DB:JXC1

Stock Analysis Report

Executive Summary

j2 Global, Inc., together with its subsidiaries, provides Internet services worldwide.

Snowflake

Fundamentals

High growth potential with proven track record.


Similar Companies

Share Price & News

How has j2 Global's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JXC1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.8%

JXC1

-0.6%

DE Software

-1.0%

DE Market


1 Year Return

37.9%

JXC1

31.1%

DE Software

9.1%

DE Market

Return vs Industry: JXC1 exceeded the German Software industry which returned 31.1% over the past year.

Return vs Market: JXC1 exceeded the German Market which returned 9.1% over the past year.


Shareholder returns

JXC1IndustryMarket
7 Day-2.8%-0.6%-1.0%
30 Day0.6%5.6%4.4%
90 Day19.5%13.4%13.0%
1 Year40.2%37.9%32.9%31.1%12.5%9.1%
3 Year33.5%26.8%67.5%60.8%24.8%13.8%
5 Year115.2%96.9%145.4%128.0%39.1%20.2%

Price Volatility Vs. Market

How volatile is j2 Global's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is j2 Global undervalued compared to its fair value and its price relative to the market?

33.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JXC1 (€87) is trading below our estimate of fair value (€130.85)

Significantly Below Fair Value: JXC1 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: JXC1 is good value based on its PE Ratio (31.9x) compared to the Software industry average (40x).

PE vs Market: JXC1 is poor value based on its PE Ratio (31.9x) compared to the German market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: JXC1 is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: JXC1 is overvalued based on its PB Ratio (4.2x) compared to the DE Software industry average (3.2x).


Next Steps

Future Growth

How is j2 Global forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JXC1's forecast earnings growth (20.5% per year) is above the savings rate (0.2%).

Earnings vs Market: JXC1's earnings (20.5% per year) are forecast to grow faster than the German market (12.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: JXC1's revenue (7.4% per year) is forecast to grow faster than the German market (4.9% per year).

High Growth Revenue: JXC1's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JXC1's Return on Equity is forecast to be high in 3 years time (28.9%)


Next Steps

Past Performance

How has j2 Global performed over the past 5 years?

2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JXC1 has high quality earnings.

Growing Profit Margin: JXC1's current net profit margins (11%) are higher than last year (10.7%).


Past Earnings Growth Analysis

Earnings Trend: JXC1's earnings have grown by 2.8% per year over the past 5 years.

Accelerating Growth: JXC1's earnings growth over the past year (14.3%) exceeds its 5-year average (2.8% per year).

Earnings vs Industry: JXC1 earnings growth over the past year (14.3%) underperformed the Software industry 14.8%.


Return on Equity

High ROE: JXC1's Return on Equity (13.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is j2 Global's financial position?


Financial Position Analysis

Short Term Liabilities: JXC1's short term assets ($344.9M) do not cover its short term liabilities ($410.1M)

Long Term Liabilities: JXC1's short term assets (344.9M) do not cover its long term liabilities (1.4B)


Debt to Equity History and Analysis

Debt Level: JXC1's debt to equity ratio (106.1%) is considered high

Reducing Debt: JXC1's debt to equity ratio has increased from 73.6% to 106.1% over the past 5 years.

Debt Coverage: JXC1's debt is well covered by operating cash flow (36.2%).

Interest Coverage: JXC1's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet

Inventory Level: JXC1 has a low level of unsold assets or inventory.

Debt Coverage by Assets: JXC1's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is j2 Global's current dividend yield, its reliability and sustainability?

0.31%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0.3%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate JXC1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate JXC1's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if JXC1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if JXC1's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: JXC1 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of JXC1's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of j2 Global's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Vivek Shah (45yo)

1.8yrs

Tenure

US$45,062,153

Compensation

Mr. Vivek R. Shah is Chief Executive Officer and Director of j2 Global, Inc. since January 1, 2018. Mr. Shah served as the Chief Executive Officer at Ziff Davis, LLC (formerly Ziff Davis Media Inc.) which  ...


CEO Compensation Analysis

Compensation vs Market: Vivek's total compensation ($USD45.06M) is above average for companies of similar size in the German market ($USD2.62M).

Compensation vs Earnings: Vivek's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.1yrs

Average Tenure

49yo

Average Age

Experienced Management: JXC1's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

12.3yrs

Average Tenure

64.5yo

Average Age

Experienced Board: JXC1's board of directors are seasoned and experienced ( 12.3 years average tenure).


Insider Trading

Insider Buying: JXC1 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,780,57908 Nov 19
Jonathan Miller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$89.03
SellUS$141,78710 Sep 19
William Kretzmer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,800
Max PriceUS$78.77
SellUS$196,97320 Aug 19
Jeremy Rossen
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Secretary
Shares2,617
Max PriceUS$75.27
SellUS$254,35721 May 19
Steven Dunn
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares3,263
Max PriceUS$77.95
SellUS$437,99921 May 19
Robert Turicchi
EntityIndividual
Role
President
President & CFO
Shares5,626
Max PriceUS$78.19
SellUS$775,50321 May 19
Robert Turicchi
EntityIndividual
Role
President
President & CFO
Shares10,000
Max PriceUS$77.55
SellUS$170,88520 May 19
Jeremy Rossen
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Secretary
Shares2,213
Max PriceUS$77.22
SellUS$738,48319 Feb 19
Douglas Bech
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$73.85

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Joey Fortuna

    Chief Technology Officer

    • Tenure: 1.8yrs
  • Robert Turicchi (56yo)

    President & CFO

    • Tenure: 11.5yrs
    • Compensation: US$4.18m
  • Jeremy Rossen (49yo)

    VP, General Counsel & Secretary

    • Tenure: 4.4yrs
    • Compensation: US$1.21m
  • Arjen Berendsen

    VP & MD of Fusemail

    • Tenure: 4.1yrs
  • Vivek Shah (45yo)

    CEO & Director

    • Tenure: 1.8yrs
    • Compensation: US$45.06m
  • Patty Brunton

    Corporate Vice President of Administration & Human Resources

    • Tenure: 2.1yrs
  • Steve Dunn (49yo)

    Chief Accounting Officer

    • Tenure: 7.5yrs
    • Compensation: US$858.46k
  • Harmeet Singh

    President of Cloud Services

    • Tenure: 1.8yrs
  • Sean Alford

    Senior Vice President of Corporate Development

    • Tenure: 0yrs
  • Nate Simmons

    President of Cloud Services division

    • Tenure: 0.2yrs

Board Members

  • Robert Cresci (75yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$299.94k
  • Richard Ressler (61yo)

    Independent Chairman

    • Tenure: 22.8yrs
    • Compensation: US$475.94k
  • William Kretzmer (66yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$294.94k
  • Jon Miller (63yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$269.94k
  • Doug Bech (73yo)

    Independent Director

    • Tenure: 19yrs
    • Compensation: US$299.94k
  • Stephen Ross (71yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$269.94k
  • Sarah Fay (56yo)

    Independent Director

    • Tenure: 1.8yrs
  • Vivek Shah (45yo)

    CEO & Director

    • Tenure: 1.8yrs
    • Compensation: US$45.06m

Company Information

j2 Global, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: j2 Global, Inc.
  • Ticker: JXC1
  • Exchange: DB
  • Founded: 1995
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$4.701b
  • Listing Market Cap: US$4.269b
  • Shares outstanding: 48.73m
  • Website: https://www.j2global.com

Number of Employees


Location

  • j2 Global, Inc.
  • 6922 Hollywood Boulevard
  • Suite 500
  • Los Angeles
  • California
  • 90028
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JCOMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 1999
JXC1DB (Deutsche Boerse AG)YesCommon StockDEEURJul 1999

Biography

j2 Global, Inc., together with its subsidiaries, provides Internet services worldwide. It operates through three segments: Fax and Email Marketing; Voice, Backup, and Security; and Digital Media. The compa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 20:37
End of Day Share Price2019/11/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.