EGHT8x8, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (3.6×) and margins widening.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is EGHT?
8x8, Inc. earns 4.9% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 4.1 points below what the capital costs: growth destroys value
- Operating margin
- 3.1%
Operating margin · Software - Application median 6.4% · 12 months to Q1 2027
- Cash conversion
- 3.58×
Cash conversion · 4.23× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +5.3%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2021 | −27% |
| FY2022 | −24% |
| FY2023 | −8.9% |
| FY2024 | −3.8% |
| FY2025 | 2.1% |
| FY2026 | 2.6% |
Details›
- Gross margin12 months to Q1 2027
- 63%
- Operating margin12 months to Q1 2027
- 3.1%
- Net margin12 months to Q1 2027
- 0.64%
- Free cash flow margin
- 7.6%
- R&D as % of revenue
- 15%
- Revenue, trailing twelve months
- $745M
- Free cash flow, trailing twelve months
- $57M
- Net income, trailing twelve months
- $4.8M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 4.9%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Application
Ranks #51 of 96 by RyuScore