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 285 industry peers in the Software industry. Both the profitability and financial health of EGHT have multiple concerns. EGHT is cheap, but on the other hand it scores bad on growth.
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.
In multiple years EGHT reported negative operating cash flow during the last 5 years.
1.2 Ratios
EGHT's Return On Assets of -9.41% is on the low side compared to the rest of the industry. EGHT is outperformed by 60.00% of its industry peers.
With a Return On Equity value of -63.42%, EGHT is not doing good in the industry: 71.23% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.41% | ||
| ROE | -63.42% | ||
| ROIC | N/A |
ROA(3y)-12.3%
ROA(5y)-17.18%
ROE(3y)-78.54%
ROE(5y)-85.84%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of EGHT (68.29%) is comparable to the rest of the industry.
EGHT's Gross Margin has improved in the last couple of years.
EGHT does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 68.29% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.79%
GM growth 5Y1.83%
2. Health
2.1 Basic Checks
EGHT does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, EGHT has more shares outstanding
Compared to 5 years ago, EGHT has more shares outstanding
The debt/assets ratio for EGHT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.47, we must say that EGHT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.47, EGHT is not doing good in the industry: 71.23% of the companies in the same industry are doing better.
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.
Looking at the Debt to FCF ratio, with a value of 7.92, EGHT is in line with its industry, outperforming 52.28% of the companies in the same industry.
EGHT has a Debt/Equity ratio of 3.26. This is a high value indicating a heavy dependency on external financing.
EGHT's Debt to Equity ratio of 3.26 is on the low side compared to the rest of the industry. EGHT is outperformed by 81.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 7.92 | ||
| Altman-Z | -0.47 |
ROIC/WACCN/A
WACC9.41%
2.3 Liquidity
EGHT has a Current 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.
With a Current ratio value of 1.18, EGHT is not doing good in the industry: 66.32% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 1.18, EGHT is not doing good in the industry: 66.32% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The earnings per share for EGHT have decreased strongly by -28.00% in the last year.
The Revenue has decreased by -2.23% in the past year.
The Revenue has been growing by 15.63% on average over the past years. This is quite good.
EPS 1Y (TTM)-28%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-8.33%
Revenue 1Y (TTM)-2.23%
Revenue growth 3Y11.04%
Revenue growth 5Y15.63%
Sales Q2Q%-1.17%
3.2 Future
Based on estimates for the next years, EGHT will show a decrease in Earnings Per Share. The EPS will decrease by -5.14% on average per year.
The Revenue is expected to grow by 0.36% on average over the next years.
EPS Next Y-21.94%
EPS Next 2Y-10.5%
EPS Next 3Y-5.14%
EPS Next 5YN/A
Revenue Next Year-1.65%
Revenue Next 2Y-0.34%
Revenue Next 3Y0.36%
Revenue Next 5YN/A
3.3 Evolution
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
A Price/Earnings ratio of 4.58 indicates a rather cheap valuation of EGHT.
95.79% of the companies in the same industry are more expensive than EGHT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.64. EGHT is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 4.38 indicates a rather cheap valuation of EGHT.
98.25% of the companies in the same industry are more expensive than EGHT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.44, EGHT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.58 | ||
| Fwd PE | 4.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EGHT is valued cheaper than 87.37% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EGHT is valued cheaply inside the industry as 98.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.34 | ||
| EV/EBITDA | 13.35 |
4.3 Compensation for Growth
EGHT's earnings are expected to decrease with -5.14% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.5%
EPS Next 3Y-5.14%
5. Dividend
5.1 Amount
EGHT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.65
+0.02 (+1.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.87%
Inst Owner Change0%
Ins Owners2.28%
Ins Owner Change-1.73%
Market Cap217.29M
Analysts71.25
Price Target3.28 (98.79%)
Short Float %5.36%
Short Ratio6.73
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)1
Avg EPS beat(2)0.12%
Min EPS beat(2)-12.37%
Max EPS beat(2)12.6%
EPS beat(4)3
Avg EPS beat(4)9.15%
Min EPS beat(4)-12.37%
Max EPS beat(4)21.37%
EPS beat(8)7
Avg EPS beat(8)34.4%
EPS beat(12)11
Avg EPS beat(12)130.06%
EPS beat(16)15
Avg EPS beat(16)117.19%
Revenue beat(2)0
Avg Revenue beat(2)-1.42%
Min Revenue beat(2)-2.36%
Max Revenue beat(2)-0.48%
Revenue beat(4)0
Avg Revenue beat(4)-1.94%
Min Revenue beat(4)-3.29%
Max Revenue beat(4)-0.48%
Revenue beat(8)0
Avg Revenue beat(8)-2.3%
Revenue beat(12)0
Avg Revenue beat(12)-1.96%
Revenue beat(16)3
Avg Revenue beat(16)-1.27%
PT rev (1m)0%
PT rev (3m)2.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.33%
EPS NY rev (1m)0.28%
EPS NY rev (3m)6.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.58 | ||
| Fwd PE | 4.38 | ||
| P/S | 0.3 | ||
| P/FCF | 4.34 | ||
| P/OCF | 3.32 | ||
| P/B | 1.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.35 |
EPS(TTM)0.36
EY21.82%
EPS(NY)0.38
Fwd EY22.82%
FCF(TTM)0.38
FCFY23.05%
OCF(TTM)0.5
OCFY30.15%
SpS5.46
BVpS0.83
TBVpS-1.79
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.41% | ||
| ROE | -63.42% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 68.29% | ||
| FCFM | 6.96% |
ROA(3y)-12.3%
ROA(5y)-17.18%
ROE(3y)-78.54%
ROE(5y)-85.84%
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 3Y6.79%
GM growth 5Y1.83%
F-Score4
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 7.92 | ||
| Debt/EBITDA | 9.65 | ||
| Cap/Depr | 35.2% | ||
| Cap/Sales | 2.14% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 176.93% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | -0.47 |
F-Score4
WACC9.41%
ROIC/WACCN/A
Cap/Depr(3y)38.29%
Cap/Depr(5y)74.81%
Cap/Sales(3y)2.72%
Cap/Sales(5y)5.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-28%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-8.33%
EPS Next Y-21.94%
EPS Next 2Y-10.5%
EPS Next 3Y-5.14%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.23%
Revenue growth 3Y11.04%
Revenue growth 5Y15.63%
Sales Q2Q%-1.17%
Revenue Next Year-1.65%
Revenue Next 2Y-0.34%
Revenue Next 3Y0.36%
Revenue Next 5YN/A
EBIT growth 1Y63.35%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year7.01%
EBIT Next 3Y10.37%
EBIT Next 5YN/A
FCF growth 1Y75.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y44.84%
OCF growth 3YN/A
OCF growth 5YN/A