Advertisement
Australia markets closed
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • AUD/USD

    0.6522
    -0.0014 (-0.21%)
     
  • OIL

    82.65
    +1.30 (+1.60%)
     
  • GOLD

    2,236.50
    +23.80 (+1.08%)
     
  • Bitcoin AUD

    109,163.33
    +3,136.17 (+2.96%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • AUD/EUR

    0.6036
    +0.0006 (+0.10%)
     
  • AUD/NZD

    1.0902
    +0.0022 (+0.20%)
     
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NASDAQ

    18,282.36
    +1.52 (+0.01%)
     
  • FTSE

    7,970.74
    +38.76 (+0.49%)
     
  • Dow Jones

    39,779.82
    +19.74 (+0.05%)
     
  • DAX

    18,507.85
    +30.76 (+0.17%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     

Interested In j2 Global, Inc. (NASDAQ:JCOM)? Here's What Its Recent Performance Looks Like

When j2 Global, Inc. (NasdaqGS:JCOM) released its most recent earnings update (30 June 2019), I wanted to understand how these figures stacked up against its past performance. The two benchmarks I used were j2 Global's average earnings over the past couple of years, and its industry performance. These are useful yardsticks to help me gauge whether or not JCOM actually performed well. Below is a quick commentary on how I see JCOM has performed.

Check out our latest analysis for j2 Global

Did JCOM beat its long-term earnings growth trend and its industry?

JCOM's trailing twelve-month earnings (from 30 June 2019) of US$144m has jumped 13% compared to the previous year.

ADVERTISEMENT

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 3.2%, indicating the rate at which JCOM is growing has accelerated. What's the driver of this growth? Let's see whether it is merely owing to an industry uplift, or if j2 Global has experienced some company-specific growth.

NasdaqGS:JCOM Income Statement, November 1st 2019
NasdaqGS:JCOM Income Statement, November 1st 2019

In terms of returns from investment, j2 Global has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. However, its return on assets (ROA) of 7.4% exceeds the US Software industry of 6.7%, indicating j2 Global has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for j2 Global’s debt level, has declined over the past 3 years from 14% to 11%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 74% to 104% over the past 5 years.

What does this mean?

Though j2 Global's past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research j2 Global to get a better picture of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for JCOM’s future growth? Take a look at our free research report of analyst consensus for JCOM’s outlook.

  2. Financial Health: Are JCOM’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 2019. This may not be consistent with full year annual report figures.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.