Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a hold with a ratings score of C . The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.
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Highlights from the ratings report include:
- JNPR's debt-to-equity ratio is very low at 0.14 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.65, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for JUNIPER NETWORKS INC is rather high; currently it is at 66.40%. Regardless of JNPR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, JNPR's net profit margin of 5.40% is significantly lower than the same period one year prior.
- JUNIPER NETWORKS INC's earnings per share declined by 47.6% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, JUNIPER NETWORKS INC reported lower earnings of $0.79 versus $1.14 in the prior year. For the next year, the market is expecting a contraction of 3.8% in earnings ($0.76 versus $0.79).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Communications Equipment industry. The net income has significantly decreased by 50.0% when compared to the same quarter one year ago, falling from $115.56 million to $57.72 million.
Juniper Networks, Inc. designs, develops, and sells products and services that provide network infrastructure for networking requirements of service providers, enterprises, governments, and research and public sector organizations worldwide. The company has a P/E ratio of 38.1, above the average computer hardware industry P/E ratio of 37.3 and above the S&P 500 P/E ratio of 17.7. Juniper has a market cap of $9.62 billion and is part of the
industry. Shares are down 12.5% year to date as of the close of trading on Tuesday.
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--Written by a member of TheStreet Ratings Staff.
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