8x8, headquartered in Campbell, California, provides enterprise communication solutions with 1,948 employees, featuring the XCaaS platform, 8x8 Work, and 8x8 Contact Center for integrated communication services.
Based on our analysis, 8X8 Inc. has received an undervalued rating of 5 out of 5 stars from Cashu, indicating significant potential for growth. Several key financial ratios highlight the company’s favorable position compared to its sector.
The Price-to-Book (PB) Ratio for 8X8 stands at 2.16, significantly lower than the sector average of 3.48. A lower PB ratio suggests that the stock may be undervalued relative to its book value, indicating a potential opportunity for investors.
In terms of profitability, 8X8's Net Profit Margin is -3.81, which is an improvement compared to the sector's average of -15.27. This metric reveals that 8X8 is retaining a smaller loss per dollar of revenue than its peers, suggesting a more efficient operation that could lead to profitability as market conditions improve.
The Return on Equity (ROE) for 8X8 is -22.27, slightly better than the sector's -23.19. Although both figures indicate negative returns, 8X8's performance indicates it is losing less on equity investments than its competitors, which may signal better management efficiency.
Lastly, the Return on Assets (ROA) for 8X8 is -3.98, compared to the sector average of -12.89. This ratio indicates that 8X8 is utilizing its assets more effectively, as it is generating a smaller loss relative to its asset base than the average company in its sector.
These financial ratios collectively suggest that 8X8 is undervalued and could present an attractive investment opportunity.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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