8X8 Inc /De/ (NASDAQ: EGHT)

Sector: Technology Industry: Software - Application CIK: 0001023731
Market Cap 284.50 Mn
P/B 2.14
P/E -48.00
P/S 0.39
ROIC (Qtr) 2.33
Div Yield % 0.00
Rev 1y % (Qtr) 1.71
Total Debt (Qtr) 380.95 Mn
Debt/Equity (Qtr) 2.86

About

8x8 Inc., a leading global provider of contact center as-a-service (CCaaS) and unified communications as-a-service (UCaaS) software, operates in the cloud communications industry (EGHT). The company has a strong focus on innovation and customer satisfaction, with a wide range of solutions designed to improve employee and customer experiences. 8x8's operations infrastructure includes data management, security, quality monitoring and control, and billing systems, which support its portfolio of communication and contact center services plans. Its network...

Read more

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 76.68M provide 2.56x coverage of short-term debt 29.91M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 39.15M exceeds capital expenditure of 14.64M by 2.67x, indicating strong organic growth funding capability.
  • Tangible assets of 335.98M provide exceptional 7.63x coverage of deferred revenue 44.05M, showing strong service capability backing.
  • Robust tangible asset base of 335.98M provides 15.30x coverage of working capital 21.96M, indicating strong operational backing.
  • R&D investment of 116.06M represents healthy 2.64x of deferred revenue 44.05M, indicating strong future innovation pipeline.

Bear case

  • Operating cash flow of 53.80M barely covers its investment activities of (17.88M), with a coverage ratio of -3.01, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (17.88M) provide weak support for R&D spending of 116.06M, which is -0.15x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 76.68M provide limited coverage of acquisition spending of (3.23M), which is -23.71x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 53.80M provides insufficient coverage of deferred revenue obligations of 44.05M, which is 1.22x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 53.80M shows concerning coverage of stock compensation expenses of 29.48M, with a 1.82 ratio indicating potential earnings quality issues.

Geographical Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.89 2.65
EV to Cash from Ops. EV/CFO 11.09 13.37
EV to Debt EV to Debt 1.57 57.69
EV to EBIT EV/EBIT 35.64 19.12
EV to EBITDA EV/EBITDA 12.02 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF 15.23 14.69
EV to Market Cap EV to Market Cap 2.10 -92.28
EV to Revenue EV/Rev 0.83 4.60
Price to Book Value [P/B] P/B 2.14 4.26
Price to Earnings [P/E] P/E -48.00 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.52
Interest Coverage Int. cover (Qtr) 0.85 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 5.03 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -34.94 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 209.27 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 90.95 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 160.34 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) 95.30 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 92.73 123.84
FCF Growth (1y) % FCF 1y % (Qtr) -21.84 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -2.14 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.08 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.42 3.75
Current Ratio Curr Ratio (Qtr) 1.12 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 2.86 0.17
Interest Cover Ratio Int Coverage (Qtr) 0.85 -52.32
Times Interest Earned Times Interest Earned (Qtr) 0.85 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 7.10 -100.06
EBIT Margin % EBIT Margin % (Qtr) 2.32 -164.24
EBT Margin % EBT Margin % (Qtr) -0.43 -116.94
Gross Margin % Gross Margin % (Qtr) 66.70 58.20
Net Profit Margin % Net Margin % (Qtr) -0.80 -121.65