EGHT : NASDAQ : Technology
$14.15 up 0.35 | 2.54%
Today's Range: 13.7 - 14.2
Avg. Daily Volume: 680600.0
12/08/16 - 4:00 PM ET

Financial Analysis


8X8 INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. 8X8 INC is extremely liquid. Currently, the Quick Ratio is 4.87 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 increased by 5.08% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)63.1850.94
EBITDA ($mil)2.190.75
EBIT ($mil)-0.38-1.55
Net Income ($mil)0.03-1.89


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)169.74149.15
Total Assets ($mil)322.03298.62
Total Debt ($mil)0.00.0
Equity ($mil)281.32267.71


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin77.2176.69
EBITDA Margin3.461.46
Operating Margin-0.6-3.05
Sales Turnover0.730.62
Return on Assets-1.01-0.58
Return on Equity-1.15-0.64
Debt Q2 FY16 Q2 FY15
Current Ratio5.086.32
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)90.5589.29
Div / share0.00.0
EPS0.0-0.02
Book value / share3.113.0
Institutional Own % n/a n/a
Avg Daily Volume666846.0729775.0

Valuation


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. To use another comparison, its price-to-book ratio of 4.57 indicates a significant premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 7.65. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. After reviewing these and other key valuation criteria, 8X8 INC proves to trade at a discount 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 48.70   EGHT 42.68 Peers 22.15

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 54.62 Peers 27.77   EGHT NA Peers 0.78

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 4.57 Peers 7.65   EGHT -100.00 Peers 25.33

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 5.50 Peers 5.58   EGHT 27.20 Peers 4.80

Average. 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 valuation on par with its industry on this measurement.

 

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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