Home News Valuation Now: J2 Global (NASDAQ: JCOM)

Valuation Now: J2 Global (NASDAQ: JCOM)

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J2 Global trades as part of the application software industry and is in the technology sector. The company CEO is Vivek Shah. j2 Global Inc together with its subsidiaries provides cloud services to businesses of all sizes, from individuals to enterprises, and license its intellectual property “IP” to third parties.

Previous Intraday Trading Performance:

The JCOM stock showed a previous change of 7.79% with an open at 70.80 and a close of 74.87. It reached an intraday high of 75.00 and a low of 69.74.

SeekingAlpha:  j2 Global (JCOM) Q3 2018 Results – Earnings Call Transcript

Liquidity:

The stock has a market cap of $3.7b with 49.2m shares outstanding, of which the float is 46.3m shares. Trading volume reached 775,928 shares compared to its average volume of 405,664 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, J2 Global shares returned 2.79% and in the past 30 trading days it returned -9.38%. Over three months, it changed -12.71%. In one year it has changed 3.20% and within that year its 52-week high was 91.58 and its 52-week low was 69.09. JCOM stock is 8.37% above its 52 Week Low.

Our calculations show a 200 day moving average of 81.01 and a 50 day moving average of 78.12. Currently JCOM stock is trading -7.57% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  j2 Global, Inc. 2018 Q3 – Results – Earnings Call Slides

Earnings:

The last annual fiscal EPS for the company was reported at 2.83 that ended on 31st of December 2017, which according to the previous close, that is a PE of 26.46. Based on 1 analyst estimate, the estimated EPS for the next quarter is 1.41. The TTM EPS is 5.49, which comes to a TTM PE of 13.64. Historically, the PE high was 32.60 and the PE low was 11.50. If the stock reached its PE low, that would represent a price of 63.12, which is a decrease of -15.69%.

The following are the last four quarter reported earnings per share:
09-30-2018:  1.41 (estimated)
06-30-2018:  1.41
03-31-2018:  1.12
12-31-2017:  1.69

The dividend per share is currently 1.74, which is a dividend yield of 2.32%. Also, the payout ratio is 31.69%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 117.57, which means it is possibly undervalued and has a margin of safety of 36.32%

Indicators to Watch:

Based on the latest filings, there is 6.00% of insider ownership and 176.70% of institutional ownership. Short-interest is 0, which is 0.00% of shares outstanding. The short-interest ratio or days-to-cover ratio is 0.00.

The current calculated beta is 1.01

SeekingAlpha:  j2 Global declares $0.435 dividend

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 12.87%, return on assets is 5.11%, profit margin is 10.99%, price-to-sales is 3.87 and price-to-book is 3.32.

Company Scores:

All scores are out of six:
 5  :Valuation Score
 2  :Past Performance Score
 3  :Financial Strength Score
 3  :Future Growth Score
 3  :Dividend Score
 3  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks. Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.

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