EGAIN CORP (EGAN)
US28225C8064 - Common Stock
We assign a fundamental rating of 5 out of 10 to EGAN. EGAN was compared to 277 industry peers in the Software industry. EGAN has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on EGAN. This makes EGAN very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year EGAN was profitable.
In the past year EGAN had a positive cash flow from operations.
EGAN had positive earnings in 4 of the past 5 years.
EGAN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EGAN has a better Return On Assets (5.59%) than 80.66% of its industry peers.
EGAN has a Return On Equity of 10.50%. This is amongst the best in the industry. EGAN outperforms 83.94% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.96%, EGAN is in the better half of the industry, outperforming 79.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.59% | ||
| ROE | 10.5% | ||
| ROIC | 4.96% |
ROA(3y)1.92%
ROA(5y)3.82%
ROE(3y)4.74%
ROE(5y)10.45%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
EGAN has a better Profit Margin (7.33%) than 78.10% of its industry peers.
In the last couple of years the Profit Margin of EGAN has declined.
EGAN has a Operating Margin of 5.95%. This is in the better half of the industry: EGAN outperforms 76.28% of its industry peers.
In the last couple of years the Operating Margin of EGAN has declined.
With a Gross Margin value of 70.61%, EGAN perfoms like the industry average, outperforming 59.49% of the companies in the same industry.
In the last couple of years the Gross Margin of EGAN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.95% | ||
| PM (TTM) | 7.33% | ||
| GM | 70.61% |
OM growth 3Y-48.17%
OM growth 5YN/A
PM growth 3Y-39.89%
PM growth 5YN/A
GM growth 3Y0.52%
GM growth 5Y2.56%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EGAN is destroying value.
The number of shares outstanding for EGAN has been increased compared to 1 year ago.
EGAN has more shares outstanding than it did 5 years ago.
EGAN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of -0.19, we must say that EGAN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.19, EGAN is not doing good in the industry: 74.45% of the companies in the same industry are doing better.
EGAN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | -0.19 |
ROIC/WACC0.49
WACC10.05%
2.3 Liquidity
A Current Ratio of 1.98 indicates that EGAN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.98, EGAN is in line with its industry, outperforming 58.03% of the companies in the same industry.
EGAN has a Quick Ratio of 1.98. This is a normal value and indicates that EGAN is financially healthy and should not expect problems in meeting its short term obligations.
EGAN has a Quick ratio (1.98) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
EGAN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 68.18%, which is quite impressive.
Measured over the past years, EGAN shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.71% on average per year.
The Revenue has decreased by -2.16% in the past year.
EGAN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.84% yearly.
EPS 1Y (TTM)68.18%
EPS 3Y-3.71%
EPS 5YN/A
EPS growth Q2Q120%
Revenue 1Y (TTM)-2.16%
Revenue growth 3Y10.46%
Revenue growth 5Y9.84%
Revenue growth Q2Q-6.97%
3.2 Future
EGAN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.26% yearly.
EGAN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.66% yearly.
EPS Next Y26.48%
EPS Next 2Y14.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-4.4%
Revenue Next 2Y-0.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.19, the valuation of EGAN can be described as rather expensive.
Based on the Price/Earnings ratio, EGAN is valued cheaper than 88.32% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.02, EGAN is valued a bit cheaper.
With a Price/Forward Earnings ratio of 19.49, EGAN is valued on the expensive side.
Based on the Price/Forward Earnings ratio, EGAN is valued cheaper than 83.58% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EGAN to the average of the S&P500 Index (20.58), we can say EGAN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.19 | ||
| Fwd PE | 19.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EGAN is valued cheaper than 86.13% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EGAN indicates a rather cheap valuation: EGAN is cheaper than 88.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.36 | ||
| EV/EBITDA | 18.33 |
4.3 Compensation for Growth
EGAN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of EGAN may justify a higher PE ratio.
EGAN's earnings are expected to grow with 14.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y14.26%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for EGAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EGAIN CORP
NASDAQ:EGAN (5/6/2024, 7:00:02 PM)
After market: 6.36 0 (0%)6.36
-0.03 (-0.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap198.43M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.19 | ||
| Fwd PE | 19.49 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.65
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.59% | ||
| ROE | 10.5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.95% | ||
| PM (TTM) | 7.33% | ||
| GM | 70.61% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)68.18%
EPS 3Y-3.71%
EPS 5Y
EPS growth Q2Q
EPS Next Y26.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.16%
Revenue growth 3Y10.46%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y