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 282 industry peers in the Software industry. EGHT may be in some trouble as it scores bad on both profitability and health. EGHT may be a bit undervalued, certainly considering the very reasonable score 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.
Of the past 5 years EGHT 4 years had a positive operating cash flow.
1.2 Ratios
EGHT has a Return On Assets (-3.98%) which is in line with its industry peers.
The Return On Equity of EGHT (-22.27%) is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 2.34%, EGHT is doing good in the industry, outperforming 70.92% 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
EGHT has a better Operating Margin (2.12%) than 67.38% of its industry peers.
EGHT has a Gross Margin (67.86%) which is in line with its industry peers.
EGHT's Gross Margin has improved in the last couple of years.
| 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
EGHT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
EGHT has more shares outstanding than it did 1 year ago.
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
EGHT has an Altman-Z score of -0.34. 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 (-0.34) than 73.40% 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 of 6.99. This is comparable to the rest of the industry: EGHT outperforms 53.19% of its industry peers.
A Debt/Equity ratio of 2.77 is on the high side and indicates that EGHT has dependencies on debt financing.
EGHT has a worse Debt to Equity ratio (2.77) than 80.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.77 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | -0.34 |
ROIC/WACC0.24
WACC9.88%
2.3 Liquidity
A Current Ratio of 1.20 indicates that EGHT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.20, EGHT is not doing good in the industry: 62.77% of the companies in the same industry are doing better.
A Quick Ratio of 1.20 indicates that EGHT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.20, EGHT is not doing good in the industry: 62.77% 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
The earnings per share for EGHT have decreased strongly by -23.40% in the last year.
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.
Looking at the last year, EGHT shows a decrease in Revenue. The Revenue has decreased by -1.87% in the last year.
Measured over the past years, EGHT shows a quite strong growth in Revenue. The Revenue has been growing by 9.89% on average per year.
EPS 1Y (TTM)-23.4%
EPS 3Y58.74%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-1.87%
Revenue growth 3Y3.87%
Revenue growth 5Y9.89%
Sales Q2Q%-1.32%
3.2 Future
EGHT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.55% yearly.
Based on estimates for the next years, EGHT will show a small growth in Revenue. The Revenue will grow by 0.92% on average per year.
EPS Next Y-1.86%
EPS Next 2Y5.57%
EPS Next 3Y5.55%
EPS Next 5YN/A
Revenue Next Year-0.35%
Revenue Next 2Y0.47%
Revenue Next 3Y0.92%
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
With a Price/Earnings ratio of 5.64, the valuation of EGHT can be described as very cheap.
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 27.35, EGHT is valued rather cheaply.
A Price/Forward Earnings ratio of 5.75 indicates a rather cheap valuation of EGHT.
96.81% of the companies in the same industry are more expensive than EGHT, based on the Price/Forward Earnings ratio.
EGHT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.54.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.64 | ||
| Fwd PE | 5.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EGHT is valued cheaply inside the industry as 92.20% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, EGHT is valued cheaply inside the industry as 98.58% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.48 | ||
| EV/EBITDA | 10 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.57%
EPS Next 3Y5.55%
5. Dividend
5.1 Amount
No dividends for EGHT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.03
-0.06 (-2.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners82.71%
Inst Owner Change-0.04%
Ins Owners2.23%
Ins Owner Change13.04%
Market Cap274.23M
Analysts53.85
Price Target2.37 (16.75%)
Short Float %3.01%
Short Ratio2.81
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)-27.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.6%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.64 | ||
| Fwd PE | 5.75 | ||
| P/S | 0.38 | ||
| P/FCF | 5.48 | ||
| P/OCF | 4.31 | ||
| P/B | 2.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10 |
EPS(TTM)0.36
EY17.73%
EPS(NY)0.35
Fwd EY17.4%
FCF(TTM)0.37
FCFY18.26%
OCF(TTM)0.47
OCFY23.18%
SpS5.29
BVpS0.9
TBVpS-1.61
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 | -0.34 |
F-Score5
WACC9.88%
ROIC/WACC0.24
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)-23.4%
EPS 3Y58.74%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y-1.86%
EPS Next 2Y5.57%
EPS Next 3Y5.55%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.87%
Revenue growth 3Y3.87%
Revenue growth 5Y9.89%
Sales Q2Q%-1.32%
Revenue Next Year-0.35%
Revenue Next 2Y0.47%
Revenue Next 3Y0.92%
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