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NEW YORK (TheStreet) -- Juniper Networks (JNPR) - Get Juniper Networks, Inc. (JNPR) Report has been downgraded by TheStreet Ratings from Buy to Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate JUNIPER NETWORKS INC (JNPR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 deteriorating net income, disappointing return on equity and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Although JNPR's debt-to-equity ratio of 0.27 is very low, it is currently higher than that of the industry average. To add to this, JNPR has a quick ratio of 1.68, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for JUNIPER NETWORKS INC is rather high; currently it is at 67.06%. 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 -69.86% significantly underperformed when compared to the industry average.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Communications Equipment industry and the overall market, JUNIPER NETWORKS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- 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 607.0% when compared to the same quarter one year ago, falling from $151.80 million to -$769.60 million.
- You can view the full analysis from the report here: JNPR Ratings Report
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