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 283 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
EGHT had positive earnings in the past year.
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
With a Return On Assets value of -3.68%, EGHT perfoms like the industry average, outperforming 53.36% of the companies in the same industry.
EGHT's Return On Equity of -24.78% is in line compared to the rest of the industry. EGHT outperforms 41.34% of its industry peers.
EGHT's Return On Invested Capital of 2.30% is fine compared to the rest of the industry. EGHT outperforms 69.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.68% | ||
| ROE | -24.78% | ||
| ROIC | 2.3% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 2.16%, EGHT is in the better half of the industry, outperforming 67.14% of the companies in the same industry.
EGHT has a Gross Margin of 67.90%. This is comparable to the rest of the industry: EGHT outperforms 50.88% of its industry peers.
In the last couple of years the Gross Margin of EGHT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.16% | ||
| PM (TTM) | N/A | ||
| GM | 67.9% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.58%
GM growth 5Y4.38%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EGHT is destroying value.
There is no outstanding debt for EGHT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of -0.38, we must say that EGHT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of EGHT (-0.38) is worse than 72.44% of its industry peers.
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.
EGHT's Debt to FCF ratio of 7.92 is in line compared to the rest of the industry. EGHT outperforms 52.30% of its industry peers.
EGHT has a Debt/Equity ratio of 3.26. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of EGHT (3.26) is worse than 81.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 7.92 | ||
| Altman-Z | -0.38 |
ROIC/WACC0.24
WACC9.41%
2.3 Liquidity
A Current Ratio of 1.18 indicates that EGHT should not have too much problems paying its short term obligations.
The Current ratio of EGHT (1.18) is worse than 64.66% of its industry peers.
EGHT has a Quick Ratio of 1.18. This is a normal value and indicates that EGHT is financially healthy and should not expect problems in meeting its short term obligations.
EGHT's Quick ratio of 1.18 is on the low side compared to the rest of the industry. EGHT is outperformed by 64.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
EGHT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.40%.
EGHT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 58.74% yearly.
The Revenue has decreased by -1.87% in the past 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
The Earnings Per Share is expected to grow by 0.29% 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 1.03% on average per year.
EPS Next Y-0.48%
EPS Next 2Y0.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.36%
Revenue Next 2Y1.03%
Revenue Next 3YN/A
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
With a Price/Earnings ratio of 4.42, the valuation of EGHT can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of EGHT indicates a rather cheap valuation: EGHT is cheaper than 96.11% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.82. EGHT is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 4.44, the valuation of EGHT can be described as very cheap.
Based on the Price/Forward Earnings ratio, EGHT is valued cheaply inside the industry as 97.53% of the companies are valued more expensively.
EGHT is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.42 | ||
| Fwd PE | 4.44 |
4.2 Price Multiples
EGHT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EGHT is cheaper than 91.87% of the companies in the same industry.
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 | 4.26 | ||
| EV/EBITDA | 9.02 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.29%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for EGHT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.59
-0.08 (-4.79%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.87%
Inst Owner Change1.1%
Ins Owners2.28%
Ins Owner Change-2.14%
Market Cap213.62M
Analysts53.85
Price Target2.82 (77.36%)
Short Float %4.86%
Short Ratio5.56
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)-14.07%
PT rev (3m)-14.07%
EPS NQ rev (1m)-14.6%
EPS NQ rev (3m)-14.6%
EPS NY rev (1m)-4.84%
EPS NY rev (3m)-4.58%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)-0.69%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.42 | ||
| Fwd PE | 4.44 | ||
| P/S | 0.3 | ||
| P/FCF | 4.26 | ||
| P/OCF | 3.36 | ||
| P/B | 1.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.02 |
EPS(TTM)0.36
EY22.64%
EPS(NY)0.36
Fwd EY22.53%
FCF(TTM)0.37
FCFY23.45%
OCF(TTM)0.47
OCFY29.75%
SpS5.32
BVpS0.82
TBVpS-1.76
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.68% | ||
| ROE | -24.78% | ||
| ROCE | 2.91% | ||
| ROIC | 2.3% | ||
| ROICexc | 2.95% | ||
| ROICexgc | 17.94% | ||
| OM | 2.16% | ||
| PM (TTM) | N/A | ||
| GM | 67.9% | ||
| FCFM | 7% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
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 3Y3.58%
GM growth 5Y4.38%
F-Score5
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 7.92 | ||
| Debt/EBITDA | 6.54 | ||
| Cap/Depr | 34.34% | ||
| Cap/Sales | 1.88% | ||
| Interest Coverage | 0.59 | ||
| Cash Conversion | 116.21% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | -0.38 |
F-Score5
WACC9.41%
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-0.48%
EPS Next 2Y0.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.87%
Revenue growth 3Y3.87%
Revenue growth 5Y9.89%
Sales Q2Q%-1.32%
Revenue Next Year0.36%
Revenue Next 2Y1.03%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y193.32%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year18.86%
EBIT Next 3Y8.04%
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