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magicJack VocalTec

Nasdaq:CALL
Snowflake Description

Flawless balance sheet with concerning outlook.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CALL
Nasdaq
$141M
Market Cap
  1. Home
  2. US
  3. Telecom
Company description

magicJack VocalTec Ltd., together with its subsidiaries, operates as a cloud communications company in the United States. The last earnings update was 5 days ago. More info.


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CALL Share Price and Events
7 Day Returns
0%
NasdaqGM:CALL
0.3%
US Telecom
-1.4%
US Market
1 Year Returns
4.8%
NasdaqGM:CALL
12.3%
US Telecom
10%
US Market
CALL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
magicJack VocalTec (CALL) 0% 15.9% 1.4% 4.8% -15.8% -29.2%
US Telecom 0.3% 1.9% 1.6% 12.3% 14.8% 5.9%
US Market -1.4% -1% -3.3% 10% 55.6% 97.4%
1 Year Return vs Industry and Market
  • CALL underperformed the Telecom industry which returned 12.3% over the past year.
  • CALL underperformed the Market in United States of America which returned 10% over the past year.
Price Volatility
CALL
Industry
5yr Volatility vs Market
Related Companies

Value

 Is magicJack VocalTec undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of magicJack VocalTec to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for magicJack VocalTec.

NasdaqGM:CALL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:CALL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.31
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.312 (1 + (1- 23%) (0%))
0.312
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (0.8 * 7.05%)
8.59%

Discounted Cash Flow Calculation for NasdaqGM:CALL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for magicJack VocalTec is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGM:CALL DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 11.40 10.05 8.87 7.82 6.89
Source Est @ -11.82% Est @ -11.82% Est @ -11.82% Est @ -11.82% Est @ -11.82%
Present Value
Discounted (@ 8.59%)
10.50 8.53 6.92 5.62 4.57
Present value of next 5 years cash flows $36.14
NasdaqGM:CALL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $6.89 × (1 + 2.95%) ÷ (8.59% – 2.95%)
$125.84
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $125.84 ÷ (1 + 8.59%)5
$83.34
NasdaqGM:CALL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $36.14 + $83.34
$119.48
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $119.48 / 16.25
$7.35
NasdaqGM:CALL Discount to Share Price
Calculation Result
Value per share (USD) From above. $7.35
Current discount Discount to share price of $8.67
= -1 x ($8.67 - $7.35) / $7.35
-17.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of magicJack VocalTec is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for magicJack VocalTec's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are magicJack VocalTec's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:CALL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $0.40
NasdaqGM:CALL Share Price ** NasdaqGM (2018-11-13) in USD $8.67
United States of America Telecom Industry PE Ratio Median Figure of 20 Publicly-Listed Telecom Companies 14.77x
United States of America Market PE Ratio Median Figure of 2,976 Publicly-Listed Companies 18x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of magicJack VocalTec.

NasdaqGM:CALL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:CALL Share Price ÷ EPS (both in USD)

= 8.67 ÷ 0.40

21.61x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • magicJack VocalTec is overvalued based on earnings compared to the US Telecom industry average.
  • magicJack VocalTec is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does magicJack VocalTec's expected growth come at a high price?
Raw Data
NasdaqGM:CALL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.61x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
12.1%per year
United States of America Telecom Industry PEG Ratio Median Figure of 10 Publicly-Listed Telecom Companies -0.33x
United States of America Market PEG Ratio Median Figure of 2,095 Publicly-Listed Companies 1.24x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for magicJack VocalTec, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on magicJack VocalTec's assets?
Raw Data
NasdaqGM:CALL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $3.03
NasdaqGM:CALL Share Price * NasdaqGM (2018-11-13) in USD $8.67
United States of America Telecom Industry PB Ratio Median Figure of 33 Publicly-Listed Telecom Companies 1.93x
United States of America Market PB Ratio Median Figure of 4,976 Publicly-Listed Companies 1.86x
NasdaqGM:CALL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:CALL Share Price ÷ Book Value per Share (both in USD)

= 8.67 ÷ 3.03

2.86x

* Primary Listing of magicJack VocalTec.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • magicJack VocalTec is overvalued based on assets compared to the US Telecom industry average.
X
Value checks
We assess magicJack VocalTec's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. magicJack VocalTec has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is magicJack VocalTec expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover magicJack VocalTec, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is magicJack VocalTec expected to grow at an attractive rate?
  • magicJack VocalTec's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • magicJack VocalTec's earnings growth is positive but not above the United States of America market average.
  • Unable to compare magicJack VocalTec's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:CALL Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:CALL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 12.1%
United States of America Telecom Industry Earnings Growth Rate Market Cap Weighted Average 0.9%
United States of America Telecom Industry Revenue Growth Rate Market Cap Weighted Average 2.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:CALL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:CALL Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
NasdaqGM:CALL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-30 80 11 6
2018-06-30 82 12 6
2018-03-31 85 7 0
2017-12-31 88 2 -25
2017-09-30 91 2 -23
2017-06-30 94 3 -23
2017-03-31 97 5 -18
2016-12-31 97 15 6
2016-09-30 98 19 9
2016-06-30 99 20 9
2016-03-31 99 25 13
2015-12-31 101 25 14

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • magicJack VocalTec's earnings are expected to grow by 12.1% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if magicJack VocalTec is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:CALL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from magicJack VocalTec Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:CALL Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
NasdaqGM:CALL Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-30 0.40
2018-06-30 0.36
2018-03-31 0.01
2017-12-31 -1.55
2017-09-30 -1.46
2017-06-30 -1.41
2017-03-31 -1.14
2016-12-31 0.36
2016-09-30 0.56
2016-06-30 0.55
2016-03-31 0.79
2015-12-31 0.80

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if magicJack VocalTec will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess magicJack VocalTec's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
magicJack VocalTec has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has magicJack VocalTec performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare magicJack VocalTec's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • magicJack VocalTec's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • magicJack VocalTec has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • magicJack VocalTec has become profitable in the last year making it difficult to compare the US Telecom industry average.
Earnings and Revenue History
magicJack VocalTec's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from magicJack VocalTec Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:CALL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 80.27 6.50 32.35 5.53
2018-06-30 82.45 5.76 34.70 5.80
2018-03-31 84.81 0.10 40.07 5.85
2017-12-31 87.99 -24.96 46.21 5.90
2017-09-30 91.06 -23.47 47.78 5.98
2017-06-30 93.98 -22.52 48.34 5.81
2017-03-31 96.90 -18.14 47.09 5.60
2016-12-31 97.40 5.69 41.61 5.20
2016-09-30 98.20 8.89 38.71 4.76
2016-06-30 99.04 8.80 37.53 4.54
2016-03-31 99.15 12.94 35.86 4.46
2015-12-31 100.96 13.51 36.96 4.52
2015-09-30 102.05 7.77 40.63 4.68
2015-06-30 102.45 4.46 45.17 5.08
2015-03-31 106.52 -0.23 49.39 5.29
2014-12-31 116.32 3.79 51.88 5.87
2014-09-30 128.79 52.90 51.96 6.65
2014-06-30 138.51 61.81 48.53 6.14
2014-03-31 141.93 66.04 44.61 6.54
2013-12-31 143.49 70.31 41.29 5.66
2013-09-30 146.74 47.27 39.29 4.40
2013-06-30 152.00 53.48 41.79 4.00
2013-03-31 157.65 57.24 44.97 2.80
2012-12-31 158.36 55.85 50.88 2.59
2012-09-30 143.57 27.97 58.73 2.56
2012-06-30 127.69 11.89 61.18 2.62
2012-03-31 117.95 4.58 62.69 2.72
2011-12-31 110.45 -1.79 61.20 2.72

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • magicJack VocalTec has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • magicJack VocalTec used its assets less efficiently than the US Telecom industry average last year based on Return on Assets.
  • magicJack VocalTec's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess magicJack VocalTec's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
magicJack VocalTec has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is magicJack VocalTec's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up magicJack VocalTec's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • magicJack VocalTec is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • magicJack VocalTec's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of magicJack VocalTec's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • magicJack VocalTec has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from magicJack VocalTec Company Filings, last reported 1 month ago.

NasdaqGM:CALL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 49.21 0.00 63.88
2018-06-30 45.23 0.00 61.02
2018-03-31 40.24 0.00 56.06
2017-12-31 36.56 0.00 54.88
2017-09-30 38.54 0.00 52.89
2017-06-30 35.34 0.00 51.88
2017-03-31 35.77 0.00 50.49
2016-12-31 58.20 0.00 54.81
2016-09-30 58.99 0.00 54.48
2016-06-30 54.84 0.00 49.88
2016-03-31 51.08 0.00 47.96
2015-12-31 47.67 0.00 81.61
2015-09-30 50.90 0.00 82.02
2015-06-30 54.80 0.00 84.24
2015-03-31 51.68 1.50 84.56
2014-12-31 49.09 1.40 77.48
2014-09-30 51.41 1.40 78.22
2014-06-30 49.95 1.40 75.11
2014-03-31 45.08 4.10 68.02
2013-12-31 37.44 2.80 55.60
2013-09-30 -1.01 2.70 61.55
2013-06-30 -12.34 2.60 49.51
2013-03-31 -17.96 4.00 49.84
2012-12-31 -24.77 3.90 39.66
2012-09-30 -34.82 3.90 36.81
2012-06-30 -47.01 3.80 41.90
2012-03-31 -21.29 5.20 62.88
2011-12-31 -26.38 5.00 36.89
  • magicJack VocalTec has no debt.
  • magicJack VocalTec currently has no debt however we can't compare to 5 years ago as we have no data for that period.
  • magicJack VocalTec has no debt, it does not need to be covered by operating cash flow.
  • magicJack VocalTec has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess magicJack VocalTec's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. magicJack VocalTec has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is magicJack VocalTec's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from magicJack VocalTec dividends.
If you bought $2,000 of magicJack VocalTec shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate magicJack VocalTec's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate magicJack VocalTec's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:CALL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Telecom Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 5.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1978 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGM:CALL Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as magicJack VocalTec has not reported any payouts.
  • Unable to verify if magicJack VocalTec's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of magicJack VocalTec's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as magicJack VocalTec has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess magicJack VocalTec's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can magicJack VocalTec afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. magicJack VocalTec has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Don Bell
COMPENSATION $6,650,946
AGE 49
TENURE AS CEO 1.7 years
CEO Bio

Mr. Don Carlos Bell, III has been the Chief Executive Officer and President at magicJack VocalTec Ltd. since March 9, 2017. Mr. Bell serves as Director of magicJack VocalTec Ltd. since April 19, 2017. He serves as a General Partner of Tidal Capital. Mr. Bell is a Telecom and Technology Entrepreneur and Investor. Mr. Bell served as the President and Principal Owner of Tidal Research, Inc. from 2007 to 2011. He served as Senior Vice President of Marketing & Corporate Development and as the Head of Worldwide Product Development at IPC Systems, Inc. since May 2003. From August 2001 to May 2003, he served as Vice President of Clearwire Technologies, a wireless broadband service provider. He served as Senior Executive of Goldman Sachs Capital Partners. (IPC Systems and Clearwire) fro 10 years. At IPC Systems, a VoIP telecom products and network services company serving clients in 40 countries, Mr. Bell served as Senior Vice President of Marketing and Corporate Development. He led the development of the IQMAX VoIP trading floor communications platform, which has been deployed on trading floors in every major financial center by the world’s leading financial institutions. Mr. Bell simultaneously identified an opportunity to increase the company's addressable market by expanding into a contiguous segment, Command & Control and built the division by leveraging existing VoIP technologies and service assets, combined with three acquisitions. In 2006, he led the private sale to SilverLake Partners for $805 million. At Clearwire, a wireless broadband services provider, he served as Vice President of Business Development prior to the 2003 sale by Goldman Sachs Capital Partners to Craig McCaw. From July 1998 to August 2001, he was an Investment Banker in the Mergers and Strategic Advisory Department of Goldman Sachs, where he completed over $15 billion in merger and financing transactions and received the Goldman Sachs Innovation Award in 2000. He was a Member of the Investment Banking Division of Goldman Sachs Group. Mr. Bell began his career as an Assistant Account Executive in consumer advertising for Foote, Cone & Belding and as Director of International Marketing for Time Warner Electronic Publishing. He serves as a Director of Microlab/FXR. He served as a Director of Wireless Telecom Group, Inc. since June 11, 2014 until June 05, 2017. He served as a Director of TeleCommunication Systems Inc. from March 1, 2015 to February 23, 2016. He served as an Independent Director of NTS, Inc. from December 20, 2012 to June 6, 2014. He served as a Director of International Marketing of Time Warner Electronic Publishing Mr. Bell holds a Masters Degree in Business Administration in Finance from The Wharton School, University of Pennsylvania and graduated with honors from St. John's College with a BA in Classics.

CEO Compensation
  • Insufficient data for Don to compare compensation growth.
  • Don's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure of the magicJack VocalTec management team in years:

1.5
Average Tenure
  • The average tenure for the magicJack VocalTec management team is less than 2 years, this suggests a new team.
Management Team

Don Bell

TITLE
CEO, President & Director
COMPENSATION
$7M
AGE
49
TENURE
1.7 yrs

Tom Fuller

TITLE
Executive VP & CFO
COMPENSATION
$2M
TENURE
1.5 yrs

Dvir Salomon

TITLE
Executive VP & CTO
COMPENSATION
$916K
TENURE
1.5 yrs

Kristin Beischel

TITLE
Executive VP & Chief Marketing Officer
COMPENSATION
$1M
TENURE
1.5 yrs

Kerrin Parker

TITLE
Chief Executive Officer of Broadsmart
TENURE
1.4 yrs

Mary Kennon

TITLE
Vice President of Customer Experience
TENURE
10.8 yrs
Board of Directors Tenure

Average tenure and age of the magicJack VocalTec board of directors in years:

3.6
Average Tenure
60.5
Average Age
  • The tenure for the magicJack VocalTec board of directors is about average.
Board of Directors

Izhak Gross

TITLE
Chairman of the Board
COMPENSATION
$218K
AGE
71
TENURE
1.5 yrs

Don Bell

TITLE
CEO, President & Director
COMPENSATION
$7M
AGE
49
TENURE
1.6 yrs

Richard Harris

TITLE
Independent Director
COMPENSATION
$162K
AGE
70
TENURE
5.7 yrs

Tali Yaron-Eldar

TITLE
Director
COMPENSATION
$130K
AGE
54
TENURE
7.6 yrs

Yuen Wah Sing

TITLE
Director
COMPENSATION
$110K
AGE
64
TENURE
8.3 yrs

Alan Howe

TITLE
Director
COMPENSATION
$131K
AGE
57
TENURE
1.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Start End Shares Max Price ($) Value ($)
03. Jan 18 Buy B. Riley Capital Management, LLC Company 15. Dec 17 22. Dec 17 1,249,600 $8.45 $10,519,105.00
05. Jan 18 Sell Twinleaf Management LLC Company 09. Nov 17 21. Dec 17 -416,028 $8.45 $-3,500,538.12
20. Dec 17 Sell Hoak & Co. Company 09. Nov 17 15. Dec 17 -805,040 $8.40 $-6,762,114.80
22. Nov 17 Sell David Kanen Individual 14. Nov 17 20. Nov 17 -79,000 $8.30 $-655,700.00
22. Nov 17 Sell Kanen Wealth Management Llc Company 16. Oct 17 21. Nov 17 -314,923 $8.30 $-2,611,319.65
22. Nov 17 Buy Kanen Wealth Management Llc Company 27. Sep 17 10. Oct 17 10,775 $7.24 $76,943.92
X
Management checks
We assess magicJack VocalTec's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. magicJack VocalTec has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

With A Return On Equity Of 13%, Has magicJack VocalTec Ltd's (NASDAQ:CALL) Management Done Well?

To keep the lesson grounded in practicality, we'll use ROE to better understand magicJack VocalTec Ltd (NASDAQ:CALL). … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.13 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Should Investors Know About magicJack VocalTec Ltd's (NASDAQ:CALL) Capital Returns?

and want to begin learning the link between magicJack VocalTec Ltd (NASDAQ:CALL)’s return fundamentals and stock market performance. … To understand magicJack VocalTec’s capital returns we will look at a useful metric called return on capital employed. … This will tell us if the company is growing your capital and placing you in good stead to sell your shares at a profit

Simply Wall St -

Who Are magicJack VocalTec Ltd's (NASDAQ:CALL) Major Shareholders?

In this article, I'm going to take a look at magicJack VocalTec Ltd’s (NASDAQ:CALL) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … Ownership structure has been found to have an impact on shareholder returns in both short- and long-term. … View our latest analysis for magicJack VocalTec

Simply Wall St -

Why magicJack VocalTec Ltd (NASDAQ:CALL) Delivered An Inferior ROE Compared To The Industry

and want a simplistic look at the return on magicJack VocalTec Ltd (NASDAQ:CALL) stock. … magicJack VocalTec Ltd’s (NASDAQ:CALL) most recent return on equity was a substandard 0.43% relative to its industry performance of 11.99% over the past year. … Though CALL's recent performance is underwhelming, it is useful to understand what ROE is made up of and how it should be interpreted.

Simply Wall St -

What You Must Know About magicJack VocalTec Ltd's (NASDAQ:CALL) Major Investors

I am going to take a deep dive into magicJack VocalTec Ltd’s (NASDAQ:CALL) most recent ownership structure, not a frequent subject of discussion among individual investors. … Ownership structure of a company has been found to affect share performance over time. … See our latest analysis for magicJack VocalTec NasdaqGM:CALL Ownership_summary Mar 13th 18 Institutional Ownership CALL's 55.14% institutional ownership seems enough to cause large share price movements in the case of significant share sell-off or acquisitions by institutions, particularly when there is a low level of public shares available on the market to trade.

Simply Wall St -

Future Outlook Of The Telecom Industry And magicJack VocalTec Ltd (CALL)

NasdaqGM:CALL PE PEG Gauge Nov 9th 17 Telco companies are typically trading at a PE of 19x, relatively similar to the rest of the US stock market PE of 22x. … If your initial investment thesis is around the growth prospects of CALL, there are other telco companies that have delivered higher growth, and perhaps trading at a discount to the industry average. … Although its growth has delivered lower growth relative to its telco peers in the near term, the market may be pessimistic on the stock, leading to a potential undervaluation.

Simply Wall St -

Company Info

Map
Description

magicJack VocalTec Ltd., together with its subsidiaries, operates as a cloud communications company in the United States. The company’s products and services allow users to make and/or receive free telephone calls to and from where the customer has broadband access to the Internet. It provides magicJack devices, such as The magicJack, magicJack PLUS, New magicJack PLUS, magicJack GO, and magicJack EXPRESS, which are voice-over-Internet-Protocol (VoIP) devices that enables customers to receive free VoIP phone service for their home, enterprise, or while traveling. The company also offers magicJack APP, an application that allows users to make and receive telephone calls through their smart phones using their magicJack account, as well as access to servers for a fee on a monthly or annual basis; and magicJack Connect App that offers Wi-Fi app-to-app calling and messaging services, as well as unlimited calling plans for the United States subscribers. In addition, it provides other magicJack-related products; and wholesales telephone services to VoIP providers and telecommunication carriers. Further, the company offers hosted unified communication as a service, as well as sells related hardware and network equipment to blue chip corporate customers; and VoIP services to small to medium sized businesses. It distributes its products through retail outlets, as well as direct sales. magicJack VocalTec Ltd. was founded in 1989 and is headquartered in Netanya, Israel.

Details
Name: magicJack VocalTec Ltd.
CALL
Exchange: NasdaqGM
Founded: 1989
$140,872,752
16,248,299
Website: http://www.vocaltec.com
Address: magicJack VocalTec Ltd.
12 Haomanut Street,
2nd Floor,
Netanya,
4250445,
Israel
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM CALL Ordinary Shares Nasdaq Global Market US USD 13. Jul 2010
DB VOC Ordinary Shares Deutsche Boerse AG DE EUR 13. Jul 2010
Number of employees
Current staff
Staff numbers
136
magicJack VocalTec employees.
Industry
Alternative Carriers
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/11/14 22:40
End of day share price update: 2018/11/13 00:00
Last estimates confirmation: 2017/03/15
Last earnings filing: 2018/11/09
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.