NYSE:EGHT

Stock Analysis Report

Executive Summary

8x8, Inc. provides enterprise cloud communications and customer engagement solutions for small and mid-size businesses, mid-market, and distributed enterprises worldwide.

Snowflake

Fundamentals

Adequate balance sheet with limited growth.


Similar Companies

Share Price & News

How has 8x8's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.1%

EGHT

-4.4%

US Software

0.07%

US Market


1 Year Return

13.1%

EGHT

19.3%

US Software

8.9%

US Market

Return vs Industry: EGHT underperformed the US Software industry which returned 19.3% over the past year.

Return vs Market: EGHT underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

EGHTIndustryMarket
7 Day-1.1%-4.4%0.07%
30 Day-18.2%-4.4%-0.3%
90 Day-26.1%-9.3%-1.6%
1 Year13.1%13.1%21.1%19.3%11.3%8.9%
3 Year26.9%26.9%108.2%99.8%46.3%36.8%
5 Year145.7%145.7%157.9%139.3%62.1%44.3%

Price Volatility Vs. Market

How volatile is 8x8's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is 8x8 undervalued compared to its fair value and its price relative to the market?

7.99x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: EGHT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

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


Next Steps

Future Growth

How is 8x8 forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

21.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EGHT is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: EGHT is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: EGHT is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: EGHT's revenue (21% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: EGHT's revenue (21% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EGHT is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has 8x8 performed over the past 5 years?

-71.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EGHT is unprofitable, and losses have increased over the past 5 years at a rate of -71.4% per year.

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

Earnings vs Industry: EGHT is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (19.1%).


Return on Equity

High ROE: EGHT has a negative Return on Equity (-46.77%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: EGHT is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: EGHT is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is 8x8's financial position?


Financial Position Analysis

Short Term Liabilities: EGHT's short term assets ($357.1M) exceeds its short term liabilities ($88.8M)

Long Term Liabilities: EGHT's short term assets (357.1M) exceeds its long term liabilities (239.5M)


Debt to Equity History and Analysis

Debt Level: EGHT's debt to equity ratio (95.2%) is considered high

Reducing Debt: Insufficient data to determine if EGHT's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: EGHT has a low level of unsold assets or inventory.

Debt Coverage by Assets: EGHT's debt is covered by short term assets (assets are 1.6x debt).


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: EGHT has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: EGHT has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -126.6% each year


Next Steps

Dividend

What is 8x8's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if EGHT'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 EGHT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of 8x8's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Vik Verma (54yo)

6.1yrs

Tenure

US$5,088,656

Compensation

Mr. Vikram Verma, also known as Vik, has been a Director at Cambium Networks Corporation since January 2019. He has been the Chief Executive Officer of 8x8 Inc. since September 9, 2013. Mr. Verma was the P ...


CEO Compensation Analysis

Compensation vs. Market: Vik's total compensation ($USD5.09M) is about average for companies of similar size in the US market ($USD4.07M).

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


Management Age and Tenure

1.9yrs

Average Tenure

51.5yo

Average Age

Experienced Management: EGHT's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

3.3yrs

Average Tenure

52yo

Average Age

Experienced Board: EGHT's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$73,40503 Sep 19
Vikram Verma
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares3,060
Max PriceUS$23.99
SellUS$13,59019 Aug 19
Dejan Deklich
EntityIndividual
Role
Senior Key Executive
Chief Product Officer
Shares548
Max PriceUS$24.80
BuyUS$98,87205 Aug 19
Vikram Verma
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares4,200
Max PriceUS$23.54
BuyUS$97,94501 Nov 18
Vikram Verma
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares5,730
Max PriceUS$17.09

Ownership Breakdown


Management Team

  • Mary Ellen Genovese (59yo)

    Managing Director of European Operations

    • Tenure: 1yrs
    • Compensation: US$444.21k
  • Bryan Martin (51yo)

    Executive Chairman & CTO

    • Tenure: 15.8yrs
    • Compensation: US$796.78k
  • Vik Verma (54yo)

    CEO & Director

    • Tenure: 6.1yrs
    • Compensation: US$5.09m
  • Matt Zinn (54yo)

    Senior VP

    • Tenure: 1.1yrs
    • Compensation: US$1.68m
  • Steven Gatoff (52yo)

    CFO & Principal Accounting Officer

    • Tenure: 0.9yrs
    • Compensation: US$3.18m
  • Darren Hakeman (49yo)

    Senior Vice President of Strategy

    • Tenure: 2.1yrs
    • Compensation: US$875.22k
  • Dejan Deklich (44yo)

    Chief Product Officer

    • Tenure: 2.7yrs
    • Compensation: US$2.00m
  • Amelia Generalis (48yo)

    Senior Vice President of Human Resources & Workplaces

    • Tenure: 1.8yrs
  • Joan Citelli

    Investor Relations Contact

    • Tenure: 0yrs
  • Victoria Hyde-Dunn

    Investor Relations

    • Tenure: 0yrs

Board Members

  • Vladimir Jacimovic (55yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$215.01k
  • Bryan Martin (51yo)

    Executive Chairman & CTO

    • Tenure: 15.8yrs
    • Compensation: US$796.78k
  • Vik Verma (54yo)

    CEO & Director

    • Tenure: 6.1yrs
    • Compensation: US$5.09m
  • Todd Ford (52yo)

    Independent Director

    • Tenure: 0.8yrs
  • Eric Salzman (52yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$247.51k
  • JP Singh (53yo)

    Lead Independent Director

    • Tenure: 0.4yrs
    • Compensation: US$222.01k
  • Monique Bonner (48yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$263.73k
  • Elizabeth Theophille (52yo)

    Independent Director

    • Tenure: 0.3yrs

Company Information

8x8, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 8x8, Inc.
  • Ticker: EGHT
  • Exchange: NYSE
  • Founded: 1987
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$1.890b
  • Shares outstanding: 99.29m
  • Website: https://www.8x8.com

Number of Employees


Location

  • 8x8, Inc.
  • 2125 O'Nel Drive
  • San Jose
  • California
  • 95131
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EGHTNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1997
EGTDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1997
0IFSLSE (London Stock Exchange)YesCommon StockGBUSDJul 1997

Biography

8x8, Inc. provides enterprise cloud communications and customer engagement solutions for small and mid-size businesses, mid-market, and distributed enterprises worldwide. It offers unified communications,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:33
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.