NEW YORK ( TheStreet) -- Juniper Networks (NYSE: JNPR) 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, deteriorating net income and disappointing return on equity.
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- Although JNPR's debt-to-equity ratio of 0.14 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 2.85, 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 65.50%. 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 1.60% is significantly lower than the same period one year prior.
- Net operating cash flow has significantly decreased to $102.27 million or 57.32% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Communications Equipment industry and the overall market, JUNIPER NETWORKS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
--Written by a member of TheStreet Ratings Staff.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.