NZSE:ENS

Stock Analysis Report

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Executive Summary

Enprise Group Limited, together with its subsidiaries, provides cloud and on-premise business software solutions in Australia and New Zealand. More Details


Snowflake Analysis

Undervalued with excellent balance sheet.

Share Price & News

How has Enprise Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ENS is more volatile than 90% of NZ stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: ENS's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of NZ stocks.


Market Performance


7 Day Return

-1.1%

ENS

-3.3%

NZ Software

0.6%

NZ Market


1 Year Return

-3.2%

ENS

-30.0%

NZ Software

9.2%

NZ Market

Return vs Industry: ENS exceeded the NZ Software industry which returned -29.3% over the past year.

Return vs Market: ENS underperformed the NZ Market which returned 8.7% over the past year.


Shareholder returns

ENSIndustryMarket
7 Day-1.1%-3.3%0.6%
30 Day-9.1%7.9%5.8%
90 Day8.4%4.5%6.4%
1 Year1.4%-3.2%-27.7%-30.0%13.2%9.2%
3 Year-52.1%-55.0%-5.9%-12.2%51.1%31.7%
5 Year177.7%125.0%29.4%18.6%105.3%56.2%

Long-Term Price Volatility Vs. Market

How volatile is Enprise Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Enprise Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ENS (NZ$0.9) is trading below our estimate of fair value (NZ$8.05)

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


Price To Earnings Ratio

PE vs Industry: ENS is good value based on its PE Ratio (9.6x) compared to the XO Software industry average (34.1x).

PE vs Market: ENS is good value based on its PE Ratio (9.6x) compared to the NZ market (23.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ENS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ENS is good value based on its PB Ratio (1.2x) compared to the NZ Software industry average (8.9x).


Next Steps

Future Growth

How is Enprise Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

31.6%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Enprise Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Enprise Group performed over the past 5 years?

-42.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENS has a large one-off gain of NZ$816.0K impacting its June 30 2020 financial results.

Growing Profit Margin: ENS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ENS's earnings have declined by 42.1% per year over the past 5 years.

Accelerating Growth: ENS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ENS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (20.2%).


Return on Equity

High ROE: ENS's Return on Equity (7.9%) is considered low.


Next Steps

Financial Health

How is Enprise Group's financial position?


Financial Position Analysis

Short Term Liabilities: ENS's short term assets (NZ$6.8M) do not cover its short term liabilities (NZ$7.1M).

Long Term Liabilities: ENS's short term assets (NZ$6.8M) exceed its long term liabilities (NZ$2.5M).


Debt to Equity History and Analysis

Debt Level: ENS's debt to equity ratio (3.5%) is considered satisfactory.

Reducing Debt: ENS's debt to equity ratio has reduced from 21.1% to 3.5% over the past 5 years.

Debt Coverage: ENS's debt is well covered by operating cash flow (438.9%).

Interest Coverage: ENS's interest payments on its debt are well covered by EBIT (15x coverage).


Balance Sheet


Next Steps

Dividend

What is Enprise Group current dividend yield, its reliability and sustainability?

2.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ENS's dividend (2.22%) isn’t notable compared to the bottom 25% of dividend payers in the NZ market (2.6%).

High Dividend: ENS's dividend (2.22%) is low compared to the top 25% of dividend payers in the NZ market (4.53%).


Stability and Growth of Payments

Stable Dividend: ENS has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ENS has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.1%), ENS'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?

4.0yrs

Average board tenure


CEO

George Cooper

5.25yrs

Tenure

NZ$184,000

Compensation

Mr. George Elliot Cooper Co-founded Enprise Group Limited in 2002 and has been its Chief Executive Officer since September 2015. Mr. Cooper served as Chief Financial Officer of Enprise Group Limited until ...


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD129.96K) is below average for companies of similar size in the NZ market ($USD262.47K).

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


Board Members

NamePositionTenureCompensationOwnership
George Cooper
Co-Founder5.25yrsNZ$184.00k1.52%
NZ$ 218.9k
Ronald Baskind
Executive Director2.92yrsNZ$224.20kno data
Lindsay Phillips
Chairmanno dataNZ$50.00k1.17%
NZ$ 169.3k
Nicholas Paul
Independent Non-Executive Director5yrsNZ$166.00k0.31%
NZ$ 44.6k
Marisa Fong
Independent Non-Executive Director1.83yrsNZ$31.00kno data

4.0yrs

Average Tenure

Experienced Board: ENS's board of directors are considered experienced (4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 67.6%.


Top Shareholders

Company Information

Enprise Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Enprise Group Limited
  • Ticker: ENS
  • Exchange: NZSE
  • Founded: 2004
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: NZ$14.446m
  • Shares outstanding: 16.05m
  • Website: https://enprise.com/nz

Location

  • Enprise Group Limited
  • 16 Hugo Johnston Drive
  • Level 2
  • Auckland
  • 1061
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ENSNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDDec 2014

Biography

Enprise Group Limited, together with its subsidiaries, provides cloud and on-premise business software solutions in Australia and New Zealand. The company offers cloud solutions based on the MYOB Exo Busin...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 06:01
End of Day Share Price2020/12/01 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.