8X8 INC (EGHT) Stock Fundamental Analysis
USA - NASDAQ:EGHT - US2829141009 - Common Stock
1.78 USD
-0.06 (-3.26%)
EGHT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 282 industry peers in the Software industry. EGHT has a bad profitability rating. Also its financial health evaluation is rather negative. EGHT has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
EGHT had positive earnings in the past year.
In the past year EGHT had a positive cash flow from operations.
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 46.81% of its industry peers.
With a Return On Equity value of -22.27%, EGHT perfoms like the industry average, outperforming 40.43% of the companies in the same industry.
EGHT has a better Return On Invested Capital (2.34%) than 67.73% of its industry peers.
| 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
EGHT's Operating Margin of 2.12% is fine compared to the rest of the industry. EGHT outperforms 62.77% of its industry peers.
With a Gross Margin value of 67.86%, EGHT perfoms like the industry average, outperforming 48.94% of the companies in the same 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EGHT is destroying value.
The number of shares outstanding for EGHT has been increased compared to 1 year ago.
Compared to 5 years ago, EGHT has more shares outstanding
Compared to 1 year ago, EGHT has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.37, we must say that EGHT is in the distress zone and has some risk of bankruptcy.
EGHT's Altman-Z score of -0.37 is on the low side compared to the rest of the industry. EGHT is outperformed by 74.11% 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's Debt to FCF ratio of 6.99 is in line compared to the rest of the industry. EGHT outperforms 53.19% of its industry peers.
EGHT has a Debt/Equity ratio of 2.77. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of EGHT (2.77) is worse than 81.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.77 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | -0.37 |
ROIC/WACC0.25
WACC9.52%
2.3 Liquidity
EGHT has a Current 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.
The Current ratio of EGHT (1.20) is worse than 62.41% of its industry peers.
A Quick Ratio of 1.20 indicates that EGHT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.20, EGHT is doing worse than 62.06% of the companies in the same industry.
| 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%.
Measured over the past years, EGHT shows a very strong growth in Earnings Per Share. The EPS has been growing by 58.74% on average per year.
EGHT shows a decrease in Revenue. In the last year, the revenue decreased by -0.73%.
The Revenue has been growing by 9.89% on average over the past years. This is quite good.
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.
EGHT is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.06% yearly.
EPS Next Y-16.17%
EPS Next 2Y-0.18%
EPS Next 3Y-8.54%
EPS Next 5YN/A
Revenue Next Year-0.18%
Revenue Next 2Y0.57%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 4.94 indicates a rather cheap valuation of EGHT.
Based on the Price/Earnings ratio, EGHT is valued cheaply inside the industry as 95.74% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.34. EGHT is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 4.96, the valuation of EGHT can be described as very cheap.
Based on the Price/Forward Earnings ratio, EGHT is valued cheaper than 98.23% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EGHT to the average of the S&P500 Index (22.86), we can say EGHT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.94 | ||
| Fwd PE | 4.96 |
4.2 Price Multiples
91.49% of the companies in the same industry are more expensive than EGHT, based on the Enterprise Value to EBITDA ratio.
98.94% of the companies in the same industry are more expensive than EGHT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.85 | ||
| EV/EBITDA | 9.42 |
4.3 Compensation for Growth
A cheap valuation may be justified as EGHT's earnings are expected to decrease with -8.54% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.18%
EPS Next 3Y-8.54%
5. Dividend
5.1 Amount
No dividends for EGHT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:EGHT (10/14/2025, 9:40:40 AM)
1.78
-0.06 (-3.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners78.89%
Inst Owner Change-0.18%
Ins Owners2.57%
Ins Owner Change13.57%
Market Cap242.74M
Analysts76.67
Price Target2.4 (34.83%)
Short Float %2.56%
Short Ratio4.67
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)0%
PT rev (3m)1.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-14.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.94 | ||
| Fwd PE | 4.96 | ||
| P/S | 0.34 | ||
| P/FCF | 4.85 | ||
| P/OCF | 3.82 | ||
| P/B | 1.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.42 |
EPS(TTM)0.36
EY20.22%
EPS(NY)0.36
Fwd EY20.15%
FCF(TTM)0.37
FCFY20.63%
OCF(TTM)0.47
OCFY26.18%
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 | -0.37 |
F-Score5
WACC9.52%
ROIC/WACC0.25
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-16.17%
EPS Next 2Y-0.18%
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-0.18%
Revenue Next 2Y0.57%
Revenue Next 3Y-0.06%
Revenue Next 5YN/A
EBIT growth 1Y191.66%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year8.78%
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