8X8 INC (EGHT) Stock Fundamental Analysis
NASDAQ:EGHT - Nasdaq - US2829141009 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to EGHT. EGHT was compared to 282 industry peers in the Software industry. EGHT has a bad profitability rating. Also its financial health evaluation is rather negative. EGHT scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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 52.13% of its industry peers.
EGHT's Return On Equity of -22.27% is in line compared to the rest of the industry. EGHT outperforms 40.78% of its industry peers.
EGHT's Return On Invested Capital of 2.34% is fine compared to the rest of the industry. EGHT outperforms 70.92% 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 Operating Margin of 2.12%. This is in the better half of the industry: EGHT outperforms 67.38% 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
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.
Compared to 5 years ago, EGHT has more shares outstanding
EGHT has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.34, 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 -0.34, EGHT is doing worse than 73.40% 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.
EGHT has a Debt to FCF ratio (6.99) which is in line with its industry peers.
EGHT has a Debt/Equity ratio of 2.77. This is a high value indicating a heavy dependency on external financing.
EGHT has a Debt to Equity ratio of 2.77. This is amonst the worse of the industry: EGHT underperforms 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.
EGHT has a worse Current ratio (1.20) than 62.77% 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.
EGHT has a worse Quick ratio (1.20) than 62.77% of its industry peers.
| 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.
The Revenue has been growing by 9.89% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 5.55% on average over the next years.
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
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
EGHT is valuated cheaply with a Price/Earnings ratio of 5.64.
Compared to the rest of the industry, the Price/Earnings ratio of EGHT indicates a rather cheap valuation: EGHT is cheaper than 96.45% of the companies listed in the same industry.
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.
The average S&P500 Price/Forward Earnings ratio is at 37.54. EGHT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.64 | ||
| Fwd PE | 5.75 |
4.2 Price Multiples
EGHT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EGHT is cheaper than 92.20% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EGHT is valued cheaper than 98.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.48 | ||
| EV/EBITDA | 9.85 |
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 |
NASDAQ:EGHT (7/25/2025, 3:32:17 PM)
2.03
0 (0%)
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 | 9.85 |
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