Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, VoIP business phone service specialist 8x8 (Nasdaq: EGHT) has earned a respected four-star ranking.
With that in mind, let's take a closer look at 8x8's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Sunnyvale, Calif. (1987)|
|Market Cap||$143 million|
|Trailing-12-Month Revenue||$64.67 million|
|Management||CEO Bryan Martin (since 2002)
CFO Daniel Weirich (since 2006)
|Return on Equity (Average, Past 3 Years)||3.8%|
|Cash/Debt||$18.1 million / $0|
|Competitors||AT&T (NYSE: T)
Vonage (NYSE: VG)
Verizon Communications (NYSE: VZ)
Qwest Communications (NYSE: Q)
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 61 members who have rated 8x8 believe the stock will outperform the S&P 500 going forward. These bulls include All-Star stallis, who is ranked in the top 2% of our community, and robseigel.
Just last month, stallis touched on 8x8's enterprising focus:
This company offers a product similar to that of Vonage but rather than pursue individuals they've focused on business customers who are much more profitable and the churn is lower too. ... I've owned 8x8 since shortly after its IPO and at no time since then was I more optimistic in the future of this company.
In addition to VoIP specialist Vonage, 8x8 has the unenviable task of battling incumbent telephone behemoths. Of course, with a PEG ratio of less than one -- a substantial discount to rivals AT&T (2.1), Verizon (2.3), and Qwest (2.6) -- 8x8 seems like a particularly cheap way to go for growth. As 8x8's enterprise segment continues to expand, CAPS member robseigel fully expects that valuation gap to steadily close:
This stock is clearly growing revenues as evidence of ramping of in its business sector continues. The growth has been masked as the residential side of the business has dwindled. 8x8 is at an inflection point where losses in residential revenue has troughed, and business revenues continue to grow steadily as enterprise gains should push revenue growth to higher rates. 8x8 offers a full line of business grade services, including newly acquired cloud computing, holds its own patents, has plenty of free cash and no debt.
© 2010 UCLICK L.L.C.