j2 Global Inc

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JCOM : NASDAQ : Technology
$85.17 up 1.4 | 1.7%
Today's Range: 83.85 - 85.31
Avg. Daily Volume: 378200.0
05/25/17 - 3:00 PM ET

Financial Analysis


J2 GLOBAL INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. J2 GLOBAL INC has weak liquidity. Currently, the Quick Ratio is 0.75 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.46% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)254.67200.5
EBITDA ($mil)95.9181.51
EBIT ($mil)56.5954.34
Net Income ($mil)25.8229.94


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)187.47312.58
Total Assets ($mil)2102.551771.83
Total Debt ($mil)828.43594.74
Equity ($mil)930.43908.04


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin87.3885.95
EBITDA Margin37.6640.65
Operating Margin22.2227.1
Sales Turnover0.440.43
Return on Assets7.057.99
Return on Equity15.9415.6
Debt Q1 FY17 Q1 FY16
Current Ratio0.82.57
Debt/Capital0.470.4
Interest Expense12.4110.23
Interest Coverage4.565.31


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)47.548.01
Div / share0.370.33
EPS0.520.61
Book value / share19.5918.91
Institutional Own % n/a n/a
Avg Daily Volume378474.0384519.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 36.84 for the Internet Software & Services industry and a value on par with the S&P 500 average of 25.02. Conducting a second comparison, its price-to-book ratio of 4.13 indicates a premium versus the S&P 500 average of 3.00 and a significant discount versus the industry average of 5.80. 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 26.60 Peers 36.84   JCOM 14.22 Peers 23.75

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 12.35 Peers 18.70   JCOM 0.31 Peers 0.37

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.

 

Discount. 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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
JCOM 4.13 Peers 5.80   JCOM 4.82 Peers 39.07

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 9.47   JCOM 22.15 Peers 31.30

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 significantly trails its peers on the basis of sales growth

 

 

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