Why is 8x8, Inc. ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 0.78%
- Poor long term growth as Operating profit has grown by an annual rate 16.16% of over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of -1.00 times
2
With a growth in Net Profit of 563.62%, the company declared Outstanding results in Dec 25
- The company has declared positive results for the last 3 consecutive quarters
- ROCE(HY) Highest at -3.02%
- DEBT-EQUITY RATIO (HY) Lowest at 199.77 %
- INTEREST COVERAGE RATIO(Q) Highest at 389.93
3
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -17.12%, its profits have risen by 86.1%
4
High Institutional Holdings at 81.45%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -17.12% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
How much should you hold?
- Overall Portfolio exposure to 8x8, Inc. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
No Data Found
Quality key factors
Factor
Value
Sales Growth (5y)
7.40%
EBIT Growth (5y)
16.16%
EBIT to Interest (avg)
-3.28
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
2.23
Sales to Capital Employed (avg)
1.42
Tax Ratio
13.09%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
81.45%
ROCE (avg)
0.78%
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
2.01
EV to EBIT
32.54
EV to EBITDA
10.85
EV to Capital Employed
1.37
EV to Sales
0.73
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
4.22%
ROE (Latest)
-3.45%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
27What is working for the Company
ROCE(HY)
Highest at -3.02%
DEBT-EQUITY RATIO
(HY)
Lowest at 199.77 %
INTEREST COVERAGE RATIO(Q)
Highest at 389.93
DEBTORS TURNOVER RATIO(HY)
Highest at 12.08 times
NET SALES(Q)
Highest at USD 185.05 MM
PRE-TAX PROFIT(Q)
Highest at USD 5.28 MM
NET PROFIT(Q)
Highest at USD 4.78 MM
EPS(Q)
Highest at USD 0.04
-5What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 47.19 MM
RAW MATERIAL COST(Y)
Grown by 5.71% (YoY
CASH AND EQV(HY)
Lowest at USD 164.88 MM
Here's what is working for 8x8, Inc.
Pre-Tax Profit
At USD 5.28 MM has Grown at 855.24%
over average net sales of the previous four periods of USD -0.7 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 4.78 MM has Grown at 424.62%
over average net sales of the previous four periods of USD -1.47 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Interest Coverage Ratio
Highest at 389.93
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Debt-Equity Ratio
Lowest at 199.77 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Net Sales
Highest at USD 185.05 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Pre-Tax Profit
Highest at USD 5.28 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 4.78 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.04
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Debtors Turnover Ratio
Highest at 12.08 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for 8x8, Inc.
Operating Cash Flow
Lowest at USD 47.19 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Cash and Eqv
Lowest at USD 164.88 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Raw Material Cost
Grown by 5.71% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






