j2 Global Inc

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JCOM : NASDAQ : Technology
$66.38 up 0.68 | 1.03%
Today's Range: 65.71 - 66.61
Avg. Daily Volume: 433,600
07/27/16 - 4:00 PM ET

Financial Analysis


J2 GLOBAL INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. J2 GLOBAL INC is extremely liquid. Currently, the Quick Ratio is 2.45 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 11.42% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)200.5161.25
EBITDA ($mil)81.5161.82
EBIT ($mil)54.3440.53
Net Income ($mil)29.9421.88


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)312.58477.78
Total Assets ($mil)1771.831698.24
Total Debt ($mil)594.74595.77
Equity ($mil)908.04814.96


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin85.9585.19
EBITDA Margin40.6538.33
Operating Margin27.125.13
Sales Turnover0.430.37
Return on Assets7.996.97
Return on Equity15.614.53
Debt Q1 FY16 Q1 FY15
Current Ratio2.573.72
Debt/Capital0.40.42
Interest Expense10.2310.31
Interest Coverage5.313.93


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)48.0147.44
Div / share0.330.29
EPS0.610.45
Book value / share18.9117.18
Institutional Own % n/a n/a
Avg Daily Volume435097.0807588.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 39.31 for the Internet Software & Services industry and a discount compared to the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 3.46 indicates a premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 5.44. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, J2 GLOBAL INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
JCOM 22.58 Peers 39.31   JCOM 12.70 Peers 26.21

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

JCOM is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

JCOM is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
JCOM 11.99 Peers 20.61   JCOM 0.29 Peers 0.25

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

JCOM is trading at a significant discount to its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

JCOM trades at a premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
JCOM 3.46 Peers 5.44   JCOM 18.85 Peers 35.70

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

JCOM is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, JCOM is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
JCOM 4.14 Peers 8.94   JCOM 21.38 Peers 26.18

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

JCOM is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

JCOM trails its peers on the basis of sales growth

 

 

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