EGAIN CORP (EGAN) Stock Fundamental Analysis
NASDAQ:EGAN - Nasdaq - US28225C8064 - Common Stock - Currency: USD
EGAN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 284 industry peers in the Software industry. Both the profitability and the financial health of EGAN get a neutral evaluation. Nothing too spectacular is happening here. EGAN has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
EGAN had positive earnings in the past year.
In the past year EGAN had a positive cash flow from operations.
Of the past 5 years EGAN 4 years were profitable.
EGAN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of EGAN (3.88%) is better than 72.83% of its industry peers.
With a decent Return On Equity value of 7.82%, EGAN is doing good in the industry, outperforming 74.64% of the companies in the same industry.
The Return On Invested Capital of EGAN (3.79%) is better than 72.10% 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
With a decent Profit Margin value of 4.86%, EGAN is doing good in the industry, outperforming 68.84% of the companies in the same industry.
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 68.48% of its industry peers.
EGAN's Operating Margin has declined in the last couple of years.
The Gross Margin of EGAN (69.54%) is comparable to the rest of the industry.
EGAN's Gross Margin has been stable in the last couple of years.
| 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.
EGAN has less shares outstanding than it did 1 year ago.
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
EGAN has an Altman-Z score of -1.13. This is a bad value and indicates that EGAN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -1.13, EGAN is doing worse than 76.45% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | -1.13 |
ROIC/WACC0.27
WACC13.99%
2.3 Liquidity
EGAN has a Current 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.
With a Current ratio value of 1.84, EGAN perfoms like the industry average, outperforming 54.71% of the companies in the same industry.
A Quick Ratio of 1.84 indicates that EGAN should not have too much problems paying its short term obligations.
EGAN has a Quick ratio of 1.84. This is comparable to the rest of the industry: EGAN outperforms 55.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
EGAN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.14%.
EGAN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.29% yearly.
EGAN shows a decrease in Revenue. In the last year, the revenue decreased by -6.95%.
The Revenue has been growing slightly by 6.66% on average over the past years.
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%-5.98%
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 -18.33% on average per year.
EGAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.75% yearly.
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
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.
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
With a Price/Earnings ratio of 21.21, EGAN is valued on the expensive side.
80.07% of the companies in the same industry are more expensive than EGAN, based on the Price/Earnings ratio.
EGAN is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
EGAN is valuated rather expensively with a Price/Forward Earnings ratio of 19.57.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EGAN indicates a rather cheap valuation: EGAN is cheaper than 81.88% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. EGAN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.21 | ||
| Fwd PE | 19.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EGAN indicates a rather cheap valuation: EGAN is cheaper than 89.13% of the companies listed in the same industry.
EGAN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EGAN is cheaper than 69.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.29 | ||
| EV/EBITDA | 14.65 |
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)1.48
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 |
5.09
-0.1 (-1.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners56.99%
Inst Owner Change0.69%
Ins Owners34.61%
Ins Owner Change-0.01%
Market Cap145.17M
Analysts80
Price Target8.16 (60.31%)
Short Float %1.98%
Short Ratio3.37
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)-2.56%
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)0%
EPS NQ rev (1m)-50%
EPS NQ rev (3m)-71.43%
EPS NY rev (1m)7.5%
EPS NY rev (3m)13.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.21 | ||
| Fwd PE | 19.57 | ||
| P/S | 1.63 | ||
| P/FCF | 39.29 | ||
| P/OCF | 36.24 | ||
| P/B | 2.63 | ||
| P/tB | 3.45 | ||
| EV/EBITDA | 14.65 |
EPS(TTM)0.24
EY4.72%
EPS(NY)0.26
Fwd EY5.11%
FCF(TTM)0.13
FCFY2.55%
OCF(TTM)0.14
OCFY2.76%
SpS3.12
BVpS1.94
TBVpS1.48
PEG (NY)N/A
PEG (5Y)1.48
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 | -1.13 |
F-Score5
WACC13.99%
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)-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%-5.98%
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%