TSX:ENGH

Stock Analysis Report

Enghouse Systems

Executive Summary

Enghouse Systems Limited develops and sells enterprise oriented applications software worldwide.

Snowflake

Fundamentals

Excellent balance sheet with acceptable track record.


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


Market Performance


7 Day Return

-2.0%

TSX:ENGH

0.9%

CA Software

1.6%

CA Market


1 Year Return

-6.2%

TSX:ENGH

17.1%

CA Software

-0.5%

CA Market

ENGH underperformed the Software industry which returned 15.9% over the past year.

ENGH underperformed the Market in Canada which returned -0.3% over the past year.


Share holder returns

ENGHIndustryMarket
7 Day-2.0%0.9%1.6%
30 Day3.0%3.4%3.9%
90 Day2.8%1.2%0.8%
1 Year-5.2%-6.2%19.0%17.1%3.0%-0.5%
3 Year56.1%51.1%82.2%77.8%19.5%8.8%
5 Year118.2%107.1%165.4%158.2%21.0%3.6%

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

Valuation

Is Enghouse Systems undervalued based on future cash flows and its price relative to the stock market?

33%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Enghouse Systems's share price is below the future cash flow value, and at a moderate discount (> 20%).

Enghouse Systems's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Enghouse Systems is overvalued based on earnings compared to the CA Software industry average.

Enghouse Systems is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

Enghouse Systems is poor value based on expected growth next year.


Price Based on Value of Assets

Enghouse Systems is overvalued based on assets compared to the CA Software industry average.


Next Steps

Future Growth

How is Enghouse Systems expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Enghouse Systems's revenue is expected to grow by 13.1% yearly, however this is not considered high growth (20% yearly).

Enghouse Systems's earnings are expected to grow by 11.3% yearly, however this is not considered high growth (20% yearly).

Enghouse Systems's revenue growth is expected to exceed the Canada market average.

Enghouse Systems's earnings growth is positive but not above the Canada market average.

Enghouse Systems's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Enghouse Systems will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Enghouse Systems performed over the past 5 years?

18.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Enghouse Systems's year on year earnings growth rate has been positive over the past 5 years.

Enghouse Systems's 1-year earnings growth is less than its 5-year average (15.1% vs 18.4%)

Enghouse Systems's earnings growth has not exceeded the CA Software industry average in the past year (15.1% vs 28.5%).


Return on Equity

Enghouse Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Enghouse Systems used its assets more efficiently than the CA Software industry average last year based on Return on Assets.


Return on Capital Employed

Enghouse Systems has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Enghouse Systems's financial position?


Financial Position Analysis

Enghouse Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Enghouse Systems's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Enghouse Systems's level of debt (0.2%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Enghouse Systems's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (11338.8%, greater than 20% of total debt).

Enghouse Systems earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 316.5x debt.


Next Steps

Dividend

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

1.13%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Enghouse Systems's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (1.99%).

Enghouse Systems's dividend is below the markets top 25% of dividend payers in Canada (5.85%).

Enghouse Systems is not paying a notable dividend for Canada, therefore no need to check if the payments are stable.

Enghouse Systems is not paying a notable dividend for Canada, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Enghouse Systems's dividends as it is not paying a notable one for Canada.


Future Payout to Shareholders

No need to calculate the sustainability of Enghouse Systems's dividends in 3 years as they are not expected to pay a notable one for Canada.


Next Steps

Management

What is the CEO of Enghouse Systems's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Stephen Sadler (68yo)

19.4yrs

Tenure

CA$4,606,163

Compensation

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


CEO Compensation Analysis

Stephen's remuneration is higher than average for companies of similar size in Canada.

Stephen's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.4yrs

Average Tenure

61yo

Average Age

The tenure for the Enghouse Systems management team is about average.


Board Age and Tenure

15.5yrs

Average Tenure

64yo

Average Age

The average tenure for the Enghouse Systems board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyCA$103,12513 Mar 19
Forfar Trust
EntityCompany
Shares3,000
Max PriceCA$34.37
SellCA$309,47028 Jan 19
Stephen Sadler
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares8,400
Max PriceCA$36.85
SellCA$1,673,87621 Jan 19
Stephen Sadler
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares46,000
Max PriceCA$36.59
SellCA$2,094,60611 Jan 19
Stephen Sadler
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares60,000
Max PriceCA$35.75
SellCA$1,101,26025 Dec 18
Stephen Sadler
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares31,600
Max PriceCA$34.85
SellCA$227,25025 Oct 18
Eric Demirian
EntityIndividual
Role
Member of the Board of Directors
Director
Shares6,000
Max PriceCA$37.87
SellCA$150,80722 Oct 18
Eric Demirian
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,000
Max PriceCA$37.70
SellCA$2,099,43929 Sep 18
Stephen Sadler
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares51,400
Max PriceCA$41.14
SellCA$205,00028 Sep 18
Douglas Bryson
EntityIndividual
Role
Chief Financial Officer
VP of Finance & Administration and Corporate Secretary
Shares5,000
Max PriceCA$41.00
SellCA$64,10525 Sep 18
Paul Stoyan
EntityIndividual
Role
Member of the Board of Directors
Outside Director
Shares1,600
Max PriceCA$40.07
SellCA$595,70024 Sep 18
Firelight Investments Limited, Asset Management Arm
EntityCompany
Shares14,800
Max PriceCA$40.25
SellCA$162,33323 Sep 18
Demicap Inc.
EntityCompany
Shares4,000
Max PriceCA$40.67
SellCA$1,044,03422 Sep 18
Stephen Sadler
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares25,800
Max PriceCA$40.75
SellCA$401,88221 Sep 18
Douglas Bryson
EntityIndividual
Role
Chief Financial Officer
VP of Finance & Administration and Corporate Secretary
Shares10,000
Max PriceCA$40.25

Ownership Breakdown


Management Team

  • Stephen Sadler (68yo)

    Executive Chairman & CEO

    • Tenure: 19.4yrs
    • Compensation: CA$4.61m
  • Vince Mifsud (51yo)

    President

    • Tenure: 1.7yrs
    • Compensation: CA$1.93m
  • Douglas Bryson

    VP of Finance & Administration and Corporate Secretary

    • Tenure: 0yrs
    • Compensation: CA$285.46k
  • Michael Stubbing (61yo)

    Managing Director of West & Northern Europe

    • Tenure: 0yrs
    • Compensation: CA$323.36k
  • Sam Anidjar

    Vice President of Corporate Development

    • Tenure: 0yrs
  • Todd May

    VP & General Counsel

    • Tenure: 0yrs
    • Compensation: CA$263.55k
  • Christoph Mosing

    President of Global Cloud Interactive Management Division (USA)

    • Tenure: 0yrs
    • Compensation: CA$293.83k
  • Geoff Bartle

    Vice President of Corporate Information Systems

    • Tenure: 0yrs
  • Lynette Corbett

    Chief Administration & Human Resources Officer

    • Tenure: 2.4yrs
  • Sunil Diaz

    General Manager of Networks Division

    • Tenure: 0yrs
    • Compensation: CA$291.82k

Board Members

  • Eric Demirian (60yo)

    Director

    • Tenure: 15.5yrs
    • Compensation: CA$140.00k
  • Stephen Sadler (68yo)

    Executive Chairman & CEO

    • Tenure: 19.4yrs
    • Compensation: CA$4.61m
  • Pierre Lassonde (71yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: CA$130.00k
  • Reid Drury

    Director

    • Tenure: 19.4yrs
    • Compensation: CA$125.00k
  • Paul Stoyan (60yo)

    Outside Director

    • Tenure: 13.1yrs
    • Compensation: CA$125.00k
  • Jane Mowat

    Director

    • Tenure: 0.5yrs
  • John Gibson

    Independent Director

    • Tenure: 15.5yrs
    • Compensation: CA$125.00k

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$2.078b
  • Shares outstanding: 54.69m
  • Website: https://www.enghouse.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ENGHTSX (The Toronto Stock Exchange)YesCommon SharesCACADFeb 1998
EGHS.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 1998
30000DB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 1998

Biography

Enghouse Systems Limited develops and sells enterprise oriented applications software worldwide. It operates through two segments, Interactive Management Group and Asset Management Group. The Interactive M ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 23:34
End of Day Share Price2019/09/16 00:00
Earnings2019/07/31
Annual Earnings2018/10/31


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.