NasdaqCM:EGAN

Stock Analysis Report

Executive Summary

eGain Corporation operates as a software-as-a service provider of customer engagement solutions in the United States, the United Kingdom, India, and internationally.

Snowflake

Fundamentals

Flawless balance sheet with questionable track record.


Similar Companies

Share Price & News

How has eGain's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EGAN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.8%

EGAN

2.5%

US Software

0.7%

US Market


1 Year Return

0.1%

EGAN

32.7%

US Software

13.7%

US Market

Return vs Industry: EGAN underperformed the US Software industry which returned 32.7% over the past year.

Return vs Market: EGAN underperformed the US Market which returned 13.7% over the past year.


Shareholder returns

EGANIndustryMarket
7 Day2.8%2.5%0.7%
30 Day5.4%9.9%4.7%
90 Day12.3%4.7%6.1%
1 Year0.1%0.1%34.5%32.7%16.2%13.7%
3 Year237.8%237.8%125.4%116.8%48.8%39.2%
5 Year54.8%54.8%173.6%154.3%62.5%44.5%

Price Volatility Vs. Market

How volatile is eGain's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is eGain undervalued compared to its fair value and its price relative to the market?

47.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EGAN ($7.77) is trading above our estimate of fair value ($1.87)

Significantly Below Fair Value: EGAN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EGAN is poor value based on its PE Ratio (47.6x) compared to the Software industry average (44.4x).

PE vs Market: EGAN is poor value based on its PE Ratio (47.6x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: EGAN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: EGAN is overvalued based on its PB Ratio (9.1x) compared to the US Software industry average (5.8x).


Next Steps

Future Growth

How is eGain forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EGAN's earnings are forecast to decline over the next 3 years (-15.1% per year).

Earnings vs Market: EGAN's earnings are forecast to decline over the next 3 years (-15.1% per year).

High Growth Earnings: EGAN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: EGAN's revenue (11.1% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: EGAN's revenue (11.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EGAN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has eGain performed over the past 5 years?

51.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: Insufficient data to determine if EGAN has high quality earnings.

Growing Profit Margin: EGAN's current net profit margins (7%) are higher than last year (-1.3%).


Past Earnings Growth Analysis

Earnings Trend: EGAN has become profitable over the past 5 years, growing earnings by 51.5% per year.

Accelerating Growth: EGAN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: EGAN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (25.8%).


Return on Equity

High ROE: EGAN's Return on Equity (18.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is eGain's financial position?


Financial Position Analysis

Short Term Liabilities: EGAN's short term assets ($58.4M) exceeds its short term liabilities ($44.5M)

Long Term Liabilities: EGAN's short term assets ($58.4M) exceeds its long term liabilities (9.1M)


Debt to Equity History and Analysis

Debt Level: EGAN is debt free.

Reducing Debt: EGAN has no debt compared to 5 years ago when its debt to equity ratio was 121.5%.

Debt Coverage: EGAN has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: EGAN has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: EGAN has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if EGAN's debt is covered by short term assets.


Next Steps

Dividend

What is eGain's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate EGAN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate EGAN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EGAN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EGAN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EGAN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of eGain's salary, the management and board of directors tenure and is there insider trading?

18.5yrs

Average management tenure


CEO

Ashu Roy (53yo)

22.2yrs

Tenure

US$320,964

Compensation

Mr. Ashutosh Roy, also known as Ashu, has been the Chief Executive Officer of eGain Corporation since September 1997 and has been its President since October 1, 2003. Mr. Roy is a member of the Board of Di ...


CEO Compensation Analysis

Compensation vs Market: Ashu's total compensation ($USD320.96K) is below average for companies of similar size in the US market ($USD1.16M).

Compensation vs Earnings: Ashu's compensation has been consistent with company performance over the past year.


Management Age and Tenure

18.5yrs

Average Tenure

57yo

Average Age

Experienced Management: EGAN's management team is seasoned and experienced (18.5 years average tenure).


Board Age and Tenure

11.0yrs

Average Tenure

59yo

Average Age

Experienced Board: EGAN's board of directors are seasoned and experienced ( 11 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$221,71304 Apr 19
Gunjan Sinha
EntityIndividual
Role
Member of the Board of Directors
Co-Founder & Director
Shares19,418
Max PriceUS$11.61
SellUS$11,20005 Mar 19
Eric Smit
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares1,000
Max PriceUS$11.20
SellUS$113,94625 Feb 19
Gunjan Sinha
EntityIndividual
Role
Member of the Board of Directors
Co-Founder & Director
Shares9,790
Max PriceUS$11.64

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.6%.


Management Team

  • Ashu Roy (53yo)

    Co-Founder

    • Tenure: 22.2yrs
    • Compensation: US$320.96k
  • Gunjan Sinha (52yo)

    Co-Founder & Director

    • Tenure: 22.2yrs
    • Compensation: US$74.84k
  • Eric Smit (57yo)

    Chief Financial Officer

    • Tenure: 17.3yrs
    • Compensation: US$388.68k
  • Promod Narang (61yo)

    Senior Vice President of Products & Engineering

    • Tenure: 19.7yrs
    • Compensation: US$389.53k
  • Stanley Pierson

    Secretary

    • Tenure: 0yrs
  • Anand Subramaniam

    Senior Vice President of Worldwide Marketing

    • Tenure: 0yrs
    • Compensation: US$126.04k
  • Sam Hahn

    Vice President of Technology

    • Tenure: 0yrs
  • Wiebe Vink

    Partner Director

    • Tenure: 0yrs
  • Todd Woodstra (57yo)

    Senior Vice President of Global Sales

    • Tenure: 2.3yrs
    • Compensation: US$361.79k
  • Ian Jones

    Head of Global Strategic Solutions

    • Tenure: 0yrs

Board Members

  • Christine Russell (69yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$70.61k
  • Ashu Roy (53yo)

    Co-Founder

    • Tenure: 22.2yrs
    • Compensation: US$320.96k
  • Gunjan Sinha (52yo)

    Co-Founder & Director

    • Tenure: 22.2yrs
    • Compensation: US$74.84k
  • Daru Darukhanavala (72yo)

    Independent Director

    • Tenure: 19.2yrs
    • Compensation: US$74.84k
  • Brett Shockley (59yo)

    Lead Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$83.62k

Company Information

eGain Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: eGain Corporation
  • Ticker: EGAN
  • Exchange: NasdaqCM
  • Founded: 1997
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$237.286m
  • Shares outstanding: 30.54m
  • Website: https://www.egain.com

Number of Employees


Location

  • eGain Corporation
  • 1252 Borregas Avenue
  • Sunnyvale
  • California
  • 94089
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EGANNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDSep 1999
0IFMLSE (London Stock Exchange)YesCommon StockGBUSDSep 1999

Biography

eGain Corporation operates as a software-as-a service provider of customer engagement solutions in the United States, the United Kingdom, India, and internationally. It provides eGain solution, a unified c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 23:38
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.