j2 Global Stock Analysis, Valuation (NASDAQ:JCOM)

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$77.59 $1.32 (1.73%) JCOM stock closing price Feb 23, 2018 (Closing)
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j2 Global
Updated on : Feb 23, 2018
previous close
JCOM 77.6 (0%)
NASDAQ 7337.4 (0%)
Closing Price On: Feb 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
24.7%
Operating Profit
Operating Margin:
22%
Sector Average:
5.3%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
1B
Debt/Equity Ratio:
 0.98
Compared to the industry
Cash Flow
Operating cash flow:
$85.4M
Net Income:
$49.9M
Dividend Yield
JCOM dividend yield:
1.98%
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
Cash Flow
ROIC
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
JCOM PS :
3.3
Industry PS :
2.8
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
10.3%
Return on Equity:
14.5%
Free Cash Flow Margin:
23.8%
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j2 Global Stock Analysis

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Take a look at Amigobulls j2 Global stock analysis video. This is our analyst opinion covering the buy and sell arguments for JCOM stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

J2 Global Inc Stock Rating 4/5

Amigobulls JCOM stock analysis uses latest quarter 2017 Q4 financial data like j2 Global revenue growth, profit margins and cash flows. We also use relative valuation metrics like PE ratio and price to sales ratio for j2 Global valuation analysis. Based on a company's historical fundamentals we arrive at j2 Global stock rating which is indicative of the company's financial performance.

Should you buy JCOM stock?

  • j2 Global sales grew by 25.6% year on year in 2017 Q4.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 24.7%.
  • The TTM operating margin was good at 22% for j2 Global.
  • Net margins stood at a healthy 12.5% (average) for j2 Global in the Trailing Twelve Months.
  • The company has an operating cash flow which is 1.7 times the net income. We see this as a positive signal.
  • The j2 Global stock currently trades at a price to earnings ratio of 14.5. We rate this as a positive, compared to the industry average of 25.4.
  • j2 Global's return on invested capital of 10.3% is good.
  • The LTM ROE of 14.5% for j2 Global is attractive.
  • j2 Global has a healthy FCF (Free Cash Flow) margin of 23.8%.

Should you sell JCOM stock?

  • With a debt/equity ratio of  0.98, j2 Global is highly leveraged in comparison to Computer and Technology peers.

Comments on this video and j2 Global stock

Investors can make use of the Amigobulls j2 Global stock analysis to ascertain how JCOM stock fares in fundamental analysis investment criteria. The fundamentals of a company are vital to identify long-term investment opportunities.

j2 Global revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of j2 Global stock.