j2 Global Stock Analysis (NASDAQ:JCOM)

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$81.98 $0.33 (0.4%) JCOM stock closing price Feb 21, 2017 (Closing)
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j2 Global
Updated on : Feb 21, 2017
previous close
JCOM 82 (0%)
NASDAQ 5866 (0%)
Closing Price On: Feb 21, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
21.5%
Operating Profit
Operating Margin:
27.7%
Sector Average:
4.3%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
780.6M
Debt/Equity Ratio:
 0.85
Compared to the industry
Cash Flow
Operating cash flow:
$89.9M
Net Income:
$43.2M
Dividend Yield
JCOM dividend yield:
1.68%
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
Cash Flow
ROIC
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
JCOM PS :
4.4
Industry PS :
2.6
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
13.5%
Return on Equity:
16.8%
Free Cash Flow Margin:
32.8%
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j2 Global Analysis Video

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View j2 Global stock analysis video. This is our JCOM analyst opinion covering the buy and sell arguments for JCOM stock.

J2 Global Inc Stock Rating (4.1/5)

Our j2 Global stock opinion is based on fundamentals of the company. This j2 Global stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.

Should you buy JCOM stock?

  • j2 Global's revenue growth came in at 23% in 2016 Q4.
  • Revenue growth has been tremendous with a compounded annual growth of over the last 5 years.
  • j2 Global had a healthy average operating margin of 27.7% over the last 4 quarters.
  • Net margins came in at average 17.4% for j2 Global over the last twelve months.
  • The company has an operating cash flow which is 2.1 times the net income.
  • The j2 Global stock currently trades at a price to earnings ratio of 16.9. We rate this as a positive, compared to the industry average of 25.9.
  • j2 Global generates a high return on invested capital of 13.5%.
  • j2 Global has a good Return On Equity (ROE) of 16.8%.
  • The company has a good Free Cash Flow (FCF) margin of 32.8%.

Should you sell JCOM stock?

  • With a debt/equity ratio of  0.85, j2 Global is highly leveraged in comparison to Computer and Technology peers.
  • The company is trading at a price to sales multiple of 4.4, which is higher in comparison to the Internet Software industry average of 2.6, making JCOM stock expensive.

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