EGAIN Corp (NASDAQ: EGAN)

Sector: Technology Industry: Software - Application CIK: 0001066194
Market Cap 274.43 Mn
P/B 3.09
P/E 7.60
P/S 3.02
ROIC (Qtr) 8.06
Div Yield % 0.00
Rev 1y % (Qtr) 2.64
Total Debt (Qtr) 3.51 Mn
Debt/Equity (Qtr) 0.04
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About

Investment thesis

Bull case

  • Strong operating cash flow of 18.43M provides robust 5.25x coverage of total debt 3.51M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 83.07M provide 54.76x coverage of short-term debt 1.52M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 131.32M provides 37.39x coverage of total debt 3.51M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 17.65M exceeds capital expenditure of 775000 by 22.77x, indicating strong organic growth funding capability.
  • R&D investment of 29.07M represents healthy 0.65x of deferred revenue 44.45M, indicating strong future innovation pipeline.

Bear case

  • Operating cash flow of 18.43M barely covers its investment activities of (775000), with a coverage ratio of -23.77, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (775000) provide weak support for R&D spending of 29.07M, which is -0.03x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 18.43M provides insufficient coverage of deferred revenue obligations of 44.45M, which is 0.41x, raising concerns about future service delivery capabilities.
  • Operating cash flow of 18.43M provides minimal -0.71x coverage of tax expenses of (26.08M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating cash flow of 18.43M is outpaced by equity issuance of (7.23M) (-2.55 ratio), indicating concerning reliance on equity markets for funding operations.

Product and Service Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 235.43 Bn 27.31 5.44 9.50 Bn
2 SHOP Shopify Inc. 147.12 Bn 119.52 12.73 0.19 Bn
3 UBER Uber Technologies, Inc 147.10 Bn 14.63 2.83 12.08 Bn
4 CRM Salesforce, Inc. 122.20 Bn 594.48 15.45 11.14 Bn
5 INTU Intuit Inc. 113.93 Bn 178.01 32.63 6.78 Bn
6 ADBE Adobe Inc. 111.00 Bn 15.57 4.67 6.65 Bn
7 NOW ServiceNow, Inc. 109.54 Bn 62.67 8.25 2.40 Bn
8 ADP Automatic Data Processing Inc 86.44 Bn 20.41 4.07 4.37 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.41 2.08
EV to Cash from Ops. EV/CFO 11.23 11.38
EV to Debt EV to Debt 58.92 47.67
EV to EBIT EV/EBIT 20.68 6.78
EV to EBITDA EV/EBITDA 21.57 7.15
EV to Free Cash Flow [EV/FCF] EV/FCF 11.72 14.44
EV to Market Cap EV to Market Cap 0.75 -8.88
EV to Revenue EV/Rev 2.28 4.04
Price to Book Value [P/B] P/B 3.09 3.65
Price to Earnings [P/E] P/E 7.60 -117.75
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -4.05
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.38
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.48
Interest Coverage Int. cover (Qtr) 0.00 -43.57
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -149.20 -222.46
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 17.76 281.53
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.78
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 734.96 -327.55
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 104.35 30.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 65.29 -213.00
EBT Growth (1y) % EBT 1y % (Qtr) 65.29 -86.84
EPS Growth (1y) % EPS 1y % (Qtr) 821.43 108.58
FCF Growth (1y) % FCF 1y % (Qtr) 377.67 6.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 6.08 94.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.62 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.57 3.78
Current Ratio Curr Ratio (Qtr) 1.90 8.27
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 0.14
Interest Cover Ratio Int Coverage (Qtr) 0.00 -43.57
Times Interest Earned Times Interest Earned (Qtr) 0.00 -43.57
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 12.60 -105.03
EBIT Margin % EBIT Margin % (Qtr) 11.03 -130.16
EBT Margin % EBT Margin % (Qtr) 11.03 -121.17
Gross Margin % Gross Margin % (Qtr) 72.40 58.37
Net Profit Margin % Net Margin % (Qtr) 39.80 -126.13