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ENGH

Enghouse Systems TSX:ENGH Stock Report

Last Price

CA$33.92

Market Cap

CA$1.9b

7D

4.1%

1Y

-37.0%

Updated

21 May, 2022

Data

Company Financials +
ENGH fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance3/6
Financial Health6/6
Dividends5/6

ENGH Stock Overview

Enghouse Systems Limited, together with its subsidiaries, develops enterprise software solutions worldwide.

Enghouse Systems Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Enghouse Systems
Historical stock prices
Current Share PriceCA$33.92
52 Week HighCA$64.42
52 Week LowCA$31.40
Beta0.83
1 Month Change-4.59%
3 Month Change-16.49%
1 Year Change-37.00%
3 Year Change-0.82%
5 Year Change14.98%
Change since IPO835.72%

Recent News & Updates

Apr 28
Enghouse Systems (TSE:ENGH) Is Paying Out A Larger Dividend Than Last Year

Enghouse Systems (TSE:ENGH) Is Paying Out A Larger Dividend Than Last Year

Enghouse Systems Limited ( TSE:ENGH ) will increase its dividend on the 31st of May to CA$0.18. This will take the...

Apr 25
Capital Investments At Enghouse Systems (TSE:ENGH) Point To A Promising Future

Capital Investments At Enghouse Systems (TSE:ENGH) Point To A Promising Future

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things...

Apr 11
Enghouse Systems' (TSE:ENGH) Dividend Will Be Increased To CA$0.18

Enghouse Systems' (TSE:ENGH) Dividend Will Be Increased To CA$0.18

Enghouse Systems Limited ( TSE:ENGH ) will increase its dividend on the 31st of May to CA$0.18. This will take the...

Shareholder Returns

ENGHCA SoftwareCA Market
7D4.1%2.0%0.8%
1Y-37.0%-17.7%4.9%

Return vs Industry: ENGH underperformed the Canadian Software industry which returned -17.7% over the past year.

Return vs Market: ENGH underperformed the Canadian Market which returned 4.8% over the past year.

Price Volatility

Is ENGH's price volatile compared to industry and market?
ENGH volatility
ENGH Average Weekly Movement6.6%
Software Industry Average Movement12.0%
Market Average Movement9.9%
10% most volatile stocks in CA Market16.9%
10% least volatile stocks in CA Market4.3%

Stable Share Price: ENGH is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ENGH's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19841,813Steve Sadlerhttps://www.enghouse.com

Enghouse Systems Limited, together with its subsidiaries, develops enterprise software solutions worldwide. It operates through two segments, Interactive Management Group and Asset Management Group. The Interactive Management Group segment provides customer interaction software and services to facilitate remote work, enhance customer service, increase efficiency, and manage customer communications across various types of interactions, including voice, email, web chats, text, and video.

Enghouse Systems Fundamentals Summary

How do Enghouse Systems's earnings and revenue compare to its market cap?
ENGH fundamental statistics
Market CapCA$1.89b
Earnings (TTM)CA$93.75m
Revenue (TTM)CA$459.18m

20.1x

P/E Ratio

4.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ENGH income statement (TTM)
RevenueCA$459.18m
Cost of RevenueCA$130.95m
Gross ProfitCA$328.23m
Other ExpensesCA$234.48m
EarningsCA$93.75m

Last Reported Earnings

Jan 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.69
Gross Margin71.48%
Net Profit Margin20.42%
Debt/Equity Ratio0%

How did ENGH perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

39%

Payout Ratio

Valuation

Is Enghouse Systems undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


42.8%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ENGH (CA$33.92) is trading below our estimate of fair value (CA$59.27)

Significantly Below Fair Value: ENGH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ENGH is good value based on its PE Ratio (20.1x) compared to the Canadian Software industry average (44.1x).

PE vs Market: ENGH is poor value based on its PE Ratio (20.1x) compared to the Canadian market (11.5x).


Price to Earnings Growth Ratio

PEG Ratio: ENGH is poor value based on its PEG Ratio (6x)


Price to Book Ratio

PB vs Industry: ENGH is overvalued based on its PB Ratio (4x) compared to the CA Software industry average (2.4x).


Future Growth

How is Enghouse Systems forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


3.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENGH's forecast earnings growth (3.3% per year) is above the savings rate (1.6%).

Earnings vs Market: ENGH's earnings (3.3% per year) are forecast to grow slower than the Canadian market (7.5% per year).

High Growth Earnings: ENGH's earnings are forecast to grow, but not significantly.

Revenue vs Market: ENGH's revenue (8.3% per year) is forecast to grow faster than the Canadian market (6.4% per year).

High Growth Revenue: ENGH's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ENGH's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Enghouse Systems performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


16.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ENGH has high quality earnings.

Growing Profit Margin: ENGH's current net profit margins (20.4%) are higher than last year (20.1%).


Past Earnings Growth Analysis

Earnings Trend: ENGH's earnings have grown by 16.3% per year over the past 5 years.

Accelerating Growth: ENGH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ENGH had negative earnings growth (-9.1%) over the past year, making it difficult to compare to the Software industry average (-9.1%).


Return on Equity

High ROE: ENGH's Return on Equity (19.9%) is considered low.


Financial Health

How is Enghouse Systems's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ENGH's short term assets (CA$337.4M) exceed its short term liabilities (CA$184.2M).

Long Term Liabilities: ENGH's short term assets (CA$337.4M) exceed its long term liabilities (CA$43.5M).


Debt to Equity History and Analysis

Debt Level: ENGH is debt free.

Reducing Debt: ENGH has no debt compared to 5 years ago when its debt to equity ratio was 0.9%.

Debt Coverage: ENGH has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ENGH has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.18%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ENGH's dividend (2.18%) is higher than the bottom 25% of dividend payers in the Canadian market (1.91%).

High Dividend: ENGH's dividend (2.18%) is low compared to the top 25% of dividend payers in the Canadian market (4.91%).


Stability and Growth of Payments

Stable Dividend: ENGH's dividends per share have been stable in the past 10 years.

Growing Dividend: ENGH's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (39.4%), ENGH's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (34.4%), ENGH's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.7yrs

Average management tenure


CEO

Steve Sadler (70 yo)

22.08yrs

Tenure

CA$6,571,107

Compensation

Mr. Stephen J. Sadler, also known as Steve, has been the Chief Executive Officer and Chairman of the Board at Enghouse Systems Limited since April 1, 2000. Mr. Sadler has been a Director of CTI Group Holdi...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD5.12M) is above average for companies of similar size in the Canadian market ($USD2.24M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ENGH's management team is considered experienced (4.7 years average tenure).


Board Members

Experienced Board: ENGH's board of directors are seasoned and experienced ( 18.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ENGH insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Enghouse Systems Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Enghouse Systems Limited
  • Ticker: ENGH
  • Exchange: TSX
  • Founded: 1984
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: CA$1.886b
  • Shares outstanding: 55.59m
  • Website: https://www.enghouse.com

Number of Employees


Location

  • Enghouse Systems Limited
  • 80 Tiverton Court
  • Suite 800
  • Markham
  • Ontario
  • L3R 0G4
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/21 00:00
End of Day Share Price2022/05/20 00:00
Earnings2022/01/31
Annual Earnings2021/10/31


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.