July 4, 2018

JCOM – Market expectations are for significant further declines in Uniform ROA, but management is confident about their initiatives and growth potential in their fax business


  • j2 Global, Inc. (JCOM:USA)currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 13.8x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about their initiatives and growth potential in their fax business
  • Specifically, management is confident in their initiatives to grow their cloud fax business, as well as their capabilities in the cloud fax business. Moreover, while they did generate highly questionable markers during their Q1 call, these were largely related to uncertainty in markets and smaller business lines, rather than broad outlook for the firm
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