the past 5 years is -0.03%.
The average ROE over the past 5 years is +8.03%.
The trend of ROE over the past 5 years is -0.43%.
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.
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% |
The Debt/FCF trailing twelve month is 1.99.
The trend of Debt/FCF over the past 5 years is -20.00.
Graham’s Stability measure stands at 0.63.
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.
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% |
The Revenue CAGR over the past 5 years is +3.67%.
The trend of Revenue growth rate over the past 5 years is +0.78%.
The Earnings CAGR over the past 5 years is -11.36%.
The trend of Earnings growth rate over the past 5 years is +2.77%.
The Equity CAGR over the past 5 years is -1.41%.
The trend of Equity growth rate over the past 5 years is +0.2%.
The FCF CAGR over the past 5 years is -0.01%.
The trend of FCF growth rate over the past 5 years is -3.42%.