EGAIN CORP (EGAN) Stock Fundamental Analysis
NASDAQ:EGAN - Nasdaq - US28225C8064 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to EGAN. EGAN was compared to 282 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 does not seem to be growing, but still is valued expensively.
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.
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
With a decent Return On Assets value of 2.73%, EGAN is doing good in the industry, outperforming 71.28% of the companies in the same industry.
The Return On Equity of EGAN (5.61%) is better than 73.40% of its industry peers.
With a decent Return On Invested Capital value of 3.01%, EGAN is doing good in the industry, outperforming 71.99% 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 70.21% of the companies in the same industry.
EGAN's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 2.71%, EGAN is doing good in the industry, outperforming 68.09% of the companies in the same industry.
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.
EGAN's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EGAN is destroying value.
Compared to 1 year ago, EGAN has less shares outstanding
Compared to 5 years ago, EGAN has less shares outstanding
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 -0.91, we must say that EGAN is in the distress zone and has some risk of bankruptcy.
EGAN has a Altman-Z score of -0.91. This is in the lower half of the industry: EGAN underperforms 75.53% 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 | -0.91 |
ROIC/WACC0.27
WACC10.97%
2.3 Liquidity
EGAN has a Current 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.
Looking at the Current ratio, with a value of 1.72, EGAN is in line with its industry, outperforming 53.90% of the companies in the same industry.
A Quick Ratio of 1.72 indicates that EGAN should not have too much problems paying its short term obligations.
EGAN's Quick ratio of 1.72 is in line compared to the rest of the industry. EGAN outperforms 54.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
EGAN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -54.76%.
EGAN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.29% yearly.
Looking at the last year, EGAN shows a decrease in Revenue. The Revenue has decreased by -7.71% in the last year.
EGAN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.66% yearly.
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
EGAN is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -26.78% yearly.
Based on estimates for the next years, EGAN will show a small growth in Revenue. The Revenue will grow by 2.11% on average per year.
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
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
The Price/Earnings ratio is 35.58, which means the current valuation is very expensive for EGAN.
Based on the Price/Earnings ratio, EGAN is valued a bit cheaper than the industry average as 67.38% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.45. EGAN is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 32.33, which means the current valuation is very expensive for EGAN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EGAN indicates a somewhat cheap valuation: EGAN is cheaper than 62.06% of the companies listed in the same industry.
EGAN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.58 | ||
| Fwd PE | 32.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EGAN is valued a bit cheaper than 79.08% of the companies in the same industry.
EGAN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EGAN is cheaper than 64.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.46 | ||
| EV/EBITDA | 25.07 |
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 -26.78% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.49
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 |
6.76
-0.03 (-0.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners56.76%
Inst Owner Change-2.53%
Ins Owners35.59%
Ins Owner Change0%
Market Cap184.89M
Analysts80
Price Target8.16 (20.71%)
Short Float %2.06%
Short Ratio6.56
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)-13.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.73%
Revenue NY rev (1m)-0.72%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.58 | ||
| Fwd PE | 32.33 | ||
| P/S | 2.11 | ||
| P/FCF | 45.46 | ||
| P/OCF | 41.38 | ||
| P/B | 3.58 | ||
| P/tB | 4.81 | ||
| EV/EBITDA | 25.07 |
EPS(TTM)0.19
EY2.81%
EPS(NY)0.21
Fwd EY3.09%
FCF(TTM)0.15
FCFY2.2%
OCF(TTM)0.16
OCFY2.42%
SpS3.21
BVpS1.89
TBVpS1.4
PEG (NY)N/A
PEG (5Y)2.49
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 | -0.91 |
F-Score6
WACC10.97%
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%