EGAIN CORP (EGAN) Stock Fundamental Analysis
NASDAQ:EGAN - US28225C8064 - Common Stock
6.24 USD
-0.09 (-1.42%)
6.24 USD
0 (0%)
EGAN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 280 industry peers in the Software industry. EGAN has only an average score on both its financial health and profitability. EGAN has a expensive valuation and it also scores bad on growth.
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.
In the past 5 years EGAN always reported a positive cash flow from operatings.
1.2 Ratios
EGAN's Return On Assets of 2.73% is fine compared to the rest of the industry. EGAN outperforms 68.21% of its industry peers.
EGAN's Return On Equity of 5.61% is fine compared to the rest of the industry. EGAN outperforms 70.00% of its industry peers.
With a decent Return On Invested Capital value of 3.01%, EGAN is doing good in the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 5.61% | ||
| ROIC | 3.01% |
ROA(3y)1.92%
ROA(5y)3.91%
ROE(3y)4.14%
ROE(5y)9.67%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 3.30%, EGAN is in the better half of the industry, outperforming 66.79% of the companies in the same industry.
In the last couple of years the Profit Margin of EGAN has grown nicely.
The Operating Margin of EGAN (2.71%) is better than 66.43% of its industry peers.
EGAN's Operating Margin has declined in the last couple of years.
EGAN has a Gross Margin (69.23%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of EGAN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.71% | ||
| PM (TTM) | 3.3% | ||
| GM | 69.23% |
OM growth 3Y-11.79%
OM growth 5Y-4.76%
PM growth 3Y-1.94%
PM growth 5Y6.21%
GM growth 3Y-2.32%
GM growth 5Y0.8%
2. Health
2.1 Basic Checks
EGAN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, EGAN has less shares outstanding
EGAN has less shares outstanding than it did 5 years ago.
There is no outstanding debt for EGAN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of -1.04, we must say that EGAN is in the distress zone and has some risk of bankruptcy.
EGAN has a worse Altman-Z score (-1.04) than 74.64% of its industry peers.
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 | -1.04 |
ROIC/WACC0.27
WACC11.29%
2.3 Liquidity
A Current Ratio of 1.72 indicates that EGAN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.72, EGAN is in line with its industry, outperforming 54.64% of the companies in the same industry.
EGAN has a Quick Ratio of 1.72. This is a normal value and indicates that EGAN is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.72, EGAN perfoms like the industry average, outperforming 55.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
The earnings per share for EGAN have decreased strongly by -54.76% in the last year.
EGAN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.29% yearly.
The Revenue has decreased by -7.71% in the past year.
Measured over the past years, EGAN shows a small growth in Revenue. The Revenue has been growing by 6.66% on average per year.
EPS 1Y (TTM)-54.76%
EPS 3Y13.04%
EPS 5Y14.29%
EPS Q2Q%-62.5%
Revenue 1Y (TTM)-7.71%
Revenue growth 3Y5.83%
Revenue growth 5Y6.66%
Sales Q2Q%-6%
3.2 Future
Based on estimates for the next years, EGAN will show a very negative growth in Earnings Per Share. The EPS will decrease by -26.78% on average per year.
The Revenue is expected to grow by 2.11% on average over the next years.
EPS Next Y-52.92%
EPS Next 2Y-26.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.78%
Revenue Next 2Y2.11%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 32.84, the valuation of EGAN can be described as expensive.
Based on the Price/Earnings ratio, EGAN is valued a bit cheaper than 63.57% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.84. EGAN is valued slightly more expensive when compared to this.
EGAN is valuated quite expensively with a Price/Forward Earnings ratio of 29.84.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EGAN indicates a somewhat cheap valuation: EGAN is cheaper than 63.21% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of EGAN to the average of the S&P500 Index (22.48), we can say EGAN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.84 | ||
| Fwd PE | 29.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EGAN indicates a somewhat cheap valuation: EGAN is cheaper than 77.86% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EGAN indicates a somewhat cheap valuation: EGAN is cheaper than 62.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.96 | ||
| EV/EBITDA | 22.53 |
4.3 Compensation for Growth
EGAN has a very decent profitability rating, which may justify a higher PE ratio.
EGAN's earnings are expected to decrease with -26.78% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.3
EPS Next 2Y-26.78%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for EGAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.24
-0.09 (-1.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners56.95%
Inst Owner Change-2.57%
Ins Owners35.59%
Ins Owner Change0%
Market Cap170.66M
Analysts80
Price Target8.16 (30.77%)
Short Float %2.41%
Short Ratio9.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)30.72%
Min EPS beat(2)-34.64%
Max EPS beat(2)96.08%
EPS beat(4)3
Avg EPS beat(4)239.87%
Min EPS beat(4)-34.64%
Max EPS beat(4)684.31%
EPS beat(8)7
Avg EPS beat(8)147.39%
EPS beat(12)11
Avg EPS beat(12)240.4%
EPS beat(16)15
Avg EPS beat(16)271.53%
Revenue beat(2)0
Avg Revenue beat(2)-2.8%
Min Revenue beat(2)-3.04%
Max Revenue beat(2)-2.57%
Revenue beat(4)1
Avg Revenue beat(4)-0.98%
Min Revenue beat(4)-3.04%
Max Revenue beat(4)3.11%
Revenue beat(8)2
Avg Revenue beat(8)-0.95%
Revenue beat(12)4
Avg Revenue beat(12)-1.05%
Revenue beat(16)6
Avg Revenue beat(16)-0.53%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.84 | ||
| Fwd PE | 29.84 | ||
| P/S | 1.95 | ||
| P/FCF | 41.96 | ||
| P/OCF | 38.2 | ||
| P/B | 3.31 | ||
| P/tB | 4.44 | ||
| EV/EBITDA | 22.53 |
EPS(TTM)0.19
EY3.04%
EPS(NY)0.21
Fwd EY3.35%
FCF(TTM)0.15
FCFY2.38%
OCF(TTM)0.16
OCFY2.62%
SpS3.21
BVpS1.89
TBVpS1.4
PEG (NY)N/A
PEG (5Y)2.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 5.61% | ||
| ROCE | 4.21% | ||
| ROIC | 3.01% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 2.71% | ||
| PM (TTM) | 3.3% | ||
| GM | 69.23% | ||
| FCFM | 4.64% |
ROA(3y)1.92%
ROA(5y)3.91%
ROE(3y)4.14%
ROE(5y)9.67%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-11.79%
OM growth 5Y-4.76%
PM growth 3Y-1.94%
PM growth 5Y6.21%
GM growth 3Y-2.32%
GM growth 5Y0.8%
F-Score6
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 17.78% | ||
| Cap/Sales | 0.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.44% | ||
| Profit Quality | 140.48% | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | -1.04 |
F-Score6
WACC11.29%
ROIC/WACC0.27
Cap/Depr(3y)67.92%
Cap/Depr(5y)76.04%
Cap/Sales(3y)0.4%
Cap/Sales(5y)0.48%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-54.76%
EPS 3Y13.04%
EPS 5Y14.29%
EPS Q2Q%-62.5%
EPS Next Y-52.92%
EPS Next 2Y-26.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-7.71%
Revenue growth 3Y5.83%
Revenue growth 5Y6.66%
Sales Q2Q%-6%
Revenue Next Year-3.78%
Revenue Next 2Y2.11%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-66.71%
EBIT growth 3Y-6.65%
EBIT growth 5Y1.58%
EBIT Next Year-41.17%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-63.16%
FCF growth 3Y-3.08%
FCF growth 5Y13.35%
OCF growth 1Y-60.63%
OCF growth 3Y-3.5%
OCF growth 5Y12.37%