EGHT : NASDAQ : Technology
$13.19 -0.13 | -0.98%
Today's Range: 13.17 - 13.38
Avg. Daily Volume: 753,800
08/29/16 - 4:00 PM ET

Financial Analysis


8X8 INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. 8X8 INC is extremely liquid. Currently, the Quick Ratio is 5.04 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 remained unchanged 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 FY16 Q1 FY15
Net Sales ($mil)60.0447.89
EBITDA ($mil)1.683.0
EBIT ($mil)-0.91.0
Net Income ($mil)-0.53-0.47


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)167.07156.97
Total Assets ($mil)315.65307.03
Total Debt ($mil)0.00.0
Equity ($mil)276.98276.44


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin77.4776.64
EBITDA Margin2.796.25
Operating Margin-1.52.09
Sales Turnover0.70.56
Return on Assets-1.630.47
Return on Equity-1.860.52
Debt Q1 FY16 Q1 FY15
Current Ratio5.226.78
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)89.6888.6
Div / share0.00.0
EPS-0.01-0.01
Book value / share3.093.12
Institutional Own % n/a n/a
Avg Daily Volume748131.0613692.0

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 4.38 indicates a significant premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 7.52. 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 59.58   EGHT 47.53 Peers 23.28

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 46.62 Peers 33.35   EGHT NA Peers 0.85

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 4.38 Peers 7.52   EGHT -700.00 Peers 27.93

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 5.47 Peers 5.94   EGHT 28.47 Peers 5.44

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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