EGHT : NASDAQ : Technology
$13.325 -0.23 | -1.7%
Today's Range: 13.25 - 13.5
Avg. Daily Volume: 884100.0
08/17/17 - 3:29 PM ET

Financial Analysis


8X8 INC's gross profit margin for the first 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 4.14 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 increased by 12.57% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)69.160.04
EBITDA ($mil)-1.731.68
EBIT ($mil)-5.46-0.9
Net Income ($mil)-2.17-0.53


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)177.81167.07
Total Assets ($mil)360.15315.65
Total Debt ($mil)0.00.0
Equity ($mil)311.82276.98


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin80.477.47
EBITDA Margin-2.52.79
Operating Margin-7.9-1.5
Sales Turnover0.730.7
Return on Assets-1.77-1.63
Return on Equity-2.04-1.86
Debt Q1 FY17 Q1 FY16
Current Ratio4.355.22
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)91.589.68
Div / share0.00.0
EPS-0.02-0.01
Book value / share3.413.09
Institutional Own % n/a n/a
Avg Daily Volume881593.0705058.0

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. Conducting a second comparison, its price-to-book ratio of 3.83 indicates a premium versus the S&P 500 average of 3.03 and a significant discount versus the industry average of 8.42. 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 57.91   EGHT 42.66 Peers 36.42

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 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 118.64 Peers 38.13   EGHT NA Peers 1.10

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 3.83 Peers 8.42   EGHT 0.00 Peers 87.98

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 4.55 Peers 6.83   EGHT 18.49 Peers 11.94

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 significant discount to 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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