8X8 INC (EGHT) Stock Fundamental Analysis
NASDAQ:EGHT - US2829141009 - Common Stock
2.22 USD
+0.13 (+6.22%)
2.22 USD
0 (0%)
Taking everything into account, EGHT scores 3 out of 10 in our fundamental rating. EGHT was compared to 280 industry peers in the Software industry. EGHT may be in some trouble as it scores bad on both profitability and health. EGHT has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year EGHT was profitable.
EGHT had a positive operating cash flow in the past year.
In the past 5 years EGHT always reported negative net income.
EGHT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
EGHT's Return On Assets of -3.98% is in line compared to the rest of the industry. EGHT outperforms 47.14% of its industry peers.
The Return On Equity of EGHT (-22.27%) is worse than 60.36% of its industry peers.
With a decent Return On Invested Capital value of 2.34%, EGHT is doing good in the industry, outperforming 68.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.98% | ||
| ROE | -22.27% | ||
| ROIC | 2.34% |
ROA(3y)-7.2%
ROA(5y)-13.06%
ROE(3y)-53.91%
ROE(5y)-72.21%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Operating Margin of EGHT (2.12%) is better than 63.57% of its industry peers.
The Gross Margin of EGHT (67.86%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of EGHT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.12% | ||
| PM (TTM) | N/A | ||
| GM | 67.86% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.5%
GM growth 5Y4.33%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EGHT is destroying value.
Compared to 1 year ago, EGHT has more shares outstanding
The number of shares outstanding for EGHT has been increased compared to 5 years ago.
EGHT has a better debt/assets ratio than last year.
2.2 Solvency
EGHT has an Altman-Z score of -0.31. This is a bad value and indicates that EGHT is not financially healthy and even has some risk of bankruptcy.
EGHT has a worse Altman-Z score (-0.31) than 72.14% of its industry peers.
The Debt to FCF ratio of EGHT is 6.99, which is on the high side as it means it would take EGHT, 6.99 years of fcf income to pay off all of its debts.
EGHT has a Debt to FCF ratio (6.99) which is comparable to the rest of the industry.
EGHT has a Debt/Equity ratio of 2.77. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.77, EGHT is not doing good in the industry: 81.79% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.77 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | -0.31 |
ROIC/WACC0.23
WACC9.98%
2.3 Liquidity
A Current Ratio of 1.20 indicates that EGHT should not have too much problems paying its short term obligations.
EGHT's Current ratio of 1.20 is on the low side compared to the rest of the industry. EGHT is outperformed by 62.50% of its industry peers.
EGHT has a Quick Ratio of 1.20. This is a normal value and indicates that EGHT is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.20, EGHT is not doing good in the industry: 62.14% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
EGHT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.29%.
EGHT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 58.74% yearly.
The Revenue has decreased by -0.73% in the past year.
EGHT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.89% yearly.
EPS 1Y (TTM)-14.29%
EPS 3Y58.74%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-0.73%
Revenue growth 3Y3.87%
Revenue growth 5Y9.89%
Sales Q2Q%1.8%
3.2 Future
Based on estimates for the next years, EGHT will show a decrease in Earnings Per Share. The EPS will decrease by -8.54% on average per year.
Based on estimates for the next years, EGHT will show a decrease in Revenue. The Revenue will decrease by -0.06% on average per year.
EPS Next Y-16.03%
EPS Next 2Y-0.83%
EPS Next 3Y-8.54%
EPS Next 5YN/A
Revenue Next Year-0.3%
Revenue Next 2Y0.38%
Revenue Next 3Y-0.06%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.17, the valuation of EGHT can be described as very cheap.
Based on the Price/Earnings ratio, EGHT is valued cheaper than 94.64% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.43. EGHT is valued rather cheaply when compared to this.
EGHT is valuated cheaply with a Price/Forward Earnings ratio of 6.27.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EGHT indicates a rather cheap valuation: EGHT is cheaper than 96.43% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of EGHT to the average of the S&P500 Index (22.87), we can say EGHT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.17 | ||
| Fwd PE | 6.27 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EGHT indicates a rather cheap valuation: EGHT is cheaper than 90.71% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EGHT indicates a rather cheap valuation: EGHT is cheaper than 98.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.04 | ||
| EV/EBITDA | 10.38 |
4.3 Compensation for Growth
EGHT's earnings are expected to decrease with -8.54% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.83%
EPS Next 3Y-8.54%
5. Dividend
5.1 Amount
No dividends for EGHT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.22
+0.13 (+6.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners82.39%
Inst Owner Change-8.12%
Ins Owners2.58%
Ins Owner Change13.69%
Market Cap302.74M
Analysts73.85
Price Target2.4 (8.11%)
Short Float %2.47%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.31%
Min EPS beat(2)0.39%
Max EPS beat(2)24.24%
EPS beat(4)3
Avg EPS beat(4)6.22%
Min EPS beat(4)-12.37%
Max EPS beat(4)24.24%
EPS beat(8)7
Avg EPS beat(8)15.43%
EPS beat(12)11
Avg EPS beat(12)42.66%
EPS beat(16)15
Avg EPS beat(16)110.43%
Revenue beat(2)0
Avg Revenue beat(2)-2.29%
Min Revenue beat(2)-2.4%
Max Revenue beat(2)-2.17%
Revenue beat(4)0
Avg Revenue beat(4)-1.85%
Min Revenue beat(4)-2.4%
Max Revenue beat(4)-0.48%
Revenue beat(8)0
Avg Revenue beat(8)-2.19%
Revenue beat(12)0
Avg Revenue beat(12)-2.17%
Revenue beat(16)1
Avg Revenue beat(16)-1.7%
PT rev (1m)1.38%
PT rev (3m)1.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-14.43%
EPS NY rev (3m)-15.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.17 | ||
| Fwd PE | 6.27 | ||
| P/S | 0.42 | ||
| P/FCF | 6.04 | ||
| P/OCF | 4.76 | ||
| P/B | 2.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.38 |
EPS(TTM)0.36
EY16.22%
EPS(NY)0.35
Fwd EY15.95%
FCF(TTM)0.37
FCFY16.54%
OCF(TTM)0.47
OCFY20.99%
SpS5.24
BVpS0.9
TBVpS-1.59
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.98% | ||
| ROE | -22.27% | ||
| ROCE | 2.96% | ||
| ROIC | 2.34% | ||
| ROICexc | 2.82% | ||
| ROICexgc | 13.89% | ||
| OM | 2.12% | ||
| PM (TTM) | N/A | ||
| GM | 67.86% | ||
| FCFM | 7% |
ROA(3y)-7.2%
ROA(5y)-13.06%
ROE(3y)-53.91%
ROE(5y)-72.21%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.5%
GM growth 5Y4.33%
F-Score5
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.77 | ||
| Debt/FCF | 6.99 | ||
| Debt/EBITDA | 6.22 | ||
| Cap/Depr | 34.34% | ||
| Cap/Sales | 1.88% | ||
| Interest Coverage | 0.58 | ||
| Cash Conversion | 116.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | -0.31 |
F-Score5
WACC9.98%
ROIC/WACC0.23
Cap/Depr(3y)32.91%
Cap/Depr(5y)45.46%
Cap/Sales(3y)2.07%
Cap/Sales(5y)3.33%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-14.29%
EPS 3Y58.74%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y-16.03%
EPS Next 2Y-0.83%
EPS Next 3Y-8.54%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.73%
Revenue growth 3Y3.87%
Revenue growth 5Y9.89%
Sales Q2Q%1.8%
Revenue Next Year-0.3%
Revenue Next 2Y0.38%
Revenue Next 3Y-0.06%
Revenue Next 5YN/A
EBIT growth 1Y191.66%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year18.7%
EBIT Next 3Y7.99%
EBIT Next 5YN/A
FCF growth 1Y-19.27%
FCF growth 3Y70.14%
FCF growth 5YN/A
OCF growth 1Y-19.54%
OCF growth 3Y22.37%
OCF growth 5YN/A