EGAIN CORP (EGAN) Stock Fundamental Analysis
NASDAQ:EGAN - Nasdaq - US28225C8064 - Common Stock - Currency: USD
Overall EGAN gets a fundamental rating of 4 out of 10. We evaluated EGAN against 283 industry peers in the Software industry. EGAN has an average financial health and profitability rating. EGAN has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
EGAN had positive earnings in the past year.
EGAN had a positive operating cash flow in the past year.
Of the past 5 years EGAN 4 years were profitable.
Each year in the past 5 years EGAN had a positive operating cash flow.
1.2 Ratios
EGAN has a Return On Assets of 3.88%. This is in the better half of the industry: EGAN outperforms 72.44% of its industry peers.
With a decent Return On Equity value of 7.82%, EGAN is doing good in the industry, outperforming 73.14% of the companies in the same industry.
EGAN's Return On Invested Capital of 3.79% is fine compared to the rest of the industry. EGAN outperforms 73.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.88% | ||
| ROE | 7.82% | ||
| ROIC | 3.79% |
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
EGAN has a better Profit Margin (4.86%) than 69.61% of its industry peers.
EGAN's Profit Margin has improved in the last couple of years.
EGAN's Operating Margin of 3.70% is fine compared to the rest of the industry. EGAN outperforms 71.38% of its industry peers.
EGAN's Operating Margin has declined in the last couple of years.
EGAN's Gross Margin of 69.54% is in line compared to the rest of the industry. EGAN outperforms 55.12% of its industry peers.
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 | 3.7% | ||
| PM (TTM) | 4.86% | ||
| GM | 69.54% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EGAN is destroying value.
The number of shares outstanding for EGAN has been reduced compared to 1 year ago.
The number of shares outstanding for EGAN has been reduced compared to 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 -1.22, we must say that EGAN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -1.22, EGAN is not doing good in the industry: 74.20% 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 | -1.22 |
ROIC/WACC0.35
WACC10.76%
2.3 Liquidity
A Current Ratio of 1.84 indicates that EGAN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.84, EGAN is in line with its industry, outperforming 56.89% of the companies in the same industry.
EGAN has a Quick Ratio of 1.84. This is a normal value and indicates that EGAN is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of EGAN (1.84) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
The earnings per share for EGAN have decreased strongly by -35.14% in the last year.
Measured over the past years, EGAN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.29% on average per year.
The Revenue has decreased by -6.95% 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)-35.14%
EPS 3Y13.04%
EPS 5Y14.29%
EPS Q2Q%-63.64%
Revenue 1Y (TTM)-6.95%
Revenue growth 3Y5.83%
Revenue growth 5Y6.66%
Sales Q2Q%-5.99%
3.2 Future
EGAN is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -18.33% yearly.
The Revenue is expected to grow by 2.75% on average over the next years.
EPS Next Y-43.77%
EPS Next 2Y-18.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.08%
Revenue Next 2Y2.75%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 20.46, EGAN is valued on the expensive side.
Based on the Price/Earnings ratio, EGAN is valued a bit cheaper than the industry average as 77.03% of the companies are valued more expensively.
EGAN is valuated rather cheaply when we compare the Price/Earnings ratio to 28.10, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.88 indicates a rather expensive valuation of EGAN.
EGAN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EGAN is cheaper than 78.45% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.74. EGAN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.46 | ||
| Fwd PE | 18.88 |
4.2 Price Multiples
89.40% of the companies in the same industry are more expensive than EGAN, based on the Enterprise Value to EBITDA ratio.
69.26% of the companies in the same industry are more expensive than EGAN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.38 | ||
| EV/EBITDA | 12.99 |
4.3 Compensation for Growth
The decent profitability rating of EGAN may justify a higher PE ratio.
EGAN's earnings are expected to decrease with -18.33% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.43
EPS Next 2Y-18.33%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for EGAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.91
-0.04 (-0.81%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners56.99%
Inst Owner Change-0.11%
Ins Owners34.61%
Ins Owner Change-0.01%
Market Cap138.12M
Analysts80
Price Target8.16 (66.19%)
Short Float %2.22%
Short Ratio6.42
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)2
Avg EPS beat(2)390.2%
Min EPS beat(2)96.08%
Max EPS beat(2)684.31%
EPS beat(4)4
Avg EPS beat(4)253.7%
Min EPS beat(4)20.66%
Max EPS beat(4)684.31%
EPS beat(8)8
Avg EPS beat(8)175.98%
EPS beat(12)12
Avg EPS beat(12)316.97%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.99%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)-1.42%
Revenue beat(4)1
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-3.92%
Max Revenue beat(4)3.11%
Revenue beat(8)2
Avg Revenue beat(8)-1.03%
Revenue beat(12)5
Avg Revenue beat(12)-0.66%
Revenue beat(16)7
Avg Revenue beat(16)-0.09%
PT rev (1m)0%
PT rev (3m)-15.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-35.71%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.46 | ||
| Fwd PE | 18.88 | ||
| P/S | 1.55 | ||
| P/FCF | 37.38 | ||
| P/OCF | 34.48 | ||
| P/B | 2.5 | ||
| P/tB | 3.28 | ||
| EV/EBITDA | 12.99 |
EPS(TTM)0.24
EY4.89%
EPS(NY)0.26
Fwd EY5.3%
FCF(TTM)0.13
FCFY2.68%
OCF(TTM)0.14
OCFY2.9%
SpS3.16
BVpS1.96
TBVpS1.5
PEG (NY)N/A
PEG (5Y)1.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.88% | ||
| ROE | 7.82% | ||
| ROCE | 5.31% | ||
| ROIC | 3.79% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 3.7% | ||
| PM (TTM) | 4.86% | ||
| GM | 69.54% | ||
| FCFM | 4.15% |
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-Score5
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 15.54% | ||
| Cap/Sales | 0.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.73% | ||
| Profit Quality | 85.49% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.84 | ||
| Altman-Z | -1.22 |
F-Score5
WACC10.76%
ROIC/WACC0.35
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)-35.14%
EPS 3Y13.04%
EPS 5Y14.29%
EPS Q2Q%-63.64%
EPS Next Y-43.77%
EPS Next 2Y-18.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-6.95%
Revenue growth 3Y5.83%
Revenue growth 5Y6.66%
Sales Q2Q%-5.99%
Revenue Next Year-3.08%
Revenue Next 2Y2.75%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-42.25%
EBIT growth 3Y-6.65%
EBIT growth 5Y1.58%
EBIT Next Year-31.94%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-66.35%
FCF growth 3Y-3.08%
FCF growth 5Y13.35%
OCF growth 1Y-65.53%
OCF growth 3Y-3.5%
OCF growth 5Y12.37%