magicJack VocalTec Ltd.: Leads amongst peers with strong fundamentals

magicJack VocalTec Ltd. relative valuation is UNDERVALUED and it has a fundamental analysis score of 61.

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., Barracuda Networks, Inc., Fortinet, Inc., TEGNA, Inc. and Time Warner Cable Inc. (AUDC-US, IGLD-US, CTL-US, VZ-US, T-US, VG-US, CUDA-US, FTNT-US, TGNA-US and TWC-US).

magicJack VocalTec Ltd. has shown excellent performance overall, both over the last one year as well as over the last month. In fact, magicJack VocalTec Ltd.’s price momentum over the last month, at 14.85% has been better than that over the last year, which was 9.62%. Also from a peer group perspective, magicJack VocalTec Ltd. has performed better, since the peer group performance was 9.47% over the last month.

Company Snapshot

  • Considering peers, relative outperformance over the last year and the last month suggest a leading position.
  • magicJack VocalTec Ltd.’s current Price/Book of 2.68 is about median in its peer group.
  • We classify CALL-US as Harvesting because of the market’s relatively low growth expectations despite its relatively high returns.
  • CALL-US has relatively high profit margins while operating with median asset turns.
  • Compared with its chosen peers, the company’s annual revenues and earnings change at a slower rate, implying a lack of strategic focus and/or lack of execution success.
  • 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 gross and pre-tax margins suggest a differentiated product portfolio and tight control on operating costs relative to peers.
  • CALL-US‘s revenues have grown more slowly than the peer median over the last few years, which combined with the stock price’s relatively low P/E ratio suggests substandard growth expectations relative to peers.
  • CALL-US currently does not have any debt.
  • Our analysis rates magicJack VocalTec Ltd. as UNDERVALUED relative to its peers.

Share Price Performance

Considering peers, relative outperformance over the last year and the last month suggest a leading position.

CALL-US‘s share price performance of 9.62% over the last 12 months is above peer median of 3.60%. The 30-day trend in its share price performance of 14.85% is also above the peer median of 9.47% suggesting that this company is a leading performer relative to its peers.

Share Price Performance

Quadrant label definitions. Hover to know more

Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

magicJack VocalTec Ltd.’s price of USD 8.66 is lower than CapitalCube’s implied price of USD 12.60. 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 6.48 and USD 12.50.

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. It operates and distributes under the following the magicJack PLUS and magicJack GO brands. The company was founded in 1989 and is headquartered in Jerusalem, Israel.

Disclaimer

The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.

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