OTCPK:EGHS.F

Stock Analysis Report

Executive Summary

Enghouse Systems Limited develops enterprise software solutions worldwide.


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: EGHS.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.5%

EGHS.F

-9.9%

US Software

-10.6%

US Market


1 Year Return

n/a

EGHS.F

20.4%

US Software

5.2%

US Market

Return vs Industry: Insufficient data to determine how EGHS.F performed against the US Software industry.

Return vs Market: Insufficient data to determine how EGHS.F performed against the US Market.


Shareholder returns

EGHS.FIndustryMarket
7 Day-2.5%-9.9%-10.6%
30 Day-2.5%-5.5%-8.5%
90 Day23.2%1.9%-4.6%
1 Yearn/a21.7%20.4%7.4%5.2%
3 Year92.6%86.4%122.5%112.9%31.7%23.2%
5 Year121.9%110.7%190.9%169.8%56.4%39.3%

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

No news available

Valuation

Is Enghouse Systems undervalued compared to its fair value and its price relative to the market?

8.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EGHS.F ($38.99) is trading below our estimate of fair value ($42.67)

Significantly Below Fair Value: EGHS.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EGHS.F is good value based on its PE Ratio (39.9x) compared to the Software industry average (45.3x).

PE vs Market: EGHS.F is poor value based on its PE Ratio (39.9x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: EGHS.F is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: EGHS.F is overvalued based on its PB Ratio (7x) compared to the US Software industry average (5.5x).


Next Steps

Future Growth

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

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EGHS.F's forecast earnings growth (14% per year) is above the savings rate (1.7%).

Earnings vs Market: EGHS.F's earnings (14% per year) are forecast to grow faster than the US market (13.2% per year).

High Growth Earnings: EGHS.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: EGHS.F's revenue (19.2% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: EGHS.F's revenue (19.2% 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 EGHS.F'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?

18.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EGHS.F has high quality earnings.

Growing Profit Margin: EGHS.F's current net profit margins (18.4%) are higher than last year (16.8%).


Past Earnings Growth Analysis

Earnings Trend: EGHS.F's earnings have grown by 18.6% per year over the past 5 years.

Accelerating Growth: EGHS.F's earnings growth over the past year (22.7%) exceeds its 5-year average (18.6% per year).

Earnings vs Industry: EGHS.F earnings growth over the past year (22.7%) exceeded the Software industry 19%.


Return on Equity

High ROE: EGHS.F's Return on Equity (17.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Enghouse Systems's financial position?


Financial Position Analysis

Short Term Liabilities: EGHS.F's short term assets (CA$246.4M) exceed its short term liabilities (CA$161.0M).

Long Term Liabilities: EGHS.F's short term assets (CA$246.4M) exceed its long term liabilities (CA$27.6M).


Debt to Equity History and Analysis

Debt Level: EGHS.F's debt to equity ratio (0.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if EGHS.F's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: EGHS.F's debt is well covered by operating cash flow (7246.2%).

Interest Coverage: EGHS.F earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: EGHS.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: EGHS.F's debt is covered by short term assets (assets are 219.4x debt).


Next Steps

Dividend

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

0.85%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.6%markettop25%4.1%industryaverage1.3%forecastin3Years0.8%

Current dividend yield vs market & industry

Notable Dividend: EGHS.F's dividend (0.85%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: EGHS.F's dividend (0.85%) is low compared to the top 25% of dividend payers in the US market (3.96%).


Stability and Growth of Payments

Stable Dividend: EGHS.F is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: EGHS.F is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: EGHS.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EGHS.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Stephen Sadler (68yo)

19.8yrs

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 ($USD3.84M) is about average for companies of similar size in the US market ($USD3.92M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Sadler
Chairman & CEO19.8yrsCA$5.11m13.72% CA$293.2m
Vincent Mifsud
President2.1yrsCA$1.09mno data
Douglas Bryson
VP of Finance & Administration and Corporate Secretary0yrsCA$513.19k0.027% CA$583.2k
Sunil Diaz
General Manager of Networks Division0yrsCA$423.00kno data
David Thomas
General Manager of Divisional Management0yrsCA$575.01kno data
Lynette Corbett
Chief Administration & Human Resources Officer2.8yrsno datano data
Todd May
VP & General Counsel0yrsCA$263.55kno data
Sam Anidjar
Vice President of Corporate Development0yrsno datano data
Michael Stubbing
Managing Director of West & Northern Europe0yrsCA$323.36kno data
Christoph Mosing
President of Global Cloud Interactive Management Division (USA)0yrsCA$293.83kno data

2.8yrs

Average Tenure

61yo

Average Age

Experienced Management: EGHS.F's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Sadler
Chairman & CEO19.8yrsCA$5.11m13.72% CA$293.2m
Eric Demirian
Independent Director15.9yrsCA$140.00k0.029% CA$622.1k
Pierre Lassonde
Lead Director0yrsCA$130.00k3.92% CA$83.7m
Reid Drury
Independent Director19.8yrsCA$125.00k0.37% CA$7.8m
Paul Stoyan
Independent Director13.5yrsCA$125.00k0.18% CA$3.9m
Jane Mowat
Independent Director0.9yrsCA$115.93k0.0047% CA$101.1k
John Gibson
Independent Director15.9yrsCA$125.00k0.64% CA$13.6m

15.9yrs

Average Tenure

64yo

Average Age

Experienced Board: EGHS.F's board of directors are seasoned and experienced ( 15.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: EGHS.F insiders have sold more shares than they have bought 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: EGHS.F
  • Exchange: OTCPK
  • Founded: 1984
  • Industry: Application Software
  • Sector: Software
  • Market Cap: CA$2.857b
  • Listing Market Cap: CA$2.138b
  • Shares outstanding: 54.98m
  • 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 enterprise software solutions worldwide. It operates through two segments, Interactive Management Group and Asset Management Group. The Interactive Management Group segment provides customer interaction software and services. Its technologies include contact center, attendant console, interactive voice response, dialers, video collaboration, agent performance optimization, and analytics that support various telephony environment. This segment serves insurance companies, telecoms, banks, as well as technology, health care, and hospitality companies using deployment models, such as cloud, on-premise, hosted, and hybrid. The Asset Management Group segment offers a portfolio of products to telecom service providers. Its products include operations support systems, business support systems, and mobile value added services solutions, video and IPTV services as well as data conversion services. This segment also provides fleet routing, dispatch, scheduling, transit e-ticketing and automated fare collection, communications, and emergency control center solutions for the transportation, government, first responders, distribution, and security sectors. Further, it offers public transport agencies and operators with e-ticketing solutions; and integrated software platform for wholesale billing and partner settlements; client, server and cloud software products as well as system integration services; and also offers customer engagement software. The company was founded in 1984 and is headquartered in Markham, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 02:21
End of Day Share Price2020/02/25 00:00
Earnings2019/10/31
Annual Earnings2019/10/31


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.