Enghouse Systems Limited

TSX:ENGH Stock Report

Market Cap: CA$1.5b

Enghouse Systems Valuation

Is ENGH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ENGH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ENGH (CA$27.44) is trading below our estimate of fair value (CA$57.49)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ENGH?

Key metric: As ENGH is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ENGH. This is calculated by dividing ENGH's market cap by their current earnings.
What is ENGH's PE Ratio?
PE Ratio18.7x
EarningsCA$81.33m
Market CapCA$1.51b

Price to Earnings Ratio vs Peers

How does ENGH's PE Ratio compare to its peers?

The above table shows the PE ratio for ENGH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average91.4x
DCBO Docebo
77.4x38.7%CA$2.0b
CMG Computer Modelling Group
41.4x36.2%CA$873.3m
KXS Kinaxis
170x42.9%CA$5.0b
TOI Topicus.com
76.8xn/aCA$9.6b
ENGH Enghouse Systems
18.7x7.7%CA$1.5b

Price-To-Earnings vs Peers: ENGH is good value based on its Price-To-Earnings Ratio (18.7x) compared to the peer average (91.4x).

Price to Earnings Ratio vs Industry

How does ENGH's PE Ratio compare vs other companies in the CA Software Industry?

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GRDI Griid Infrastructure
3.3xn/aUS$70.78m
IDLE.X Generative AI Solutions
0.08xn/aUS$8.15m
LIQD Liquid Meta Capital Holdings
2.4xn/aUS$2.74m
SPAI Sparc Al
0.8xn/aUS$1.72m
ENGH 18.7xIndustry Avg. 41.4xNo. of Companies8PE020406080100+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ENGH is good value based on its Price-To-Earnings Ratio (18.7x) compared to the Canadian Software industry average (33.5x).

Price to Earnings Ratio vs Fair Ratio

What is ENGH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ENGH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.7x
Fair PE Ratio37.2x

Price-To-Earnings vs Fair Ratio: ENGH is good value based on its Price-To-Earnings Ratio (18.7x) compared to the estimated Fair Price-To-Earnings Ratio (37.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ENGH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$27.44
CA$33.00
+20.3%
12.7%CA$40.00CA$29.00n/a4
Dec ’25CA$29.17
CA$36.50
+25.1%
11.4%CA$43.00CA$32.00n/a4
Nov ’25CA$30.45
CA$38.00
+24.8%
9.8%CA$43.00CA$34.00n/a3
Oct ’25CA$33.49
CA$38.00
+13.5%
9.8%CA$43.00CA$34.00n/a3
Sep ’25CA$29.39
CA$38.00
+29.3%
9.8%CA$43.00CA$34.00n/a3
Aug ’25CA$30.43
CA$38.00
+24.9%
9.8%CA$43.00CA$34.00n/a3
Jul ’25CA$30.17
CA$38.00
+26.0%
9.8%CA$43.00CA$34.00n/a3
Jun ’25CA$27.34
CA$38.33
+40.2%
8.9%CA$43.00CA$35.00n/a3
May ’25CA$30.00
CA$38.33
+27.8%
8.9%CA$43.00CA$35.00n/a3
Apr ’25CA$29.96
CA$38.33
+27.9%
8.9%CA$43.00CA$35.00n/a3
Mar ’25CA$35.85
CA$39.33
+9.7%
6.7%CA$43.00CA$37.00n/a3
Feb ’25CA$37.58
CA$39.33
+4.7%
6.7%CA$43.00CA$37.00n/a3
Jan ’25CA$35.10
CA$39.33
+12.1%
6.7%CA$43.00CA$37.00n/a3
Dec ’24CA$34.33
CA$37.83
+10.2%
9.8%CA$43.00CA$34.50CA$29.173
Nov ’24CA$33.13
CA$37.83
+14.2%
9.8%CA$43.00CA$34.50CA$30.453
Oct ’24CA$29.98
CA$37.83
+26.2%
9.8%CA$43.00CA$34.50CA$33.493
Sep ’24CA$30.70
CA$39.50
+28.7%
15.3%CA$48.00CA$34.50CA$29.393
Aug ’24CA$29.47
CA$39.50
+34.0%
15.3%CA$48.00CA$34.50CA$30.433
Jul ’24CA$32.19
CA$39.50
+22.7%
15.3%CA$48.00CA$34.50CA$30.173
Jun ’24CA$37.25
CA$40.88
+9.7%
14.1%CA$48.00CA$34.50CA$27.344
May ’24CA$37.56
CA$40.88
+8.8%
14.1%CA$48.00CA$34.50CA$30.004
Apr ’24CA$38.25
CA$40.88
+6.9%
14.1%CA$48.00CA$34.50CA$29.964
Mar ’24CA$43.87
CA$39.38
-10.2%
10.9%CA$45.00CA$34.50CA$35.854
Feb ’24CA$40.38
CA$39.13
-3.1%
10.2%CA$44.00CA$34.50CA$37.584
Jan ’24CA$35.97
CA$39.13
+8.8%
10.2%CA$44.00CA$34.50CA$35.104
Dec ’23CA$31.54
CA$37.38
+18.5%
13.0%CA$44.00CA$32.00CA$34.334

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 05:22
End of Day Share Price 2024/12/20 00:00
Earnings2024/10/31
Annual Earnings2024/10/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Enghouse Systems Limited is covered by 8 analysts. 4 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Deepak KaushalBMO Capital Markets Equity Research
Stephanie PriceCIBC Capital Markets
Ralph GarceaEchelon Wealth Partners Inc.