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8x8 Inc
EGHT : NASDAQ : Technology
$7.44 | %
Today's Range: 7.37 - 7.52
Avg. Daily Volume: 1,216,400
07/11/14 - 4:00 PM ET

Financial Analysis


8X8 INC's gross profit margin for the fourth quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. 8X8 INC is extremely liquid. Currently, the Quick Ratio is 6.17 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 103.00% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY13 Q4 FY12
Net Sales ($mil)35.7927.82
EBITDA ($mil)0.933.47
EBIT ($mil)-0.372.41
Net Income ($mil)-1.951.66


Balance Sheet Q4 FY13 Q4 FY12
Cash & Equiv. ($mil)106.3452.27
Total Assets ($mil)299.2152.61
Total Debt ($mil)0.180.04
Equity ($mil)278.18137.03


Profitability Q4 FY13 Q4 FY12
Gross Profit Margin73.2875.21
EBITDA Margin2.5912.47
Operating Margin-1.048.65
Sales Turnover0.430.68
Return on Assets0.849.13
Return on Equity0.579.81
Debt Q4 FY13 Q4 FY12
Current Ratio6.454.64
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY13 Q4 FY12
Shares outstanding (mil)88.5372.11
Div / share0.00.0
EPS-0.020.02
Book value / share3.141.9
Institutional Own % n/a n/a
Avg Daily Volume1210460.01066159.0

Valuation


HOLD. 8X8 INC's P/E ratio indicates a significant premium compared to an average of 16.43 for the Diversified Telecommunication Services industry and a significant premium compared to the S&P 500 average of 19.48. To use another comparison, its price-to-book ratio of 2.38 indicates a discount versus the S&P 500 average of 2.69 and a significant discount versus the industry average of 5.55. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, 8X8 INC seems to be trading at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
EGHT 249.33 Peers 16.43   EGHT 44.39 Peers 4.91

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

EGHT is trading at a significant premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

EGHT is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
EGHT 39.37 Peers 17.62   EGHT 0.45 Peers 1.24

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

EGHT is trading at a significant premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

EGHT trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EGHT 2.38 Peers 5.55   EGHT -84.22 Peers 268.18

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

EGHT is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, EGHT is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
EGHT 5.15 Peers 1.61   EGHT 23.90 Peers 2.38

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

EGHT is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

EGHT has a sales growth rate that significantly exceeds its peers.

 

 

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