NasdaqGS:JCOM

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Solid track record and good value.


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: JCOM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.7%

JCOM

9.6%

US Software

10.5%

US Market


1 Year Return

-22.3%

JCOM

8.0%

US Software

-11.5%

US Market

Return vs Industry: JCOM underperformed the US Software industry which returned 8% over the past year.

Return vs Market: JCOM underperformed the US Market which returned -11.5% over the past year.


Shareholder returns

JCOMIndustryMarket
7 Day4.7%9.6%10.5%
30 Day-23.0%-7.8%-15.4%
90 Day-28.5%-7.1%-21.4%
1 Year-21.9%-22.3%9.2%8.0%-9.6%-11.5%
3 Year-16.0%-19.8%100.6%92.0%12.6%5.4%
5 Year8.8%0.09%170.4%151.5%32.8%18.1%

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

Valuation

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

47.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JCOM ($67.26) is trading below our estimate of fair value ($129.14)

Significantly Below Fair Value: JCOM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: JCOM is good value based on its PE Ratio (14.9x) compared to the Software industry average (40x).

PE vs Market: JCOM is poor value based on its PE Ratio (14.9x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: JCOM is poor value based on its PEG Ratio (14.8x)


Price to Book Ratio

PB vs Industry: JCOM is good value based on its PB Ratio (2.4x) compared to the US Software industry average (4.3x).


Next Steps

Future Growth

How is j2 Global forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JCOM's forecast earnings growth (1% per year) is below the savings rate (1.7%).

Earnings vs Market: JCOM's earnings (1% per year) are forecast to grow slower than the US market (12.3% per year).

High Growth Earnings: JCOM's earnings are forecast to grow, but not significantly.

Revenue vs Market: JCOM's revenue (6.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: JCOM's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JCOM's Return on Equity is forecast to be high in 3 years time (20.9%)


Next Steps

Past Performance

How has j2 Global performed over the past 5 years?

4.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JCOM has high quality earnings.

Growing Profit Margin: JCOM's current net profit margins (15.7%) are higher than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: JCOM's earnings have grown by 4.9% per year over the past 5 years.

Accelerating Growth: JCOM's earnings growth over the past year (69.8%) exceeds its 5-year average (4.9% per year).

Earnings vs Industry: JCOM earnings growth over the past year (69.8%) exceeded the Software industry 18.7%.


Return on Equity

High ROE: JCOM's Return on Equity (16.7%) is considered low.


Next Steps

Financial Health

How is j2 Global's financial position?


Financial Position Analysis

Short Term Liabilities: JCOM's short term assets ($886.9M) exceed its short term liabilities ($833.1M).

Long Term Liabilities: JCOM's short term assets ($886.9M) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: JCOM's debt to equity ratio (110.5%) is considered high.

Reducing Debt: JCOM's debt to equity ratio has increased from 72.3% to 110.5% over the past 5 years.

Debt Coverage: JCOM's debt is well covered by operating cash flow (28.5%).

Interest Coverage: JCOM's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: JCOM's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate JCOM'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 JCOM's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: JCOM is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Vivek Shah (45yo)

2.17s

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 ($USD45.06M) is above average for companies of similar size in the US market ($USD5.51M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Vivek Shah
CEO & Director2.17yrsUS$45.06m1.34% $43.8m
Robert Turicchi
President & CFO11.83yrsUS$4.18m0.55% $18.0m
Steven Dunn
Chief Accounting Officer7.83yrsUS$922.06k0.035% $1.1m
Jeremy Rossen
VP, General Counsel & Secretary4.75yrsUS$1.30m0.056% $1.8m
Joey Fortuna
Chief Technology Officer2.17yrsno datano data
Patty Brunton
Corporate Vice President of Administration & Human Resources2.42yrsno datano data
Sean Alford
Senior Vice President of Corporate Developmentno datano datano data
Arjen Berendsen
VP & MD of Fusemail4.42yrsno datano data
Nate Simmons
President of Cloud Services division0.50yrno datano data
Harmeet Singh
President of Cloud Services2.17yrsno datano data

2.4yrs

Average Tenure

49yo

Average Age

Experienced Management: JCOM's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Vivek Shah
CEO & Director2.17yrsUS$45.06m1.34% $43.8m
Robert Cresci
Lead Independent Directorno dataUS$299.94k0.19% $6.2m
Richard Ressler
Independent Chairman23.17yrsUS$475.94k2.49% $81.8m
William Kretzmer
Independent Director12.67yrsUS$294.94k0.015% $488.4k
Jonathan Miller
Independent Director5.08yrsUS$269.94k0.33% $10.9m
Douglas Bech
Independent Director19.33yrsUS$299.94k0.26% $8.5m
Stephen Ross
Independent Director12.67yrsUS$269.94k0.031% $1.0m
Sarah Fay
Independent Director2.08yrsUS$269.94k0.011% $376.3k

12.7yrs

Average Tenure

64.5yo

Average Age

Experienced Board: JCOM's board of directors are seasoned and experienced ( 12.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: JCOM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: j2 Global, Inc.
  • Ticker: JCOM
  • Exchange: NasdaqGS
  • Founded: 1995
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$3.278b
  • Shares outstanding: 48.73m
  • Website: https://www.j2global.com

Number of Employees


Location

  • j2 Global, Inc.
  • 700 South Flower Street
  • 15th Floor
  • Los Angeles
  • California
  • 90017
  • 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 company offers cloud services to sole proprietors, small to medium-sized businesses and enterprises, and government organizations. Its services include online fax services under the eFax, sFax, MyFax, eFax Plus, eFax Pro, eFax Secure, eFax Corporate, and eFax Developer brands; on-demand voice, cloud phone, and unified communications services under the eVoice, Line2, and Onebox names; online backup and disaster recovery, sync storage, and synchronization and sharing solutions under the KeepItSafe, LiveDrive, LiveVault, and SugarSync names; email security, email archiving, hosted email, web security, and endpoint protection services under the VIPRE, FuseMail, and Excel Micro brands; email marketing and delivery services under the Campaigner and SMTP names; and IP licesing customer support services. The company also operates a portfolio of Web properties and applications, including IGN, Mashable, PC Mag, Humble Bundle, Speedtest, Offers, Black Friday, AskMen, MedPageToday, Everyday Health, What to Expect, and others that offer technology products, gaming and lifestyle products and services, news and commentary related products, interactive tools and mobile applications, speed testing for Internet and network connections, online deals and discounts for consumers, and tools and information for healthcare professionals, as well as professional networking tools, targeted emails, and white papers for IT professionals. The company was formerly known as j2 Global Communications, Inc. and changed its name to j2 Global, Inc. in December 2011. j2 Global, Inc. was founded in 1995 and is headquartered in Los Angeles, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 03:03
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.