eGain Corporation Common Stock (EGAN)

FairStock Score: 81/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital, generate cash, and sell at a sensible price. eGain is a small software company serving customer-service knowledge and AI automation. In fiscal 2026, the year ended 2026-06-30, it reported revenue of $91.1 million, net income of $8.9 million, and diluted EPS of $0.32. In fiscal 2025, revenue was $88.4 million, net income $32.3 million, and diluted EPS $1.13, while fiscal 2024 revenue was $92.8 million and net income $7.8 million. So revenue is roughly flat and profit is uneven; fiscal 2025 was an outlier. In the fiscal Q3 2026 quarter ended 2026-03-31, revenue was $22.5 million and net income $2.4 million, or $0.09 per diluted share. Financial health is a bright spot. FairStock calculates a debt-to-equity ratio of 0.03, trailing free cash flow of $20.5 million, and an FCF yield of 14.3%. But returns are weak: ROCE is only 3.36%, Altman Z-score is -0.80, and Piotroski is 5/9. FairStock's Lynch category is Slow Grower, with 5.0% profit growth and 3.1% revenue growth over five years. At the $5.48 close on 2026-10-13, FairStock shows P/E 17.13, P/B 1.65, EV/EBITDA 7.64, Graham Number $4.81, and margin of safety -13.93%. The cash flow looks cheap, but the earnings power and competitive position do not yet prove a durable moat. I would want evidence that AI knowledge management can restart growth and lift returns on capital before calling this a high-quality bargain.

In plain English: eGain makes software that helps companies manage customer-service knowledge and AI assistants. The business is profitable and produces cash, but sales have been roughly flat and profits have jumped around. At the recent price, it looks reasonably priced but not clearly cheap versus a conservative estimate based on its earnings and assets.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer