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8x8 Inc
EGHT : NASDAQ : Technology
$10.81 | %
Today's Range: 10.19 - 11.00
Avg. Daily Volume: 869,700
02/12/16 - 4:00 PM ET

Financial Analysis


8X8 INC's gross profit margin for the third quarter of its fiscal year 2015 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 5.41 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 5.76% 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 Q3 FY15 Q3 FY14
Net Sales ($mil)53.1741.37
EBITDA ($mil)0.462.4
EBIT ($mil)-1.870.83
Net Income ($mil)-1.680.44


Balance Sheet Q3 FY15 Q3 FY14
Cash & Equiv. ($mil)154.59187.89
Total Assets ($mil)303.59308.02
Total Debt ($mil)0.00.0
Equity ($mil)269.31285.78


Profitability Q3 FY15 Q3 FY14
Gross Profit Margin77.3676.01
EBITDA Margin0.855.8
Operating Margin-3.521.99
Sales Turnover0.640.5
Return on Assets-1.27-0.06
Return on Equity-1.43-0.07
Debt Q3 FY15 Q3 FY14
Current Ratio5.759.99
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY15 Q3 FY14
Shares outstanding (mil)88.4689.87
Div / share0.00.0
EPS-0.020.01
Book value / share3.043.18
Institutional Own % n/a n/a
Avg Daily Volume809882.0559549.0

Valuation


HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 4.10 indicates a significant premium versus the S&P 500 average of 2.51 and a significant discount versus the industry average of 8.02. 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 NM Peers 17.98   EGHT 47.63 Peers 6.54

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

EGHT's P/E is negative making this valuation measure meaningless.

 

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 62.35 Peers 33.84   EGHT NA Peers 0.76

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.

 

Neutral. 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EGHT 4.10 Peers 8.02   EGHT NA Peers 35.16

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.

 

Neutral. Higher earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

The growth rate for EGHT is not available.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
EGHT 5.68 Peers 1.70   EGHT 25.64 Peers 2.25

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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