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eGain

Nasdaq:EGAN
Snowflake Description

Flawless balance sheet with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EGAN
Nasdaq
$237M
Market Cap
  1. Home
  2. US
  3. Software
Company description

eGain Corporation operates as a software-as-a service provider of customer engagement solutions in the United States, the United Kingdom, India, and internationally. The last earnings update was 5 days ago. More info.


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EGAN Share Price and Events
7 Day Returns
2.8%
NasdaqCM:EGAN
2.5%
US Software
0.7%
US Market
1 Year Returns
0.1%
NasdaqCM:EGAN
29.9%
US Software
12.9%
US Market
EGAN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
eGain (EGAN) 2.8% 5.4% 12.3% 0.1% 237.8% 54.8%
US Software 2.5% 8.7% 5.7% 29.9% 116.8% 154.6%
US Market 0.7% 4.4% 7% 12.9% 39.5% 44.7%
1 Year Return vs Industry and Market
  • EGAN underperformed the Software industry which returned 29.9% over the past year.
  • EGAN underperformed the Market in United States of America which returned 12.9% over the past year.
Price Volatility
EGAN
Industry
5yr Volatility vs Market
Related Companies

Value

 Is eGain undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of eGain to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for eGain.

NasdaqCM:EGAN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqCM:EGAN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.126 (1 + (1- 21%) (1.82%))
1.095
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.095 * 5.96%)
9.26%

Discounted Cash Flow Calculation for NasdaqCM:EGAN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for eGain is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqCM:EGAN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.26%)
2020 5.14 Est @ -14.05% 4.70
2021 4.67 Est @ -9.02% 3.91
2022 4.42 Est @ -5.49% 3.39
2023 4.28 Est @ -3.03% 3.00
2024 4.23 Est @ -1.3% 2.71
2025 4.22 Est @ -0.09% 2.48
2026 4.25 Est @ 0.76% 2.29
2027 4.31 Est @ 1.35% 2.12
2028 4.39 Est @ 1.76% 1.98
2029 4.48 Est @ 2.05% 1.85
Present value of next 10 years cash flows $28.00
NasdaqCM:EGAN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $4.48 × (1 + 2.73%) ÷ (9.26% – 2.73%)
$70.46
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $70.46 ÷ (1 + 9.26%)10
$29.07
NasdaqCM:EGAN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $28.00 + $29.07
$57.07
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $57.07 / 30.54
$1.87
NasdaqCM:EGAN Discount to Share Price
Calculation Result
Value per share (USD) From above. $1.87
Current discount Discount to share price of $7.77
= -1 x ($7.77 - $1.87) / $1.87
-315.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of eGain is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for eGain's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are eGain's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqCM:EGAN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $0.16
NasdaqCM:EGAN Share Price ** NasdaqCM (2019-11-15) in USD $7.77
United States of America Software Industry PE Ratio Median Figure of 71 Publicly-Listed Software Companies 44.43x
United States of America Market PE Ratio Median Figure of 2,924 Publicly-Listed Companies 18.25x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of eGain.

NasdaqCM:EGAN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqCM:EGAN Share Price ÷ EPS (both in USD)

= 7.77 ÷ 0.16

47.59x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • eGain is overvalued based on earnings compared to the US Software industry average.
  • eGain is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does eGain's expected growth come at a high price?
Raw Data
NasdaqCM:EGAN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 47.59x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
-15.1%per year
United States of America Software Industry PEG Ratio Median Figure of 59 Publicly-Listed Software Companies 2.58x
United States of America Market PEG Ratio Median Figure of 2,031 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

NasdaqCM:EGAN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 47.59x ÷ -15.1%

-3.15x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • eGain earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on eGain's assets?
Raw Data
NasdaqCM:EGAN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $0.85
NasdaqCM:EGAN Share Price * NasdaqCM (2019-11-15) in USD $7.77
United States of America Software Industry PB Ratio Median Figure of 214 Publicly-Listed Software Companies 5.84x
United States of America Market PB Ratio Median Figure of 5,081 Publicly-Listed Companies 1.74x
NasdaqCM:EGAN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqCM:EGAN Share Price ÷ Book Value per Share (both in USD)

= 7.77 ÷ 0.85

9.15x

* Primary Listing of eGain.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • eGain is overvalued based on assets compared to the US Software industry average.
X
Value checks
We assess eGain's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. eGain has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-15.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is eGain expected to grow at an attractive rate?
  • eGain's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • eGain's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • eGain's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqCM:EGAN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqCM:EGAN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts -15.1%
NasdaqCM:EGAN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 11.1%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 14.8%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 11.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqCM:EGAN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqCM:EGAN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 82 3 3
2020-06-30 73 1 4
2019-11-17
NasdaqCM:EGAN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 69 6 5
2019-06-30 67 7 4
2019-03-31 66 6 3
2018-12-31 65 2 2
2018-09-30 62 4 -1
2018-06-30 61 7 -2
2018-03-31 60 12 -2
2017-12-31 58 15 -4
2017-09-30 58 9 -4
2017-06-30 58 5 -6
2017-03-31 61 4 -5
2016-12-31 64 4 -5

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • eGain's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • eGain's revenue is expected to grow by 11.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqCM:EGAN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from eGain Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:EGAN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 0.05 0.09 0.01 3.00
2020-06-30 0.01 0.06 -0.01 4.00
2019-11-17
NasdaqCM:EGAN Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 0.16
2019-06-30 0.15
2019-03-31 0.12
2018-12-31 0.07
2018-09-30 -0.03
2018-06-30 -0.07
2018-03-31 -0.06
2017-12-31 -0.14
2017-09-30 -0.15
2017-06-30 -0.22
2017-03-31 -0.17
2016-12-31 -0.19

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if eGain will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess eGain's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
eGain has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has eGain performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare eGain's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • eGain has delivered over 20% year on year earnings growth in the past 5 years.
  • eGain has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • eGain has become profitable in the last year making it difficult to compare the US Software industry average.
Earnings and Revenue History
eGain's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from eGain Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:EGAN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 68.72 4.78 26.13 14.81
2019-06-30 67.23 4.17 25.50 14.37
2019-03-31 66.00 3.47 25.44 14.71
2018-12-31 64.74 1.97 25.37 14.73
2018-09-30 62.43 -0.82 25.43 14.84
2018-06-30 61.31 -1.99 25.25 14.71
2018-03-31 60.34 -1.50 24.75 14.27
2017-12-31 58.44 -3.92 25.18 13.99
2017-09-30 58.05 -4.18 25.69 13.51
2017-06-30 58.22 -6.02 26.99 13.75
2017-03-31 61.22 -4.60 28.99 14.21
2016-12-31 63.66 -5.08 31.35 15.05
2016-09-30 67.64 -5.41 33.85 15.84
2016-06-30 69.38 -6.24 35.50 16.06
2016-03-31 68.83 -10.55 36.15 16.12
2015-12-31 71.77 -9.95 36.82 16.06
2015-09-30 71.69 -14.03 39.25 16.20
2015-06-30 75.91 -12.43 41.17 16.04
2015-03-31 77.73 -10.51 43.15 14.84
2014-12-31 76.52 -9.12 43.52 13.37
2014-09-30 75.28 -4.88 42.13 11.60
2014-06-30 70.26 -5.25 40.90 9.96
2014-03-31 69.34 -2.33 39.27 9.39
2013-12-31 66.78 -0.29 36.80 8.82
2013-09-30 63.85 1.56 33.77 8.58
2013-06-30 58.89 0.68 31.22 8.42
2013-03-31 51.56 -4.14 29.29 7.95
2012-12-31 47.60 -5.83 28.53 7.42

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • eGain has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • eGain used its assets less efficiently than the US Software industry average last year based on Return on Assets.
  • eGain has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess eGain's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
eGain has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is eGain's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up eGain's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • eGain is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • eGain's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of eGain's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • eGain has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from eGain Company Filings, last reported 1 month ago.

NasdaqCM:EGAN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 25.93 0.00 34.36
2019-06-30 24.31 0.00 31.86
2019-03-31 21.52 0.01 31.08
2018-12-31 -1.34 5.00 11.22
2018-09-30 -3.76 6.07 11.54
2018-06-30 -8.71 9.20 11.50
2018-03-31 -9.19 7.15 10.93
2017-12-31 -9.84 7.19 10.77
2017-09-30 -9.81 9.75 10.72
2017-06-30 -9.62 15.61 10.63
2017-03-31 -9.50 19.18 10.35
2016-12-31 -7.16 20.87 9.73
2016-09-30 -6.33 16.46 9.47
2016-06-30 -4.28 21.05 11.78
2016-03-31 -5.56 18.42 7.54
2015-12-31 -2.87 23.16 9.79
2015-09-30 -1.72 22.33 7.26
2015-06-30 1.10 18.76 8.63
2015-03-31 3.16 16.87 9.19
2014-12-31 4.90 17.00 8.30
2014-09-30 9.73 11.70 5.11
2014-06-30 3.05 5.00 8.79
2014-03-31 3.70 2.67 7.77
2013-12-31 4.11 3.33 12.49
2013-09-30 4.77 4.00 14.64
2013-06-30 5.99 7.56 16.21
2013-03-31 3.76 7.93 16.76
2012-12-31 2.48 8.29 18.84
  • eGain has no debt.
  • eGain has no debt compared to 5 years ago when it was 121.5%.
  • eGain has no debt, it does not need to be covered by operating cash flow.
  • eGain has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess eGain's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. eGain has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from eGain dividends.
If you bought $2,000 of eGain shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate eGain's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate eGain's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqCM:EGAN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1955 Stocks 2.3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqCM:EGAN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-06-30
2020-06-30
2019-11-17

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as eGain has not reported any payouts.
  • Unable to verify if eGain's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of eGain's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as eGain has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess eGain's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can eGain afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. eGain has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ashu Roy
COMPENSATION $320,964
AGE 53
TENURE AS CEO 22.2 years
CEO Bio

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 Directors at VitreosHealth and at Rhombus Power, each a privately-held software startup company. Mr. Roy is the Co-Founder of eGain Corp. From June 1994 to April 1995, he was the Co-founder of Parsec Technologies, a call center company based in New Delhi, India. From August 1988 to August 1992, he was a Software Engineer at Digital Equipment Corp. He serves as the Executive Chairman of eGain Corporation. From May 1995 to April 1997, he served as the Chairman of WhoWhere? Inc., an Internet-services company co-founded by him. Mr. Roy has been an Executive Director of eGain Corporation since September 1997. He served as a Director of Vhayu Technologies Corp. He served as a Director of MINDFLOW Technologies, Inc. Mr. Roy holds a B.S. in Computer Science from the Indian Institute of Technology, New Delhi, a Masters Degree in Computer Science from Johns Hopkins University and an MBA from Stanford University.

CEO Compensation
  • Ashu's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ashu's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the eGain management team in years:

18.5
Average Tenure
57
Average Age
  • The average tenure for the eGain management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Ashu Roy

TITLE
Co-Founder
COMPENSATION
$321K
AGE
53
TENURE
22.2 yrs

Gunjan Sinha

TITLE
Co-Founder & Director
COMPENSATION
$75K
AGE
52

Eric Smit

TITLE
Chief Financial Officer
COMPENSATION
$389K
AGE
57
TENURE
17.3 yrs

Todd Woodstra

TITLE
Senior Vice President of Global Sales
COMPENSATION
$362K
AGE
57
TENURE
2.3 yrs

Promod Narang

TITLE
Senior Vice President of Products & Engineering
COMPENSATION
$390K
AGE
61
TENURE
19.7 yrs

Sam Hahn

TITLE
Vice President of Technology

Anand Subramaniam

TITLE
Senior Vice President of Worldwide Marketing
COMPENSATION
$126K

Ian Jones

TITLE
Head of Global Strategic Solutions

Stanley Pierson

TITLE
Secretary

Wiebe Vink

TITLE
Partner Director
Board of Directors Tenure

Average tenure and age of the eGain board of directors in years:

11
Average Tenure
59
Average Age
  • The average tenure for the eGain board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Ashu Roy

TITLE
Co-Founder
COMPENSATION
$321K
AGE
53

Gunjan Sinha

TITLE
Co-Founder & Director
COMPENSATION
$75K
AGE
52
TENURE
22.2 yrs

Brett Shockley

TITLE
Lead Independent Director
COMPENSATION
$84K
AGE
59
TENURE
2.2 yrs

Daru Darukhanavala

TITLE
Independent Director
COMPENSATION
$75K
AGE
72
TENURE
19.2 yrs

Christine Russell

TITLE
Independent Director
COMPENSATION
$71K
AGE
69
TENURE
2.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
04. Apr 19 Sell Gunjan Sinha Individual 25. Feb 19 26. Feb 19 -19,418 $11.61 $-221,713
05. Mar 19 Sell Eric Smit Individual 28. Feb 19 28. Feb 19 -1,000 $11.20 $-11,200
25. Feb 19 Sell Gunjan Sinha Individual 22. Feb 19 22. Feb 19 -9,790 $11.64 $-113,946
X
Management checks
We assess eGain's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. eGain has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is eGain Corporation's (NASDAQ:EGAN) 16% ROE Better Than Average?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for eGain: 16% = US$3.5m ÷ US$22m (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Combining eGain's Debt And Its 16% Return On Equity Although eGain does use a little debt, its debt to equity ratio of just 0.00027 is very low. … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

Here's Why eGain (NASDAQ:EGAN) Can Manage Its Debt Responsibly

Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. … You can click the graphic below for the historical numbers, but it shows that eGain had US$8.0k of debt in March 2019, down from US$7.22m, one year before But on the other hand it also has US$31.1m in cash, leading to a US$31.1m net cash position. … While eGain has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance.

Simply Wall St -

Did Business Growth Power eGain's (NASDAQ:EGAN) Share Price Gain of 132%?

eGain Corporation (NASDAQ:EGAN) shareholders might understandably be very concerned that the share price has dropped 35% in the last quarter. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … A Different Perspective eGain shareholders are down 39% for the year, but the market itself is up 2.7%.

Simply Wall St -

Shareholders Are Thrilled That The eGain (NASDAQ:EGAN) Share Price Increased 243%

For instance the eGain Corporation (NASDAQ:EGAN) share price is 243% higher than it was three years ago. … In the last 3 years eGain saw its revenue shrink by 4.9% per year. … The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values)

Simply Wall St -

Have Insiders Been Selling eGain Corporation (NASDAQ:EGAN) Shares?

So before you buy or sell eGain Corporation (NASDAQ:EGAN), you may well want to know whether insiders have been buying or selling. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … Over the last year we saw more insider selling of eGain shares, than buying

Simply Wall St -

Is eGain Corporation (NASDAQ:EGAN) Worth US$7.26 Based On Intrinsic Value?

by estimating the company's future cash flows and discounting them to their present value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Why Are Insiders Bearish About eGain Corporation's (NASDAQ:EGAN) Stock?

74.45k shares. … Generally, insiders selling shares in their own firm sends a bearish signal … A two-decade research published in The MIT Press (1998) showed that stocks following insider selling declined 2.7% relative to the market.

Simply Wall St -

Did eGain Corporation's (NASDAQ:EGAN) Recent Earnings Growth Beat The Trend?

Assessing eGain Corporation's (NASDAQ:EGAN) past track record of performance is an insightful exercise for investors. … Today I will assess EGAN's recent performance announced on 31 December 2017 and evaluate these figures to its long-term trend and industry movements. … Check out our latest analysis for eGain Commentary On EGAN's Past Performance I use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data.

Simply Wall St -

eGain Corporation (NASDAQ:EGAN) Investors Are Paying Above The Intrinsic Value

I then discount the sum of these cash flows to arrive at a present value estimate. … 5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $14.58 $14.43 $14.28 $14.13 $13.99 Source Extrapolated @ (-1.03%) Extrapolated @ (-1.03%) Extrapolated @ (-1.03%) Extrapolated @ (-1.03%) Extrapolated @ (-1.03%) Present Value Discounted @ 11.97% $13.02 $11.51 $10.17 $8.99 $7.95 Present Value of 5-year Cash Flow (PVCF)= $52 The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $14 × (1 + 2.5%) ÷ (12% – 2.5%) = $151 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $151 / ( 1 + 12%)5 = $86 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is $137.

Simply Wall St -

NasdaqCM Tech Industry: A Deep Dive Into eGain Corporation (NASDAQ:EGAN)

However, analysts are not expecting this industry-beating trend to continue, with future growth expected to be 12.76% compared to the wider software sector growth hovering in the teens next year. … As a future industry laggard in growth, eGain may be a cheaper stock relative to its peers. … Next Steps: eGain is an tech industry laggard in terms of its future growth outlook.

Simply Wall St -

Company Info

Description

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 cloud software solution to automate, augment, and orchestrate customer engagement, including digital-first, Omni channel desktop, artificial intelligence (AI) and knowledge, and analytics and machine learning applications, as well as platform APIs and pre-built third-party connectors. The company’s suite includes various applications for digital interaction, knowledge management, and AI-based process guidance. It also provides integrated analytics for contact centers and digital properties to measure, manage, and optimize resources. In addition, the company offers subscription services and customer support services; consulting services, including implementation, custom solution development, and systems integration services; and education services, such as training programs, as well as online tutorial modules. It serves customers in various industry sectors, including the healthcare, retail, telecommunications, financial services, insurance, outsourced services, technology, utilities, government, manufacturing, and consumer electronics industries. The company was founded in 1997 and is headquartered in Sunnyvale, California.

Details
Name: eGain Corporation
EGAN
Exchange: NasdaqCM
Founded: 1997
$237,285,768
30,538,709
Website: http://www.egain.com
Address: eGain Corporation
1252 Borregas Avenue,
Sunnyvale,
California, 94089,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqCM EGAN Common Stock Nasdaq Capital Market US USD 23. Sep 1999
LSE 0IFM Common Stock London Stock Exchange GB USD 23. Sep 1999
Number of employees
Current staff
Staff numbers
475
eGain employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/17 23:38
End of day share price update: 2019/11/15 00:00
Last estimates confirmation: 2019/11/07
Last earnings filing: 2019/11/12
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.