j2 Global Stock Analysis (NASDAQ:JCOM)

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$84.68 $0.64 (0.75%) JCOM stock closing price Apr 21, 2017 (Closing)
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j2 Global
Updated on : Apr 21, 2017
previous close
JCOM 84.7 (0%)
NASDAQ 5910.5 (0%)
Closing Price On: Apr 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:
5.3%
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:
$89.8M
Net Income:
$43.2M
Dividend Yield
JCOM dividend yield:
1.63%
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 :
4.6
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 (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.

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