8X8 INC (EGHT) Stock Fundamental Analysis
NASDAQ:EGHT - Nasdaq - US2829141009 - Common Stock - Currency: USD
Overall EGHT gets a fundamental rating of 3 out of 10. We evaluated EGHT against 281 industry peers in the Software industry. EGHT has a bad profitability rating. Also its financial health evaluation is rather negative. EGHT is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year EGHT was profitable.
In the past year EGHT had a positive cash flow from operations.
EGHT had negative earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: EGHT reported negative operating cash flow in multiple years.
1.2 Ratios
EGHT has a Return On Assets (-9.41%) which is comparable to the rest of the industry.
With a Return On Equity value of -63.42%, EGHT is not doing good in the industry: 71.28% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.41% | ||
| ROE | -63.42% | ||
| ROIC | N/A |
ROA(3y)-12.3%
ROA(5y)-17.18%
ROE(3y)-78.54%
ROE(5y)-85.84%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
EGHT has a Gross Margin of 68.29%. This is comparable to the rest of the industry: EGHT outperforms 52.48% of its industry peers.
EGHT's Gross Margin has improved in the last couple of years.
EGHT does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 68.29% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.79%
GM growth 5Y1.83%
2. Health
2.1 Basic Checks
EGHT does not have a ROIC to compare to the WACC, probably because it is not profitable.
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.
Compared to 1 year ago, EGHT has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.44, we must say that EGHT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.44, EGHT is not doing good in the industry: 70.92% of the companies in the same industry are doing better.
EGHT has a debt to FCF ratio of 7.92. This is a slightly negative value and a sign of low solvency as EGHT would need 7.92 years to pay back of all of its debts.
With a Debt to FCF ratio value of 7.92, EGHT perfoms like the industry average, outperforming 53.55% of the companies in the same industry.
A Debt/Equity ratio of 3.26 is on the high side and indicates that EGHT has dependencies on debt financing.
The Debt to Equity ratio of EGHT (3.26) is worse than 81.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 7.92 | ||
| Altman-Z | -0.44 |
ROIC/WACCN/A
WACC9.61%
2.3 Liquidity
A Current Ratio of 1.18 indicates that EGHT should not have too much problems paying its short term obligations.
EGHT has a Current ratio of 1.18. This is in the lower half of the industry: EGHT underperforms 66.67% of its industry peers.
A Quick Ratio of 1.18 indicates that EGHT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.18, EGHT is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The earnings per share for EGHT have decreased strongly by -28.00% in the last year.
Looking at the last year, EGHT shows a decrease in Revenue. The Revenue has decreased by -2.23% in the last year.
EGHT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.63% yearly.
EPS 1Y (TTM)-28%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-8.33%
Revenue 1Y (TTM)-2.23%
Revenue growth 3Y11.04%
Revenue growth 5Y15.63%
Sales Q2Q%-1.17%
3.2 Future
The Earnings Per Share is expected to decrease by -5.14% on average over the next years.
The Revenue is expected to grow by 0.22% on average over the next years.
EPS Next Y-21.94%
EPS Next 2Y-10.5%
EPS Next 3Y-5.14%
EPS Next 5YN/A
Revenue Next Year-1.65%
Revenue Next 2Y-0.46%
Revenue Next 3Y0.22%
Revenue Next 5YN/A
3.3 Evolution
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
EGHT is valuated cheaply with a Price/Earnings ratio of 5.08.
Based on the Price/Earnings ratio, EGHT is valued cheaply inside the industry as 96.45% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.22, EGHT is valued rather cheaply.
A Price/Forward Earnings ratio of 4.86 indicates a rather cheap valuation of EGHT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EGHT indicates a rather cheap valuation: EGHT is cheaper than 98.58% 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 (20.86), we can say EGHT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.08 | ||
| Fwd PE | 4.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EGHT is valued cheaply inside the industry as 87.59% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, EGHT is valued cheaper than 98.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.81 | ||
| EV/EBITDA | 14.06 |
4.3 Compensation for Growth
A cheap valuation may be justified as EGHT's earnings are expected to decrease with -5.14% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.5%
EPS Next 3Y-5.14%
5. Dividend
5.1 Amount
No dividends for EGHT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.83
+0.05 (+2.81%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.87%
Inst Owner Change1.15%
Ins Owners2.28%
Ins Owner Change-1.73%
Market Cap240.99M
Analysts53.85
Price Target3.03 (65.57%)
Short Float %5.05%
Short Ratio5.72
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)1
Avg EPS beat(2)0.12%
Min EPS beat(2)-12.37%
Max EPS beat(2)12.6%
EPS beat(4)3
Avg EPS beat(4)9.15%
Min EPS beat(4)-12.37%
Max EPS beat(4)21.37%
EPS beat(8)7
Avg EPS beat(8)34.4%
EPS beat(12)11
Avg EPS beat(12)130.06%
EPS beat(16)15
Avg EPS beat(16)117.19%
Revenue beat(2)0
Avg Revenue beat(2)-1.42%
Min Revenue beat(2)-2.36%
Max Revenue beat(2)-0.48%
Revenue beat(4)0
Avg Revenue beat(4)-1.94%
Min Revenue beat(4)-3.29%
Max Revenue beat(4)-0.48%
Revenue beat(8)0
Avg Revenue beat(8)-2.3%
Revenue beat(12)0
Avg Revenue beat(12)-1.96%
Revenue beat(16)3
Avg Revenue beat(16)-1.27%
PT rev (1m)-7.62%
PT rev (3m)-5.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)7.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.08 | ||
| Fwd PE | 4.86 | ||
| P/S | 0.33 | ||
| P/FCF | 4.81 | ||
| P/OCF | 3.68 | ||
| P/B | 2.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.06 |
EPS(TTM)0.36
EY19.67%
EPS(NY)0.38
Fwd EY20.57%
FCF(TTM)0.38
FCFY20.78%
OCF(TTM)0.5
OCFY27.18%
SpS5.46
BVpS0.83
TBVpS-1.79
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.41% | ||
| ROE | -63.42% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 68.29% | ||
| FCFM | 6.96% |
ROA(3y)-12.3%
ROA(5y)-17.18%
ROE(3y)-78.54%
ROE(5y)-85.84%
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 3Y6.79%
GM growth 5Y1.83%
F-Score4
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 7.92 | ||
| Debt/EBITDA | 9.65 | ||
| Cap/Depr | 35.2% | ||
| Cap/Sales | 2.14% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 176.93% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | -0.44 |
F-Score4
WACC9.61%
ROIC/WACCN/A
Cap/Depr(3y)38.29%
Cap/Depr(5y)74.81%
Cap/Sales(3y)2.72%
Cap/Sales(5y)5.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-28%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-8.33%
EPS Next Y-21.94%
EPS Next 2Y-10.5%
EPS Next 3Y-5.14%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.23%
Revenue growth 3Y11.04%
Revenue growth 5Y15.63%
Sales Q2Q%-1.17%
Revenue Next Year-1.65%
Revenue Next 2Y-0.46%
Revenue Next 3Y0.22%
Revenue Next 5YN/A
EBIT growth 1Y63.35%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year7.01%
EBIT Next 3Y10.37%
EBIT Next 5YN/A
FCF growth 1Y75.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y44.84%
OCF growth 3YN/A
OCF growth 5YN/A