magicJack VocalTec Ltd.: Gathering momentum, can it sustain its performance?

magicJack VocalTec Ltd. relative valuation is UNDERVALUED and it has a fundamental analysis score of 71.

Our analysis is based on comparing magicJack VocalTec Ltd. with the following peers – AudioCodes Ltd., Internet Gold-Golden Lines Ltd., CenturyLink, Inc., Verizon Communications Inc., AT&T Inc., Vonage Holdings Corp., E. W. Scripps Company Class A, Barracuda Networks, Inc., TEGNA, Inc. and Palo Alto Networks, Inc. (AUDC-US, IGLD-US, CTL-US, VZ-US, T-US, VG-US, SSP-US, CUDA-US, TGNA-US and PANW-US).

magicJack VocalTec Ltd. has shown underwhelming performance over the last one year while growing strongly over the last month. magicJack VocalTec Ltd.’s price momentum over the last month, at 3.18% has been better than that over the last year, which was -6.47%. Also from a peer group perspective, magicJack VocalTec Ltd. has performed better, since the peer group performance was 0.79% over the last month.

Company Snapshot

  • Compared to peers, relative underperformance over the last year is in contrast with the more recent outperformance.
  • It’s current Price/Book of 2.18 is about median in its peer group.
  • CALL-US‘s operating performance is relatively good compared to its peers. The market currently does not expect high earnings growth relative to its peers but seems to expect the company to maintain its relatively high rates of return.
  • CALL-US has relatively high profit margins while operating with median asset turns.
  • Changes in annual earnings (relative to peers) are better than the change in its revenues (relative to peers), implying the company is focused more on earnings.
  • CALL-US‘s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
  • The company’s relatively high pre-tax margin suggests tight control on operating costs versus peers.
  • While CALL-US‘s revenues growth has been below the peer median in the last few years, the market still gives the stock a P/E ratio that is around peer median and seems to see the company as a long-term strategic bet.
  • CALL-US currently does not have any debt.
  • Our analysis rates magicJack VocalTec Ltd. as UNDERVALUED relative to its peers.

Share Price Performance

Compared to peers, relative underperformance over the last year is in contrast with the more recent outperformance.

CALL-US‘s share price performance of -6.47% over the last 12 months is below its peer median but its 30-day trend in share price performance of 3.18% is better than the peer median. This recent rising stock price may herald a change in relative share price performance.

Share Price Performance

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Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

magicJack VocalTec Ltd.’s price of USD 8.10 is lower than CapitalCube’s implied price of USD 12.46. CapitalCube believes that at these levels, magicJack VocalTec Ltd. is undervalued and has upside potential. Over the last 52 week period, the stock has fluctuated between USD 5.27 and USD 8.40.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

magicJack VocalTec Ltd. engages in the provision of cloud communications and manufacture of communication devices. Its products and services include telephone home service and voice applications. The company operates and distributes under the following the magicJack PLUS, magicJack EXPRESS and magicJack GO brands. magicJack VocalTec was founded in 1989 and is headquartered in Jerusalem, Israel.

Disclaimer

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