8X8 INC (EGHT) Stock Fundamental Analysis
NASDAQ:EGHT - Nasdaq - US2829141009 - Common Stock - Currency: USD
EGHT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 283 industry peers in the Software industry. Both the profitability and financial health of EGHT have multiple concerns. 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.
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
With a Return On Assets value of -3.98%, EGHT perfoms like the industry average, outperforming 49.30% of the companies in the same industry.
EGHT's Return On Equity of -22.27% is in line compared to the rest of the industry. EGHT outperforms 40.85% of its industry peers.
The Return On Invested Capital of EGHT (2.34%) is better than 69.37% 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 has a better Operating Margin (2.12%) than 65.85% of its industry peers.
EGHT has a Gross Margin (67.86%) which is in line with its industry peers.
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.
EGHT has more shares outstanding than it did 1 year ago.
EGHT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for EGHT has been reduced compared to a year ago.
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.
Looking at the Altman-Z score, with a value of -0.37, EGHT is doing worse than 71.48% of the companies in the same industry.
EGHT has a debt to FCF ratio of 6.99. This is a slightly negative value and a sign of low solvency as EGHT would need 6.99 years to pay back of all of its debts.
The Debt to FCF ratio of EGHT (6.99) 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.
EGHT's Debt to Equity ratio of 2.77 is on the low side compared to the rest of the industry. EGHT is outperformed by 81.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.77 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | -0.37 |
ROIC/WACC0.24
WACC9.61%
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.
EGHT has a Current ratio of 1.20. This is in the lower half of the industry: EGHT underperforms 63.73% 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.
Looking at the Quick ratio, with a value of 1.20, EGHT is doing worse than 63.73% 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%.
EGHT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 58.74% yearly.
Looking at the last year, EGHT shows a decrease in Revenue. The Revenue has decreased by -1.87% in the last 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)-1.87%
Revenue growth 3Y3.87%
Revenue growth 5Y9.89%
Sales Q2Q%1.8%
3.2 Future
EGHT is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.71% yearly.
The Revenue is expected to grow by 0.69% on average over the next years.
EPS Next Y-1.86%
EPS Next 2Y5.57%
EPS Next 3Y-2.71%
EPS Next 5YN/A
Revenue Next Year-0.35%
Revenue Next 2Y0.47%
Revenue Next 3Y0.69%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 5.11, which indicates a rather cheap valuation of EGHT.
Compared to the rest of the industry, the Price/Earnings ratio of EGHT indicates a rather cheap valuation: EGHT is cheaper than 94.72% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of EGHT to the average of the S&P500 Index (26.87), we can say EGHT is valued rather cheaply.
With a Price/Forward Earnings ratio of 4.59, the valuation of EGHT can be described as very cheap.
97.18% of the companies in the same industry are more expensive than EGHT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 35.34. EGHT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.11 | ||
| Fwd PE | 4.59 |
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 90.49% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, EGHT is valued cheaper than 99.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.96 | ||
| EV/EBITDA | 9.38 |
4.3 Compensation for Growth
A cheap valuation may be justified as EGHT's earnings are expected to decrease with -2.71% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.57%
EPS Next 3Y-2.71%
5. Dividend
5.1 Amount
No dividends for EGHT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.84
-0.01 (-0.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners82.39%
Inst Owner Change-8.2%
Ins Owners2.58%
Ins Owner Change13.68%
Market Cap248.57M
Analysts53.85
Price Target2.37 (28.8%)
Short Float %2.96%
Short Ratio3.16
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)-15.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.6%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.11 | ||
| Fwd PE | 4.59 | ||
| P/S | 0.35 | ||
| P/FCF | 4.96 | ||
| P/OCF | 3.91 | ||
| P/B | 2.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.38 |
EPS(TTM)0.36
EY19.57%
EPS(NY)0.4
Fwd EY21.8%
FCF(TTM)0.37
FCFY20.15%
OCF(TTM)0.47
OCFY25.57%
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 | -0.37 |
F-Score5
WACC9.61%
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)-14.29%
EPS 3Y58.74%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y-1.86%
EPS Next 2Y5.57%
EPS Next 3Y-2.71%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.87%
Revenue growth 3Y3.87%
Revenue growth 5Y9.89%
Sales Q2Q%1.8%
Revenue Next Year-0.35%
Revenue Next 2Y0.47%
Revenue Next 3Y0.69%
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