EGAN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 278 industry peers in the Software industry. EGAN scores excellent on profitability, but there are some minor concerns on its financial health. EGAN is not valued too expensively and it also shows a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
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's Return On Assets of 23.80% is amongst the best of the industry. EGAN outperforms 97.12% of its industry peers.
Looking at the Return On Equity, with a value of 41.21%, EGAN belongs to the top of the industry, outperforming 94.96% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.10%, EGAN is in the better half of the industry, outperforming 74.82% of the companies in the same industry.
EGAN had an Average Return On Invested Capital over the past 3 years of 4.38%. This is significantly below the industry average of 10.73%.
The last Return On Invested Capital (6.10%) for EGAN is above the 3 year average (4.38%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	23.8%
ROE	41.21%
ROIC	6.1%

ROA(3y)9.83%

ROA(5y)6.73%

ROE(3y)18.89%

ROE(5y)13.5%

ROIC(3y)4.38%

ROIC(5y)N/A

1.3 Margins

EGAN has a Profit Margin of 38.19%. This is amongst the best in the industry. EGAN outperforms 92.45% of its industry peers.
EGAN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.50%, EGAN is in the better half of the industry, outperforming 71.58% of the companies in the same industry.
In the last couple of years the Operating Margin of EGAN has declined.
The Gross Margin of EGAN (71.61%) 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	7.5%
PM (TTM)	38.19%
GM	71.61%

OM growth 3YN/A

OM growth 5Y-13.22%

PM growth 3YN/A

PM growth 5Y29.76%

GM growth 3Y-1.47%

GM growth 5Y-0.25%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

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 reduced compared to 1 year ago.
Compared to 5 years ago, EGAN has less shares outstanding
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

EGAN has an Altman-Z score of 1.09. This is a bad value and indicates that EGAN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.09, EGAN is not doing good in the industry: 60.43% 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	1.09

ROIC/WACC0.55

WACC11.08%

2.3 Liquidity

A Current Ratio of 1.76 indicates that EGAN should not have too much problems paying its short term obligations.
The Current ratio of EGAN (1.76) is comparable to the rest of the industry.
EGAN has a Quick Ratio of 1.76. This is a normal value and indicates that EGAN is financially healthy and should not expect problems in meeting its short term obligations.
EGAN's Quick ratio of 1.76 is in line compared to the rest of the industry. EGAN outperforms 53.60% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.76
Quick Ratio	1.76

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 6.45% over the past year.
The Earnings Per Share has been decreasing by -6.51% on average over the past years.
EGAN shows a decrease in Revenue. In the last year, the revenue decreased by -0.32%.
The Revenue has been growing slightly by 3.99% on average over the past years.

EPS 1Y (TTM)6.45%

EPS 3Y-11.65%

EPS 5Y-6.51%

EPS Q2Q%325%

Revenue 1Y (TTM)-0.32%

Revenue growth 3Y-1.29%

Revenue growth 5Y3.99%

Sales Q2Q%7.84%

3.2 Future

The Earnings Per Share is expected to grow by 36.44% on average over the next years. This is a very strong growth
EGAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.24% yearly.

EPS Next Y68.3%

EPS Next 2Y36.44%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year3.55%

Revenue Next 2Y4.24%

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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 31.12, which means the current valuation is very expensive for EGAN.
Compared to the rest of the industry, the Price/Earnings ratio of EGAN is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.30, EGAN is valued at the same level.
The Price/Forward Earnings ratio is 27.59, which means the current valuation is very expensive for EGAN.
EGAN's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 25.57. EGAN is around the same levels.

		Industry Rank	Sector Rank
PE	31.12
Fwd PE	27.59

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, EGAN is valued a bit cheaper than the industry average as 67.27% of the companies are valued more expensively.
76.98% 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	19.76
EV/EBITDA	30.74

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.
EGAN has a very decent profitability rating, which may justify a higher PE ratio.
EGAN's earnings are expected to grow with 36.44% in the coming years. This may justify a more expensive valuation.