8X8 INC (EGHT)
US2829141009 - Common Stock
Taking everything into account, EGHT scores 4 out of 10 in our fundamental rating. EGHT was compared to 276 industry peers in the Software industry. EGHT may be in some trouble as it scores bad on both profitability and health. A decent growth rate in combination with a cheap valuation! Better keep an eye on EGHT.
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.
In the past 5 years EGHT always reported negative net income.
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 (-6.46%) which is in line with its industry peers.
EGHT's Return On Equity of -48.71% is on the low side compared to the rest of the industry. EGHT is outperformed by 64.60% of its industry peers.
EGHT's Return On Invested Capital of 0.15% is fine compared to the rest of the industry. EGHT outperforms 68.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.46% | ||
| ROE | -48.71% | ||
| ROIC | 0.15% |
ROA(3y)-17.45%
ROA(5y)-18.64%
ROE(3y)-90.84%
ROE(5y)-79.7%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
EGHT has a Operating Margin of 0.16%. This is in the better half of the industry: EGHT outperforms 68.25% of its industry peers.
The Gross Margin of EGHT (69.59%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of EGHT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.16% | ||
| PM (TTM) | N/A | ||
| GM | 69.59% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.15%
GM growth 5Y-2.33%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EGHT is destroying value.
EGHT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, EGHT has more shares outstanding
EGHT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.19, we must say that EGHT is in the distress zone and has some risk of bankruptcy.
EGHT has a worse Altman-Z score (-0.19) than 73.36% of its industry peers.
EGHT has a debt to FCF ratio of 7.70. This is a slightly negative value and a sign of low solvency as EGHT would need 7.70 years to pay back of all of its debts.
EGHT has a Debt to FCF ratio of 7.70. This is comparable to the rest of the industry: EGHT outperforms 54.74% of its industry peers.
EGHT has a Debt/Equity ratio of 3.73. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.73, EGHT is not doing good in the industry: 83.94% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.73 | ||
| Debt/FCF | 7.7 | ||
| Altman-Z | -0.19 |
ROIC/WACC0.02
WACC8.5%
2.3 Liquidity
A Current Ratio of 1.31 indicates that EGHT should not have too much problems paying its short term obligations.
The Current ratio of EGHT (1.31) is worse than 60.95% of its industry peers.
A Quick Ratio of 1.31 indicates that EGHT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.31, EGHT is in line with its industry, outperforming 40.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
EGHT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 92.31%, which is quite impressive.
Measured over the past years, EGHT shows a very strong growth in Earnings Per Share. The EPS has been growing by 51.57% on average per year.
The Revenue has decreased by -0.94% in the past year.
The Revenue has been growing by 20.20% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)92.31%
EPS 3YN/A
EPS 5Y51.57%
EPS growth Q2Q71.43%
Revenue 1Y (TTM)-0.94%
Revenue growth 3Y18.58%
Revenue growth 5Y20.2%
Revenue growth Q2Q-1.84%
3.2 Future
Based on estimates for the next years, EGHT will show a very strong growth in Earnings Per Share. The EPS will grow by 22.02% on average per year.
Based on estimates for the next years, EGHT will show a small growth in Revenue. The Revenue will grow by 1.08% on average per year.
EPS Next Y44.39%
EPS Next 2Y19.87%
EPS Next 3Y22.02%
EPS Next 5YN/A
Revenue Next Year-2.26%
Revenue Next 2Y-0.75%
Revenue Next 3Y1.08%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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
Based on the Price/Earnings ratio of 4.54, the valuation of EGHT can be described as very cheap.
EGHT's Price/Earnings ratio is rather cheap when compared to the industry. EGHT is cheaper than 97.45% of the companies in the same industry.
EGHT is valuated cheaply when we compare the Price/Earnings ratio to 24.84, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 4.94 indicates a rather cheap valuation of EGHT.
Based on the Price/Forward Earnings ratio, EGHT is valued cheaper than 97.81% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.35. EGHT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.54 | ||
| Fwd PE | 4.94 |
4.2 Price Multiples
EGHT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EGHT is cheaper than 91.61% of the companies in the same industry.
98.18% 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 | 4.57 | ||
| EV/EBITDA | 11.9 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EGHT's earnings are expected to grow with 22.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.1
PEG (5Y)0.09
EPS Next 2Y19.87%
EPS Next 3Y22.02%
5. Dividend
5.1 Amount
No dividends for EGHT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8X8 INC
NASDAQ:EGHT (4/26/2024, 7:00:02 PM)
After market: 2.28 +0.01 (+0.44%)2.27
-0.05 (-2.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap280.16M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.54 | ||
| Fwd PE | 4.94 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.1
PEG (5Y)0.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.46% | ||
| ROE | -48.71% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.16% | ||
| PM (TTM) | N/A | ||
| GM | 69.59% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.73 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)92.31%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y44.39%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.94%
Revenue growth 3Y18.58%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y