EGain Story

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EGAN -- USA Stock  

USD 13.45  0.68  4.81%

While some of us are excited about technology space, it makes sense to outline EGain in greater detail to make a better assessment of its actual value. We will analyze why it could be a much better year for EGain shareholders. Is the firm valuation justified? I am going to cover EGain perspective on valuation to give you a better outlook on taking a position in it.
Published over two weeks ago
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Is EGain (NASDAQ:EGAN) ready for a correction?
This firm currently holds 3.56 M in liabilities with Debt to Equity (D/E) ratio of 0.11, which may suggest EGain is not taking enough advantage from borrowing. Our trade advice tool can cross-verify current analyst consensus on EGain and to analyze the company potential to grow next year.
We determine the current worth of EGain using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of EGain based exclusively on its fundamental and basic technical indicators. By analyzing EGain's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of EGain's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of EGain. We calculate exposure to EGain's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to EGain's related companies.

EGain Investment Alerts

EGain investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring EGain performance across your portfolios.Please check all investment alerts for EGain

EGain Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare EGain value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across EGain competition to find correlations between indicators driving the intrinsic value of EGain.

How EGain utilizes its cash?

To perform a cash flow analysis of EGain, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash EGain is receiving and how much cash it distributes out in a given period. The EGain cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. EGain Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 15.17 Million

Exercise or conversion by Eric Smit of 3000 shares of EGain subject to Rule 16b-3

Legal trades by EGain insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
EGain insider trading alert for exercise of employee stock option (right to buy) by Eric Smit, Chief Financial Officer, on 17th of September 2020. This event was filed by Egain Corp with SEC on 2020-09-17. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking it down a bit more

The latest price rise of EGain could raise concerns from institutional investors as the firm closed today at a share price of 13.23 on 314,452 in volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in October. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.45. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from EGain partners.

Margins Breakdown

EGain profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or EGain itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of EGain profit margins.
Profit Margin
EBITDA Margin0.0884
Gross Margin0.61
Profit Margin0.0602

EGain Earnings before Tax is increasing over the last 8 years. The latest value of EGain Earnings before Tax is 4,856,234. EGain Earnings Before Interest Taxes and Depreciation Amortization USD is quite stable at the moment. Additionally, EGain Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years. EGain Earnings before Tax is increasing over the last 8 years. The previous year's value of EGain Earnings before Tax was 4,856,234. EGain Earnings Before Interest Taxes and Depreciation Amortization USD is quite stable at the moment. Additionally, EGain Earnings Before Interest Taxes and Depreciation Amortization EBITDA is quite stable at the moment.

EGain technical analysis suggests possible reversion

Value At Risk just dropped to -3.8, may entail upcoming price decrease. EGain shows above-average downside volatility for the selected time horizon. We advise investors to inspect EGain further and ensure that all market timing and asset allocation strategies are consistent with the estimation of EGain future alpha.

Whereas some firms under the software?application industry are still a bit expensive, EGain may offer a potential longer-term growth to institutional investors. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of EGain as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to EGain.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of EGain. Please refer to our Terms of Use for any information regarding our disclosure principles.

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