Executive Summary
Enghouse Systems Limited develops enterprise software solutions worldwide. More Details
Snowflake Analysis
Solid track record with excellent balance sheet.
Similar Companies
Share Price & News
How has Enghouse Systems's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ENGH has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-10.4%
ENGH
-5.6%
CA Software
-4.5%
CA Market
1 Year Return
75.4%
ENGH
25.6%
CA Software
-8.8%
CA Market
Return vs Industry: ENGH exceeded the Canadian Software industry which returned 25.6% over the past year.
Return vs Market: ENGH exceeded the Canadian Market which returned -8.8% over the past year.
Shareholder returns
| ENGH | Industry | Market | |
|---|---|---|---|
| 7 Day | -10.4% | -5.6% | -4.5% |
| 30 Day | -6.5% | -4.6% | -3.8% |
| 90 Day | -12.6% | -4.5% | -3.3% |
| 1 Year | 77.1%75.4% | 26.0%25.6% | -5.5%-8.8% |
| 3 Year | 153.1%145.4% | 53.7%50.6% | 0.5%-9.2% |
| 5 Year | 129.9%118.4% | 122.3%114.9% | 28.7%8.9% |
Price Volatility Vs. Market
How volatile is Enghouse Systems's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Why Enghouse Systems Limited (TSE:ENGH) Should Be In Your Dividend Portfolio2 weeks ago | Simply Wall St
This Insider Has Just Sold Shares In Enghouse Systems Limited (TSE:ENGH)2 weeks ago | Simply Wall St
Estimating The Fair Value Of Enghouse Systems Limited (TSE:ENGH)Valuation
Is Enghouse Systems undervalued compared to its fair value and its price relative to the market?
38.94x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ENGH (CA$66.6) is trading above our estimate of fair value (CA$65.43)
Significantly Below Fair Value: ENGH is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ENGH is good value based on its PE Ratio (38.9x) compared to the CA Software industry average (40.9x).
PE vs Market: ENGH is poor value based on its PE Ratio (38.9x) compared to the Canadian market (15.4x).
Price to Earnings Growth Ratio
PEG Ratio: ENGH is poor value based on its PEG Ratio (3.7x)
Price to Book Ratio
PB vs Industry: ENGH is overvalued based on its PB Ratio (7.6x) compared to the CA Software industry average (3.7x).
Next Steps
Future Growth
How is Enghouse Systems forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
10.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ENGH's forecast earnings growth (10.5% per year) is above the savings rate (1.7%).
Earnings vs Market: ENGH's earnings (10.5% per year) are forecast to grow slower than the Canadian market (22.8% per year).
High Growth Earnings: ENGH's earnings are forecast to grow, but not significantly.
Revenue vs Market: ENGH's revenue (12.8% per year) is forecast to grow faster than the Canadian market (5.8% per year).
High Growth Revenue: ENGH's revenue (12.8% 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
Next Steps
Past Performance
How has Enghouse Systems performed over the past 5 years?
18.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ENGH has high quality earnings.
Growing Profit Margin: ENGH's current net profit margins (19.1%) are higher than last year (18.1%).
Past Earnings Growth Analysis
Earnings Trend: ENGH's earnings have grown by 18.5% per year over the past 5 years.
Accelerating Growth: ENGH's earnings growth over the past year (42.8%) exceeds its 5-year average (18.5% per year).
Earnings vs Industry: ENGH earnings growth over the past year (42.8%) exceeded the Software industry 41.3%.
Return on Equity
High ROE: ENGH's Return on Equity (19.5%) is considered low.
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Financial Health
How is Enghouse Systems's financial position?
Financial Position Analysis
Short Term Liabilities: ENGH's short term assets (CA$339.6M) exceed its short term liabilities (CA$218.0M).
Long Term Liabilities: ENGH's short term assets (CA$339.6M) exceed its long term liabilities (CA$58.8M).
Debt to Equity History and Analysis
Debt Level: ENGH's debt to equity ratio (0.2%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if ENGH's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: ENGH's debt is well covered by operating cash flow (13538.9%).
Interest Coverage: ENGH earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
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Dividend
What is Enghouse Systems's current dividend yield, its reliability and sustainability?
0.81%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: ENGH's dividend (0.81%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.72%).
High Dividend: ENGH's dividend (0.81%) is low compared to the top 25% of dividend payers in the Canadian market (6.1%).
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.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (30.1%), ENGH's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.5yrs
Average management tenure
CEO
Stephen Sadler (69 yo)
20.5yrs
Tenure
CA$5,106,952
Compensation
Mr. Stephen J. Sadler, also known as Steve, has been the Chief Executive Officer and the Chairman of the Board of Enghouse Systems Limited since April 1, 2000. Mr. Sadler has been a Director of CTI Group H ...
CEO Compensation Analysis
Compensation vs Market: Stephen's total compensation ($USD3.84M) is about average for companies of similar size in the Canadian market ($USD3.01M).
Compensation vs Earnings: Stephen's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 20.5yrs | CA$5.11m | 12.14% CA$ 460.5m | |
| President | 2.75yrs | CA$1.09m | no data | |
| VP of Finance & Administration and Corporate Secretary | no data | CA$513.19k | 0.027% CA$ 1.0m | |
| General Manager of Networks Division | no data | CA$423.00k | no data | |
| General Manager of Divisional Management | no data | CA$575.01k | no data | |
| Chief Administration & Human Resources Officer | 3.5yrs | no data | no data | |
| VP & General Counsel | no data | CA$263.55k | no data | |
| Vice President of Corporate Development | no data | no data | no data | |
| Managing Director of West & Northern Europe | no data | CA$323.36k | no data | |
| President of Global Cloud Interactive Management Division (USA) | no data | CA$293.83k | no data | |
| President of Americas Interactive Management Division | no data | CA$574.35k | no data |
3.5yrs
Average Tenure
62yo
Average Age
Experienced Management: ENGH's management team is considered experienced (3.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 20.5yrs | CA$5.11m | 12.14% CA$ 460.5m | |
| Independent Director | 16.58yrs | CA$140.00k | 0.029% CA$ 1.1m | |
| Independent Lead Director | no data | CA$130.00k | 5.87% CA$ 222.5m | |
| Independent Director | 20.5yrs | CA$125.00k | 0.23% CA$ 8.6m | |
| Independent Director | 14.17yrs | CA$125.00k | 0.16% CA$ 6.2m | |
| Independent Director | 1.58yrs | CA$115.93k | 0.0065% CA$ 246.5k | |
| Independent Director | 16.58yrs | CA$125.00k | 0.63% CA$ 24.0m |
16.6yrs
Average Tenure
65yo
Average Age
Experienced Board: ENGH's board of directors are seasoned and experienced ( 16.6 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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: Enghouse Systems Limited
- Ticker: ENGH
- Exchange: TSX
- Founded: 1984
- Industry: Application Software
- Sector: Software
- Market Cap: CA$3.793b
- Shares outstanding: 55.35m
- Website: https://www.enghouse.com
Number of Employees
Location
- Enghouse Systems Limited
- 80 Tiverton Court
- Suite 800
- Markham
- Ontario
- L3R 0G4
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ENGH | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Feb 1998 |
| EGHS.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Feb 1998 |
| 30000 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Feb 1998 |
Biography
Enghouse Systems Limited develops enterprise software solutions worldwide. It operates through two segments, Interactive Management Group and Asset Management Group. The Interactive Management Group segmen ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/28 23:56 |
| End of Day Share Price | 2020/10/28 00:00 |
| Earnings | 2020/07/31 |
| Annual Earnings | 2019/10/31 |
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.