j2 Global Stock Analysis (NASDAQ:JCOM)
j2 Global Analysis Video
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 (3.9/5)
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?
- The Year Over Year (YoY) revenue growth for j2 Global was 23% in 2016 Q4.
- Revenue growth has been tremendous with a compounded annual growth of 21.5% over the last 5 years.
- j2 Global's average operating margin of 27.7% was exceptional.
- Net margins stood at a healthy 17.4% (average) for j2 Global in the Trailing Twelve Months.
- The operating cash flow looks good at 2.1 times the net income.
- The price to earnings multiple of 17.5 is attractive when compared with the industry average PE ratio of 25.6.
- j2 Global's return on invested capital of 13.5% is good.
- The LTM ROE of 16.8% for j2 Global is attractive.
- The company has a healthy free cash flow 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 4.6, which is overvalued in comparison to the Internet Software industry average multiple of 2.6.