Juniper Networks (JNPR) AI Stock Analysis

• Market Cap: $12.05B
• Dividend Yield: 2.44%
• Average Volume (3M): 2.77M
• Price to Earnings (P/E): 34.5
• Beta (1Y): 0.44
• Revenue Growth: -2.56%
• EPS Growth: 52.05%
• Country: US
• Employees: 11,271
• Sector: Technology
• Sector Strength: 76
• Industry: Communication Equipment
• EPS (TTM): 0.43
• Shares Outstanding: 334,382,600
• 10 Day Avg. Volume: 2,558,151
• 30 Day Avg. Volume: 2,769,989
• PEG Ratio: 1.59
• Price to Book (P/B): 2.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.01
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 4.18
• Enterprise Value/Ebitda: 6.15
• 1Y Price Target: $40.00
• Price Target Upside: 10.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

Juniper Networks demonstrates strong financial health with stable growth and efficient cash flow management. The stock exhibits positive price momentum but may face resistance due to high valuation metrics. The high P/E ratio suggests overvaluation, but a decent dividend yield offers some compensation. Overall, the stock is well-positioned but may experience volatility due to technical and valuation factors.

Positive Factors

Analyst Recommendation

The analyst is upgrading Juniper Networks to Outperform, indicating an expectation of potential upside to the current share price.

Cloud Growth

The company reported strong cloud order momentum and healthy visibility into the upcoming quarter.

Financial Performance

Free cash flow significantly increased to $253 million compared to $162 million in the prior period and $74 million a year ago.

Negative Factors

Acquisition Concerns

The US DOJ filed a lawsuit against HPE to block its pending acquisition of Juniper, arguing it would significantly reduce competition in the enterprise WLAN market.

Service Provider Revenue

Service Provider revenue declining Y/Y and Q/Q was weaker than expected given the positive data points from ecosystem QTD.

Tariff Concerns

Concerns exist around product gross margins due to tariff issues.

Juniper Networks Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Juniper Networks primarily generates revenue through the sale of its networking equipment and software solutions. The company's key revenue streams include hardware sales, such as routers and switches, which form the backbone of data centers and enterprise networks. Additionally, Juniper offers a range of software solutions, including network management and automation software, which contribute to its revenue. The company also earns from providing technical support and maintenance services to its clients. Juniper Networks has established strategic partnerships with various technology companies and service providers to expand its market reach and enhance its product offerings, further contributing to its earnings. The company's focus on innovation and development in areas like cybersecurity and cloud networking also plays a significant role in driving its financial performance.

Juniper Networks Financial Statement Overview

Summary

Juniper Networks maintains a strong financial position with stable revenue growth, healthy profit margins, and efficient cash flow management. The company's moderate leverage and strong equity base bolster its financial stability, although growth in assets remains modest. Overall, Juniper Networks is well-positioned within the Communication Equipment industry, with a balanced approach to growth and financial sustainability.

Income Statement

Juniper Networks shows a stable financial performance with a Gross Profit Margin of 58.7% and a Net Profit Margin of 6.8% in the TTM period. Revenue has grown by 2.6% from the previous year, indicating steady growth. EBIT Margin and EBITDA Margin are 7.8% and 11.1%, respectively, reflecting a moderate operational efficiency.

Balance Sheet

The company's Debt-to-Equity Ratio stands at 0.39, suggesting a balanced leverage position, while ROE is at 7.3%, indicating a decent return on equity. The Equity Ratio is 47.9%, showing a strong equity base, although the overall asset growth is modest.

Cash Flow

The Free Cash Flow has grown marginally by 0.3%, reflecting a stable cash flow generation. With an Operating Cash Flow to Net Income Ratio of 2.21 and a Free Cash Flow to Net Income Ratio of 1.91, Juniper Networks demonstrates robust cash flow management and the ability to convert net income into cash flows efficiently.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.20B	5.07B	5.56B	5.30B	4.74B	4.45B
	Gross Profit
3.06B	2.98B	3.20B	2.96B	2.74B	2.57B
	EBIT
406.10M	291.80M	470.10M	519.10M	533.90M	544.10M
	EBITDA
580.30M	541.00M	621.20M	757.00M	636.30M	549.00M
	Net Income Common Stockholders
352.80M	287.90M	310.20M	471.00M	252.70M	257.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.56B	1.38B	1.21B	1.09B	1.24B	1.77B
	Total Assets
10.09B	10.01B	9.52B	9.33B	8.89B	9.38B
	Total Debt
1.90B	1.75B	1.70B	1.72B	1.83B	2.29B
	Net Debt
610.00M	526.30M	631.60M	838.90M	906.50M	928.90M
	Total Liabilities
5.26B	5.22B	5.03B	4.85B	4.57B	4.83B
	Stockholders Equity
4.83B	4.78B	4.49B	4.48B	4.32B	4.54B
Cash Flow		Free Cash Flow
674.60M	672.60M	713.40M	-7.50M	589.70M	511.60M
	Operating Cash Flow
779.60M	788.10M	872.80M	97.60M	689.70M	612.00M
	Investing Cash Flow
-287.40M	-390.30M	-67.60M	407.50M	13.80M	-288.90M
	Financing Cash Flow
-269.10M	-232.70M	-618.80M	-528.40M	-1.13B	-222.40M

Juniper Networks Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 36.05
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JNPR, the sentiment is Neutral. The current price of 36.05 is above the 20-day moving average (MA) of 36.00, above the 50-day MA of 35.68, and below the 200-day MA of 36.97, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 51.93 is Neutral, neither overbought nor oversold. The STOCH value of 19.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JNPR.

Juniper Networks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSCO	78 Outperform	$253.10B	26.10	21.36%	2.53%	0.47%	-17.77%
HPE	70 Outperform	$23.32B	8.78	12.09%	2.93%	10.93%	43.19%
JNPR	68 Neutral	$12.05B	34.45	7.58%	2.44%	-2.56%	52.05%
ERIC	68 Neutral	$28.42B	180.60	1.67%	2.13%	-2.08%	―
NOK	64 Neutral	$26.91B	34.60	5.70%	1.94%	-9.96%	-6.83%
UI	63 Neutral	$26.38B	48.07	237.68%	0.55%	21.43%	56.87%
Sector *	60 Neutral	$11.59B	10.39	-7.23%	2.94%	7.46%	-10.76%

Juniper Networks Corporate Events

Juniper Networks Faces DOJ Challenge in HPE Merger

Hewlett Packard Enterprise and Juniper Networks announced a merger agreement where Juniper will become a wholly owned subsidiary of HPE. However, the U.S. Department of Justice filed a lawsuit on January 30, 2025, to block this acquisition, citing antitrust concerns in the Wireless Local Area Network market. The companies argue that the merger is pro-competitive and will enhance innovation, competition, and national security, with support from customers and clearance from other international antitrust regulators.