EGHT : NYSE : Technology Services
$18.625 up 0.18 | 0.95%
Today's Range: 18.3 - 18.8
Avg. Daily Volume: 860600.0
02/22/18 - 3:52 PM ET

Financial Analysis


8X8 INC's gross profit margin for the third quarter of its fiscal year 2017 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 3.35 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 21.91% 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 FY17 Q3 FY16
Net Sales ($mil)75.5863.68
EBITDA ($mil)-4.340.88
EBIT ($mil)-8.3-1.63
Net Income ($mil)-88.52-1.33


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)160.98172.65
Total Assets ($mil)274.93323.85
Total Debt ($mil)0.00.0
Equity ($mil)220.41282.28


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin82.1380.22
EBITDA Margin-5.741.37
Operating Margin-10.98-2.55
Sales Turnover1.030.75
Return on Assets-34.24-0.89
Return on Equity-42.72-1.02
Debt Q3 FY17 Q3 FY16
Current Ratio3.555.0
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)92.1690.93
Div / share0.00.0
EPS-0.96-0.01
Book value / share2.393.1
Institutional Own % n/a n/a
Avg Daily Volume895720.0676797.0

Valuation


SELL. 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 7.69 indicates a significant premium versus the S&P 500 average of 3.26 and a significant discount versus the industry average of 12.45. The price-to-sales ratio is well above the S&P 500 average, but well 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 636.95   EGHT 66.39 Peers 23.78

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 184.00 Peers 43.83   EGHT NA Peers 2.78

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 7.69 Peers 12.45   EGHT -3300.00 Peers -8.01

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 5.98 Peers 7.60   EGHT 16.13 Peers 17.12

Discount. 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 discount to its industry on this measurement.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

EGHT is keeping pace with its peers on the basis of sales growth.

 

 

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