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8CO

8commonASX:8CO Stock Report

Market Cap

AU$37.7m

7D

-2.9%

1Y

41.7%

Updated

26 Oct, 2021

Data

Company Financials
8CO fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health6/6
Dividends0/6

8CO Overview

8common Limited develops and distributes software solutions in Australia, Asia, North America, and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for 8common
Historical stock prices
Current Share PriceAU$0.17
52 Week HighAU$0.11
52 Week LowAU$0.24
Beta1.51
1 Month Change0%
3 Month Change54.55%
1 Year Change41.67%
3 Year Change431.25%
5 Year Change17.24%
Change since IPO-38.18%

Recent News & Updates

Sep 22
We Think 8common (ASX:8CO) Can Afford To Drive Business Growth

We Think 8common (ASX:8CO) Can Afford To Drive Business Growth

Just because a business does not make any money, does not mean that the stock will go down. For example, although...

Feb 20
We're Hopeful That 8common (ASX:8CO) Will Use Its Cash Wisely

We're Hopeful That 8common (ASX:8CO) Will Use Its Cash Wisely

There's no doubt that money can be made by owning shares of unprofitable businesses. Indeed, 8common ( ASX:8CO ) stock...

Shareholder Returns

8COAU SoftwareAU Market
7D-2.9%2.8%0.8%
1Y41.7%33.4%24.4%

Return vs Industry: 8CO exceeded the Australian Software industry which returned 33.4% over the past year.

Return vs Market: 8CO exceeded the Australian Market which returned 24.4% over the past year.

Price Volatility

Is 8CO's price volatile compared to industry and market?
8CO volatility
8CO Beta1.51
Industry Beta0.85
Market Beta1

Stable Share Price: 8CO is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 8CO's weekly volatility has decreased from 15% to 9% over the past year.

About the Company

FoundedEmployeesCEOWebsite
2014n/aNic Limhttps://www.8common.com

8common Limited develops and distributes software solutions in Australia, Asia, North America, and internationally. It offers Expense8, a travel and expense management software solution that manages and streamlines the end-to-end processing of employee-generated expenses; and Perform8, a survey and action planning solution that diagnoses and prioritizes areas for improvement across the business; Payhero, a procurement payment gateway; and CardHero, a pre-paid card payment and fund distribution products. It serves publicly listed companies, global corporations, and local and national governments.

8common Fundamentals Summary

How do 8common's earnings and revenue compare to its market cap?
8CO fundamental statistics
Market CapAU$37.67m
Earnings (TTM)-AU$1.34m
Revenue (TTM)AU$3.51m

10.7x

P/S Ratio

-28.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
8CO income statement (TTM)
RevenueAU$3.51m
Cost of RevenueAU$3.64m
Gross Profit-AU$134.10k
ExpensesAU$1.20m
Earnings-AU$1.34m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.006
Gross Margin-3.82%
Net Profit Margin-38.08%
Debt/Equity Ratio0.0%

How did 8CO perform over the long term?

See historical performance and comparison

Valuation

Is 8common undervalued compared to its fair value and its price relative to the market?

7.35x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8CO's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8CO's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8CO is unprofitable, so we can't compare its PE Ratio to the Australian Software industry average.

PE vs Market: 8CO is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8CO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8CO is overvalued based on its PB Ratio (7.4x) compared to the AU Software industry average (5.3x).


Future Growth

How is 8common forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

31.4%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as 8common has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has 8common performed over the past 5 years?

6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8CO is currently unprofitable.

Growing Profit Margin: 8CO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8CO is unprofitable, but has reduced losses over the past 5 years at a rate of 6.4% per year.

Accelerating Growth: Unable to compare 8CO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8CO is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (37.5%).


Return on Equity

High ROE: 8CO has a negative Return on Equity (-26.06%), as it is currently unprofitable.


Financial Health

How is 8common's financial position?


Financial Position Analysis

Short Term Liabilities: 8CO's short term assets (A$3.5M) exceed its short term liabilities (A$1.7M).

Long Term Liabilities: 8CO's short term assets (A$3.5M) exceed its long term liabilities (A$95.1K).


Debt to Equity History and Analysis

Debt Level: 8CO is debt free.

Reducing Debt: 8CO has no debt compared to 5 years ago when its debt to equity ratio was 21.9%.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 8CO has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 8CO has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 6% each year


Dividend

What is 8common current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8CO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 8CO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 8CO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8CO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 8CO's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Nic Lim (45 yo)

no data

Tenure

AU$194,631

Compensation

Mr. Kah Wui Lim, also known as Nic, B.Com, L.L.B is Founder of HomeGP Sdn Bhd. Mr. Lim is a Venture Partner at Acumen Ventures. He is Partner at 8Capita, a Singapore based investment partnership with more...


CEO Compensation Analysis

Compensation vs Market: Nic's total compensation ($USD145.90K) is below average for companies of similar size in the Australian market ($USD301.38K).

Compensation vs Earnings: Nic's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: 8CO's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: 8CO's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 8CO insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 21.1%.


Top Shareholders

Company Information

8common Limited's employee growth, exchange listings and data sources


Key Information

  • Name: 8common Limited
  • Ticker: 8CO
  • Exchange: ASX
  • Founded: 2014
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$37.665m
  • Shares outstanding: 221.56m
  • Website: https://www.8common.com

Location

  • 8common Limited
  • 320 Pitt Street
  • Level 7
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 07:00
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.