Executive Summary
Enghouse Systems Limited develops enterprise software solutions worldwide. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 2.7% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet with solid track record and pays a dividend.
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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: ENGH's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-6.6%
ENGH
2.3%
CA Software
-3.3%
CA Market
1 Year Return
13.5%
ENGH
51.5%
CA Software
-0.4%
CA Market
Return vs Industry: ENGH underperformed the Canadian Software industry which returned 50.5% over the past year.
Return vs Market: ENGH exceeded the Canadian Market which returned 1.6% over the past year.
Shareholder returns
| ENGH | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.6% | 2.3% | -3.3% |
| 30 Day | -1.8% | 8.6% | 0.2% |
| 90 Day | -10.5% | 38.2% | 14.2% |
| 1 Year | 17.1%13.5% | 52.1%51.5% | 3.3%-0.4% |
| 3 Year | 95.5%85.4% | 94.7%90.4% | 13.7%2.8% |
| 5 Year | 121.5%105.6% | 229.1%217.6% | 59.6%35.0% |
Long-Term 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
1 week ago | Simply Wall St
Should You Review Recent Insider Transactions At Enghouse Systems Limited (TSE:ENGH)?2 weeks ago | Simply Wall St
The Enghouse Systems (TSE:ENGH) Share Price Has Gained 112%, So Why Not Pay It Some Attention?2 weeks ago | Simply Wall St
Here's What We Like About Enghouse Systems' (TSE:ENGH) Upcoming DividendValuation
Is Enghouse Systems undervalued compared to its fair value and its price relative to the market?
23.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ENGH (CA$60.18) is trading below our estimate of fair value (CA$78.46)
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 (33.6x) compared to the CA Software industry average (39.2x).
PE vs Market: ENGH is poor value based on its PE Ratio (33.6x) compared to the Canadian market (16.9x).
Price to Earnings Growth Ratio
PEG Ratio: ENGH's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: ENGH is good value based on its PB Ratio (6.7x) compared to the CA Software industry average (7.4x).
Next Steps
Future Growth
How is Enghouse Systems forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
-2.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ENGH's earnings are forecast to decline over the next 3 years (-2.7% per year).
Earnings vs Market: ENGH's earnings are forecast to decline over the next 3 years (-2.7% per year).
High Growth Earnings: ENGH's earnings are forecast to decline over the next 3 years.
Revenue vs Market: ENGH's revenue (10.4% per year) is forecast to grow faster than the Canadian market (8% per year).
High Growth Revenue: ENGH's revenue (10.4% 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?
18.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ENGH has high quality earnings.
Growing Profit Margin: ENGH's current net profit margins (19.6%) are higher than last year (18.4%).
Past Earnings Growth Analysis
Earnings Trend: ENGH's earnings have grown by 18.7% per year over the past 5 years.
Accelerating Growth: ENGH's earnings growth over the past year (39.1%) exceeds its 5-year average (18.7% per year).
Earnings vs Industry: ENGH earnings growth over the past year (39.1%) exceeded the Software industry 25.3%.
Return on Equity
High ROE: ENGH's Return on Equity (19.9%) is considered low.
Next Steps
Financial Health
How is Enghouse Systems's financial position?
Financial Position Analysis
Short Term Liabilities: ENGH's short term assets (CA$357.4M) exceed its short term liabilities (CA$206.6M).
Long Term Liabilities: ENGH's short term assets (CA$357.4M) exceed its long term liabilities (CA$60.7M).
Debt to Equity History and Analysis
Debt Level: ENGH is debt free.
Reducing Debt: ENGH had no debt 5 years ago.
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
Next Steps
Dividend
What is Enghouse Systems's current dividend yield, its reliability and sustainability?
0.90%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: ENGH's dividend (0.9%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.52%).
High Dividend: ENGH's dividend (0.9%) is low compared to the top 25% of dividend payers in the Canadian market (4.9%).
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 (30.2%), ENGH's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ENGH's dividends in 3 years are forecast to be well covered by earnings (38.7% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
Steve Sadler (69 yo)
20.75yrs
Tenure
CA$5,106,952
Compensation
Mr. Stephen J. Sadler, also known as Steve, has been the Chief Executive Officer at Enghouse Systems Limited and serves as the Chairman of the Board of Enghouse Systems Limited since April 1, 2000. Mr. Sad...
CEO Compensation Analysis
Compensation vs Market: Steve's total compensation ($USD4.00M) is above average for companies of similar size in the Canadian market ($USD3.03M).
Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 20.75yrs | CA$5.11m | 12.03% CA$ 400.6m | |
| President | 3yrs | CA$1.09m | no data | |
| VP of Finance & Administration and Corporate Secretary | no data | CA$513.19k | 0.027% CA$ 902.7k | |
| 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 | 3.75yrs | 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 |
3.8yrs
Average Tenure
62yo
Average Age
Experienced Management: ENGH's management team is considered experienced (3.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 20.75yrs | CA$5.11m | 12.03% CA$ 400.6m | |
| Independent Director | 16.83yrs | CA$140.00k | 0.029% CA$ 963.0k | |
| Independent Lead Director | no data | CA$130.00k | 5.87% CA$ 195.4m | |
| Independent Director | 20.75yrs | CA$125.00k | 0.23% CA$ 7.6m | |
| Independent Director | 14.42yrs | CA$125.00k | 0.16% CA$ 5.5m | |
| Independent Director | 1.83yrs | CA$115.93k | 0.014% CA$ 457.4k | |
| Independent Director | 16.83yrs | CA$125.00k | 0.63% CA$ 21.1m |
16.8yrs
Average Tenure
65yo
Average Age
Experienced Board: ENGH's board of directors are seasoned and experienced ( 16.8 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$3.331b
- 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 | 2021/01/27 23:49 |
| End of Day Share Price | 2021/01/27 00:00 |
| Earnings | 2020/10/31 |
| Annual Earnings | 2020/10/31 |
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.