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