Here’s How Juniper Networks Stock Strongly Outperformed The Broader Markets!

+3.43%
Upside
32.15
Market
33.25
Trefis
JNPR: Juniper Networks logo
JNPR
Juniper Networks

Juniper Networks Inc. (NYSE: JNPR) stock price gained 33% from $22.51 at 2020 end to around $30 currently, primarily due to favorable changes in its P/S multiple. During this period, the company also witnessed a 11% rise in revenues, and combined with a drop in its outstanding share count, the company’s stock price has grown. Additionally, over the same period, the S&P 500 returned around 2%, meaning that Juniper stock has strongly outperformed the index since 2020-end.

In our interactive dashboard, Why Juniper Networks Stock Moved: JNPR Stock Has Gained 33% Since 2020, we break down the factors behind this move.

(A) JNPR’s Total Revenue has increased 11% from $4.4 billion in FY 2020 to $4.9 billion on an LTM basis

  • JNPR’s total revenue rose from $4.4 billion in FY 2020 to $4.7 billion in FY 2021, and the growth has sustained, with sales currently standing even higher at $4.9 billion on an LTM basis.
  • The company develops and markets networking products, including routers, switches, network management software, network security products, and software-defined networking technology.
  • Product sales made up 65% of the company’s total sales as of FY 2021, coming in at $3.08 billion, with services sales making up the remaining 35%.
  • For additional details about JNPR’s revenues and comparison to peers, see Juniper Networks (JNPR) Revenue Comparison
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(B) Revenue per share (RPS) increased 13% from $13.58 in 2020 to $15.41 currently

  • JNPR’s revenue rose from $4.4 billion in 2020 to $4.9 billion currently, while the outstanding share count dropped from 327.2 million in FY 2020 to around 320 million currently.
  • Due to this, RPS has risen from $13.58 in FY ’20 to $15.41 currently.

(C) Price-To-Sales (P/S) multiple for JNPR rose strongly from 1.7x in 2020 to 2.4x by 2021 end, but has pulled back to 1.9x currently, still higher than its 2020 level

  • JNPR’s P/S multiple rose strongly to around 2.4x by late 2021, on the back of rising investor expectations surrounding increased demand for the company’s products and services.
  • However, due to the increased economic uncertainty weighing on the broader markets, the P/S multiple has pulled back, currently standing at around 1.9x.
  • For additional details about the company stock returns, and comparison to peers, see Juniper Networks (JNPR) Stock Return Comparison.

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 Returns Nov 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 JNPR Return -2% -16% 6%
 S&P 500 Return -1% -20% 71%
 Trefis Multi-Strategy Portfolio -3% -24% 200%

[1] Month-to-date and year-to-date as of 11/9/2022
[2] Cumulative total returns since the end of 2016

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