eGain Corporation (EGAN)
Valuation Overview•Is eGain Corporation Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
High-quality fundamentals with a strong composite quality score of 76/100, backed by robust profitability and solvency.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Solid fundamental quality, though growth presents a headwind.
Wall Street sentiment is generally neutral. This outlook is strongly supported by highly attractive capital returns, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
EGAN exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins (highlighted by a massive 48.3% ROIC). This is backed by a fortress balance sheet, holding significant net cash ($59M) and minimal debt risk.
The company is facing top-line contraction (-1.3% 3Y CAGR) paired with stable bottom-line earnings. Operating efficiency remains adequate with margins around 11.0%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $22.5M | -4.7% | -1.3% | +4.0% | +1.5% | |
| EBITDA | $2.7M | — | — | — | — | |
| Net Income | $2.4M | +314.6% | — | — | — | |
| EPS (Diluted) | $0.09 | +352.0% | — | +37.5% | — | |
| Free Cash Flow | -$1.9M | -61.7% | -14.4% | -19.1% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 73.3% | 70.8% | 72.2% | 69.3% |
| Operating Margin | 11.0% | 4.3% | 4.0% | 2.2% |
| Net Margin | 41.7% | 15.7% | 10.6% | 4.7% |
| FCF Margin | 14.8% | 7.6% | 9.7% | 9.8% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.07 | $0.11 | +57.1% | ||
| Q1'26 | $0.07 | $0.11 | +57.1% | ||
| Q4'25 | $0.11 | $0.17 | +54.5% | ||
| Q3'25 | $0.07 | $0.09 | +28.6% | ||
| Q2'25 | $0.01 | $0.03 | +200.0% | ||
| Q1'25 | $0.02 | $0.04 | +100.0% | ||
| Q4'24 | $0.01 | $0.04 | +700.0% | ||
| Q3'24 | $0.03 | $0.08 | +220.0% |
Total return is -6.2% (1Y), lagging the benchmark by -18.0%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -38.9% | -43.5% | — |
| 1Y | -6.2% | -18.0% | — |
| 3YCAGR | -2.7% | -22.3% | — |
| 5YCAGR | -10.7% | -21.4% | — |
| 10YCAGR | +8.3% | -6.0% | — |
The S&P 500 is at 31.4x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about eGain Corporation (EGAN) valuation, health, and returns.
Based on peer relative multiples, eGain Corporation appears Slightly expensive versus peers compared to industry peers.
eGain Corporation has multiple valuation anchors: Peer Relative Fair Value: $5.71. A convergence of these signals offers higher conviction.
eGain Corporation displays good financial health with a composite quality score of 76/100, supported by a Altman Z-Score of -0.2 (distress zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 48.3%.
eGain Corporation returns capital via buybacks instead of dividends, carrying a 9.1% buyback yield and reducing outstanding shares by -9.0% in the last 12 months.
eGain Corporation's current growth trajectory is Decelerating. The company achieved -4.7% 1Y revenue growth and +352.0% 1Y EPS growth, compared to its 3Y revenue CAGR of -1.3%.
Wall Street consensus is Buy based on 11 analysts, beating EPS expectations in 100% of recent quarters with a 26-quarter streak. The consensus price target represents a N/A change from current levels.
Investment risks for eGain Corporation include: -60.5% 1-year max drawdown, high beta (1.83x market volatility), elevated distress risk. Volatility risk is characterized by a beta of 1.83x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.